S02_RFP Attachment LOS 2 pages.pdf
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- Solicitation number
- 36C24826Q0459
About this file
This is a VA Notice of Limitations on Subcontracting—Certificate of Compliance form for services and construction contracts awarded under 38 U.S.C. 8127(k)(2), effective November 2022. The document establishes subcontracting limitations that apply to Service-Disabled Veteran-Owned Small Businesses (SDVOSBs) and Veteran-Owned Small Businesses (VOSBs) awarded contracts by the Department of Veterans Affairs.
The form specifies three categories of work with different subcontracting thresholds: for services contracts (excluding construction), contractors cannot subcontract more than 50% of government payments to non-VIP-listed SDVOSBs or VOSBs; for general construction, the limit is 85%; and for special trade construction, the limit is 75%. Material costs are excluded from construction subcontracting calculations. The clause requires offerors to certify compliance upon submission of their bid, quotation, or proposal, and contractors must demonstrate compliance throughout contract performance and upon completion. The VA may request supporting documentation including invoices, subcontracts, or task value lists at any time. Failure to comply with subcontracting limitations subjects SDVOSBs/VOSBs to suspension and debarment referral, civil fines under the Small Business Act, or criminal prosecution under Title 18, U.S.C. Section 1001. Offerors must complete and sign the certification form; failure to provide the completed certification renders an offer ineligible for award consideration.
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Text version
4.22 VAAR 852.219-75 VA NOTICE OF LIMITATIONS ON SUBCONTRACTING—CERTIFICATE OF
COMPLIANCE FOR SERVICES AND CONSTRUCTION (NOV 2022)
(a) Pursuant to 38 U.S.C. 8127(k)(2), the offeror cerƟfies that—
(1) If awarded a contract (see FAR 2.101 definiƟon), it will comply with the limitaƟons on subcontracƟng requirement as provided in the solicitaƟon and the resultant contract, as follows:
(i) [x] Services. In the case of a contract for services (except construcƟon), the contractor will not pay more than 50% of the amount paid by the government to it to firms that are not VIP-listed SDVOSBs as set forth in 852.219–73 or VOSBs as set forth in 852.219–74. Any work that a similarly situated VIP-listed subcontractor further subcontracts will count towards the 50% subcontract amount that cannot be exceeded. Other direct costs may be excluded to the extent they are not the principal purpose of the acquisiƟon and small business concerns do not provide the service as set forth in 13 CFR 125.6.
(ii) [] General construcƟon. In the case of a contract for general construcƟon, the contractor will not pay more than 85% of the amount paid by the government to it to firms that are not VIP-listed SDVOSBs as set forth in 852.219–73or VOSBs as set forth in 852.219–74. Any work that a similarly situated VIP-listed subcontractor further subcontracts will count towards the 85% subcontract amount that cannot be exceeded. Cost of materials are excluded and not considered to be subcontracted.
(iii) [] Special trade construcƟon contractors. In the case of a contract for special trade contractors, the contractor will not pay more than 75% of the amount paid by the government to it to firms that are not VIP-listed SDVOSBs as set forth in 852.219–73 or VOSBs as set forth in 852.219–74. Any work that a similarly situated subcontractor further subcontracts will count towards the 75% subcontract amount that cannot be exceeded. Cost of materials are excluded and not considered to be subcontracted.
(2) The offeror acknowledges that this cerƟficaƟon concerns a maƩer within the jurisdicƟon of an
Agency of the United States. The offeror further acknowledges that this cerƟficaƟon is subject to Title
18, United States Code, SecƟon 1001, and, as such, a false, ficƟƟous, or fraudulent cerƟficaƟon may render the offeror subject to criminal, civil, or administraƟve penalƟes, including prosecuƟon.
(3) If VA determines that an SDVOSB/ VOSB awarded a contract pursuant to 38 U.S.C. 8127 did not act in good faith, such SDVOSB/VOSB shall be subject to any or all of the following:
(i) Referral to the VA Suspension and Debarment CommiƩee;
(ii) A fine under secƟon 16(g)(1) of the Small Business Act (15 U.S.C. 645(g)(1)); and
(iii) ProsecuƟon for violaƟng secƟon 1001 of Ɵtle 18.
(b) The offeror represents and understands that by submission of its offer and award of a contract it may be required to provide copies of documents or records to VA that VA may review to determine whether the offeror complied with the limitaƟons on subcontracƟng requirement specified in the contract. ContracƟng officers may, at their discreƟon, require the contractor to demonstrate its compliance with the limitaƟons on subcontracƟng at any Ɵme during performance and upon compleƟon of a contract if the informaƟon regarding such compliance is not already available to the contracƟng officer. Evidence of compliance includes, but is not limited to, invoices, copies of subcontracts, or a list of the value of tasks performed.
(c) The offeror further agrees to cooperate fully and make available any documents or records as may be required to enable VA to determine compliance with the limitaƟons on subcontracƟng requirement.
The offeror understands that failure to provide documents as requested by VA may result in remedial acƟon as the Government deems appropriate.
(d) Offeror completed cerƟficaƟon/fill-in required. The formal cerƟficaƟon must be completed, signed and returned with the offeror’s bid, quotaƟon, or proposal. The Government will not consider offers for award from offerors that do not provide the cerƟficaƟon, and all such responses will be deemed ineligible for evaluaƟon and award.
CerƟficaƟon
I hereby cerƟfy that if awarded the contract, [insert name of offeror] will comply with the limitaƟons on subcontracƟng specified in this clause and in the resultant contract. I further cerƟfy that I am authorized to execute this cerƟficaƟon on behalf of [insert name of offeror].
Printed Name of Signee: ___________
Printed Title of Signee: _____________
Signature: ____________
Date: ______________
Company Name and Address: _______________
(End of Clause)
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