36C25626Q0965 Attachment B - 852.219-75 VA NOTICE OF LIMIT ON SUBCONTRACTING.pdf
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About this file
This document is a VA Notice of Limitations on Subcontracting—Certificate of Compliance form (VAAR 852.219-75, January 2023 deviation) that serves as a required certification template for offerors responding to Department of Veterans Affairs contract solicitations.
The form establishes subcontracting limitations for SDVOSB (Service-Disabled Veteran-Owned Small Business) and VOSB (Veteran-Owned Small Business) contracts awarded under 38 U.S.C. 8127. Offerors must certify compliance with specific requirements: for supply or product contracts, no more than 50% of government payment may be subcontracted to non-certified SDVOSBs or VOSBs; for nonmanufacturer supply contracts, offerors must supply products from domestic small business manufacturers unless a waiver is granted. The form requires offerors to represent their status as either manufacturers/producers of end items manufactured in the United States or qualified nonmanufacturers meeting specific criteria including employee limits (500 employees, or 150 for IT Value Added Resellers), engagement in retail/wholesale trade, and ownership/possession of items consistent with industry practice. For multiple-item acquisitions, at least 50% of estimated contract value must comprise items manufactured by small businesses. Offerors acknowledge the certification is subject to Title 18, U.S. Code, Section 1001, and may face criminal, civil, or administrative penalties for false certification. VA may require documentation demonstrating compliance at any time during or after contract performance, and offerors must cooperate fully with compliance reviews. The completed, signed certification is mandatory for offer eligibility; responses without certification will be deemed ineligible for evaluation and award.
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VAAR 852.219-75 VA NOTICE OF LIMITATIONS ON SUBCONTRACTING—
CERTIFICATE OF COMPLIANCE FOR SERVICES AND CONSTRUCTION (JAN 2023)
(DEVIATION)
(a) Pursuant to 38 U.S.C. 8127(l)(2), the offeror certifies that—
(1) If awarded a contract (see FAR 2.101 definition), it will comply with the limitations on subcontracting requirement as provided in the solicitation and the resultant contract, as follows:
(i) [ ] In the case of a contract for supplies or products (other than from a nonmanufacturer of such supplies), it will not pay more than 50% of the amount paid by the government to it to firms that are not certified SDVOSBs listed in the SBA certification database as set forth in 852.219–73 or certified VOSBs listed in the SBA certification database as set forth in 852.219–74. Any work that a similarly situated certified SDVOSB/VOSB subcontractor further subcontracts will count towards the 50% subcontract amount that cannot be exceeded. Cost of materials are excluded and not considered to be subcontracted.
(ii) [ ] In the case of a contract for supplies from a nonmanufacturer, it will supply the product of a domestic small business manufacturer or processor, unless a waiver as described in 13 CFR 121.406(b)(5) is granted.
The offeror understands that, as provided in 13 CFR 121.406(b)(7), such a waiver has no effect on requirements external to the Small Business Act, such as the Buy American Act or the Trade Agreements Act.
(2) Manufacturer or nonmanufacturer representation and certification.
(i) [ ] Manufacturer or producer. The offeror certifies that it is the manufacturer or producer of the end item being procured, and the end item is manufactured or produced in the United States, in accordance with paragraph (a)(1)(i).
(ii) [ ] Nonmanufacturer. The offeror certifies that it qualifies as a nonmanufacturer in accordance with the requirements of 13 CFR 121.406(b) and paragraph (a)(1)(ii). The offeror further certifies it meets each element below as required in order to qualify as a nonmanufacturer.
[ ] The offeror certifies that it does not exceed 500 employees (or 150 employees for the Information Technology Value Added Reseller exception to NAICS code 541519, which is found at 13 CFR 121.201, footnote 18).
[ ] The offeror certifies that it is primarily engaged in the retail or wholesale trade and normally sells the type of item being supplied.
[ ] The offeror certifies that it will take ownership or possession of the item(s) with its personnel, equipment, or facilities in a manner consistent with industry practice.
(iii) [] If this is a multiple item acquisition, the offeror certifies that at least 50% of the estimated contract value is composed of items that are manufactured by small business concerns.
(3) The offeror acknowledges that this certification concerns a matter within the jurisdiction of an Agency of the United States. The offeror further acknowledges that this certification is subject to Title 18, United States Code, Section 1001, and, as such, a false, fictitious, or fraudulent certification may render the offeror subject to criminal, civil, or administrative penalties, including prosecution.
(4) 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 Committee;
(ii) A fine under section 16(g)(1) of the Small Business Act (15 U.S.C. 645(g)(1)); and
(iii) Prosecution for violating 18 U.S.C. 1001.
(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 limitations on subcontracting requirement specified in the contract or to determine whether the offeror qualifies as a manufacturer or nonmanufacturer in compliance with the limitations on subcontracting requirement. Contracting officers may, at their discretion, require the contractor to demonstrate its compliance with the limitations on subcontracting at any time during performance and upon completion of a contract if the information regarding such compliance is not already available to the contracting 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. The offeror understands that failure to provide documents as requested by VA may result in remedial action as the Government deems appropriate.
(d) Offeror completed certification/fill-in required. The formal certification must be completed, signed and returned with the offeror’s bid, quotation, or proposal. The Government will not consider offers for award from offerors that do not provide the certification, and all such responses will be deemed ineligible for evaluation and award.
Certification
I hereby certify that if awarded the contract, _______________________ will comply with the limitations on subcontracting specified in this clause and in the resultant contract. I further certify that I am authorized to execute this certification on behalf of _________________________________.
Printed Name of Signee: ______________________________________________
Printed Title of Signee: ________________________________________________
Signature: _____________________________________________
Date: ______________
Company Name and Address: ____________________________________________
VAAR 852.219-75 VA NOTICE OF LIMITATIONS ON SUBCONTRACTING—CERTIFICATE OF COMPLIANCE FOR SERVICES AND CONSTRUCTION (JAN 2023) (DEVIATION)
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