Attachment 5 - Limitations on Subcontracting Clause - Construction.pdf

VAAR 852.219-75 VA NOTICE OF LIMITATIONS ON SUBCONTRACTING—

CERTIFICATE OF COMPLIANCE FOR SERVICES AND CONSTRUCTION (OCT

2026)(DEVIATION)

• (a) Pursuant to 38 U.S.C. 8127(l)(2), the offeror certifies that— o (1) If awarded a contract, it will comply with the limitations on subcontracting requirement as provided in the solicitation and the resultant contract, as follows:

[Contracting Officer must select the appropriate box below based on the predominant NAICS code assigned to the instant acquisition as set forth in FAR

19.102. [Contracting officers should delete these instructions from the clause after selecting the appropriate box below.]

▪ (i) [ ] Services. In the case of a contract for services (except construction), the contractor will not pay more than 50% of the amount paid by the government to it to firms that are not listed in SBS as SDVOSBs or

VOSBs. Any work that a similarly situated 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 acquisition and small business concerns do not provide the service as set forth in 13 CFR 125.6.

▪ (ii) [X] General construction. In the case of a contract for general construction, the contractor will not pay more than 85% of the amount paid by the government to it to firms that are not certified as SDVOSBs or

VOSBs listed in SBS. Any work that a similarly situated SDVOSB/VOSB 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 construction 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 listed in SBS as SDVOSBs/VOSBs. Any work that a similarly situated SDVOSB/VOSB 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.

o (2) 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.

o (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 must 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 section 1001 of title 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 limitations on subcontracting requirement specified in the contract. 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 with the limitations on subcontracting requirement. The offeror understands that failure to provide documents as requested by VA may result in remedial action as the

Government deems appropriate.

• (d) This full clause (paragraphs (a) through (d)) should be returned with the offeror’s bid, quotation, or proposal and the certification provided in this paragraph (d) must be completed and executed. The Government cannot award a contract to any offeror without this completed and executed clause.

• The offeror certifies that if awarded the contract, it will comply with the limitations on subcontracting specified in this clause and in the resultant contract. The undersigned certifies that they are authorized to execute this certificate on behalf of the offeror.

o Printed Name of Signee: _________________________________________ o Printed Title of Signee: __________________________________________ o Signature: _____________________________________________________ o Date: _________________________________________________________

VAAR 852.219-75 VA NOTICE OF LIMITATIONS ON SUBCONTRACTING—CERTIFICATE OF COMPLIANCE FOR SERVICES AND CONSTRUCTION (OCT 2026)(DEVIATION)