Attach D - VAAR 852.219-75 Limitations on Subcontracting-Cert of Compliance_JAN 2023 [D.pdf

PDF 130 KB Posted

Attached to
Y1DZ--437-24-101, Replace UST's & Leak Detection System Federal contract opportunity
Solicitation number
36C26326B0016_2
Issued by
Department of Veterans Affairs Veterans Health Administration Veterans Integrated Service Network 23

About this file

This document is a VA Notice of Limitations on Subcontracting—Certificate of Compliance template for services and construction contracts under the Veterans Affairs Acquired Regulations (VAAR 852.219-75), effective January 2023.

The clause establishes subcontracting limitations for contracts awarded to Service-Disabled Veteran-Owned Small Businesses (SDVOSBs) and Veteran-Owned Small Businesses (VOSBs) pursuant to 38 U.S.C. 8127(l)(2). For general construction contracts (the applicable category marked with an X in this template), the prime contractor cannot pay more than 85% of government payment to non-certified SDVOSB/VOSB firms, with material costs excluded from this calculation. For services contracts, the limit is 50% of government payment, while special trade construction contracts have a 75% limit. Any further subcontracting by certified SDVOSB/VOSB subcontractors counts toward these maximum thresholds. Offerors must complete and sign the certification statement confirming compliance, which is a prerequisite for offer evaluation. The certification is subject to criminal penalties under Title 18, United States Code, Section 1001, for false or fraudulent statements. VA reserves the right to require contractors to provide documentation (invoices, subcontracts, task value lists) at any time during performance or upon completion to verify compliance. Failure to provide requested compliance documentation may result in remedial action as deemed appropriate by the Government. SDVOSBs/VOSBs determined to have acted in bad faith may face referral to VA's Suspension and Debarment Committee, fines under the Small Business Act, or prosecution.

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Text version

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) [ ] 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 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. 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 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 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 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 75% subcontract amount that cannot be exceeded. Cost of materials are excluded and not considered to be subcontracted.

(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.

(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 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. 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) 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, [insert name of offeror] 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 [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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