Attachment 05 - Limitations on Subcontracting - Bedford.pdf

PDF 95 KB Posted

Attached to
Y1DA--518-22-700 EHRM Infrastructure Upgrades Construction Bedford VAMC
Solicitation number
36C77626R0003
Issued by

About this file

This is a VA Form 852.219-75, a Certificate of Compliance template regarding limitations on subcontracting for VA contracts with service-disabled veteran-owned small businesses (SDVOSBs) and veteran-owned small businesses (VOSBs). The form is effective January 2023 and represents a deviation from standard FAR requirements.

The clause establishes specific subcontracting limitations based on contract type. For general construction contracts (the applicable category as indicated by the checkbox), contractors cannot pay more than 85% of government payments to non-certified SDVOSB/VOSB firms, with material costs excluded from this calculation. For services contracts, the limit is 50% of government payments to non-certified firms. For special trade construction, the limit is 75%. Any further subcontracting by certified SDVOSB/VOSB subcontractors counts toward these percentages. The form requires the offeror to certify compliance with these limitations upon contract award, acknowledge the certification is subject to Title 18 U.S.C. Section 1001 (false certification penalties), and authorize VA to request documentation demonstrating compliance at any time during or after contract performance. Offerors failing to provide the completed, signed certification with their bid or proposal will be deemed ineligible for award. The form specifies that non-compliance may result in referral to the VA Suspension and Debarment Committee, fines under the Small Business Act, or criminal 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 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 section 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:

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