Attachment 2_VA Notice of Limitations.pdf

This is a federal contract compliance form—specifically, a Notice of Limitations on Subcontracting Certificate of Compliance for Services and Construction (January 2023 Deviation) issued by the Department of Veterans Affairs (VA).

The form establishes mandatory subcontracting limitations that contractors must certify compliance with upon contract award. For services contracts (excluding construction), contractors cannot pay more than 50% of government-paid amounts to firms that are not certified Service-Disabled Veteran-Owned Small Businesses (SDVOSBs) or Veteran-Owned Small Businesses (VOSBs) listed in the SBA certification database; work performed by similarly situated certified SDVOSB/VOSB subcontractors counts toward this 50% threshold, and other direct costs may be excluded if they are not the principal purpose of the acquisition. For general construction contracts, the limitation is 85% of government-paid amounts to non-certified firms, with the same subcontractor counting rules and material cost exclusions. For special trade contractors, the limitation is 75% of government-paid amounts to non-certified firms. The form requires the offeror to provide a signed certification statement confirming compliance with these subcontracting limitations. Offerors must complete and submit the certification with their bid, quotation, or proposal; failure to provide the completed certification renders the offer ineligible for evaluation and award. The VA may request documentation to verify compliance at any time during performance or upon contract completion, and false or fraudulent certification subjects the offeror to criminal, civil, or administrative penalties under 18 U.S.C. Section 1001.