Attachment 2_VA Notice of Limitations.pdf

This is a VA Notice of Limitations on Subcontracting—Certificate of Compliance for Services and Construction (January 2023), serving as a required certification form for federal contract offerors.

The clause establishes subcontracting limitations based on contract type and NAICS code assignment. For service contracts (except construction), contractors cannot subcontract more than 50% of government payments to firms lacking certified SDVOSB or VOSB status; similarly situated certified SDVOSB/VOSB subcontractor work counts toward the 50% threshold, with exclusions for direct costs unrelated to the principal purpose. General construction contracts have an 85% limitation on payments to non-certified SDVOSBs or VOSBs, with material costs excluded from subcontracting calculations. Special trade construction contracts face a 75% limitation under the same parameters. The certification acknowledges that false, fictitious, or fraudulent statements may result in criminal, civil, or administrative penalties under 18 U.S.C. Section 1001. Offerors must provide completed, signed certifications with their bids or proposals; failure to provide the certification renders offers ineligible for evaluation and award. The VA may require contractors to demonstrate compliance documentation during performance and upon contract completion, including invoices, subcontracts, or task value lists. Contractors must cooperate fully with VA requests for compliance documentation, and failure to provide requested materials may result in remedial government action.