Attachment 6 - 663-21-100 - Limitations on Subcontracting-Construction.pdf

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Attached to
S112--CON-NRM 663-21-100 UPGRADE EXTERNAL SECURITY SYSTEM FY26 Tier 1
Solicitation number
36C26026R0029
Issued by

About this file

This is a VA Notice of Limitations on Subcontracting—Certificate of Compliance for Services and Construction (VAAR 852.219-75), which is a required compliance form for VA contract Solicitation #36C26026R0029.

The clause establishes subcontracting limitations for general construction contracts awarded to Service-Disabled Veteran-Owned Small Businesses (SDVOSBs) or Veteran-Owned Small Businesses (VOSBs). Under this requirement, contractors cannot pay more than 85% of government payments to firms that are not VIP-listed SDVOSBs or VOSBs, with any further subcontracting by VIP-listed subcontractors counting toward the 85% limitation. Material costs are excluded from subcontracting calculations. Offerors must complete and sign the certification form, certifying compliance with these limitations, and submit it with their bid or proposal. Failure to provide the completed certification renders offers ineligible for evaluation and award. The VA reserves the right to request supporting documentation at any time during performance or upon contract completion to verify compliance, including invoices, subcontracts, or task value lists. Non-compliance subjects contractors to suspension and debarment referral, fines under the Small Business Act, and potential criminal prosecution under 18 U.S.C. Section 1001. Contractors must cooperate fully with VA compliance reviews and provide requested documents; failure to do so may result in remedial action deemed appropriate by the Government.

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VAAR 852.219-75 VA Notice of Limitations on Subcontracting—Certificate of Compliance for Services and Construction.

(a) Pursuant to 38 U.S.C. 8127(k)(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:

(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 VIP-listed SDVOSBs as set forth in 852.219- 73 or VOSBs as set forth in 852.219-74. Any work that a similarly situated VIP-listed 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.

(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 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.

https://www.va.gov/oal/library/vaar/vaar852.asp#85221973 https://www.va.gov/oal/library/vaar/vaar852.asp#85221973 https://www.va.gov/oal/library/vaar/vaar852.asp#85221974

(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, resulting from Solicitation #36C26026R0029, ____________________________(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 ____________________________(offeror).

Printed Name of Signee: ___________________________________

Printed Title of Signee: ____________________________________

Signature: ____________________________

Date: ____________

Company Name and Address:

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