Attachment 6 - Limitations on Subcontracting Review_SAMPLE LETTER vAUG2022.docx
DOCX document 301 KB Posted
- Attached to
- Fort Hood Installation Custodial Services
- Solicitation number
- W91151-26-R-A004
About this file
This file is a sample template letter and compliance form for verifying contractor adherence to Limitations on Subcontracting requirements under FAR Clause 52.219-14. The Department of the Army uses this document to request information from contractors regarding their subcontracting practices on small business set-aside contracts.
The form requires contractors to disclose whether they intend to subcontract any portion of contract work and, if so, to provide a detailed breakdown of costs between prime contractor self-performance, work by similarly situated subcontractors, and work by non-similarly situated subcontractors. Contractors must identify all subcontractors by name, CAGE code, and NAICS code, and confirm whether subcontractors qualify as small businesses under their assigned NAICS codes. For service contracts, the form also captures materials and other direct costs. The contractor must certify the accuracy of all representations. The document notes that penalties for exceeding subcontracting limitations range from $500,000 to the dollar amount expended in excess of permitted levels, and indicates that the Government will conduct periodic compliance checks throughout contract performance. This is a template document without specific response dates, solicitation numbers, or pricing information, designed for use across multiple Army contracting actions.
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Text version
Department of the Army U.S. Army mission and installation contracting command MICC <OrGANiZATION NAME> <Organization ADDRESS>
CCMI-SB<Insert Office Symbol> XX Month 20XX
Contractor Point of Contact Small Business Name Small Business Address
Dear Contractor Point of Contact:
The purpose of this letter is to request information in order to confirm your compliance with Limitations on Subcontracting, FAR Clause 52.219-14 (Deviation 2021-O0008). In accordance with the terms of this contract, by submission of an offer and execution of a contract, the contractor agrees that it will not pay more that XX percent of the amount paid by the Government for contract performance to subcontractors that are not similarly situated entities. In accordance with 15 U.S.C. § 645(g), the penalty for exceeding the limitation on subcontracting is the greater of (A) $500,000 or (B) the dollar amount expended in excess of permitted levels by the entity on subcontractors.
Please complete and return the Limitations on Subcontracting Review document enclosed with this letter to the undersigned via e-mail by <date and time group>. Also, be advised that we will be conducting periodic compliance checks and may request additional information, as specified in FAR Clause 52.219-14 (Deviation 2021-O0008).
Please feel free to contact me via email at XXX@army.mil or by phone at (XXX) XXX-XXX if you have any additional questions or concerns.
| <KO Signature> | |
| <KO NAME> | |
| <KO Signature Block Information> |
Limitations on Subcontracting Review for (Solicitation/Contract Number)
Please provide the following information to verify compliance with Limitations on Subcontracting.
Section I. Do you intend to subcontract any portion of the work associated with this contract? If yes, please proceed to section II. If no, please sign and return the statement below.
I certify that our company intends to self-perform the entire effort associated with this contract and will not be subcontracting to any entities.
| _____________________________ | ________________ |
| Signature | Date |
Company Name and Title
Section II. Breakout of Self-Performed vs. Subcontracted Work
II.a. Provide a breakout of Prime vs. Subcontractor Costs
| Amount of Work in Dollars (excluding cost of materials) |
| Percent of Total Contract Value |
Work Performed by Prime Contractor
Work performed by subcontractors that are similarly situated*
Work performed by subcontractors that are not similarly situated
*Note: Review FAR clause 52.219-14 (Deviation 2021 O0008) for the definition of a “similarly situated entity”
II.b. In the event that dollars for similarly situated entities were entered in II.a above, complete the table that follows. If no subcontracted work was performed by similarly situated entities, proceed to section III.
| Name of Similarly Situated Entities |
| CAGE Code or Unique Entity ID (If applicable) |
| NAICS code assigned to work |
| Is the subcontractor a small business under the assigned NAICS and set-aside (yes or no) |
III. Breakout of Materials and Other Direct Costs
III.a. Provide dollars for materials and other direct costs**, if applicable.
| Amount in Dollars |
| Percent of Total Contract Value |
Cost of Materials (if applicable)
Other Direct Costs (If applicable)**
**Note: In accordance with FAR 52.219-14 (Deviation 2021-O0008), Other Direct Costs are only applicable to service contracts for the purpose of Limitations on Subcontracting calculations.
III.b. If Other Direct Costs have been included (for service contracts only), list what those Other Direct Costs are below.
| List Other Direct Costs |
| Provide Rationale for Classification as an Other Direct Cost |
IV. Contractor Certification.
I certify that the above representations are true and correct to the best of my knowledge.
| _________________________________________________ | ____________ | |
| Contractor Signature | Date |
Company Name and Title image1.jpeg
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