Attachment E1 - Limitations on Subcontracting - 3 Pages.pdf

PDF 81 KB Posted

Attached to
Y1DA--437-24-150, Replace Nurse Call and Code Blue System Federal contract opportunity
Solicitation number
36C26326B0027
Issued by
Department of Veterans Affairs Veterans Health Administration Veterans Integrated Service Network 23

About this file

This document is a VA contracting clause template (852.219-75) that establishes limitations on subcontracting for Service-Disabled Veteran-Owned Small Businesses (SDVOSBs) and Veteran-Owned Small Businesses (VOSBs) under Department of Veterans Affairs contracts governed by 38 U.S.C. § 8127(l)(2).

The clause requires offerors to certify compliance with subcontracting limitations based on the contract type, as determined by the predominant NAICS code. For service contracts (excluding construction), contractors may not subcontract more than 50% of government payments to non-certified SDVOSB/VOSB firms, with exclusions available for certain direct costs. General construction contracts limit subcontracting to non-certified firms to 85% of government payments, while special trade construction contracts limit such subcontracting to 75%, with material costs excluded in both construction categories. Any further subcontracting by certified SDVOSB/VOSB subcontractors counts toward these thresholds. The clause imposes mandatory certification requirements with criminal penalties under 18 U.S.C. § 1001 for false statements and authorizes VA to review compliance documentation at any time during performance. Offerors must complete, sign, and submit the formal certification with their bid or proposal; failure to provide the certification renders the response ineligible for evaluation and award. The clause also establishes potential sanctions for SDVOSBs found to have violated good faith requirements, including referral to VA's Suspension and Debarment Committee, fines under the Small Business Act, and prosecution for fraud.

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Text version

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

As prescribed in 819.7011(b), insert the following clause:

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: [Contracting Officer check the appropriate box below based on the predominant NAICS code assigned to the instant acquisition as set forth in FAR 19.102.]

(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) [ ] 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 SDBOSB/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) [X] 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 certified SDBOSB/VOSB 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.

https://www.va.gov/oal/library/vaar/vaar819.asp#8197011b https://www.acquisition.gov/far/2.101 https://www.acquisition.gov/far/19.102 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 https://www.va.gov/oal/library/vaar/vaar852.asp#85221973 https://www.va.gov/oal/library/vaar/vaar852.asp#85221974 https://www.va.gov/oal/library/vaar/vaar852.asp#85221973 https://www.va.gov/oal/library/vaar/vaar852.asp#85221974

(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 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.

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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:______________________________________

(End of clause)

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