Attachment F. Definitions.pdf
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- Attached to
- J061--Amendment 0003 - RFQ 36C26326Q0609
- Solicitation number
- 36C26326Q0609
About this file
This file is an attachment containing regulatory definitions applicable to federal contracting, specifically addressing ostensible subcontractors and similarly situated entities under Small Business Administration (SBA) guidelines.
The ostensible subcontractor provisions establish eligibility criteria for small business concerns, 8(a) small business concerns, HUBZone small business concerns, WOSB/EDWOSB concerns, and VOSB/SDVOSB concerns. An offeror becomes ineligible when the SBA determines an ostensible subcontractor exists—defined as a subcontractor that is not similarly situated and performs primary and vital contract requirements or creates unusual reliance by the prime contractor. Prime contractors may leverage subcontractor experience and past performance to enhance proposals; however, this triggers ostensible subcontractor scrutiny only when the subcontractor will perform primary and vital requirements or the prime exhibits undue reliance. For small business set-asides in services, specialty trade construction, or supplies, primes are presumed to perform primary and vital requirements if they and their small business subcontractors collectively meet subcontracting limitations. In general construction contracts, primary and vital requirements encompass project management, supervision, and oversight—not actual construction work. Joint venture offerors must have the managing partner perform at least 40% of the joint venture work to maintain eligibility.
The similarly situated entity definition requires that subcontractors possess the same small business program status as the prime contractor (HUBZone, small business, SDVOSB, VOSB, 8(a), or WOSB/EDWOSB) and be small for the NAICS code assigned to their subcontract work. Reference: 13 CFR 121.103(h)(3) and 13 CFR 125.1 (Apr. 2, 2026).
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Attachment F. Definitions
OSTENSIBLE SUBCONTRACTORS:
(i) An offeror is ineligible as a small business concern, an 8(a) small business concern, a certified HUBZone small business concern, a WOSB/EDWOSB concern, or a VOSB/ SDVOSB concern where SBA determines there to be an ostensible subcontractor. An ostensible subcontractor is a subcontractor that is not a similarly situated entity, as that term is defined in § 125.1 of this chapter, and performs primary and vital requirements of a contract, or of an order, or is a subcontractor upon which the prime contractor is unusually reliant.
(ii) A prime contractor may use the experience and past performance of a subcontractor to enhance or strengthen its offer, including that of an incumbent contractor. It is only where that subcontractor will perform primary and vital requirements of a contract or order, or the prime contractor is unusually reliant on the subcontractor, that SBA will find the subcontractor to be an ostensible subcontractor.
(iii) In the case of a contract or order set-aside or reserved for small business for services, specialty trade construction or supplies, SBA will find that a small business prime contractor is performing the primary and vital requirements of the contract or order, and is not unduly reliant on one or more subcontractors that are not small businesses, where the prime contractor can demonstrate that it, together with any subcontractors that qualify as small businesses, will meet the limitations on subcontracting provisions set forth in §
125.6 of this chapter.
(iv) In a general construction contract, the primary and vital requirements of the contract are the management, supervision and oversight of the project, including coordinating the work of various subcontractors, not the actual construction work performed.
(v) A joint venture offeror is ineligible as a small business concern, an 8(a) small business concern, a certified HUBZone small business concern, a WOSB/EDWOSB concern, or a VO/SDVO small business concern where SBA determines that the managing joint venture partner will not perform 40% of the work to be performed by the joint venture
Reference: 13 CFR 121.103(h)(3)(i)(ii)(iii)(iv)(v) (Apr. 2, 2026).
SIMILARLY SITUATED ENTITY:
Similarly situated entity means a subcontractor that has the same small business program status as the prime contractor. This means that: For a HUBZone contract, a subcontractor that is a certified HUBZone small business concern; for a small business set-aside, partial set-aside, or reserve, a subcontractor that is a small business concern; for a SDVOSB contract, a subcontractor that is a certified SDVOSB; for a VOSB contract, a subcontractor that is a certified VOSB; for an 8(a) contract, a subcontractor that is a certified 8(a) BD Program Participant; for a WOSB or EDWOSB contract, a subcontractor that is a certified WOSB or EDWOSB. In addition to sharing the same small business program status as the prime contractor, a similarly situated entity must also be small for the NAICS code that the prime contractor assigned to the subcontract the subcontractor will perform.
Reference: 13 CFR 125.1 (Apr. 2, 2026). Also see FAR Clause 52.219-14(b) Definition.
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