ATTACHMENT VAAR 852.219-75 Certificate of Compliance SERVICES.pdf

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This is a VA (Department of Veterans Affairs) contracting clause template that establishes limitations on subcontracting for contracts awarded to Service-Disabled Veteran-Owned Small Businesses (SDVOSBs) and Veteran-Owned Small Businesses (VOSBs) under 38 U.S.C. 8127.

The clause specifies subcontracting thresholds that vary by contract type: for services contracts, the contractor cannot pay more than 50% of government payments to non-certified SDVOSB/VOSB firms; for general construction contracts, the limit is 85%; and for special trade construction contracts, the limit is 75%. Material costs in construction contracts are excluded from subcontracting calculations. The clause requires that any further subcontracting by similarly situated SDVOSB/VOSB subcontractors counts toward these limitations. Offerors must certify compliance with these requirements in their bid, proposal, or quotation submission, and the Government will deem ineligible any responses that do not include the completed certification signed by an authorized company representative. The VA may require contractors to provide documentation such as invoices, subcontracts, or task value lists to verify compliance at any time during performance or upon contract completion. False or fraudulent certification subjects offerors to criminal, civil, or administrative penalties under Title 18, United States Code, Section 1001, and may result in suspension, debarment, fines, or prosecution for SDVOSBs/VOSBs determined to have acted in bad faith.

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VAAR 852.219-75 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 cerƟfies that—

(1) If awarded a contract (see FAR 2.101 definiƟon), it will comply with the limitaƟons on subcontracƟng requirement as provided in the solicitaƟon and the resultant contract, as follows:

(i) [X] Services. In the case of a contract for services (except construcƟon), the contractor will not pay more than 50% of the amount paid by the government to it to firms that are not cerƟfied SDVOSBs listed in the SBA cerƟficaƟon database as set forth in 852.219–73 or cerƟfied VOSBs listed in the SBA cerƟficaƟon database as set forth in 852.219–74. Any work that a similarly situated cerƟfied 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 acquisiƟon and small business concerns do not provide the service as set forth in 13 CFR 125.6.

(ii) [] General construc on. In the case of a contract for general construcƟon, the contractor will not pay more than 85% of the amount paid by the government to it to firms that are not cerƟfied SDVOSBs listed in the SBA cerƟficaƟon database as set forth in 852.219–73 or cerƟfied VOSBs listed in the SBA cerƟficaƟon database as set forth in 852.219–74. Any work that a similarly situated cerƟfied SDVOSB/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) [] Special trade construc on 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 cerƟfied SDVOSBs listed in the SBA cerƟficaƟon database as set forth in 852.219–73 or cerƟfied VOSBs listed in the SBA cerƟficaƟon database as set forth in 852.219–

74. Any work that a similarly situated cerƟfied SDVOSB/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.

(2) The offeror acknowledges that this cerƟficaƟon concerns a maƩer within the jurisdicƟon of an Agency of the United States. The offeror further acknowledges that this cerƟficaƟon is subject to Title 18, United States Code, SecƟon 1001, and, as such, a false, ficƟƟous, or fraudulent cerƟficaƟon may render the offeror subject to criminal, civil, or administraƟve penalƟes, including prosecuƟon.

(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 CommiƩee;

(ii) A fine under secƟon 16(g)(1) of the Small Business Act (15 U.S.C. 645(g)(1)); and

(iii) ProsecuƟon for violaƟng 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 limitaƟons on subcontracƟng requirement specified in the contract. ContracƟng officers may, at their discreƟon, require the contractor to demonstrate its compliance with the limitaƟons on subcontracƟng at any Ɵme during performance and upon compleƟon of a contract if the informaƟon regarding such compliance is not already available to the contracƟng 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 limitaƟons on subcontracƟng requirement. The offeror understands that failure to provide documents as requested by VA may result in remedial acƟon as the Government deems appropriate.

(d) Offeror completed cerƟficaƟon/fill-in required. The formal cerƟficaƟon must be completed, signed and returned with the offeror’s bid, quotaƟon, or proposal. The Government will not consider offers for award from offerors that do not provide the cerƟficaƟon, and all such responses will be deemed ineligible for evaluaƟon and award.

CerƟficaƟon

I hereby cerƟfy that if awarded the contract, [insert name of offeror] will comply with the limitaƟons on subcontracƟng specified in this clause and in the resultant contract. I further cerƟfy that I am authorized to execute this cerƟficaƟon 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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