B08_Attachment_5_-_140P4226R0005_Limitation_on_Subcontracting_Report.docx

DOCX document 285 KB Posted

Attached to
INDE-CONGRESS HALL MASONRY (CONSTR) Federal contract opportunity
Solicitation number
140P4226R0005
Issued by
Department of the Interior National Park Service Northeast Region

About this file

This is a Limitation on Subcontracting Report worksheet required under FAR Clause 52.219-14 for Solicitation 140P4226R0005, a Total Small Business set-aside for Congress Hall Masonry rehabilitation work at the National Park Service's East Philadelphia office. The worksheet provides instructions and a calculation template for determining the percentage of contract work that may be subcontracted to non-similarly situated entities, which cannot exceed 85 percent of the Government-paid amount (excluding material costs) for general construction work. This requirement ensures that the prime contractor or similarly situated entities perform a minimum of 15 percent of the work.

The document includes a detailed step-by-step methodology for calculating the subcontracting labor cost percentage by adding direct labor and fringe benefits, applying the contractor's General and Administrative (G&A) rate, and then dividing the subcontractor's total labor costs by the combined prime and subcontractor labor costs. An example calculation demonstrates a 21.43 percent subcontracting labor percentage based on prime contractor costs of $250 direct labor plus $300 fringe benefits, and subcontractor costs of $50 direct labor plus $100 fringe benefits, with a 10 percent G&A rate applied. Contractors must verify that their labor overhead is allowable under FAR 31.205-6(m) or risk elimination of the entire overhead from calculations.

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Text version

United States Department of the Interior

NATIONAL PARK SERVICE

CON OPS East Philadelphia MABO 1234 Market Street Philadelphia, PA 19107

12 March 2026

SUBJECT: FAR CLAUSE 52.219-14, SUBCONTRACTING PERCENTAGE WORKSHEET

SOLICITATION 140P4226R0005 INDE Rehabilitate Congress Hall Masonry

PRIME CONTRACTOR: _________________________ SOURCE: ________________________

SUBCONTRACTOR: ___________________________ SOURCE: ________________________

Example:

To calculate, either follow the below directions OR right click the above Excel ‘Object’ and select ‘Worksheet Object’ then ‘Edit’. You can then input Direct Labor/Fringe Benefits/G&A % and it will calculate for you (as illustrated).

a) To calculate the subcontracting percentage, first add DIRECT LABOR and FRINGE BENEFITS and enter the figures for the prime contractor in space (A) and for the subcontractor (if available)*** in space (B).

b) Next, calculate the LABOR G&A by multiplying the G&A rate by the SUBTOTAL figure in space (A).

c) Calculate the subcontractor's LABOR G&A by multiplying the subcontractor's G&A rate by the subcontractor's SUBTOTAL figure in (B).

d) Add the LABOR G&A to the SUBTOTAL and record that figure in the spaces for TOTAL LABOR COSTS at (C) and (D) respectively.

e) Next, using the formula below, calculate the subcontracting labor percentage.

____(D)____

(C) + (D)

SUBCONTRACTING LABOR COST PERCENTAGE = %

*The firm must demonstrate that their labor overhead is allowable in accordance with FAR 3 l.205- 6(m). Failure to do so will cause the entire overhead to be eliminated from the calculations.

**G&A denotes General and Administrative Costs ***You need to compare as like figures as possible. Therefore, if you have a breakdown of the subcontractor's costs use it in the formulation above. If you do not have a breakdown you need to use the TOTAL SUBCONTRACTING AMOUNT for item (D) even though you must still breakdown the contractor's costs.

In accordance with FAR Clause 52.219-14(e)(3), General construction, it will not pay more than 85 percent of the amount paid by the Government for contract performance, excluding the cost of materials, to subcontractors that are not similarly situated entities. Any work that a similarly situated entity further subcontracts will count towards the prime contractor's 85 percent subcontract amount that cannot be exceeded. Therefore, the prime contractor or similarly situated entities shall perform a minimum of 15 percent of the work, excluding the cost of materials.

NPS-CON OPS East Page 1 of 1

FOR OFFICIAL USE ONLY

SOURCE SELECTION INFORMATION – SEE FAR 3.104

Preserving unimpaired the natural and cultural resources and values of the national park system for the enjoyment, education, and inspiration of this and future generations.

FOR OFFICIAL USE ONLY

SOURCE SELECTION INFORMATION – SEE FAR 3.104

image1.emf

Microsoft_Excel_Worksheet.xlsx Sheet1

PRIME CONTRACTOR SUBCONTRACTOR

DIRECT LABOR $250.00 $50.00

FRINGE BENEFITS $300.00 $100.00

SUB TOTAL (A)$550 (B)$150

LABOR G&A** @ 10.00% $55.00 10.00% $15.00

TOTAL LABOR COST (C)$605 (D)$165

Subcontracting Labor Percentage 21.43% image2.jpeg image3.jpeg

File details come from the government source that posted it. Updated .