B13_Attachment_004_Limitations_On_Subcontracting_Deviation_Clause.pdf

This is a subcontracting limitations deviation clause (52.219-14) effective October 28, 2022, that specifies restrictions on subcontracting for various contract types. The clause establishes maximum subcontracting percentages for non-similarly situated entities: 50% for services (excluding construction), 50% for supplies (excluding material costs), 85% for general construction, and 75% for special trade construction contracts. Any work subcontracted to similarly situated entities counts toward the prime contractor's required performance percentage.

The clause includes specific provisions for joint ventures, requiring small business protégés and 8(a) participants to perform at least 40% of joint venture work beyond administrative functions. It excludes certain costs from the limitations, such as airline travel, transportation services, cloud computing, and work performed outside the U.S. under the Foreign Assistance Act. The clause applies to small business set-aside contracts, sole-source awards, and contracts using HUBZone price evaluation preferences, with compliance required either by the end of each contract period or by the end of performance for individual orders.