Deviation 52.219-14_Limitations.pdf

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Attached to
30-day Dry Cargo Time Charter Federal contract opportunity
Solicitation number
N3220526R6015
Issued by
Department of the Navy Military Sealift Command

About this file

This document is a federal acquisition regulation (FAR) clause detailing Limitations on Subcontracting (Deviation 2021-00008) for small business contracts. The clause applies to contracts set aside for small business concerns, multiple-award contract portions set aside for small businesses, sole-source contracts, and orders under multiple-award contracts that meet specific criteria.

Key provisions include defining "similarly situated entities" as first-tier subcontractors with the same small business program status as the prime contractor, and establishing strict limitations on subcontracting percentages. For different contract types, the clause caps subcontractor payments: 50% for services, 50% for supplies from non-manufacturers, 85% for general construction, and 75% for construction by special trade contractors. The regulation aims to ensure that small businesses perform a substantial portion of the work on contracts awarded to them, with specific exclusions for certain direct costs and work performed outside the United States.

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52.219-14 Limitations on Subcontracting (DEVIATION 2021-00008)

Use the following clause in lieu of the Federal Acquisition Regulation (FAR) clause 52.219-14, as prescribed at FAR 19.507(e):

LIMITATIONS ON SUBCONTRACTING (FEB 2023) (DEVIATION 2021-00008)

(a) This clause does not apply to the unrestricted portion of a partial set-aside.

(b) Definition. Similarly situated entity, as used in this clause, means a first-tier subcontractor, including an independent contractor, that-

(1) Has the same small business program status as that which qualified the prime contractor for the award (e.g., for a small business set-aside contract, any small business concern, without regard to its socioeconomic status); and

(2) Is considered small for the size standard under the North American Industry Classification System (NAICS) code the prime contractor assigned to the subcontract.

(c) Applicability. This clause applies only to---

(1) Contracts that have been set aside for any of the small business concerns identified in 19.000(a)(3);

(2) Part or parts of a multiple-award contract that have been set aside for any of the small business concerns identified in 19.000(a)(3);

(3) Contracts that have been awarded on a sole-source basis in accordance with subparts 19.8, 19.13, 19.14, and 19.15;

( 4) Orders expected to exceed the simplified acquisition threshold and that are---

(i) Set aside for small business concerns under multiple-award contracts, as described in 8.405-5 and 16.505(b)(2)(i)(F); or

(ii) Issued directly to small business concerns under multiple-award contracts as described in 19.504(c)(l)(ii);

( 5) Orders, regardless of dollar value, that are---

(i) Set aside in accordance with subparts 19.8, 19.13, 19.14, or 19.15 under multiple award contracts, as described in 8.405-5 and 16.505(b)(2)(i)(F); or

(ii) Issued directly to concerns that qualify for the programs described in subparts 19.8, 19.13, 19.14, or 19.15 under multiple-award contracts, as described in 19.504(c)(l)(ii); and

( 6) Contracts using the HUB Zone price evaluation preference to award to a HUB Zone small business concern unless the concern waived the evaluation preference.

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