Limitation on Subcontracting-Certification.doc.docx

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J063--PACS Maintenance SDVOSB Set-Aside
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36C10D26Q0144
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This is a Limitation on Subcontracting Certification form required for the Department of Veterans Affairs (VA) PACS Maintenance SDVOSB Set-Aside solicitation (36C10D26Q0144). The certification applies to service contracts and mandates that contractors comply with subcontracting limitations, requiring that the prime contractor and similarly situated Service-Disabled Veteran-Owned Small Business (SDVOSB) or Veteran-Owned Small Business (VOSB) subcontractors perform at least 50% of the contract value. Work subcontracted to similarly situated certified SDVOSB/VOSB entities counts toward the prime contractor's performance requirement. Other direct costs may be excluded if they are not the principal purpose of the acquisition and small businesses do not provide the service.

Offerors must complete and sign the certification upon submission, selecting one of two options: either certifying that no subcontractors are anticipated and the company receives 100% of contract costs, or certifying that the prime and similarly situated subcontractors will receive at least 50% of contract value. If subcontractors are used, offerors must provide detailed information for each subcontractor, including business name, UEI number, description of work, and percentage cost of contract. Failure to provide the completed certification renders the offer ineligible for evaluation and award. VA reserves the right to request documentation at any time during or after contract performance to verify compliance, and false certification is subject to criminal, civil, or administrative penalties under 18 U.S.C. Section 1001.

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C.12 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 certifies that—

(1) If awarded a contract (see FAR 2.101 definition), it will comply with the limitations on subcontracting requirement as provided in the solicitation and the resultant contract, as follows:

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

(ii) [] General construction. In the case of a contract for general construction, the contractor will not pay more than 85% of the amount paid by the government to it to firms that are not certified SDVOSBs listed in the SBA certification database as set forth in 852.219–73 or certified VOSBs listed in the SBA certification database as set forth in 852.219–74. Any work that a similarly situated certified 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 construction 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 certified SDVOSBs listed in the SBA certification database as set forth in 852.219–73 or certified VOSBs listed in the SBA certification database as set forth in 852.219–74. Any work that a similarly situated certified 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 certification concerns a matter within the jurisdiction of an Agency of the United States. The offeror further acknowledges that this certification is subject to Title 18, United States Code, Section 1001, and, as such, a false, fictitious, or fraudulent certification may render the offeror subject to criminal, civil, or administrative penalties, including prosecution.

(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 Committee;

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

(iii) Prosecution for violating 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 limitations on subcontracting requirement specified in the contract. Contracting officers may, at their discretion, require the contractor to demonstrate its compliance with the limitations on subcontracting at any time during performance and upon completion of a contract if the information regarding such compliance is not already available to the contracting 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 limitations on subcontracting requirement. The offeror understands that failure to provide documents as requested by VA may result in remedial action as the Government deems appropriate.

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

Certification I hereby certify that if awarded the contract, [insert name of offeror] will comply with the limitations on subcontracting specified in this clause and in the resultant contract. I further certify that I am authorized to execute this certification on behalf of [insert name of offeror].

Printed Name of Signee: ___________ Printed Title of Signee: _____________ Signature: ____________ Date: ______________ Company Name and Address: _______________ (End of Clause)

Offerors are to check which block applies:

[ ] I certify that no subcontractors are anticipated in performing services under this requirement. My Company receives 100% of the cost of this contract.

[ ] I certify that my company and those subcontractors that are similarly situated are estimated to receive at least 50% of the value of this contract. I understand that a similarly situated subcontractor must meet the size standard for the NAICS assigned by the prime and must be in certified on the following site: https://search.certifications.sba.gov/?CFID=4566&CFTOKEN=ab97b84e69c54e36-8499F018-B2BC-7203-D072223AADD0D8EE. Please provide the following information to identify and calculate the cost of the work self-performed and what is subcontracted.

For each subcontractor provide the following: Business Name, UEI number, Description of Work, Percentage COST of Contract.

Contractor Name
UEI Number
Description of Work
Value of work in %

Total % of value of contract by Prime Contractor

Total % of value of contract by similarly situated subcontractors

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