Attachment_3_Limitations_on_Subcontracting.pdf

Section J -Attachment 3

FAR 52.219-14 Limitations on Subcontracting –Subcontracting Percentages DEC 1996 Worksheet

Offerors shall complete the worksheet below and submit it with their offer. (If the offeror has more than one subcontract, the information entered in the “Subcontractor(s)” column shall be for the total of all subcontracts.)

Name of Prime Contractor: ______________________________ Name of Subcontractor(s): ______________________________

Prime Contractor Subcontractor(s) Direct Labor Costs $ $ Fringe Benefits/Labor Overhead* $ $ Subtotal (A)$ (B)$ Labor G&A** @_____% $ $ Total Labor Costs (C)$ (D)$

To calculate the subcontracting percentage, first:

Add “Direct Labor Costs” and “Fringe Benefits/Labor Overhead” and enter the figures for the prime contractor in space (A), and for the subcontractor(s) (if available ***) in space (B);

Next, calculate the prime contractor’s “Labor G&A” by multiplying its G&A rate by the “Subtotal” figure in space (A);

Then, calculate the subcontractor’s “Labor G&A” by multiplying the subcontractor’s G&A rate by the “Subtotal” figure in (B);

Next, add the “Labor G&A” $ amount to the “Subtotal” $ amount and record those figures in the spaces for “Total Labor Costs” at (C) and (D) respectively; and Finally, using the formula below, calculate the subcontracting labor percentage.

___(D)___

(C) + (D)

Subcontracting labor cost percentage: _________%. Subtract this percentage from 100% to determine the percentage of the contract that will be performed by the prime contractor. If this figure does not meet the requirements of contract clause 52.219-14, “Limitations on Subcontracting (DEC 1996),” your offer is not responsive and may be rejected, and thus not eligible for award of a contract.

* Enter “Fringe Benefits” dollar amounts for construction and service contracts; enter “Labor Overhead” dollar amounts for supplies contracts.

** G&A means “General and Administrative” expense.

*** Figures should be as comparable as possible; therefore, if you know the subcontractor(s)’ rates, use them; if not, use the total subcontracted amount for item (D).