Att_5_-_Subcontracting_Percentage_Worksheet.pdf

Attachment 5: Subcontracting Percentage Worksheet

U.S. Department of the Interior

FAR Clause 52.219-14, Limitations of Subcontracting

Subcontracting Percentage Worksheet

PRIME CONTRACTOR: SOURCE:

SUBCONTRACTOR: SOURCE:

PRIME CONTRACTOR SUBCONTRACTOR

DIRECT LABOR $ $

FRINGE BENEFITS* $ $

SUB TOTAL (A) $ (B) $

LABOR G&A**@______% $ $

TOTAL LABOR COSTS (C) $ (D) $

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).

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

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

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

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 31.205- 6(m). Failure to do so will csuse 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 subcontractos’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.