S02 Atch E VAAR 852.219-75 Limitations on Subcontracting Cert of Compliance - 2 pages.pdf
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- Attached to
- Replace Operating Room 5 Flooring
- Solicitation number
- 36C26327Q0019
About this file
This is a federal contract clause template for VA (Department of Veterans Affairs) Notice of Limitations on Subcontracting—Certificate of Compliance for Services and Construction.
The clause, effective October 2026 and marked as a deviation, establishes subcontracting limitations for contractors awarded VA contracts under 38 U.S.C. 8127(l)(2). The applicable limitation depends on the contract type, as determined by predominant NAICS code: Services contracts (excluding construction) are limited to paying no more than 50% of government payments to non-SDVOSB/VOSB firms; General construction contracts are limited to 85%; and Special Trade Construction Contractors are limited to 75%. In all cases, materials costs are excluded from subcontracting calculations, and further subcontracting by similarly situated subcontractors counts toward the applicable percentage cap. The clause is selected for Special Trade Construction Contractors (marked with an X in the template).
Offerors must certify compliance with these limitations upon proposal submission and acknowledge that false certifications are subject to criminal, civil, or administrative penalties under Title 18, U.S. Code, Section 1001. The VA reserves the right to request documentation (invoices, subcontracts, task value lists) at any time during performance or upon completion to verify compliance. Non-compliance or failure to provide requested documents may result in remedial action, suspension and debarment referral, fines under the Small Business Act, or prosecution. The completed and executed certification form must be returned with the bid, quotation, or proposal; the Government cannot award a contract without this completed clause.
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Text version
852.219-75 VA Notice of Limitations on Subcontracting—Certificate of Compliance for Services and Construction (OCT 2026) (DEVIATION)
(a) Pursuant to 38 U.S.C. 8127(l)(2), the offeror certifies that—
(1) If awarded a contract, it will comply with the limitations on subcontracting requirement as provided in the solicitation and the resultant contract, as follows: [Contracting Officer must select the appropriate box below based on the predominant NAICS code assigned to the instant acquisition as set forth in FAR 19.102. [Contracting officers should delete these instructions from the clause after selecting the appropriate box below.]
(i) [ ] 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 listed in SBS as SDVOSBs or VOSBs. Any work that a similarly situated 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 as SDVOSBs or VOSBs listed in SBS. Any work that a similarly situated 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) [X] 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 listed in SBS as SDVOSBs/VOSBs.
Any work that a similarly situated 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 must 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 section 1001 of title 18.
(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) This full clause (paragraphs (a) through (d)) should be returned with the offeror’s bid, quotation, or proposal and the certification provided in this paragraph (d) must be completed and executed. The Government cannot award a contract to any offeror without this completed and executed clause.
Certification:
I hereby certify that if awarded the contract, it will comply with the limitations on subcontracting specified in this clause and in the resultant contract. The undersigned certifies that they are authorized to execute this certificate on behalf of the offeror.
Printed Name of Signee: _________________________________________
Printed Title of Signee: __________________________________________
Signature: _____________________________________________________
Date: _________________________________________________________
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