S02 Limitation on Subcontracting.pdf

This is a VA Notice of Limitations on Subcontracting—Certificate of Compliance for Services and Construction (January 2023 Deviation), a mandatory compliance certification form that offerors must complete and submit with their bids, quotations, or proposals.

The clause establishes subcontracting limitations based on contract type. For service contracts (excluding construction), contractors cannot subcontract more than 50% of the government-paid amount to non-certified small businesses, with exceptions for certified SDVOSBs and VOSBs listed in the SBA certification database. For general construction contracts, the limit is 85% of government-paid amounts to non-certified firms. For special trade construction contracts, the limit is 75% of government-paid amounts. Direct costs that are not the principal purpose of the acquisition and small business concerns providing services under 13 CFR 125.6 are excluded from these calculations. Materials in construction contracts are also excluded. The certification acknowledges that false certifications may result in criminal, civil, or administrative penalties under 18 U.S.C. Section 1001, potential referral to the VA Suspension and Debarment Committee, and fines under the Small Business Act. Offerors must certify compliance, authorize the signatory to execute the certification on their behalf, and agree to cooperate with VA in providing documentation to verify compliance. The Government will deem ineligible any offers that do not include the completed and signed certification. The form includes required signature blocks for the offeror's authorized representative, including printed name, title, signature, date, and company information.