Subcontracting Checklist.docx

Subcontracting checklist

In order to be awarded a set-aside contract a small business concern must agree that it will not pay more than 50% of the amount paid by the government to it to firms that are not similarly situated.

“Similarly situated entity” means a first-tier subcontractor, including an independent contractor, that has the same small business program status as that which qualified the prime contractor for the award, and that is considered small for the NAICS code the prime contractor assigned to the subcontract the subcontractor will perform. Work performed by similarly situated entities is counted as if it were performed by the prime contractor in determining compliance with the limitations on subcontracting.

An example of a similarly situated entity is a first-tier subcontractor that is a service-disabled veteran owned small business concern for a service-disabled veteran owned small business set-aside or sole source award under the Veterans First Program. Another example is:

SDVOSB Set-aside – more than 50% of work must be performed by prime or similarly situated subcontractor to qualify for set-aside

SDVOSB Prime 51% performed non-SDVOSB sub (not similarly situated) 49% performed Qualified for set-aside

SDVOSB Prime 49% performed non-SDVOSB sub (not similarly situated) 51% performed Unqualified for set-aside

SDVOSB Prime 10% performed SDVOSB sub (similarly situated) 90% performed Qualified for set-aside

Related clauses by reference:

VAAR 852.219-10 VA Notice of Total Service-Disabled Veteran-Owned Small Business Set-Aside (SDVOSB Tier)

VAAR 852.219-11 VA Notice of Total Veteran-Owned Small Business Set-Aside (VOSB Tier)

FAR 52.219-14 Limitations of Subcontracting (Small Business Concerns Tier)

To be completed by offeror:

Name of subcontractor(s)

Percentage of work performed

Is subcontractor registered in SAM

Is subcontractor similarly situated (same small business program status as prime)