VA Notice of Limitations on Subcontracting.pdf

This is a VA Notice of Limitations on Subcontracting - Certificate of Compliance for Supplies and Products (November 2022), which is a required federal contracting form and clause template for VA solicitations.

The clause establishes subcontracting limitations for VA contracts involving supplies or products. For non-manufacturer supply contracts, the prime contractor cannot pay more than 50% of the government-paid amount to non-VIP-listed SDVOSBs or VOSBs as defined in 852.219-73 or 852.219-74; any similarly situated VIP-listed subcontractor's further subcontracts count toward this 50% limit, with materials costs excluded from subcontracting calculations. For nonmanufacturer contracts, the contractor must supply products from a domestic small business manufacturer or processor unless an SBA waiver per 13 CFR 121.406(b)(5) is granted. The offeror must certify as either a manufacturer/producer or nonmanufacturer and complete specific representation requirements. Nonmanufacturer certifications require verification that the company does not exceed 500 employees (or 150 for IT Value Added Reseller exception), primarily engages in retail or wholesale trade, will take ownership of items with its own personnel and equipment, and will supply items from small business manufacturers unless a waiver is issued. For multiple-item acquisitions, at least 50% of estimated contract value must be composed of small-business-manufactured items unless an applicable SBA waiver is in place. The offeror acknowledges certification jurisdictional concerns and potential penalties under 18 U.S.C. § 1001 for false statements. VA may require documentation to verify compliance at any time during or after contract performance, and contractors must cooperate fully and provide requested records. Offerors must complete, sign, and submit the formal certification with their bid or proposal; failure to do so renders the offer ineligible.