VA Notice of Limitations on Subcontracting.pdf

This is a VA (Department of Veterans Affairs) contract clause establishing limitations on subcontracting and requiring offerors to complete a Certificate of Compliance for supplies and products (November 2022 version).

The clause mandates that contractors comply with subcontracting limitations as follows: for supply or product contracts (excluding non-manufacturer supplies), contractors cannot subcontract more than 50% of the amount paid by the government to non-VIP-listed SDVOSBs or VOSBs, with any similarly situated VIP-listed subcontractor further subcontracts counting toward the 50% limit and material costs excluded from this calculation. For nonmanufacturer supply contracts, contractors must supply products from domestic small business manufacturers or processors unless an SBA waiver under 13 CFR 121.406(b)(5) is granted. Offerors must certify their status as either a manufacturer or nonmanufacturer, providing specific representations regarding employee count (500 or fewer, or 150 for IT Value Added Resellers at NAICS code 541519), retail or wholesale business engagement, ownership/possession of items, small business manufacture origin, and for multiple-item acquisitions, that at least 50% of estimated contract value comprises items manufactured by small businesses. The clause includes certification language that false, fictitious, or fraudulent certifications may result in criminal, civil, or administrative penalties under 18 U.S.C. Section 1001. Contracting officers may require contractors to demonstrate compliance during performance and upon completion through invoices, subcontract copies, or task value lists. The offeror must complete, sign, and return the formal certification with its bid, quotation, or proposal; failure to provide the certification renders the response ineligible for award.