VA Notice of Limitations on Subcontracting.pdf

This document is a VA Notice of Limitations on Subcontracting - Certificate of Compliance for Supplies and Products (NOV 2022), which serves as a mandatory certification clause for federal contract solicitations.

The clause establishes subcontracting limitations for VA contracts awarded under 38 U.S.C. 8127. For supply and product contracts (excluding non-manufacturers), contractors must not pay more than 50% of government-paid amounts to non-VIP-listed SDVOSBs/VOSBs as referenced in 852.219-73 or VOSBS. Any similarly-situated VIP-listed subcontractor work counts toward the 50% subcontract limit, with material costs excluded from calculation. For nonmanufacturer contracts, contractors must supply products from domestic small business manufacturers or processors unless an SBA waiver is granted. The clause requires offerors to certify their status as either a manufacturer/producer (with items manufactured or produced in the United States) or a nonmanufacturer meeting specific criteria: not exceeding 500 employees (150 for IT resellers under NAICS 541519), primarily engaged in retail or wholesale trade, and taking ownership of items with their own personnel, equipment, or facilities. For multiple-item acquisitions, at least 50% of estimated contract value must comprise small business-manufactured items unless an SBA waiver applies. The certification carries legal weight under 18 U.S.C. Section 1001, subjecting false certifications to criminal, civil, or administrative penalties. Non-compliant SDVOSBs/VOSBs face referral to VA Suspension and Debarment Committee, fines under the Small Business Act, and prosecution. Contractors must complete, sign, and submit the formal certification with their bid or proposal; failure to provide the certification renders offers ineligible for award.