VA Notice of Limitations on Subcontracting.pdf

This document is a VA Notice of Limitations on Subcontracting certification clause for supplies and products (November 2022 version), prescribed for inclusion in VA solicitations under 38 U.S.C. 8127(k)(2).

The clause establishes subcontracting limitations and certification requirements applicable to VA contracts for supplies and products. For non-manufacturer contracts, offerors must not subcontract more than 50% of the amount paid by the government to non-VIP-listed small disadvantaged businesses (SDBs) or veteran-owned small businesses (VOSBs), with any similar work by VIP-listed subcontractors counting toward the 50% limit; materials costs are excluded from this calculation. For nonmanufacturer contracts, offerors must supply products from domestic small business manufacturers or processors unless a waiver under 13 CFR 121.406(b)(5) is granted. Offerors must certify their status as either a manufacturer/producer or nonmanufacturer, with nonmanufacturers required to verify they do not exceed 500 employees (or 150 for Information Technology Value Added Resellers), are engaged in retail or wholesale trade, take ownership of items through their personnel and facilities, supply items from small business manufacturers unless waivered, and (for multiple-item acquisitions) ensure at least 50% of estimated contract value comprises items manufactured by small businesses unless waivered. The certification carries penalties for false, fictitious, or fraudulent statements under 18 U.S.C. Section 1001, and VA may require offerors to demonstrate compliance through documentation including invoices, subcontracts, and task value lists. Offerors must complete and sign the formal certification with their bid, quotation, or proposal; failure to provide the certification renders the response ineligible for award.