VA Notice of Limitations on Subcontracting.pdf

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

The clause establishes subcontracting limitations applicable to Department of Veterans Affairs contracts for supplies and products awarded under 38 U.S.C. § 8127(k)(2). For supply and product contracts (excluding non-manufacturers), contractors must not subcontract more than 50% of the government-paid amount to non-VIP-listed small businesses; cost of materials are excluded. For nonmanufacturer contracts, suppliers must provide products from domestic small business manufacturers or processors unless a waiver under 13 CFR 121.406(b)(5) is granted. Contractors must certify their status as either manufacturers or nonmanufacturers and comply with applicable requirements, including employee size limits (500 employees or 150 for IT Value Added Resellers under NAICS 541519), engagement in retail or wholesale trade, and ownership/possession of items with their own personnel and equipment. For multiple item acquisitions, at least 50% of estimated contract value must comprise items manufactured by small businesses. False, fictitious, or fraudulent certifications subject offerors to criminal, civil, and administrative penalties under Title 18, U.S.C. § 1001. The certification must be completed, signed, and submitted with the offeror's bid or proposal; offers without this certification will be deemed ineligible. VA may require contractors to demonstrate compliance at any time during performance and upon completion through invoices, subcontracts, or task value lists.