VA Notice of Limitations on Subcontracting.pdf

This document is a VA Notice of Limitations on Subcontracting - Certificate of Compliance for Supplies and Products (November 2022), which is a required certification clause for VA federal contracts.

The clause establishes subcontracting limitations for SDVOSB (Service-Disabled Veteran-Owned Small Business) and VOSB (Veteran-Owned Small Business) contractors awarded VA contracts. For supplies or products from non-manufacturers, contractors cannot subcontract more than 50% of the contract amount to non-VIP-listed SDVOSBs or VOSBs, with similar VIP-listed subcontractor work counting toward the 50% limitation; material costs are excluded from subcontracting calculations. For nonmanufacturer contracts, contractors must supply products from domestic small business manufacturers or processors unless an SBA waiver is granted, with the understanding that such waivers do not affect external requirements like the Buy American Act or Trade Agreements Act. Offerors must certify their status as either manufacturers/producers or nonmanufacturers, with nonmanufacturers required to verify employee counts (not exceeding 500 employees, or 150 for Information Technology under NAICS 541519), primary engagement in retail or wholesale trade, and intent to supply small business-manufactured items. For multiple-item acquisitions, at least 50% of estimated contract value must be composed of items manufactured by small businesses. The certification acknowledges jurisdiction under 38 U.S.C. Section 8127 and subjects false certifications to criminal, civil, and administrative penalties. Offerors must provide documentation to demonstrate compliance upon request, and the completed certification must be signed and submitted with bids or proposals; offers lacking certification are deemed ineligible.