Atch 10 - Calculation of 50 percent for small business concern.doc

Attachment 10

CALCULATION OF FIFTY PERCENT FOR SMALL BUSINESS CONCERN

This acquisition is an 8(a) competition. For the purpose of this acquisition, the following rules are applicable:

The 50 percent rule is at FAR 52.219-14, Limitations on Subcontracting and 13 CFR 125.6. Rules on affiliations and joint ventures are at FAR 19.101, 13 CFR 121.103, 13 CFR 124.513, and 13 CFR 125.6.

Under the 50 percent rule, at least 50 percent of the cost of contract performance incurred for personnel shall be expended for employees of the prime 8(a) contractor. The prime contractor must meet this requirement (1) individually, or (2) together with other small business members of a formal joint venture, or (3) together with a small number of small business subcontractors forming an informal joint venture, in which those subcontractors meet the definition of “ostensible subcontractor” in 13 CFR 121.103(h)(4). “Small numbers” mean no more than three team members. Team members in such formal and informal joint ventures are exempt from affiliation rules under the conditions in 13 CFR 121.103(h)(3). There is no limit to the number of other team subcontractors.

For the purpose of calculating the cost of contract performance incurred for personnel of prime* contractors and subcontractors or consultants, the following costs shall apply:

(1) Direct Labor Dollars

(2) Direct Labor Overhead Dollars

(3) General and Administrative Dollars on Direct Labor and Direct Labor Overhead

The OFFEROR shall complete the following matrix depicting the total allocation of personnel costs/hours between the prime* contractor and each subcontractor. Please add subcontractor columns as needed to include all team members.

CONTRACT

Subcontractor Subcontractor

Total Labor Hours

Labor Dollars

Labor OH Dollars

Labor G&A Dollars

Total Labor Dollars**

* The term “prime” includes arrangements discussed above.

**Total Labor Dollars should not include any fee from the prime contractor or the subcontractors.