W912LR24Q0004 Solicitation.pdf

W912LR25Q0004

COMBINED SYNOPSIS/SOLICITATION

Solicitation/ Notice ID: W912LR-25-Q-0004

Type of Solicitation: Request for Quotation (RFQ)

Description of Requirement: Prepared Meals for Army National Guard Unit – I CO 40TH SB, (1ST 65TH INF)

Date of Solicitation: Friday October 11, 2025

Closing Date: Friday, October 18, 2025 at 1:00 pm, Atlantic Standard Time/local time Puerto Rico

Issued by: USPFO PR Purchasing & Contracting Division

No. of Amendments: None

This is a combined synopsis solicitation for commercial products prepared in accordance with the format in Subpart

12.6, as supplemented with additional information included in this notice. This announcement constitutes the only solicitation; offers are being requested and a separate written solicitation will not be issued. This solicitation is issued as a request for Quote (RFQ) competed IAW FAR Part 13, Simplified Acquisition Procedures and FAR Part 12, Commercial Products. Quotes failing to meet all the terms and conditions of this solicitation; to include buy terms, line-item descriptions, and attachments, may not be evaluated for award. One (1) firm-fixed price (FFP) contract will be awarded resulting from this solicitation. Any reference to the term “BID” in this solicitation is used synonymously with the word “QUOTE”. Please see FAR 13.004-Legal effect of quotations. Clauses and provisions included in FAR

52.212-1, 52.212-2, 52.212-3, 52.212-4 and 52.212-5 are incorporated by reference unless additionally clarified in this RFQ via addendums.

The Puerto Rico National Guard Purchase and Contracting Office intends to utilize this Request for Quote (RFQ) to obtain offers for the purchase of the following: Prepared Meals for Army National Guard Unit – I CO 40TH SB, (1ST 65TH INF)

Original Set Aside: 100% Small Business Set-Aside (FAR 19.5)

Product Service Code: 8970 - Prepared Meals

NAICS Code: 722310 – Food Service Contractors

Place of Delivery/Performance: Building 403, Camp Santiago, Salinas, Puerto Rico 00751.

Delivery Date/Period of Performance: 25 October 2024 to 27 October 2024

The Government intends to select only one quote to award a FIRM FIXED PRICE purchase order.

Note: The contractor shall include in their response applicable taxes, fees, and rates.

Government may modify up to five percent (5%) meal counts (increase or decrease) within 48 hours advanced notice to the service/product provider with no penalties.

All quoters must have a Commercial and Government Entity (CAGE) code and be registered with System for Award

Management (SAM) at http://www.sam.gov. Please review all sought requirements thoroughly as incomplete offers will not be considered for evaluation. All quoters must list Unique Entity Identifier (UEI) number, CAGE code, and

Federal TIN with Company name, POC, and phone number. To obtain or renew a UEI number or CAGE code, please visit https://www.sam.gov. Lack of registration in the SAM database will make a quoter ineligible for award. Vendor must also be registered in Wide Area Workflow to receive payment through electronic funds transfer.

If you are not currently registered, please visit the following website https://piee.eb.mil/ to complete your free of charge registration. All quoters must be a certified Small Business of the solicited socio-economic group (if specified) in SAM at time of submitting quotes and at time of award or quoter will be ineligible for award.

http://www.sam.gov/

The procuring office DOES NOT and will NOT respond questions pertaining to SAM Registration and business classification (small vs. large), or procedures for becoming a Small Business or any of the applicable socio-economic classifications. Quoters are responsible for meeting the requirements for the set-aside at the time of submission of

OFFERS and AWARD.

No legal liability on the part of the Government for any payment may arise until funds are made available to the

Contracting Officer for this contract and until the Contractor receives notice of such availability, to be confirmed in writing by the Contracting Officer. The Government will not pay for costs incurred in the preparation of offers.

FAR 52.212-1 Addendum

The quoter agrees to hold the prices in its quote firm for 30 calendar days from the date specified for receipt of quotes and closing of the solicitation, unless another time period is specified in an addendum to the solicitation. Changes to quoted price after closing of the solicitation period will result in non-consideration for award.

FAR 52.212-2 Evaluation of Commercial Items Addendum

This acquisition will be procured utilizing a combination of the commercial procedures in FAR Part 12, Part

13.106(a)(2) and 13.106(b)(3), Price and Other Non-Price Factors. Acquisition Regulation and whose quote conforms to the solicitation requirements.

The solicitation requirements include all stated terms, conditions, representation and certifications, and other information required by this solicitation. The Government reserves the right to award without discussions. Therefore, each initial offer should contain the quoter’s best terms from meeting PRICE and OTHER FACTORS. However, the Government reserves the right to conduct requests for information and questions on contents of the quote if determined necessary by the Contracting Officer.

The Government may reject any quote that is evaluated to be unrealistic in terms of requirements, contract terms and conditions, or an unrealistically high or low price when compared to Government estimates, such that the quote is deemed to reflect an inherent lack of competence or failure to comprehend the complexity and risk of the program.

Price increases after closing of solicitation resulting from a Government request for information shall be rejected, as they will be considered a new offer submitted late.

BASIS OF AWARD/ EVALUATION STANDARD

1. All proposals will be reviewed for timeliness. If the proposal is received after the closing date and does not meet the criteria for “late submissions” in the solicitation, the proposal will not be opened.

2. Timely proposals will be reviewed for compliance to the solicitation. If the proposal does not comply with the requirements of the solicitation, the proposal will not be evaluated further, and the quoter will be notified that the proposal is not in conformance with the solicitation.

3. All prices proposed in response to this RFQ/BID/quote must include all costs associated with the offer in accordance with the requirement. The total unit costs of the meal need to be fully loaded. Quoters shall submit with quote a breakdown of costs considered in the fully loaded price. NO LUMP SUMS ARE AUTHORIZED.

4. The contractor shall address the following two factors:

(1) FACTOR 1: Other NON-Price Factors (Meets both Subfactors):

a. SUBFACTOR1.1 – Conformance with Salient Characteristics (Meets or Does not Meets) The only offers that will be considered are those who conforms to the description of requirement for every line item listed in the schedule. No additional credit will be given for exceeding acceptability.

(2) FACTOR 2 – Price – Lowest Quoted Price. The quoter shall complete CLIN pricing on page of this solicitation. In addition to the completed CLIN pricing of this solicitation and the quoter shall provide sufficient price information to allow the contracting officer to determine the completeness and reasonableness of the quoters’prices.

Award will be made to the lowest priced quote that meets all the technical requirements and both Priced and Non-

Priced Factors. The Government intends to award a contract without discussions with respective quoters. Quotes that fail to meet the government’s schedule and ALL technical requirements will be deemed technically unacceptable and disqualified from competition.

SUBMISSION OF OFFERS/QUOTES:

The responses to this RFQ are intended to be evaluated, and award made, without discussions unless discussions are deemed to be necessary. Since award will be based on initial responses, quoters are highly encouraged to quote their most advantageous pricing in their initial response. The Government shall NOT accept any price adjustments after closing of solicitation.

Quoters shall respond to this RFQ on or before date and time specified in this solicitation and must conform to the requirements specified in this RFQ and its attachments. Responses shall be submitted prior to the closing date and time identified above electronically via email to:

Contracting Officer:

Rolando Perez, rolando.perez.9@us.af.mil

Contract Specialist(s):

Argenies Gonzalez, argenies.e.gonzalezgarcia.mil@army.mil

Maria Ruiz, maria.d.ruizperez.mil@army.mil

Submit Quotes to Mailbox: ng.pr.prarng.list.ngpr-purchasing-and-contracting@army.mil

Quoters are responsible to ensure offer/quote response is received by the date and time specified. Any quote, modification, or revision of a quote received after the exact time specified for receipt of quotes is considered “late” and will NOT BE EVALUATED.

Quoters may submit questions regarding this solicitation to the Government Point of Contact pursuant to FAR

12.603(c)(2)(xvi). If, after closing of the solicitation, the Contracting Officer determines in the best of the Government, the contracting officer may request information on quotes to ensure all aspects of the quotes are clear and that the quoter understands the requirements as specified (see FAR 13.106-2(b)(3)(ii). This request will NOT be used to cure deficiencies or material omissions in a quote, materially alter the technical or cost elements of the quote, or otherwise revise the quote after solicitation period has closed. All quotes are final after close of solicitation in accordance with

FAR 12.301(b)(1) and as prescribed in 52.212-1(f)(2)(ii).

IMPORTANT: QUOTERS are responsible for submitting QUOTES to the ALL-listed points of contact electronically (via email). All documents shall be submitted in PDF format and shall include a copy of this solicitation document. Submitted documents shall be free of malicious code, virus, or any other malware that may compromise Government systems. Unless submitting a revised offer, all offers submitted shall be treated as final offer. All quotes are required to be firm valid for 30 calendar days from closing date of solicitation.

Lower acceptance periods or terms lower than required and specified shall not be accepted and may make a quote unacceptable.

mailto:rolando.perez.9@us.af.mil mailto:argenies.e.gonzalezgarcia.mil@army.mil mailto:maria.d.ruizperez.mil@army.mil mailto:ng.pr.prarng.list.ngpr-purchasing-and-contracting@army.mil

DESCRIPTION OF REQUIREMENT

Prepared Meals for Army National Guard Unit – I CO 40TH SB, (1ST 65TH INF)

This requirement for the preparation and delivery meals as specified in the description of requirement. The delivery of goods will be at BUILDING 403, Camp Santiago Training Center, Salinas, Puerto Rico, which has an average travel time from the main gate to point of service/delivery of 10 minutes. The contractor shall take into consideration commuting distance to point of delivery to minimize the time meals spend in transit and ensure food temperatures. The requirement is for:

DAILY DELIVERY SCHEDULE:

Delivery Period/Schedule Meals Delivered Per Day

From To DAYS Breakfast Lunch Dinner TOTAL

25-Oct-24 25-Oct-24 1 0 441 441 882

26-Oct-24 26-Oct-24 1 441 0 441 882

27-Oct-24 27-Oct-24 1 441 441 0 882

TOTAL 882 882 882

BREAKFAST: Delivery shall occur NO LATER THAN 5:45 am local standard time Puerto Rico (AST)

The meal period consumption starts at 6:00 am. The meal period duration is 1 hour. The contractor has 45 minutes to remediate the non-conforming item to allow reasonable distribution for consumption.

LUNCH: Delivery shall occur NO LATER THAN 10:45 am local standard time Puerto Rico (AST)

The meal period consumption starts at 11:00 am. The meal period duration is 1 hour. The contractor has 45 minutes to remediate the non-conforming item to allow reasonable distribution for consumption.

DINNER: Delivery shall occur for NO LATER THAN 4:45 pm local standard time Puerto Rico (AST)

The meal period consumption starts at 5:00 pm. The meal period duration is 1 hour. The contractor has 45 minutes to remediate the non-conforming item to allow reasonable distribution for consumption.

ALL DELIVERIES SHALL OCCUR NO LATER THAN ESTABLISHED TIME FOR ARRIVAL.

Meal consumption period starts 15 minutes after scheduled arrival time. In the event of a discrepancy or non-conforming item, the contractor shall replace the non-conforming item 15 minutes prior to the end of the consumption period of each delivery.

VARIATIONS IN QUANTITES AND DELIVERY SCHEDULE

The Government may modify up to five percent (5%) meal counts (increase or decrease) within 48 hours advanced notice to the service/product provider with no penalties.

The Government may, with advance notice but no less than 24 hours prior, adjust the individual meal periods no more than 15 minutes to established delivery times to either 15 minutes before established or 15 minutes after established (for example, change from 6:30 am to 6:15 am or from 6:30 am to 6:45am). If no notice is given, the contractor shall deliver as specified in the schedule.

GENERAL CONDITIONS

Customary with commercial practices and sanitary procedures and Technical Bulletin (TB) MED 530, the contractor shall consider the following temperature ranges for verification upon delivery:

• Hot food: Should be held at 135 °F to 140°F (57 to 60 °C) or warmer. When and if serving food at a buffet, keep food hot with chafing dishes, slow cookers, and warming trays.

• Cold food: Should be held at 41 °F (5 ºC) or colder. Keep food cold by nesting dishes in bowls of ice.

• Perishable food: Should not be left out more than 2 hours at room temperature—1 hour when the temperature is above 90 °F (32.2 ºC).

The contractor is required to meet local and federal sanitary requirements for food preparation and handling.

Food preparation shall be carried out in accordance with sound hygienic principles. In all places of employment where all or part of the food deliveries are provided, the food dispensed shall be wholesome, free from spoilage, and shall be processed, prepared, handled, and stored in such a manner as to be protected against contamination.

The contractor shall provide, with their offer, the means and methods for quality assurance and control to ensure prepackaged meals arrived to point of service/delivery within acceptable temperature ranges and quality parameters in accordance with commercial practices.

The Government may, at discretion and with reasonable advance notification, request to inspect the premises in which the food is prepare, to ensure compliance with commercial practices for food preparation, handling, packaging, and customary hygiene practices. Contractor shall maintain a representative with the delivery that has direct contractual relation with the Government to promptly address deficiencies at time of inspection and acceptance by the Government.

Food Preparation Acceptable Quality Standards:

Food Safety Requirements. The Contractor shall comply with all National Food Safety Code and other applicable federal/state/local health guidelines and Army Technical Bulleting (TB) MED 530. In cases where

TB MED 530 and the Food Code differ, the more stringent requirement shall apply. A copy of the material reference can be found at Army Publishing Directorate or upon request. Document can be downloaded at the following link:

https://armypubs.army.mil/ProductMaps/PubForm/Details.aspx?PUB_ID=1006236

Prior to delivery and inspection, the contractor shall:

- Ensure that food is delivered and packaged adequately to maintain proper minimum temperatures for inspection and acceptance at time of receipt.

- Delivery method shall be in a clean, sanitized, and covered vehicle, to prevent any type of contamination of food delivered.

- Food shall be ready for inspection to confirm that quality meets serving criteria specified in TB MED

530.

- The contractor shall have food thermometers available for confirmation of temperature at time of inspection and acceptance.

Food Quality Requirements: Food items shall be prepared and meet minimum quality requirements specified below:

- Beef and Veal, USDA Grade Choice

- Pork, Lamb and Poultry, USDA Grade A

- Eggs and Dairy products, USDA Grade A

- Frozen Food, USDA Grade A

- Fresh Produce, Fancy https://armypubs.army.mil/ProductMaps/PubForm/Details.aspx?PUB_ID=1006236

- Canned Products, USDA Grade A

- All other food products must be of comparable quality as defined above.

Menu Requirements: The contractor shall comply with the menu provided for this requirement. Substitutions or deviations shall not be approved without express approval of the contracting agency. Material substitution shall be or equal or greater quality if the contractor cannot supply the items listed in their offer at no additional cost to the Government.

Packaging and Delivery: Meals shall be packaged and delivered as specified in this requirement and meet material references for acceptable quality standards. All meals shall have enough disposable tableware (forks, spoons, knives, etc.), condiments and sauces (salt, pepper, BBQ sauce, mayonnaise, mustard, ketchup, salad dressing, and any other condiments), appropriate for the meals requested. At minimum, provide sufficient quantities to meet the per meal quantity plus a 5% excess of tableware, condiments, and sauces.

The contractor shall deliver individually packed meal trays meeting specified material requirements and quality standards. Packages shall allow an adequate placement of meal components to facilitate visual inspection. The contractor shall provide a catalog of packaging methods with their offer for review.

The contractor shall use the reference serving amounts to ensure the delivered main course, sides, and complements amount the individual meals required for the total amount of personnel. The contractor shall consider a 2% excess of meal components that are loss (waste) due to serving rather than individual packaging.

CONTRACTOR QUALIFICATIONS:

The contractor shall meet local and state federal qualifications for food preparation consistent with local requirements for food preparation, handling, and distribution.

INSPECTION/ACCEPTION POINTS OF CONTACT

The submitted invoices shall be accepted in WAWF under DODAAC W58BMK by Carlos Rios Quiles, email address carlos.a.riosquiles.mil@army.mil and 939-334-1165.

The delivered goods shall be inspected and accepted by Roberto Matias, email address roberto.matias4.mil@army.mil and contact phone 787-967-6414 or Melvin Perez Garcia, email address melvin.h.perezgarcia.mil@army.mil and contact phone 787-345-7179.

mailto:carlos.a.riosquiles.mil@army.mil mailto:roberto.matias4.mil@army.mil mailto:melvin.h.perezgarcia.mil@army.mil

ITEM NO SUPPLIES/SERVICES QUANTITY UNIT UNIT PRICE AMOUNT

0001 882 Each Prepared BREAKFAST Meals

FFP

This requirement for the preparation and delivery meals as specified in the description of requirement. The delivery of goods will be at BUILDING 403, Camp Santiago Training Center, Salinas, Puerto Rico, which has an average travel time from the main gate to point of service/delivery of 10 minutes.

From 26 Oct 2024 to 27 October 2024: 441 meals per day

BREAKFAST: Delivery shall occur NO LATER THAN 5:45 am local standard time Puerto Rico (AST)

The meal period consumption starts at 6:00 am. The meal period duration is 1 hour.

The contractor has 45 minutes to remediate the non-conforming item to allow reasonable distribution for consumption.

FOB: Destination

PURCHASE REQUEST NUMBER: 0012178749

PSC CD: 8940

NET AMT

0002 882 Each Prepared LUNCH Meals

FFP

This requirement for the preparation and delivery meals as specified in the description of requirement. The delivery of goods will be at BUILDING 403, From 25 October 2024 to 25 October 2024, 441 meals per day.

From 27 October 2024 to 27 October 2024, 441 meals per day.

LUNCH: Delivery shall occur for NO LATER THAN 10:45 am local standard time Puerto Rico (AST)

The meal period consumption starts at 11:00 am. The meal period duration is 1 hour. The contractor has 45 minutes to remediate the non-conforming item to allow

0003 882 Each Prepared DINNER Meals

FFP

This requirement for the preparation and delivery meals as specified in the description of requirement. The delivery of goods will be at BUILDING 403, From 25 October 2024 to 25 October 2024, 441 meals per day.

From 26 October 2024 to 26 October 2024, 441 meals per day.

LUNCH: Delivery shall occur for NO LATER THAN 4:45 PM local standard time

Puerto Rico (AST)

The meal period consumption starts at 5:00 pm. The meal period duration is 1 hour. The contractor has 45 minutes to remediate the non-conforming item to allow

INSPECTION AND ACCEPTANCE TERMS

Supplies/services will be inspected/accepted at:

CLIN INSPECT AT INSPECT BY ACCEPT AT ACCEPT BY

0001 1/65TH INF BN

BUILDING 403, CAMP

SANTIAGO TRAINING CENTER

SALINAS PR 00751

Government 1/65TH INF BN

BUILDING 403, CAMP

SANTIAGO TRAINING CENTER

SALINAS PR 00751

Government

0002 1/65TH INF BN

BUILDING 403, CAMP

SANTIAGO TRAINING CENTER

SALINAS PR 00751

Government 1/65TH INF BN

BUILDING 403, CAMP

SANTIAGO TRAINING CENTER

SALINAS PR 00751

Government

0003 1/65TH INF BN

BUILDING 403, CAMP

SANTIAGO TRAINING CENTER

SALINAS PR 00751

Government 1/65TH INF BN

BUILDING 403, CAMP

SANTIAGO TRAINING CENTER

SALINAS PR 00751

Government

DELIVERY INFORMATION

CLIN DELIVERY DATE QUANTITY SHIP TO ADDRESS DODAAC /

CAGE

0001 26-OCT-2024 441 1/65TH INF BN

ROBERTO MATIAS

BUILDING 403, CAMP SANTIAGO

TRAINING CENTER

SALINAS PR 00751

787-967-6414

W58BMK

0001 27-OCT-2024 441 (SAME AS PREVIOUS LOCATION)

0002 25-OCT-2024 441 (SAME AS PREVIOUS LOCATION)

0002 27-OCT-2024 441 (SAME AS PREVIOUS LOCATION)

0003 25-OCT-2024 441 (SAME AS PREVIOUS LOCATION)

0003 26-OCT-2024 441 (SAME AS PREVIOUS LOCATION)

CLAUSES INCORPORATED BY REFERENCE

52.204-10 Reporting Executive Compensation and First-Tier

Subcontract Awards

JUN 2020

52.204-24 Representation Regarding Certain Telecommunications and

Video Surveillance Services or Equipment

NOV 2021

52.204-25 Prohibition on Contracting for Certain Telecommunications and Video Surveillance Services or Equipment

NOV 2021

52.204-26 Covered Telecommunications Equipment or Services--

Representation.

OCT 2020

52.204-29 Federal Acquisition Supply Chain Security Act Orders--

Representation and Disclosures.

DEC 2023

52.204-30 Alt I Federal Acquisition Supply Chain Security Act Orders--

Prohibition (DEC 2023) Alternate I

DEC 2023

52.207-4 Economic Purchase Quantity-Supplies AUG 1987

52.209-10 Prohibition on Contracting With Inverted Domestic

Corporations

NOV 2015

52.212-1 Instructions to Offerors--Commercial Products and

Commercial Services

SEP 2023

52.212-2 Evaluation - Commercial Items NOV 2021

52.212-3 Alt I Offeror Representations and Certifications--Commercial

Products and Commercial Services (MAY 2024) Alternate I

FEB 2024

52.212-4 Contract Terms and Conditions--Commercial Products and

Commercial Services

NOV 2023

52.212-5 Contract Terms and Conditions Required to Implement

Statutes or Executive Orders--Commercial Products and

Commercial Services

MAY 2024

52.219-1 Small Business Program Representations FEB 2024

52.229-11 Tax on Certain Foreign Procurements--Notice and

Representation

JUN 2020

52.232-39 Unenforceability of Unauthorized Obligations JUN 2013

252.203-7000 Requirements Relating to Compensation of Former DoD

Officials

SEP 2011

252.203-7002 Requirement to Inform Employees of Whistleblower Rights DEC 2022

252.204-7003 Control Of Government Personnel Work Product APR 1992

252.204-7008 Compliance With Safeguarding Covered Defense Information

Controls

OCT 2016

252.204-7012 Safeguarding Covered Defense Information and Cyber

Incident Reporting

MAY 2024

252.204-7016 Covered Defense Telecommunications Equipment or Services

-- Representation

DEC 2019

252.204-7017 Prohibition on the Acquisition of Covered Defense

Telecommunications Equipment or Services -- Representation

MAY 2021

252.204-7018 Prohibition on the Acquisition of Covered Defense

Telecommunications Equipment or Services

JAN 2023

252.204-7024 Notice on the Use of the Supplier Performance Risk System MAR 2023

252.211-7003 Item Unique Identification and Valuation JAN 2023

252.225-7055 Representation Regarding Business Operations with the

Maduro Regime

MAY 2022

252.225-7059 Prohibition on Certain Procurements from the Xinjiang

Uyghur Autonomous Region - Representation

JUN 2023

252.225-7060 Prohibition on Certain Procurements from the Xinjiang

Uyghur Autonomous Region

JUN 2023

252.232-7003 Electronic Submission of Payment Requests and Receiving

Reports

DEC 2018

252.232-7006 Wide Area WorkFlow Payment Instructions JAN 2023

252.232-7010 Levies on Contract Payments DEC 2006

CLAUSES INCORPORATED BY FULL TEXT

52.219-14 LIMITATIONS ON SUBCONTRACTING (DEVIATION 2021-O0008) (FEB 2023)

(a) This clause does not apply to the unrestricted portion of a partial set-aside.

(b) Definition. “Similarly situated entity,” as used in this clause, means a first-tier subcontractor, including an independent contractor, that—

(1) Has the same small business program status as that which qualified the prime contractor for the award (e.g., for a small business set-aside contract, any small business concern, without regard to its socioeconomic status); and

(2) Is considered small for the size standard under the North American Industry Classification System (NAICS) code the prime contractor assigned to the subcontract.

(c) Applicability. This clause applies only to—

(1) Contracts that have been set aside for any of the small business concerns identified in 19.000(a)(3);

(2) Part or parts of a multiple-award contract that have been set aside for any of the small business concerns identified in 19.000(a)(3);

(3) Contracts that have been awarded on a sole-source basis in accordance with subparts 19.8, 19.13, 19.14, and

19.15;

(4) Orders expected to exceed the simplified acquisition threshold and that are—

(i) Set aside for small business concerns under multiple-award contracts, as described in 8.405-5 and

16.505(b)(2)(i)(F); or

(ii) Issued directly to small business concerns under multiple-award contracts as described in 19.504(c)(1)(ii);

(5) Orders, regardless of dollar value, that are—

(i) Set aside in accordance with subparts 19.8, 19.13, 19.14, or 19.15 under multiple-award contracts, as described in

8.405-5 and 16.505(b)(2)(i)(F); or

(ii) Issued directly to concerns that qualify for the programs described in subparts 19.8, 19.13, 19.14, or 19.15 under multiple-award contracts, as described in 19.504(c)(1)(ii); and

(6) Contracts using the HUBZone price evaluation preference to award to a HUBZone small business concern unless the concern waived the evaluation preference.

(d) Independent contractors. An independent contractor shall be considered a subcontractor.

(e) Limitations on subcontracting. By submission of an offer and execution of a contract, the Contractor agrees that in performance of a contract assigned a North American Industry Classification System (NAICS) code for—

(1) Services (except construction), it will not pay more than 50 percent of the amount paid by the Government for contract performance, excluding certain other direct costs and certain work performed outside the United States (see paragraph (e)(1)(i)), to subcontractors that are not similarly situated entities. Any work that a similarly situated entity further subcontracts will count towards the prime contractor’s 50 percent subcontract amount that cannot be exceeded. When a contract includes both services and supplies, the 50 percent limitation shall apply only to the service portion of the contract. The following services may be excluded from the 50 percent limitation:

(i) Other direct costs, to the extent they are not the principal purpose of the acquisition and small business concerns do not provide the service. Examples include airline travel, work performed by a transportation or disposal entity under a contract assigned the environmental remediation NAICS code 562910), cloud computing services, or mass media purchases.

(ii) Work performed outside the United States on awards made pursuant to the Foreign Assistance Act of 1961, or work performed outside the United States required to be performed by a local contractor.

(2) Supplies (other than procurement from a nonmanufacturer of such supplies), it will not pay more than 50 percent of the amount paid by the Government for contract performance, excluding the cost of materials, to subcontractors that are not similarly situated entities. Any work that a similarly situated entity further subcontracts will count towards the prime contractor’s 50 percent subcontract amount that cannot be exceeded. When a contract includes both supplies and services, the 50 percent limitation shall apply only to the supply portion of the contract;

(3) General construction, it will not pay more than 85 percent of the amount paid by the Government for contract performance, excluding the cost of materials, to subcontractors that are not similarly situated entities. Any work that a similarly situated entity further subcontracts will count towards the prime contractor’s 85 percent subcontract amount that cannot be exceeded; or

(4) Construction by special trade contractors, it will not pay more than 75 percent of the amount paid by the

Government for contract performance, excluding the cost of materials, to subcontractors that are not similarly situated entities. Any work that a similarly situated entity further subcontracts will count towards the prime contractor’s 75 percent subcontract amount that cannot be exceeded.

(f) The Contractor shall comply with the limitations on subcontracting as follows:

(1) For contracts, in accordance with paragraphs (c)(1), (2), (3) and (6) of this clause –

[Contracting Officer check as appropriate.]

X By the end of the base term of the contract and then by the end of each subsequent option period; or

N/A By the end of the performance period for each order issued under the contract.

(2) For orders, in accordance with paragraphs (c)(4) and (5) of this clause, by the end of the performance period for the order.

(g) A joint venture agrees that, in the performance of the contract, the applicable percentage specified in paragraph

(e) of this clause will be performed by the aggregate of the joint venture participants.

(1) In a joint venture comprised of a small business protege and its mentor approved by the Small Business

Administration, the small business protege shall perform at least 40 percent of the work performed by the joint venture. Work performed by the small business protege in the joint venture must be more than administrative functions.

(2) In an 8(a) joint venture, the 8(a) participant(s) shall perform at least 40 percent of the work performed by the joint venture. Work performed by the 8(a) participants in the joint venture must be more than administrative functions.

(End of clause)