FAR 52.219-14 - Limitations on Subcontracting

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Prescribed in 19.508(e) or 19.811-3(e)

Effective Date:1 November 2011
Clause or Provision:Clause
Provision or Clause Number: 52.219-14 - Limitations on Subcontracting

Principle Type And/Or Purpose of Contract:
Required:
Applicable:Fixed Price Service; Cost Reimbursement Research and Development; Fixed Price Research and Development; Cost Reimbursement Supply; Fixed Price Supply; Cost Reimbursement Service; Fixed Price Construction; Cost Reimbursement Construction; Time and Materials/Labor Hour; Leasing of Motor Vehicles; Communication Services; Dismantling, Demolition, or Removal of Improvements; Architect-Engineering; Facilities; Indefinite Delivery; Transportation; Utility Services; Commercial Items; 
Optional:Simplified Acquisition Procedures; 
Subject:
ProcurementType:
Contract Threshold:>100,000
Prescription Overview:
Clause Overview:

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

(b) Applicability. This clause applies only to—

(1) Contracts that have been set aside or reserved for small business concerns or 8(a) concerns;

(2) Part or parts of a multiple-award contract that have been set aside for small business concerns or 8(a) concerns; and

(3) Orders set aside for small business or 8(a) concerns under multiple-award contracts as described in 8.405-5 and 16.505(b)(2)(i)(F).

(c) By submission of an offer and execution of a contract, the Offeror/Contractor agrees that in performance of the contract in the case of a contract for—

(1) Services (except construction). At least 50 percent of the cost of contract performance incurred for personnel shall be expended for employees of the concern.

(2) Supplies (other than procurement from a nonmanufacturer of such supplies). The concern shall perform work for at least 50 percent of the cost of manufacturing the supplies, not including the cost of materials.

(3) General construction. The concern will perform at least 15 percent of the cost of the contract, not including the cost of materials, with its own employees.

(4) Construction by special trade contractors. The concern will perform at least 25 percent of the cost of the contract, not including the cost of materials, with its own employees.

Important Notes/Requirements:

Applicable only to contracts for supplies, services, and construction, if any portion of the requirement is to be set aside for small business and the contract amount is expected to exceed $100,000. Clause requires offerors to agree to perform at least 50 percent of the cost of both the service and supply portions of the contract.

Subcontract Threshold:
Incorporated by Reference:Yes
Uniform Contract Format:I
Editor:Marshall

Personal notes.