Search the Community
Showing results for tags 'FAR 52.219-14'.
Reference FAR 52.219-14 (and similar clauses). I've seen several threads in this forum discussing the calculation methodology for determining the “cost of performance incurred for personnel”. I found the “Is this Professor right?” thread (started by contractor100 on 3/23/12) to be particularly informative and, in my humble view, conclusive as to how I have been calculating such costs (Vern's #25, alternate method). So I need to throw a hypothetical situation out there that I may find myself in soon. On a FFP contract (with resulting FFP subcontracts) I may not have visibility into my subcontractor’s direct labor cost, only an agreed billing rate. How can I credibly calculate the “cost of performance incurred for personnel” if the only data I have from a FFP subcontractor is the total burdened cost of labor? Extending the hypothetical for just a minute, what if I didn't even have the burdened labor rate and purely a FFP subcontract total cost (labor and materials)? To put this in perspective, say I hire Vernon J. Edwards, Consultant, LLC to assist in contract performance. I pay the LLC $500/hr for services rendered. How could I account for the “cost of performance incurred for personnel” for these services if I have no further data than Vern's external billing rate? Although it may be inevitable, I don’t mean to get into the nuances of whether or not the LLC (or S-Corp where an owner is performing the work) actually pays a salary to the individual. That is a topic for a different thread.
A recently posted NAVFAC solicitation for construction services under NAICS 237XXX as an EDWOSB set-aside identifies a 25% limitation on subcontracting. FAR 52.219-14 Limitations on Subcontracting confirms a 15% requirement for “General Construction” and a 25% requirement for “Construction by Special Trade Contractors”. Other agencies (USACE, VA) have concluded that “Special Trade Contractors” refers ONLY to NAICS 238XXX (I assume based on the Title of NAICS 238…“Specialty Trade Contractors”) and further conclude that 237XXX falls under “General Construction”. I plan to ask about this as an official question during the Q&A to the NAVFAC contracting office QUESTION 1 - Does anyone on this forum know of any definitive reference (or ruling) for determining which NAICS would fall under “general construction” vs. “special trade construction” as it applies to all of the various limitations on subcontracting clauses. QUESTION 2 - Can the CO, in ANY solicitation, supersede the FAR requirement(s) and impose a limitation on subcontracting higher than the FAR-required limitation. I ask because the FAR clause is not only incorporated by reference, but the 25% is explicitly stated in the solicitation. Of course, no mention is made of the 2013 NADA and “similarly situated entity” discussions, but I’m not really addressing those at this time. Any help that the forum can offer here would be greatly appreciated as I’m sure the answer would apply to SDVOSB and 8(a) set-aside acquisitions as well.