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Found 2 results

  1. FAR 52.219-14 (c) (1) Limitations on Subcontracting - "Services (except) construction). At least 50% of the cost of the contract performance incurred for personnel shall be expended for employees of the concern. 13 CFR 125.6.(a)(1) : in the case of contract for services (except construction), it will not pay more than 50% of the amount paid by the government to it to firms that are not similarly situated. Any work that is a similarly situated subcontractor further subcontracts will count towards the 50% subcontract amount that cannot be exceeded." Does the cost of the contract performance incurred for personnel by subcontractors include the fee paid to subcontractors? Or is only based on direct labor and indirect loads? I'm not sure where to look for further clarification on this issue. Thank you for any insight.
  2. (Another) Limitation on Subcontracting Issue Again, a FFP HUBZone construction contract in NW Fla. Based on the latest FAR clause, the HUBZone must self-perform (or subcontract to other HUBZone entities) 50% of the work…even for construction. We bid with a plan to achieve this goal. Now the contract has a change order pending that will drastically reduce the scope of work that we (the prime) were going to self-perform and increases the scope of work to be performed by a key Subcontractor. Incorporating the change, it will be nearly impossible to satisfy the referenced FAR requirement for self-performance. Given this change, the only options I see are: A ) Try to negotiate out the implicating FAR clause associated with the change (I’m not sure the CO thinks they have the authority to do that), or B ) Bid additional people (cost) to sit on their butts and watch the work being done, until we achieve the goal. Any other ideas?
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