Limitations on Subcontracting

[shinaku]

Rather than add to an earlier thread on this - circa April 2010 last post.....

Situation. RFP for non-personal services >$150K. Total Small Biz Set-aside with 52.219-14 Limitations on Subcontracting.

Offeror X, who is a Small Biz - stated in their proposal they intended to sub-contract to Company Y, a large business. No where did they break out the sub-contract to any percentage but all indications from reading the proposal is that far more than 50 percent (maybe even 90 percent) would be done by Company Y's people ---- All the experience cites Company Y, All Past Performance information were for Company Y, All Key Personnel was for Company Y, All Use of Company Y's facilities, etc etc. In fact, they state in a cover letter, "...our proposal agrees to all the terms & conditions of this solicitation..."

Looking at past cases (CENTECH, Continental Staffing, Inc) and in particular with emphasis on the (52.219-14 © 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.

I am wanting to make a determination that their offer is not acceptable, period, and I know there is precedence for it. The intent is to award without discussions (per the solicitation). With such overt indications in their proposal to subcontract on that scale to a Large Biz, part of me does not want to broach the subject in discussions should they need to occur for whatever reasons. But if they occurred, I would be compelled to bring that issue up. I would think different about it if it were more borderline but it is seems not.

However, just to clear the air, I was thinking of approaching it as a clarification question instead, couched in a yes/no format along the lines of....."Got a clarification question for you (cite FAR background on clarification)...In your proposed use of Company Y as a subcontractor will that subcontractor be performing more than 50 percent of the contract?

Now, I am wondering if that question is a true clarification as under 15.306 (a)(1). Of course, if they say "No" they won't be doing 50 percent or more and it's patently clear in their proposal that they are....I got myself in another situation.

[August]

I think it's a clarification, but I'd pose the questions as: By the proposal submitted, what percentage of the work would Company Y provide? If they responded with a number under 50%, I'd ask for a breakdown of work between them and Company Y - still as a clarification.