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52.219-9 (e)(7) -vs- 13 CFR 125.3 Disparities Related to NAICS Codes


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I have a question related to the contractors responsibilities to include a NAICS in the SubK Solicitation as defined in 13 CFR 125.3, but not defined in FAR 52.219-9(e)(7).  

In a recent DCMA SBSP Review the analyst is finding a discrepancy as the NAICS is not being included at time of solicitation per 13 CFR 125.3 requirements.  I've stated 13 CGR 125.3 is not in my contract, but 52.219-9 is and therefore I operate to the clause in my contract.  The requirement in 52.219-9(e)(7) states that the NAICS and Size Standard needs to be in the Subcontract issued that best describes the principle purpose of the subcontract.

I've done a search of the FAR and DFAR for 13 CFR 125-3 and do not see it referenced anywhere.   Do you know how and if the contractor is obligated to follow 13 CFR 125.3 requirements for a DoD Prime or lower tier Subcontract?

DCMA is stating "FAR 52.219-9(e)(7) states what the requirement is and Title 13 CFR 125.3 provides the vehicles for compliance to the requirement at FAR 52.219-9(e)(7)," but of course the provision is not linked to the CFR.

Would love to hear how others have dealt with this.

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One way of doing it is to include the following in supplier solicitations:

North American Industry Classification Code Systems (NAICS) Information
Insert the primary six-digit NAICS code that identifies business establishments according various industry classifications and aligns with the business size you are representing to Buyer in this representation as indicated elsewhere. NAICS replaced the Standard Industrial Classification (SIC) system. https://www.census.gov/naics
NAICS
Code                                                 Description
                                                                                                                     Primary
                                                                                                                    Secondary
                                                                                                                    Secondary
                                                                                                                    Secondary
                                                                                                                    Secondary
                                                                                                                    Secondary
                                                                                                                    Secondary
 

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54 minutes ago, ji20874 said:

First, let's make sure your facts are clear...

(1) You do not include the NAICS code in solicitations for subcontracts.

(2) You do include the NAICS code in your awarded subcontracts.

Is this right?

Possibly another question.   When placed in the contract is a form of representation by the subcontractor or are the code/threshold simply listed?

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On 7/28/2022 at 10:41 AM, ji20874 said:

First, let's make sure your facts are clear...

(1) You do not include the NAICS code in solicitations for subcontracts.

(2) You do include the NAICS code in your awarded subcontracts.

Is this right?

Correct

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On 7/28/2022 at 12:56 PM, Neil Roberts said:

In follow-up, the contract awarded to a subcontractor should include the NAICS code(s) disclosed by the subcontractor in the pre-award representation.

Yes, both NAICS and Size Stardard associated with the selected NAICS are listed on the subcontract. 

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On 7/28/2022 at 9:20 AM, Z-Mil said:

I have a question related to the contractors responsibilities to include a NAICS in the SubK Solicitation as defined in 13 CFR 125.3, but not defined in FAR 52.219-9(e)(7).  

Having difficulty understanding your concern. Are you saying a NAICS Code is not required for a solicitation or ???

Edited by Neil Roberts
clarify my comment by deletion and addition
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Z-Mil, you may be technically correct regarding your assertion. If you feel strongly about it, you should push back on the government's SBSP review and see what happens. You asked how others dealt with it. My prior comments about the process is how a major prime contractor deals with it. Small Business reviewers tend to focus on CFR small business requirements, where it states it is required at time of solicitation vs. the FAR clause you cited where it only requires it at time of award.  Your position may not be that receptive, which may be what motivates contractors to comply with a NAICS code at time of solicitation. Compliance avoids conflict with various government customer functions and shifts the risk of NAICS code error onto the subcontractor.

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On 8/5/2022 at 7:05 AM, Neil Roberts said:

Having difficulty understanding your concern. Are you saying a NAICS Code is not required for a solicitation or ???

Correct.   NAICS and Size Standard is clearly required in the subcontract issued per FAR 52.219-9 (e)(7), but I'm being told the lashing will continue as we are not assigning the NAICS and SS to each solicitation (ref. 13 CFR 125.3 (c)(1)(v). 

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