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Small bus Set Aside 50%, can pass part of that to another Small?

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I am a new Subcontract Administrator for a small company. Very new to contracting, I understand that FAR prohibits a small business from giving over 50% of the work on a set aside contract to a large business. But what if you have a large team and say 35% is going to a Large and 23% to several other small businesses? That would only give the prime small business 42%.

Also is this 50% based on labor $'s only or does it include ODC's? Is it over the life of the contract or measured each year?


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you also posted this under another thread at http://www.wifcon.co...ry16699.

There, I replied: "Because different rules apply to different types of set-asides, please explain what type of set-aside this is and what provision or clause is used to limit subcontracting. Thanks."

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This is a 100% Total Small Business Set Aside, it is not on a schedule but it is an IDIQ.

And the Far Clause is

FAR 52.219-14 Limitations on Subcontracting, which in part states:

Services (except construction), at least 50% of the cost of performance will be expended for employees of the concern.

That tells me that the prime/concern must perform at least 50%.

But I have read in FAR 19.101 twards the bottom:

(vi) Size determination for teaming arrangements. For size determination purposes, apply the size standard tests in paragraphs (7)(i)(A) and (b of this section when a teaming arrangement of two or more business concerns submits an offer, as appropriate.

So I am not sure how to interpret this, one clause says you have to perform the work then the additional clause states vaguely that you can possibly combine small concerns portion of the work to total the 50%.... am I reading this right?

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