Jump to content
The Wifcon Forums and Blogs

CMSHR

FAR 52.219-14 Limitation on Subcontracting with Commercial Pricing

Recommended Posts

I am seeking additional guidance on how to apply 52.219-14, Limitations on Subcontracting for a commercial services solicitation. A solicitation was posted for commercial services and we included the FAR Clause 52.219-14 as it is a total small business set aside over $150,000. However, during the Q&A phase we are being questioned on the clause as this will be a fixed price per unit type contract. So, my question is, if it is a fixed price per unit and we are not receiving a breakout of their fixed price per unit cost, how do you determine if a prime contractor is meeting the goal? Do you look at bottom line costs for each task or do you have to have them provide a breakout of what the fixed unit is made up of, so you can see the labor? But doesn't looking about cost elements defeat commercial pricing?

Share this post


Link to post
Share on other sites

Why do you think that you have to make this determination before award? If you have an offer that promises to comply with the clause and you don't think they can, the most you can do in your situation is refer the matter to the SBA for a CoC.

Share this post


Link to post
Share on other sites

Don meant to provide a citation in support of his assertions, but he was busy and asked me to do it for him.

See DynaLantic Corp., B-402326, 2010 CPD para. 103 (Mar. 15, 2010):

We have recognized that, as a general rule, an agency's judgment as to whether a small business offerori is able to comply with a subcontracting limitation presents a question of responsibility, which would be subject to review by the SBA under its certificate of competency procedures in the event that a small business is found to be not responsible. TYBRIN Corp., B–298364.6, B–298364.7, Mar. 13, 2007, 2007 CPD para. 51, at 5. However, where a proposal, on its face, should lead an agency to the conclusion that an offeror has not agreed to comply with the subcontracting limitation, the matter is one of proposal acceptability and a proposal that fails to clearly conform to the requirement is unacceptable and may not form the basis for an award.

Share this post


Link to post
Share on other sites

Thanks to the both of you for responding and the citation. I guess that is part of my question, since I have heard different views, is how far we as the Contracting agency need to go to determine that the offeror is complying with the clause before award. Since I have quantities in the solicitation, I am thinking that we could at least get a rough idea with that and also include something about the offering needing to state they comply with the clause.

Share this post


Link to post
Share on other sites

The CO is not obligated to make a specific responsibility determination pertaining to 52.219-14 before award absent some indication that there might be a problem. But there is no law against it, and if you are determined to make a headache for yourself, go right ahead.

Share this post


Link to post
Share on other sites

For the past decade or more, I have been posting decisions/opinions on this clause on the protest page. Here you have information from GAO and 2 federal courts on FAR 52.219-14: Limitations on Subcontracting. If you have a FAR, you can find decisions pertaining to the various sections of it.

Wifcon.com--more than just a discussion forum.

Share this post


Link to post
Share on other sites

Everyone should also be aware of the changes to the limitation on subcontracting contained in section 1651 of the 2013 NDAA. We are waiting on the SBA to implement those changes. Further, look at 13 CFR 125.6(g) for some general comments on how the SBA looks ar post award compliance with the limitation on subcontracting and 13 CFR 124.510 for guidance on applying the limitations on 8(a) contracts.

Share this post


Link to post
Share on other sites
Guest
This topic is now closed to further replies.

×