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LearningCurve1018

SDVOSB resellers and work percentage

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This issue is in regards to online subscriptions services to the VA.  Does a small, or VOSB, or SDVOSB vendor need to perform 51% of the work for an award to be considered an official small, VOSB, or SDVOSB award, and count towards the VA’s national quota/goal of awarding a certain percentage to smalls, VOSBs or SDVOSBs?  I'm asking because we’re seeing a lot of big publishers passing-through SDVOSBs assumedly because the big publisher thinks this will force the Government’s hand to do a SDVOSB set-aside (rule of two) or give preference to them (the SDVOSB) because of their status.

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Yes, Set asides for procurements are over the SAT. 

 

This question is in regards to electronic subscriptions that belong to large publishers and sold through resellers that are SDVOSB, VOSB, smalls. 

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They would contain that clause(below).   Aha! 

____________

(d)Agreement. A service-disabled veteran-owned small business concern agrees that in the performance of the contract, in the case of a contract for -

(1) Services (except construction), at least 50 percent of the cost of personnel for contract performance will be spent for employees of the concern or employees of other service-disabled veteran-owned small business concerns;

_____________

 

These businesses would not be doing much of the work and would essentially be pressing a button to grant access from the large business concern.  That contract FAR clause seems very similar to another CFR clause I believe might apply as well. 

_______________
13 CFR 125.6
§ 125.6 What are the prime contractor's limitations on subcontracting?

(a)General. In order to be awarded a full or partial small business set-aside contract with a value greater than $150,000, an 8(a) contract, an SDVO SBC contract, a HUBZone contract, a WOSB or EDWOSB contract pursuant to part 127 of this chapter, a small business concern must agree that:

(1) In the case of a 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 a similarly situated subcontractor further subcontracts will count towards the 50% subcontract amount that cannot be exceeded.

_______________

Thank you for the guidance. 

 

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3 hours ago, Don Mansfield said:

Do the contracts contain FAR 52.219-27? If so, have you read paragraph (d) of the clause?

And following from this (as referenced in FAR 52.219-27(f)), FAR 19.102 (f) (4) and (5) address the particular situation at hand.  

Also, LearningCurve, doesn't the Kingdomware decision require the VA solicit from SDVOSBs?   It isn't necessarily the "big publisher" trying to "force" anything or gain preference.  It's how it has to be done.  And the non-manufacturer rule applies.    

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18 minutes ago, LearningCurve1018 said:

They would contain that clause(below).   Aha! 

____________

(d)Agreement. A service-disabled veteran-owned small business concern agrees that in the performance of the contract, in the case of a contract for -

(1) Services (except construction), at least 50 percent of the cost of personnel for contract performance will be spent for employees of the concern or employees of other service-disabled veteran-owned small business concerns;

_____________

 

These businesses would not be doing much of the work and would essentially be pressing a button to grant access from the large business concern.  That contract FAR clause seems very similar to another CFR clause I believe might apply as well. 

_______________
13 CFR 125.6
§ 125.6 What are the prime contractor's limitations on subcontracting?

(a)General. In order to be awarded a full or partial small business set-aside contract with a value greater than $150,000, an 8(a) contract, an SDVO SBC contract, a HUBZone contract, a WOSB or EDWOSB contract pursuant to part 127 of this chapter, a small business concern must agree that:

(1) In the case of a 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 a similarly situated subcontractor further subcontracts will count towards the 50% subcontract amount that cannot be exceeded.

_______________

Thank you for the guidance. 

 

That is if an online subscription from a publisher, as resold, counts as a service.   Maybe it does.  The FAR is a bit weak on making the distinction. 

Edit - is it a FAR part 37 Acquisition? 

 

Edited by jayandstacey
add question

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37 minutes ago, LearningCurve1018 said:

They would contain that clause(below).   Aha! 

LearningCurve1018, remember that in the VA you have a VAAR clause that refers back to the authority that Don provided. VAAR Clause 852.219-10 is the clause you need in your contract and solicitation for the agency you are at. It implements the limitation on subcontracting, found in 13 CFR 125.6. No need for additional clauses in commercial buys.  

17 minutes ago, LearningCurve1018 said:

Planning on using FAR 15 and 12

FAR 15, while being filled with information for working in other parts, should not be used in the acquisition of simple commercial items/services. Part 12 should be used (FAR 12.102(c)).

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27 minutes ago, Constricting Officer said:

FAR 15, while being filled with information for working in other parts, should not be used in the acquisition of simple commercial items/services. Part 12 should be used (FAR 12.102(c)).

That doesn't make sense. FAR part 12 does not contain a distinct set of procedures for solicitation, evaluation, and award. When using FAR part 12, you do so in conjunction with FAR parts 13, 14, or 15. See FAR 12.203:

Quote

Contracting officers shall use the policies unique to the acquisition of commercial items prescribed in this part in conjunction with the policies and procedures for solicitation, evaluation and award prescribed in Part 13, Simplified Acquisition Procedures; Part 14, Sealed Bidding; or Part 15, Contracting by Negotiation, as appropriate for the particular acquisition. 

 

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16 hours ago, Don Mansfield said:

That doesn't make sense. FAR part 12 does not contain a distinct set of procedures for solicitation, evaluation, and award. When using FAR part 12, you do so in conjunction with FAR parts 13, 14, or 15. See FAR 12.203:

 

Don,

My apologies for the incompleteness of my response.

What I meant was that it is a Part 12 buy and should be treated as such (simple), utilizing procedures from 13, 14 or 15 as applicable for the complexity of the acquisition.

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