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FAR 52.219-14 Cost of Personnel

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I'm trying to find how to figure the cost of contract performance incurred for personnel mentioned in FAR 52.219-14.  I've run across a few opinions with different methods, but none that seem to be defined in the regulation. 

Here is and example of how I see it.  Can anyone point to a contrary authoritative definition of how to make the calculation?

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    In this case the prime meets the 50% test.

 

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The language in 52.219-14 is predicated on the SBAs rules as they existed prior to 2016.  Look at the 2014 version of 13 CFR 125.1.  That may help you.

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Looking at,  §125.6 What are the prime contractor's limitations on subcontracting?, I surmise the travel costs would likely be counted as costs paid to large businesses.

I'm wondering how reimbursements to employees would be counted.

I'm also wondering why the FAR clause is not in sync with §125.6.

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