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Applicability of 52.219-14 Limitations on Subcontracting

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Long time reader first time poster.

I am seeking guidance on the applicability of 52.219-14 Limitations on Subcontracting under the scenario outlined below. The clause is included by reference in our procurement software, i.e. included in an non-editable template, but I question if its truly applicable. Here are the facts:

1. Solicitation is 100% Small Business set-aside

2. This is a Commercial Item RFQ for Services

3. Awards are for Multiple Award BPAs

4. Individual calls are limited to $150K

I question if 52.219-14 is applicable for the following reasons:

1. FAR 19.508 prescribes 52.219-14 "if any portion of the requirement is to be set aside for small business and the contract amount is expected to exceed $150,000."

2. With a BPA, wouldn't this only apply to calls over $150,000?

3. Since our BPA is limited to calls under $150,000, wouldn't the limitation be moot?

Our policy group attends since the aggregate of all calls could exceed $150,000 over the life of the BPA, the clause should therefore be included. In other words, they are "lumping" unknown orders to get to a theoretical $150,000 threshold. I look at this differently, as a "splitter", where each call stands alone as its own contract and thus the clause would only be applicable for calls exceeding $150,000. And since we limit calls to under $150,000, the clause would therefore never be applicable.

Appreciate your perspectives. Thanks.

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Assuming you are asking about BPAs under FAR Part 13, your policy group is wrong. See FAR 13.303-4(B):

"Unless a clause prescription specifies otherwise (e.g., see 22.305(a), 22.605(a)(5), or 22.1006), if the prescription includes a dollar threshold, the amount to be compared to that threshold is that of any particular order under the BPA."

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The limitation applies only to certain contracts, such as one awarded as a result of a set-aside. Was the BPA established pursuant to a set-aside?

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The limitation applies only to certain contracts, such as one awarded as a result of a set-aside. Was the BPA established pursuant to a set-aside?

Yes, the BPA was set-aside 100% for Small Business.

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Assuming you are asking about BPAs under FAR Part 13, your policy group is wrong. See FAR 13.303-4(B):

"Unless a clause prescription specifies otherwise (e.g., see 22.305(a), 22.605(a)(5), or 22.1006), if the prescription includes a dollar threshold, the amount to be compared to that threshold is that of any particular order under the BPA."

Yes, this is a BPA under Part 13. The only threshold we reference is one limiting calls to under $150K. Thanks for the reference, think this concludes it for me.

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