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GSA Contracts and 1099 Contractors


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#1 aiel

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Posted 07 March 2009 - 08:53 AM

Can a company that uses predominantly 1099 contractors apply for and get awarded a GSA schedule contract for services?

This is a catering company that uses cooks, wait staff, and preparation crews in as needed quantities per job size.

Thank you.

#2 Guest_carl r culham_*

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Posted 08 March 2009 - 11:45 AM

I suggest discussing your question directly with GSA, specifically the office/contact that oversees the specific GSA schedule contract that you have interest in. A visit to this website will help you locate the appropriate contact - www.gsa.gov/gettingonschedule. The link on this primary page entitled "GSA Schedule Solicitations" will lead you to information that will identify the specific contact for the schedule you are interested in.

Generally speaking use of a "1099 contractor" or in other words an independent contractor (subcontractor )is not prohibited. However the extent of which you use the 1099 approach has associated impact. Take for instance the subject of Small Business. If you represent your business as a Small Business then you are subject to FAR Clause 52.219-14 Limitations on Subcontracting which states -

(a) This clause does not apply to the unrestricted portion of a partial set-aside.
(:D By submission of an offer and execution of a contract, the Offeror/Contractor agrees that in performance of the contract in the case of a contract for?
(1) Services (except construction). At least 50 percent of the cost of contract performance incurred for personnel shall be expended for employees of the concern.
(2) Supplies (other than procurement from a nonmanufacturer of such supplies). The concern shall perform work for at least 50 percent of the cost of manufacturing the supplies, not including the cost of materials.
(3) General construction. The concern will perform at least 15 percent of the cost of the contract, not including the cost of materials, with its own employees.
(4) Construction by special trade contractors
. The concern will perform at least 25 percent of the cost of the contract, not including the cost of materials, with its own employees.


As you can see the agreements provided for in this clause are impacted by the way in which you secure a labor force to perform on a contract that carries the clause. This clause may or may not be in the specific solicitation for the GSA Schedule contract that you are interested in.

#3 joel hoffman

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Posted 08 March 2009 - 03:58 PM

Carl, does the Limitations of Subcontracting clause apply to unrestricted schedules or just to schedules that are restricted to small business?

#4 Guest_carl r culham_*

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Posted 08 March 2009 - 10:15 PM

Joel - Good point and I should have been more clear that the Limitation clause is applicable to set asides for small business/8(a).

#5 joel hoffman

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Posted 09 March 2009 - 06:42 PM

Joel - Good point and I should have been more clear that the Limitation clause is applicable to set asides for small business/8(a).

...and HubZone or other small business set-asides to which 52.219.14 is applicable.

#6 Don Mansfield

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Posted 10 March 2009 - 07:36 AM

The clause at FAR 52.219-14 doesn't apply to HUBZone or SDVOSB set-asides. The clauses for these types of set-asides contain their own limitation on subcontracting provisions, which are slightly different than FAR 52.219-14.

#7 joel hoffman

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Posted 10 March 2009 - 09:19 AM

The clause at FAR 52.219-14 doesn't apply to HUBZone or SDVOSB set-asides. The clauses for these types of set-asides contain their own limitation on subcontracting provisions, which are slightly different than FAR 52.219-14.

Don, thanks for the clarifications. I was aware that the SBA definitions of self performed work were different, but overlooked the distinction in actual clauses. I will follow up on that when I get home from TDY.

#8 joel hoffman

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Posted 11 March 2009 - 02:15 PM

Don, thanks for the clarifications. I was aware that the SBA definitions of self performed work were different, but overlooked the distinction in actual clauses. I will follow up on that when I get home from TDY.


Yes, the requirements for self-performed work by employees of the HubZone firm or other HubZone firms are found in the HubZone clauses, as applicable to the acquisition (52.219-3, 52.219-4).




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