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Limitation on Subcontractor's Subcontracting

outsidelegalguy
in Subcontracts & Subcontract Management

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I know that if a prime contract is set aside for small business, there is a limit on how much the small business can subcontract. See FAR 52.219-14. Is there a similar limitation on how much a small business that has been selected for a subcontract on the basis that it is a small business can subcontract?

If, for example, a large prime contractor awards a subcontract to a small business and uses that award towards satisfying its small business subcontracting plan requirements, is there any limit on how much that small business can further subcontract, potentially to a large business? Can it subcontract essentially the entire job, retaining only a negligible contract management role?

I haven't been able to find anything that expressly prohibits such a practice.
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