FAR 52.219-14 (c) (1) Limitations on Subcontracting - "Services (except) construction). At least 50% of the cost of the contract performance incurred for personnel shall be expended for employees of the concern.
13 CFR 125.6.(a)(1) : in the case of 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 is a similarly situated subcontractor further subcontracts will count towards the 50% subcontract amount that cannot be exceeded."
Does the cost of the contract performance incurred for personnel by subcontractors include the fee paid to subcontractors? Or is only based on direct labor and indirect loads?
I'm not sure where to look for further clarification on this issue. Thank you for any insight.