52.219-14 Limitations on Subcontracting.
As prescribed in 19.507(e), insert the following clause:
Limitations on Subcontracting (Mar 2020)
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(a) This clause does not apply to the unrestricted portion of a partial set-aside.
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(b) Applicability. This clause applies only to—
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(1) Contracts that have been set aside for small business concerns or 8(a) participants;
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(2) Part or parts of a multiple-award contract that have been set aside for small business concerns or 8(a) participants;
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(3) Orders set aside for small business concerns or 8(a) participants under multiple-award contracts as described in 8.405-5 and 16.505(b)(2)(i)(F); and
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(4) Orders issued directly to small business concerns or 8(a) participants under multiple-award contracts as described in 19.504(c)(1)(ii).
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(c) Limitations on subcontracting. By submission of an offer and execution of a contract, the Contractor agrees that in performance of the contract in the case of a contract for—
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(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.
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(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.
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(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.
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(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.
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(d) The Contractor shall comply with the limitations on subcontracting as follows:
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(1) For contracts, in accordance with paragraph (b)(1) and (2) of this clause—
[Contracting Officer check as appropriate.]
_ By the end of the base term of the contract and then by the end of each subsequent option period; or
_ By the end of the performance period for each order issued under the contract.
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(2) For orders, in accordance with paragraphs (b)(3) and (4) of this clause, by the end of the performance period for the order.
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(End of clause)