VA NOTICE OF LIMITATIONS ON SUBCONTRACTING.pdf
Posted: July 13, 2026
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• Size: 0.06MB
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Summary
This Certificate of Compliance for Services and Construction outlines the limitations on subcontracting as mandated by 38 U.S.C. 8127(k)(2).
It specifies that if awarded a contract, the offeror must adhere to strict subcontracting limits based on the type of work being performed. For service contracts (excluding construction), the contractor cannot pay more than 50% of the total amount to firms that are not Veteran Institute Program (VIP)-listed Service-Disabled Veteran-Owned Small Businesses (SDVOSBs) or Veteran-Owned Small Businesses (VOSBs).
In general construction contracts, this limit is set at 85%, while for special trade contractors, it is capped at 75%. Notably, costs related to materials are excluded from these calculations.
The document emphasizes the legal implications of providing false information, stating that such actions may lead to criminal, civil, or administrative penalties under Title 18, U.S.C., Section 1001.
Additionally, if the Department of Veterans Affairs (VA) determines that an SDVOSB/VOSB did not act in good faith regarding compliance with these subcontracting limitations, they may face severe consequences including referral to the VA Suspension and Debarment Committee and potential fines.
The offeror is also required to maintain documentation that demonstrates compliance with these limitations throughout the contract's duration and must submit this documentation upon request by the VA. Failure to comply with these requirements could result in ineligibility for contract award.
It specifies that if awarded a contract, the offeror must adhere to strict subcontracting limits based on the type of work being performed. For service contracts (excluding construction), the contractor cannot pay more than 50% of the total amount to firms that are not Veteran Institute Program (VIP)-listed Service-Disabled Veteran-Owned Small Businesses (SDVOSBs) or Veteran-Owned Small Businesses (VOSBs).
In general construction contracts, this limit is set at 85%, while for special trade contractors, it is capped at 75%. Notably, costs related to materials are excluded from these calculations.
The document emphasizes the legal implications of providing false information, stating that such actions may lead to criminal, civil, or administrative penalties under Title 18, U.S.C., Section 1001.
Additionally, if the Department of Veterans Affairs (VA) determines that an SDVOSB/VOSB did not act in good faith regarding compliance with these subcontracting limitations, they may face severe consequences including referral to the VA Suspension and Debarment Committee and potential fines.
The offeror is also required to maintain documentation that demonstrates compliance with these limitations throughout the contract's duration and must submit this documentation upon request by the VA. Failure to comply with these requirements could result in ineligibility for contract award.
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