Applicability of 52.219-14 Limitations on Subcontracting
Started by benmac · Feb 9, 2011 · 5 replies
- bOriginal post
benmac
Feb 9, 2011 · 15y ago
Long time reader first time poster.
I am seeking guidance on the applicability of 52.219-14 Limitations on Subcontracting under the scenario outlined below. The clause is included by reference in our procurement software, i.e. included in an non-editable template, but I question if its truly applicable. Here are the facts:
1. Solicitation is 100% Small Business set-aside
2. This is a Commercial Item RFQ for Services
3. Awards are for Multiple Award BPAs
4. Individual calls are limited to $150K
I question if 52.219-14 is applicable for the following reasons:
1. FAR 19.508 prescribes 52.219-14 "if any portion of the requirement is to be set aside for small business and the contract amount is expected to exceed $150,000."
2. With a BPA, wouldn't this only apply to calls over $150,000?
3. Since our BPA is limited to calls under $150,000, wouldn't the limitation be moot?
Our policy group attends since the aggregate of all calls could exceed $150,000 over the life of the BPA, the clause should therefore be included. In other words, they are "lumping" unknown orders to get to a theoretical $150,000 threshold. I look at this differently, as a "splitter", where each call stands alone as its own contract and thus the clause would only be applicable for calls exceeding $150,000. And since we limit calls to under $150,000, the clause would therefore never be applicable.
Appreciate your perspectives. Thanks.
- D
Don Mansfield
Feb 9, 2011 · 15y ago
Assuming you are asking about BPAs under FAR Part 13, your policy group is wrong. See FAR 13.303-4(
:"Unless a clause prescription specifies otherwise (e.g., see 22.305(a), 22.605(a)(5), or 22.1006), if the prescription includes a dollar threshold, the amount to be compared to that threshold is that of any particular order under the BPA."
- G
Guest Vern Edwards
Feb 9, 2011 · 15y ago
The limitation applies only to certain contracts, such as one awarded as a result of a set-aside. Was the BPA established pursuant to a set-aside?
- b
benmac
Feb 9, 2011 · 15y ago
The limitation applies only to certain contracts, such as one awarded as a result of a set-aside. Was the BPA established pursuant to a set-aside?
Yes, the BPA was set-aside 100% for Small Business.
- b
benmac
Feb 10, 2011 · 15y ago
Assuming you are asking about BPAs under FAR Part 13, your policy group is wrong. See FAR 13.303-4(
:"Unless a clause prescription specifies otherwise (e.g., see 22.305(a), 22.605(a)(5), or 22.1006), if the prescription includes a dollar threshold, the amount to be compared to that threshold is that of any particular order under the BPA."
Yes, this is a BPA under Part 13. The only threshold we reference is one limiting calls to under $150K. Thanks for the reference, think this concludes it for me.
- j
joel hoffman
Feb 10, 2011 · 15y ago
Deleted