13 C.F.R. § 124.510

What limitations on subcontracting apply to an 8(a) contract?

Read at: eCFRecfr.gov CornellLII GovInfogovinfo.gov CasesGoogle Scholar

(a) To assist the business development of Participants in the 8(a) BD program, there are limitations on the percentage of an 8(a) contract award amount that may be spent on subcontractors. The prime contractor recipient of an 8(a) contract must comply with the limitations on subcontracting at § 125.6 of this chapter.

(b) Indefinite delivery and indefinite quantity contracts. In order to ensure that the required limitations on subcontracting requirements on an indefinite delivery or indefinite quantity 8(a) award are met by the Participant, the Participant cannot subcontract more than the required percentage to subcontractors that are not similarly situated entities for each performance period of the contract (i.e., during the base term and then during each option period thereafter). However, the contracting officer, in his or her discretion, may require the Participant to meet the applicable limitation on subcontracting or comply with the nonmanufacturer rule for each order.

(1) This includes Multiple Award Contracts that were set-aside or partially set-aside for 8(a) BD Participants.

(2) For orders that are set aside for eligible 8(a) Participants under full and open contracts or reserves, the Participant must meet the applicable limitation on subcontracting requirement and comply with the nonmanufacturer rule, if applicable, for each order.

[81 FR 34260, May 31, 2016]

Notes of Decisions

Cited in 4 cases, 2005–2016 · leading case: United States v. Thomas Harris, 821 F.3d 589 (5th Cir. 2016).

Sort: Relevance Newest Treatment

United States v. Thomas Harris, 821 F.3d 589 (5th Cir. 2016). · cites it 2× “But Harris’s guilt-by-silence argument misses that the government points to his affirmative, even if implicit, representations of regulatory compliance in the project-specific contracts with USACE Galveston and Fort Bliss.”

Navar, Inc. v. Fed. Bus. Council, 784 S.E.2d 296 (Va. 2016). “13 C.F.R. § 124.510 (a) states, "To assist the business development of Participants in the 8(a) BD program, an 8(a) contractor must perform certain percentages of work with its own employees.”

Flexfab, L.L.C. v. United States, 424 F.3d 1254 (Fed. Cir. 2005). “"In the case of a contract for supplies or products (other than procurement from a non-manufacturer in such supplies or products), the concern will perform at least 50 percent of the cost of manufacturing the supplies or products (not including the costs of materials).”

Chapman Law Firm v. United States, 63 Fed. Cl. 519 (Fed. Cl. 2005). “While the record reflects some confusion in HMBI’s proposal and in HUD’s discussion questions regarding whether HMBI would comply with certain regulatory standards required of an 8(a) contractor, specifically the requirement limiting the amount of costs that could be incurred by…”

Annotations are extracted automatically from the opinions in the Syfert caselaw corpus and ranked by authority, recency, and treatment. Dots show Syfertize treatment of the citing case itself.