Class Deviation 2021-O0008 - Revision 1 - Limitations on Subcontracting for Small Business

Summary

This deviation revises and supersedes Class Deviation 2021-O0008 issued September 10, 2021. It implements Small Business Administration rules adding exclusions to subcontracting limits for services contracts and joint venture requirements. Contracting Officers must use the deviation version of Federal Acquisition Regulation (FAR) 52.219-14 in all applicable contracts.

Required Contracting Officer Actions

1. Use deviation clause 52.219-14 (DEVIATION 2021-O0008) in lieu of FAR 52.219-14 in all applicable solicitations and contracts
2. Check the appropriate compliance period box in paragraph (f)(1) of the clause for contracts under paragraphs (c)(1), (2), (3) and (6)
3. Apply the clause only to contracts and orders meeting the applicability criteria in paragraph (c) of the deviation clause

Affected Provisions and Clauses

52.219-14, (Clause)

• Prescribed in: 19.507(e)
• Change type: MODIFIED
• Action: Substitute clause 52.219-14

Notes

Services exclusions: Paragraph (e)(1) adds exclusions from the 50 percent subcontracting limit for services. These cover certain other direct costs and work performed outside the United States.

Joint venture requirements: Paragraph (g) incorporates SBA's July 25, 2016 final rule requirements for joint ventures. Mentor-protege and 8(a) joint ventures must have the small business participant perform at least 40 percent of work.

Supersession: This revision supersedes the original Class Deviation 2021-O0008 issued September 10, 2021. Use only the revised deviation clause dated February 2023.

Duration: The deviation remains in effect until incorporated into the FAR or otherwise rescinded.

Suggested Questions