Class Deviation 2019-O0003
Limitations on Subcontracting for Small Business

Effective immediately, this class deviation revises and supersedes the revised class deviation issued on January 8, 2019. The revision is necessary to implement a subsequent change in the Small Business Administration' s application of the nonmanufacturer rule to contracts awarded using the HUBZone price evaluation preference. Specifically, this revision adds new paragraph (g) to 52.219-4, Notice of Price Evaluation Preference for HUBZone Small Business Concerns (DEVIATION 2019-O0003), on pages 4 and 5 of Attachment 3; renumbers the subsequent paragraph; and revises the date of the clause. Paragraph (g) implements the nonmanufacturer rule for contracts awarded using the HUBZone price evaluation preference.

Therefore, effective immediately, contracting officers shall follow the procedures provided in this class deviation when issuing solicitations and awarding contracts or task or delivery orders under FAR part 19 to-

  1. Small business concerns;
  2. 8(a) Program participants;
  3. Historically Underutilized Business Zone (HUBZone) small business concerns;
  4. Service-disabled veteran-owned small business (SDVOSB) concerns;
  5. Economically disadvantaged women-owned small business (EDWOSB) concerns; and
  6. Women-owned small business (WOSB) concerns eligible under the WOSB Program.

The following procedures and the attached deviation clauses implement revisions made by the Small Business Administration to its regulation. These revisions changed and standardized the limitations on subcontracting and the nonmanufacturer rule with which small businesses must comply under Government contracts awarded pursuant to the set-aside or sole source authorities of the Small Business Act. This class deviation updates the limitations on subcontracting and the nonmanufacturer rule for all small businesses in the clauses relating to set-asides and sole source awards under FAR part 19.

(A) Small Business Concerns

In solicitations, contracts, and task or delivery orders that are set aside for small business under FAR part 19, contracting officers shall use the clauses in Attachment 1 as follows:

  • Use 52.219-6, Notice of Total Small Business Set-Aside (DEVIATION 2019-O0003), in lieu of FAR 52.219-6.
  • Use 52.219-7, Notice of Partial Small Business Set-Aside (DEVIATION 2019-O0003), in lieu of FAR 52.219-7.
  • Use 52.219-14, Limitations on Subcontracting (DEVIATION 2019-O0003), in lieu of FAR 52.219-14.

Contracting officers shall use the alternates to FAR clauses 52.219-6 and 52.219-7 prescribed at FAR 19.508 with the deviation clauses provided in the attachment.

(B) 8(a) Program Participants

In solicitations, contracts, and task or delivery orders for competitive 8(a) procurements and 8(a) sole source awards under FAR part 19, contracting officers shall use the clauses in Attachment 2 as follows:

  • Use 52.219-14, Limitations on Subcontracting (DEVIATION 2019-O0003), in lieu of FAR 52.219-14.
  • Use 252.219-7010, Notification of Competition Limited to Eligible 8(a) Concerns¬≠ Partnership Agreement (DEVIATION 2019-00003), in lieu of DFARS 252.219-7010.

(C) HUBZone Small Business Concerns

In solicitations, contracts, and task or delivery orders that are set aside for, or awarded on a sole source basis to, HUBZone small business concerns under FAR part 19, as well as procurements using the HUBZone price evaluation preference, contracting officers shall use the clauses in Attachment 3 as follows:

  • Use 52.219-3, Notice of HUBZone Set-Aside or Sole Source Award (DEVIATION 2019-O0003), in lieu of FAR 52.219-3.
  • Use 52.219-4, Notice of Price Evaluation Preference for HUBZone Small Business Concerns (DEVIATION 2019-O0003), in lieu of FAR 52.219-4.

Contracting officers shall not use Alternate I of FAR 52.219-3 or Alternate I of FAR 52.219-4. These alternates conflict with the attached deviation clauses.

(D) SDVOSB Concerns

In solicitations, contracts, and task or delivery orders that are set aside for SDVOSB concerns under FAR part 19, contracting officers shall use the clause in Attachment 4 as follows:

  • Use 52.219-27, Notice of Service-Disabled Veteran-Owned Small Business Set-Aside (DEVIATION 2019-O0003), in lieu of FAR 52.219-27.

(E) EDWOSB Concerns

In solicitations, contracts, and task or delivery orders that are set aside for, or awarded on a sole source basis to, EDWOSB concerns under FAR part 19, contracting officers shall use the clause in Attachment 5 as follows:

  • Use 52.219-29, Notice of Set-Aside for, or Sole Source Award to, Economically Disadvantaged Women-Owned Small Business Concerns (DEVIATION 2019-00003), in lieu of FAR 52.219-29.

(F) WOSB Concerns Eligible under the WOSB Program

In solicitations, contracts, and task or delivery orders that are set aside for, or awarded on a sole source basis to, WOSB concerns eligible under the WOSB Program under FAR part 19, contracting officers shall use the clause in Attachment 6 as follows:

  • Use 52.219-30, Notice of Set-Aside for, or Sole Source Award to, Women-Owned Small Business Concerns Eligible Under the Women-Owned Small Business Program (DEVIATION 2019-O0003), in lieu of FAR 52.219-30.

This class deviation remains in effect until it is incorporated in the FAR and DFARS or otherwise rescinded.

Status:
Archived
Rescinded
Effective Date: March 3, 2019 (3 years ago)
Expire Date: None Given
Rescinded: March 17, 2020 (2 years ago)
Official Documents: Memo
Official Attachments: 1 2 3 4 5 6
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