Class Deviation 2020-O0008
Limitations on Subcontracting for Small Business - Revision 2

Effective immediately, this class deviation revises and supersedes the revision to the class deviation issued on April 3, 2020. The revision is necessary to correct errors in Attachments 1 and 3 to the class deviation. Specifically, in Attachment 1, language has been added to paragraph (d)(1) of 52.219-6, Notice of Total Small Business Set-Aside (DEVIATION 2020-O0008), and paragraph (f)(1) of 52.219-7, Notice of Partial Small Business Set-Aside (DEVIATION 2020-O0008), to specify that certain requirements apply unless the Small Business Administration has waived those requirements in accordance with 13 CFR 121.1204. In Attachment 3, a paragraph reference has been corrected in paragraph (h)(1) of 52.219-3, Notice of HUBZone Set-Aside or Sole Source Award (DEVIATION 2020-O0008).

Effective immediately, this class deviation revises and supersedes the class deviation issued on March 17, 2020. The revision is necessary to clarify the effective date of the class deviation.

Therefore, effective March 30, 2020, 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, sole- source, or HUBZone price evaluation preference 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 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 2020-O0008), in lieu of FAR 52.219-6 and 52.219-33, Nonmanufacturer Rule.
  • Use 52.219-7, Notice of Partial Small Business Set-Aside (DEVIATION 2020-O0008), in lieu of FAR 52.219-7 and 52.219-33.
  • Use 52.219-14, Limitations on Subcontracting (DEVIATION 2020-O0008), 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 19.507 with the deviation clauses provided in the attachment. The limitations on subcontracting and nonmanufacturer rule apply to small business set-asides for contracts that exceed the simplified acquisition threshold. The limitations on subcontracting and nonmanufacturer rule do not apply to small business set-asides for contracts at or below the simplified acquisition threshold.

(B) 8(a) Program Participants

In solicitations, contracts, and task or delivery orders under the 8(a) program (FAR subpart 19.8), contracting officers shall use the clauses in Attachment 2 as follows:

  • Use 52.219-14, Limitations on Subcontracting (DEVIATION 2020-O0008), in lieu of FAR 52.219-14 for competitive 8(a) procurements and 8(a) sole-source awards.
  • Use 52.219-33, Nonmanufacturer Rule (DEVIATION 2020-O0008), in lieu of FAR 52.219-33 for 8(a) sole-source awards only.

The limitations on subcontracting apply to contracts and task or delivery orders awarded pursuant to competitive 8(a) procurements and 8(a) sole-source awards under FAR part 19 regardless of the dollar value of the award.

(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 2020-O0008), in lieu of FAR 52.219-3 and 52.219-33.
  • Use 52.219-4, Notice of Price Evaluation Preference for HUBZone Small Business Concerns (DEVIATION 2020-O0008), in lieu of FAR 52.219-4 and 52.219-33.

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.

The limitations on subcontracting and the nonmanufacturer rule apply to 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, or awarded using the HUBZone price evaluation preference, regardless of the dollar value of the award.

(D) SDVOSB Concerns

In solicitations, contracts, and task or delivery orders that are set aside for, or awarded on a sole-source basis to, 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 2020-O0008), in lieu of FAR 52.219-27 and 52.219-33.

The limitations on subcontracting and the nonmanufacturer rule apply to contracts and task or delivery orders that are set aside for, or awarded on a sole-source basis to, SDVOSB concerns under FAR part 19 regardless of the dollar value of the award.

(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 2020-O0008), in lieu of FAR 52.219-29 and 52.219-33.

The limitations on subcontracting and the nonmanufacturer rule apply to 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 regardless of the dollar value of the award.

(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 2020-O0008), in lieu of FAR 52.219-30 and 52.219-33.

The limitations on subcontracting and the nonmanufacturer rule apply to 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 regardless of the dollar value of the award.

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

Status:
Active
Effective Date: November 6, 2020 (9 months ago)
Expire Date: None Given
References: 2019-O0003
Official Documents: Memo
Official Attachments: 1 2 3 4 5 6
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