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What are the current limitations on subcontracting for a HUBZone set-aside in October 2026?

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I am looking at a federal Request for Proposal for a HUBZone set-aside, NAICS 541611, due in early October 2026. My company is a HUBZone small business and I am considering taking the prime role. I have a potential subcontractor in mind who is not a similarly situated entity. I know the limitations on subcontracting rules changed recently. I am trying to figure out what percentages apply to this kind of services contract. I saw FAR 52.219-14 but I am not sure if there are any specific updates for HUBZone contracts or if the general services rule applies. What are the current limitations on subcontracting for a HUBZone set-aside for services in October 2026?

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asked Keisha W. Verified vendor8(a) firm founder, staffing and training · Atlanta, GA · 474 rep

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The limitations on subcontracting for a HUBZone set-aside for services in October 2026 fall under the general services rule, meaning the prime will not pay more than 50 percent of the amount paid by the Government to subcontractors that are not similarly situated entities. There are no specific updates or different percentages for HUBZone contracts regarding the limitations on subcontracting. This requirement is found in FAR 52.219-14(e)(1). Your company, as the prime, must perform at least 50 percent of the cost of the contract incurred for personnel with its own employees. The rule applies to all small business set-asides for services, including those for HUBZone, unless it is a supplies, construction, or special trade construction set-aside, which have different percentages.

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answered Priya S. Verified vendorCapture manager, IT services · Herndon, VA · 440 rep

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Sign up to answerCite the FAR clause or procurement code where you can.

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