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What are the limitations on subcontracting for an SDVOSB set-aside contract?

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My SDVOSB just won a federal services set-aside contract for administrative support (NAICS 561110). This was an RFQ I responded to on SAM.gov. We are the prime, and I need to bring on some subcontractors to handle specific tasks. I know there are rules about how much work we, as the prime, have to perform ourselves on a set-aside. I've looked at the FAR, specifically 52.219-14, but I want to make sure I understand it correctly for a services contract. I don't want to mess this up and get out of compliance.

What are the specific limitations on subcontracting for a federal SDVOSB services set-aside contract, and how is that percentage calculated for the prime?

asked Luis A. Verified vendorSDVOSB founder, court reporting and legal support · San Antonio, TX · 518 rep

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For a federal SDVOSB services set-aside contract, your firm, as the prime contractor, must incur at least 50 percent of the cost of contract performance for personnel, with the remaining 50 percent or less going to subcontractors that are not similarly situated entities, as stated in FAR 52.219-14(e)(1).

answered Keisha W. Verified vendor8(a) firm founder, staffing and training · Atlanta, GA · 491 rep

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