What are the specific 'limitations on subcontracting' for an 8(a) set-aside services contract in 2026?

The specific limitation on subcontracting for an 8(a) set-aside services contract, including staffing under NAICS 561320, means your firm, as the prime contractor, will not pay more than 50 percent of the amount paid by the Government to subcontractors that are not similarly situated entities. This rule is stated in FAR 52.219-14(e)(1). There are no different percentages or rules for an 8(a) set-aside compared to other small business set-asides regarding the limitations on subcontracting for services. The key is whether the subcontractor is a "similarly situated entity." This means the subcontractor must also be an 8(a) firm for the work they perform to count towards your firm's portion of the work. If your subcontractor is not an 8(a) firm, their portion of the work will count against the 50 percent maximum you can subcontract. My firm does a lot of work for the VA and DoJ, and we always make sure our teaming agreement specifies the status of any sub we bring on so we stay compliant.