Question 1

What performance requirements apply to SDVOSB construction contracts?

Accepted Answer

For SDVOSB construction set-asides, the prime must perform at least 15% of the cost of the contract with its own forces. For specialty trade construction, the prime must perform at least 25% with its own workforce. The SDVOSB prime must also be the general contractor of record and maintain daily site management. Davis-Bacon prevailing wage requirements apply to most federally funded construction work.

Question 2

What are the limitations on subcontracting for SDVOSB set-asides?

Accepted Answer

For SDVOSB set-aside contracts, the prime contractor must comply with limitations on subcontracting in FAR 52.219-14. For service contracts: the SDVOSB must perform at least 50% of the cost of personnel. For supply contracts: at least 50% of the cost of manufacturing. For construction: at least 15% of the cost of the contract. Similarly situated subcontractors (also SDVOSBs) count toward these requirements.

Question 3

How do limitations on subcontracting apply to specialty trade contractors?

Accepted Answer

Specialty trade contractors (e.g., electrical, plumbing, HVAC, masonry) must perform at least 25% of the contract cost with their own workforce. General construction contractors must perform at least 15% of the cost with their own forces. These are lower thresholds than the 50% rule for services, reflecting the standard industry practice of coordinating multiple specialty subcontractors.

What performance requirements apply to SDVOSB construction contracts?

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