Limitations on Subcontracting

Rules capping how much set-aside work can go to non-similarly situated firms.

Definition

On set-aside awards, the prime must perform a minimum percentage of the work, measured by the amount paid to the prime, excluding work given to similarly situated entities.

Why it matters

Violations carry civil and criminal exposure and are actively enforced.

Example

On a services set-aside the prime must keep at least 50% of the labor cost.

Related terms

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