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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