Does the 50% rule apply to TOs in the set-aside pool of a larger IDIQ?
and is a TO contract a separate "contract" that is not a part of the larger IDIQ contract award...
Below are the answers to your questions; however, to ensure we understand the relationship between the MAC and the Task order - you must have a MAC in order to create a Task Order. They both are contracts as they both have elements needed in a contract - an offer, an acceptance and consideration (the consideration in the MAC is the monies promised for the minimum ordered quantity):
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FAR 52.219-14 This FAR Clause was updated ( NOV 2011) 50% Rule regarding Small Business Set-aside
As referenced in the below citations, a Multiple Award Contract (MAC) allows for the Government to pre-qualify offerors that will propose/bid on future known opportunities. Only these pre-approved offerors that become MAC- Contractors will be allowed to offer on the Task Orders. During evaluation of offerors, the potential contractors have NOT met the small business set aside requirements for the Multiple Award Contract. While the MAC provides for a contractual relationship, it does not meet the requirements regarding the obligation of funds, until the offerors propose and win a Task Order Contract Award. It is at the award of the Task Order Contract that FAR 52.219-14 requires the Small Business to perform at least 50% of the work of the Task Order Contract.
Further consideration. The Contracting Officer should also emphasize the importance of FAR 52.219-9 Small Business Subcontracting Plan to any "Other than Small Business (Large )" that receives award from the UN-Restricted Pool.
Per your request for clarification,- the Task Order is tied to the terms and conditions negotiated in the Multiple Award Contract. Only those offerors that become awardees/contractors, may offer on any Task Order. The 50% rule applies to actual funds expended and hours worked.
FAR 19.508 ( e) requires the Contracting Officer to insert the clause at 52.219-14, in order to insure that all small business offerors/Contractors , perform at least 50% of the cost of work with employees of that
concern/contractor. At least 50 percent of the cost of contract performance incurred for personnel shall be expended for employees of the concern.
FAR 19.201 General Policy (a) It is the policy of the Government to provide MAXIMUM practicable opportunities in its acquisitions to small business.. etc
FAR 19.508 (e) The contracting officer shall insert the clause at 52.219-14, Limitations on Subcontracting, in solicitations and contracts for supplies, services, and construction, if any portion of the requirement is
to be set aside or reserved for small business and the contract amount is expected to exceed $150,000. This includes multiple-award contracts when orders may be set aside for small business concerns, as described in 8.405-5 and 16.505(b)(2)(i)(F).
In this question the restricted pool is composed of small business offerors.
52.219-14 -- Limitations on Subcontracting. As prescribed in 19.508(e) or 19.811-3(e), insert the following clause: Limitations on Subcontracting (Nov 2011)
(a) This clause does not apply to the unrestricted portion of a partial set-aside.
(b) Applicability. This clause applies only to--
(1) Contracts that have been set aside or reserved for small business concerns or 8(a) concerns;
(2) Part or parts of a multiple-award contract that have been set aside for small business concerns or 8(a) concerns; and
(3) Orders set aside for small business or 8(a) concerns under multiple-award contracts as described in 8.405-5 and 16.505(b)(2)(i)(F).
(c) By submission of an offer and execution of a contract, the Offeror/Contractor agrees that in performance of the contract in the case of a contract for --
(1) Services (except construction). At least 50 percent of the cost of contract performance incurred for personnel shall be expended for employees of the concern.
(2) Supplies (other than procurement from a nonmanufacturer of such supplies). The concern shall perform work for at least 50 percent of the cost of manufacturing the supplies, not including the cost of materials.
(3) & (4) deleted .. (End of Clause)
FAR 16.501-1 -- Definitions. As used in this subpart --
"Task-order contract" means a contract for services that does not procure or specify a firm quantity of services (other than a minimum or maximum quantity) and that provides for the issuance of orders for the performance of tasks during the period of the contract.