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  • Question

    Would it be o.k. for a small business from out of the area to subcontract with the local large business ?


    Answer

    Is this a true set-aside that you have if your market research indicates no small vendors in the immediate area can do the pick up/deliver portion of the requirement.  For such a requirement, you may want to talk with your small business specialist and the SBA PCR to see what vendors can do this.  It sounds as if a SB should be able to do it.  If you use a set-aside FAR 19.5 for example then you will have to follow FAR 19.505(b)(i) Limitations on Subcontracting and insert clause at 52.219-14.

    (i)For a contract or order assigned a North American Industry Classification System (NAICS) code for services (except construction), the concern will not pay more than 50 percent of the amount paid by the Government for contract performance to subcontractors that are not similarly situated entities. Any work that a similarly situated entity further subcontracts will count towards the concern's 50 percent subcontract amount that cannot be exceeded. When a contract includes both services and supplies, the 50 percent limitation shall apply only to the service portion of the contract.

    If the pick up and delivery of lanudry is less than 50% of the requirement as noted in FAR 52.219-14, your small business should be able to do it.  

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