As a large company, can I be a teammate or subcontractor to a small business concern and deliver a portion of the required services? If yes, what percentatge must the small business provide or perform?
1. The reference from the Code of Federal Regulations quoted below in pertinent part is applicable to this response:
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Title 13: Business Credit and Assistance
PART 125—GOVERNMENT CONTRACTING PROGRAMS
13 C.F.R. § 125.6 Prime contractor performance requirements (limitations on subcontracting)
(a) In order to be awarded a full or partial small business set-aside contract, an 8(a) contract, or an unrestricted procurement where a concern has claimed a 10 percent small disadvantaged business (SDB) price evaluation preference, a small business concern must agree that:
(1) In the case of a contract for services (except construction), the concern will perform at least 50 percent of the cost of the contract incurred for personnel with its own employees.
2. Based on this regulation, we believe that a large business may be a teammate or subcontractor to a small business concern in response to a solicitation for a 100% Small Business Set-aside for IT services, and therefore may deliver a portion of the required services, provided that the small business concern will perform at least 50 percent of the cost of the contract incurred for personnel with its own employees.
3. Please note that the required work share for the small business prime contractor is 50% of the cost incurred for personnel and not necessarily 50% of the entire prime contract value.