VA adopts Limitations on Subcontracting (LoS) clauses

      The VA on Dec. 23 became the latest federal agency to issue a class deviation to implement the SBA’s version of the limitations on subcontracting (LoS) rule for contracts awarded to small businesses. VA contracting officers must use the SBA’s interpretation of LoS compliance in all set-aside procurements.

      The DOD, DOE and GSA previously have released similar class deviations.

      The reason for the class deviations is contractor uncertainty over whether they must comply with the SBA’s LoS, or the old FAR version.

      Under the FAR formula, compliance is based on the prime contractor’s costs of personnel. The SBA’s formula is based on total contract revenues and includes work performed by similarly situated entities in the calculation.

      A new rule implementing the changes in the FAR should be out very soon, according to PilieroMazza PLLC.

More information:
PilieroMazza story: https://bit.ly/36fdkJK

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