Protests Involving Limitations on Subcontracting Requirements

Under the Federal Acquisition Regulation (FAR) limitations on subcontracting clause, small business contractors may not subcontract out more than a specified percentage of work to non-similarly situated entities, depending on the NAICS code assigned to the contract. For instance, the clause at FAR 52.219-14 obligates the contractor not to pay more than 50% of the amount paid to it by the government for the performance of services and supply contracts to non-similarly situated entities. In …