Inactive Service-Disabled Veteran-Owned Small Business (SDVOSB) Set-Aside (FAR 19.14)

Question: When looking at the attachment "Compliance with13 C.F.R. 125.6; VAAR 852.819-10 or VAAR 852.219-11" it mentions that either we do not sub any of the work out or we can sub up to 50% to a con... Question: When looking at the attachment "Compliance with13 C.F.R. 125.6; VAAR 852.819-10 or VAAR 852.219-11" it mentions that either we do not sub any of the work out or we can sub up to 50% to a contractor that is registered/ certified in VIP. Is this correct? So basically, can only sub it to a Veteran Owned or another SDVOSB? Answer: A vendor can subcontract work. However, vendors must follow both VAAR 852.219-77 - VA Notice of Limitations on Subcontracting Certificate of Compliance for Services and Construction, and VAAR 852.219-10 - VA Notice of total service-disabled veteran-owned small business (SDVOSB) set-aside. Therefore, a vendor submitting a quote must be a SDVOSB and follow the below criteria. In accordance with VAAR 852.219-77, VA Notice of Limitations on Subcontracting Certificate of Compliance for Services and Construction: (a)(1)(i) the contractor will not pay more than 50% of the amount paid by the government to it to firms that are not VIP-listed SDVOSBs as set forth in 852.219-10 or VOSBs as set forth in 852.219-11. Any work that a similarly situated VIP-listed subcontractor further subcontracts will count towards the 50% subcontract amount that cannot be exceeded. Other direct costs may be excluded to the extent they are not the principal purpose of the acquisition and small business concerns do not provide the service as set forth in 13 CFR 125.6. In accordance with VAAR 852.219-10 VA Notice of total service-disabled veteran-owned small business set-aside: Definition. For the Department of Veterans Affairs, Service-disabled veteran-owned small business concern : Means a small business concern: Not less than 51 percent of which is owned by one or more service-disabled veterans or, in the case of any publicly owned business, not less than 51 percent of the stock of which is owned by one or more service-disabled veterans (or eligible surviving spouses); The management and daily business operations of which are controlled by one or more service-disabled veterans (or eligible surviving spouses) or, in the case of a service-disabled veteran with permanent and severe disability, the spouse or permanent caregiver of such veteran; The business meets Federal small business size standards for the applicable North American Industry Classification System (NAICS) code identified in the solicitation document; and The business has been verified for ownership and control and is so listed in the Vendor Information Pages database, (http://www.VetBiz.gov). Under section (c) of VAAR 852.219-10, lists the following: (c) Agreement. A service-disabled veteran-owned small business concern agrees that in the performance of the contract, in the case of a contract for: (1) Services (except construction), at least 50 percent of the cost of personnel for contract performance will be spent for employees of the concern or employees of other eligible service-disabled veteran-owned small business concerns. All other terms and conditions remain the same.