GovTender PRO 13 CFR § 125.6 & FAR 52.219-14 Self-Performance Suite
13 CFR § 125.6 FAR 52.219-14 COMPLIANCE > $250,000 SAT MANDATORY PRE-BID GATE

13 CFR § 125.6 / FAR 52.219-14 Limitations on Subcontracting Pre-Bid Calculator

Official Small Business Prime Contractor Labor Floor & Pass-Through Penalty Safeguard for Federal Solicitations Exceeding $250,000 SAT. Federal law strictly caps the percentage of labor small business primes may subcontract to non-similarly situated entities on set-aside contracts. Use this statutory solver to guarantee proposal responsiveness under 13 CFR § 125.6, model certified Similarly Situated Entity (SSE) credits, and synthesize audit-ready Section L proposal attestations.

Target NAICS 238210 / 236220
Procurement Set-Aside Total Small Business (FAR 19.5)
bolt Quick Presets:
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1. Contract & Procurement Category

Step 1 of 2: Classification
badge Solicitation Identification
functions Net Evaluated Labor Base Pool (13 CFR § 125.6 Denominator):
$170,000.00
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2. Work Breakdown & Cost Allocation Schedule

Direct Dollars ($)
Prime Eligible Prime Direct In-House Personnel
100% Self-Performance Credit
$
Wages paid to direct prime employees
$
Payroll taxes, benefits, direct burden
Subcontract Allocations Subcontracted Trade Personnel
13 CFR § 125.6 SSE Rules
13 CFR 125.6
$
Counts toward prime compliance credit
Capped
$
Strictly capped by subcontract limitation
Statutory Exclusions Direct Materials, Equipment & Fees
Excluded from Labor Ratio
$
Excluded per 13 CFR § 125.6
$
Excluded per 13 CFR § 125.6
$
General & admin markups
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Similarly Situated Entity (SSE) Safe Harbor Exemption 13 CFR 125.1

First-tier subcontractors that hold the exact same socioeconomic certification as the prime contractor (e.g., SDVOSB to SDVOSB, or 8(a) to 8(a)) receive full pass-through statutory self-performance credit. Work further subcontracted to non-SSE entities is not credited.

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15 U.S.C. 657s Enforcement Notice: Federal set-aside contracts exceeding the Simplified Acquisition Threshold ($250,000) are subject to mandatory post-award audit verification. Bids containing deficient self-performance allocations are deemed non-responsive and subject to protest or disqualification.

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PASSED 13 CFR § 125.6 AUDIT COMPLIANT
Statutory Minimum Self-Performance Floor Exceeded
63.5% prime + SSE labor
Threshold Target: ≥ 25.0%
Labor Allocation Breakdown +38.5% Buffer Above Mandatory Floor
FLOOR 25%
Prime Direct: 48.8% ($83,000)
SSE Sub: 14.7% ($25,000)
Non-SSE Sub: 36.5% (Cap: 75.0%)
Labor Base $170,000 Excl materials/eq
Eligible Scope $108,000 $83k + $25k SSE
Compliance Surplus +$65,500 Headroom over floor
Total Proposal $420,000 All costs & fee
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Pass-Through Penalty Exposure Risk Statutory fine under 15 U.S.C. 645(d) Safe Harbor Protected
$0.00
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FAR 52.219-14 Section L Submittal Attestation

Citing: FAR 52.219-14 & 13 CFR § 125.6

"Crestview Electrical & Controls LLC certifies under penalty of perjury pursuant to 18 U.S.C. 1001 that it shall personally perform not less than 63.5% of the net cost of the contract incurred for personnel with its own employees ($83,000.00 direct prime labor of $170,000.00 total evaluated labor pool) under Solicitation/Award No. N68836-26-R-0520, in full compliance with 13 CFR § 125.6 and FAR 52.219-14 for Specialty Construction Trades."

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Statutory Regulatory Digest

Small Business Limitation on Subcontracting Rules (13 CFR § 125.6 & FAR 52.219-14)

The Small Business Administration (SBA) and Federal Acquisition Regulation (FAR) impose statutory limitations on subcontracting to prevent pass-through front arrangements on federal set-aside procurements. Failure to comply can result in bid rejection, contract termination for default, statutory civil penalties, and debarment.

13 CFR § 125.6(a)

Similarly Situated Entity Exception

Subcontractors holding the exact same socioeconomic certification as the prime count 100% toward the prime self-performance floor. Work passed to lower-tier non-SSE firms is excluded from credit.

FAR 52.219-14(e)(4)

Specialty Construction 25% Rule

On specialty trade contracts (NAICS 238), the prime and certified SSE partners must perform at least 25% of labor cost. Cost of materials and heavy equipment is expressly excluded from the evaluated denominator.

FAR 52.219-14(e)(3)

General Construction 15% Rule

On general commercial and residential building construction (NAICS 236), the prime must perform not less than 15% of labor cost, permitting up to 85% subcontracting. Materials are excluded.

15 U.S.C. 645(d)

Civil Penalties & Audit Liability

Falsely certifying compliance exposes contractors to statutory penalties equal to the greater of $500,000 or the total dollar amount expended on non-SSE subcontractors in excess of limitations.