Procurement Technical Assistance Center

Federal Acquisition Laws


"They apply to your contract"

The government contract terms and conditions are unique. They are very different from commercial (UCC) contract clauses. The PTAC will give your expert assistance in this area.

Below are the complete clauses that are referenced in your contract:

SMALL BUSINESS SET-ASIDE RULES

Limitations on Subcontracting limits how much work you can subcontract out.  These limits are:

•   For service contracts (that are not construction), you must perform at least 50% of  the   

     cost of the contract for personnel with your own employees.

•   For supply contracts (if you are the manufacturer), you must perform at least 50%  of

     the cost of manufacturing the supplies or products (not including the cost of materials).

•   For general construction contracts, you must perform at least 15% of the cost of  the

    contract with your own employees (not including cost of materials).

•   For specialty construction contracts, you must perform at least 25% of the cost of  the

    contract with your own employees (not including cost of materials).

NON-MANUFACTURER  RULE – RESELLER RULE

Your company must have less than 500 employees, be primarily engaged in the retail or wholesale trade and normally sell the type of item being supplied, and supply the end item of a small business manufacturer or processor made in the United States or obtain a waiver from the SBA.