Attachment 5: Limitations of Subcontracting Worksheet

U.S. Department of the Interior
FAR Clause 52.219-14, Limitations of Subcontracting
Subcontracting Percentage Worksheet

PRIME CONTRACTOR:

SOURCE:

SUBCONTRACTOR:

SOURCE:

DIRECT LABOR

FRINGE BENEFITS*

SUB TOTAL

TOTAL LABOR COSTS

PRIME CONTRACTOR

$
$
(A) $
$
(C) $

SUBCONTRACTOR

$
$
(B) $
$
(D) $

To calculate the subcontracting percentage, first add DIRECT LABOR and FRINGE BENEFITS and enter the figures for the prime contractor in space (A) and for the subcontractor (if available)** in space (B).
Next, Calculate the LABOR G&A by multiplying the G&A rate by the SUBTOTAL figure in space (A). Calculate the subcontractor’s LABOR G&A by multiplying the subcontractor’s G&A rate by the subcontractor’s SUBTOTAL figure in (B).
Add the LABOR G&A to the SUBTOTAL and record that figure in the spaces for TOTAL LABOR COSTS at (C) and (D) respectively.
Next, using the formula below, calculate the subcontracting labor percentage. (D)
(C) + (D)

SUBCONTRACTING LABOR COST PERCENTAGE =

%

*

The firm must demonstrate that their labor overhead is allowable in accordance with FAR 31.2056(m). Failure to do so will csuse the entire overhead to be eliminated from the calculations. **

G&A denotes General and Administrative Costs

***
You need to compare as like figures as possible. Therefore, if you have a breakdown of the subcontractos’s costs use it in the formulation above. If you do not have a breakdown you need to use the TOTAL SUBCONTRACTING AMOUNT for item (D) even though you must still breakdown the contractor’s costs.