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on Wednesday, May 29, 2002 - 09:41 am:
I have a construction project that has been set aside only for HUBZONE qualified firms. Is there any restriction against the HUBZONE qualified contractor subcontracting to a large business as long as it does not exceed 85%?
See also 52.219-3 (c) (3) and (4),
Yes, as long as they are directly employed by the firm seeking credit for self-performed work. They don't have to be "permanent employees" of the firm to count. happy sails! joel
Actually, I didn't realize that
the separate Hubzone clause (52.219-3) repeats what is already
stated in the "Limitations on Subcontracting" clause
(52.219-14), which is prescribed for use in contracts set-aside
for small business. Thanks for pointing that out, "C".
There is an interestin question lurking here ....can a construction HZ meet the 35% employee residency rule if it uses a union hall for hiring? And as a total aside,will unions go along with this?
"C", Since hubzone construction
companies are small business, it is more likely that they will
be non-union, although it depends upon the area. In the
Southeast, unions are concentrated in metro areas, like Atlanta.
At any rate, assuming that the project is located in a hubzone,
most trade labor will probably be local, union or not.
Aye and there's the rub,Joel:
13CFR 126.103 defines an employee as "....a person employed on a full time (or full time equilevent) permanent basis". So the HZ construction firm has two tests to meet.....(ie GC); first that 15% of contract costs incurred for personal shall be for the firms employees and second,that 35% of those employees reside in a hubzone. Now if we rely on the CFR cite another way to put this seems to be that fifteen per cent of personnel costs incurred must be for full time permannet employees of the HZ company. Which is why I questioned the union hall issue....first are they considered permanent employees of the GC and if todays union halls work the same way they did when I was in one,how does the union drag only HZ residents for the contract work?
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