Requires small business contractors to perform percentage of work themselves (not fully subcontract).
Applicability: Required for small business set-asides and contracts under specific NAICS.
Key Requirements
Small business must perform at least 50% of contract cost (or higher percentage per agency)
Track subcontractor spend against limitation percentage
Document in-house performance and subcontracting plan
Notify government if you plan to exceed subcontracting limit
Common Issues & Pitfalls
Subcontracting >50% and losing contract/debarment
Mischaracterizing subcontractor labor as your own staff
Failing to track percentages accurately (creates audit findings)
Changing subcontracting percentage after award without approval
Contractor Guidance for Your Bid
This is the #1 reason small business contracts fail. If the limit is 50%, you must do 50% yourself. Not your affiliate, not a vendor you control—YOU. Keep subcontractor invoices separate. If you are unsure on percent, ask the contracting officer in writing before you subcontract.
Related FAR Clauses
Frequently Asked Questions
What are the key requirements for FAR 52.219-8: Limitation on Subcontracting?
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Requires small business contractors to perform percentage of work themselves (not fully subcontract). Required for small business set-asides and contracts under specific NAICS.
When does FAR 52.219-8 apply to a federal contract?
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Required for small business set-asides and contracts under specific NAICS.
What are the most common compliance issues with FAR 52.219-8?
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Subcontracting >50% and losing contract/debarment Mischaracterizing subcontractor labor as your own staff Failing to track percentages accurately (creates audit findings) Changing subcontracting percentage after award without approval
How should contractors approach FAR 52.219-8 in their proposals?
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This is the #1 reason small business contracts fail. If the limit is 50%, you must do 50% yourself. Not your affiliate, not a vendor you control—YOU. Keep subcontractor invoices separate. If you are unsure on percent, ask the contracting officer in writing before you subcontract.
What related FAR clauses should contractors review alongside FAR 52.219-8?
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Contractors reviewing FAR 52.219-8 should also study related clauses: 52-219-1, 52-219-6. Understanding how these clauses interact helps avoid compliance gaps that can trigger contract disputes or disqualify bids.
What happens if a contractor fails to comply with FAR 52.219-8?
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Non-compliance with FAR 52.219-8 can result in contract termination for default, withholding of payments, debarment proceedings, or False Claims Act liability. Contracting officers typically issue a cure notice before termination. Contractors should consult with a contract attorney if they receive a cure notice related to this clause.