As such, the prime contractor cannot subcontract more than $6,800,000 to non-similarly situated entities, and the prime and similarly situated entities. Any work that a similarly situated entity further subcontracts will count towards the prime contractor's 75 percent subcontract amount that cannot be exceeded.
Thus, because the services portion of the contract and the cost of materials are excluded from consideration, the relevant amount for purposes of calculating the performance of work requirement is, and the prime and similarly, situated entities must perform at least and the prime contractor may.
The term prime contract means a contract or contractual action entered into by the Federal Government to obtain supplies, materials, equipment, or services of any kind. Prime contractor. The term prime contractor means a person that has entered into a prime contract with the Federal Government.
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