Teaming and subcontracting-limit software for set-aside bids
Why the limitations on subcontracting decide team structure on a set-aside, and how to check yours before submission rather than after award.
On a small-business set-aside, the limitations on subcontracting at 13 CFR 125.6 cap how much of the contract value can flow to firms that are not similarly situated — commonly 50% of the amount paid for services, with different tests for supplies and construction. That rule decides team structure, so it has to be checked while the team is being built and the cost volume priced, not discovered at award. Teaming software for federal work tracks the partners, the NDAs and teaming agreements, and the workshare percentages, and tests the planned split against the applicable limit. VETR Proposal tracks partners, agreements and workshare, and runs the 13 CFR 125.6 check against the priced cost volume rather than against an estimate.
What to look for in teaming and subcontracting software.
Written to be useful even if you end up buying something else.
The subcontracting limit is checked against real numbers
A workshare percentage typed into a field is a plan. The limit applies to the amount actually paid under the contract, so the check is only meaningful when it runs against the priced cost volume. Ask what the tool is testing against.
It knows the test differs by contract type
13 CFR 125.6 sets different percentages for services, supplies, general construction and speciality trade construction, and the similarly-situated-entity exception changes the arithmetic. A single hard-coded 50% is wrong for most of those cases.
Agreements and their status are tracked, not just contacts
A teaming partner record is worth little without the NDA, the teaming agreement, the letter of intent and where each currently stands. That is the paperwork that holds the team together at submission and the paperwork that is missing at 2am.
Certification status is on the partner record
On set-aside work, whether a partner is a similarly situated entity changes whether their share counts against your limit. That means their certification status is a compliance input, not a nice-to-have field.
VETR against those criteria.
Every capability below is shipped and in use — not roadmap.
The 13 CFR 125.6 check runs against the priced volume
VETR measures the planned split against the cost proposal, so the answer reflects what would actually be paid rather than a percentage someone typed in at kickoff.
Partners carry their agreements and certification status
NDAs, teaming agreements, letters of intent and workshare percentages live on the partner record alongside certification status, so the team's compliance position is readable in one place.
Workshare is tracked as a number that can be wrong
Workshare is stored and tracked rather than assumed, which is what makes the limit check possible at all. If the split changes late, the check changes with it.
A partner directory sourced from real award data
Partner search draws on federal award data rather than a self-submitted vendor list, so the firms surfaced are ones with a contracting record in the relevant NAICS.
The claims above are documented in more detail on the security and in-boundary AI page, with downloadable evidence in the trust center. The scoring methodology is published in full as the VETR Framework, and the capability list lives on the features page.
Building a compliant set-aside team
The order that catches a subcontracting-limit problem while it is still fixable.
Identify the capability gap
Read the parsed requirements and find what you cannot deliver alone. Team to the gap, not to the relationship.
Check the applicable limit first
Establish which 13 CFR 125.6 test applies — services, supplies, or construction — before agreeing a split. It constrains the deal you can offer.
Record agreements and workshare
Capture the NDA, teaming agreement and agreed workshare against each partner, with their certification status.
Re-run the check against the priced volume
Once the cost volume is priced, test the real split. Pricing moves; a split that passed at kickoff can fail at submission.
Questions buyers actually ask.
What are the limitations on subcontracting?
They are the rules at 13 CFR 125.6 capping how much of a small-business set-aside contract can be performed by firms that are not similarly situated. For services the prime generally may not pay more than 50% of the amount received to firms that are not similarly situated entities; supplies, general construction and speciality trade construction each carry their own percentage. Failing the test is a compliance problem, not a preference.
What is a similarly situated entity?
A subcontractor that holds the same set-aside status as the prime for the relevant contract — an SDVOSB subcontractor to an SDVOSB prime on an SDVOSB set-aside, for example — and is small under the applicable NAICS size standard. Work performed by a similarly situated entity is generally excluded from the amount counted against the prime's subcontracting limit, which is why partner certification status affects the arithmetic.
When should the subcontracting limit be checked?
While the team is being formed and again once the cost volume is priced. The limit applies to amounts actually paid, so a split that looks compliant as a percentage at kickoff can fail once real labor rates and ODCs are in the model. Checking only at kickoff is checking the plan, not the bid.
Does VETR store teaming agreements?
Yes — NDAs, teaming agreements, letters of intent and workshare percentages are tracked against the partner record, alongside certification status.
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