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13 CFR 125.6 limitations on subcontracting calculator

Enter what the government has paid and what you have paid your subcontractors. The calculator applies the FAR 52.219-14 / 13 CFR 125.6 test for your contract type, excludes similarly situated subcontractors and materials where the rule allows, and shows exactly where you stand. Nothing is uploaded — it all runs in your browser.

Try a fictional services example

Government payments of $100,000 and $40,000 paid to subcontractors that are not similarly situated produce 40% counted subcontracting, below the 50% services ceiling. This example has no similarly situated or lower-tier work and no special exclusions. It illustrates arithmetic, not a compliance determination.

Loading the example replaces the calculator entries. Use Clear to remove it before entering your own figures.

Contract

Contract typeDetermines the limit and whether materials are excluded

Amount paid by the governmentActually paid in the measurement period, not invoiced

Subcontractors

"Similarly situated" = holds the same small-business status the contract was set aside for and is small under the contract's NAICS code — verified, not assumed. Its own lower-tier subcontracting still counts: add that as a separate line marked "counts".

This tool is an arithmetic aid, not legal advice and not a compliance determination. The clause in your awarded contract, 13 CFR 125.6 as in force, and your contracting officer govern. Mixed contracts follow the principal-purpose rule. Verify every similarly situated status with evidence.

What does 13 CFR 125.6 cover?

The SBA rule sets payment-based subcontracting limits for applicable small-business federal contracts. Confirm your awarded clause, contract type and measurement period before using this arithmetic aid. Nonmanufacturer supply rules, mixed contracts and specialized exclusions require separate review. Read the current official 13 CFR 125.6 text.

How the number is computed

Counted subcontracting = payments to subcontractors that are not similarly situated (minus materials, on supply and construction contracts). Percentage = counted subcontracting ÷ amount paid by the government. It is compared with the limit for the contract type: 50% services, 50% supplies, 85% general construction, 75% special trade construction. Read the full explanation, the records you need and the common mistakes in the limitations on subcontracting guide.

Which tool should I use to track subcontracting payments?

Can I calculate the subcontracting percentage without signing up?

Yes. This free browser calculator accepts amounts you enter and shows its arithmetic. Try the fictional example above. It does not import your source files or determine whether the rule applies to your contract.

How do I track the number every reporting period?

Keep government receipts, subcontractor payments, supporting status evidence and the measurement period together. Use the spreadsheet preparation guide to organize your records. The SubLimit Windows application adds recurring imports and source-row traceability; the practice walkthrough shows that separate workflow.

Does a result below the limit prove compliance?

No. The calculation depends on correct inputs and applicable treatment. Confirm your contract, period and supporting facts with the responsible reviewer. The calculator is an arithmetic aid, not certification.

EVERY PERIOD, FROM YOUR OWN RECORDS

SubLimit does this from your payroll and subcontractor exports — with every input traced to its row.

Configure the contract once; each period import the files, verify statuses, get the exact percentage and a list of everything missing or unverified. Prepare the workforce report draft from the same records. Runs on your Windows computer. $149.00/month, 30-day no-card trial.

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