Attachment 10 - Small Business Subcontracting Plan.pdf

Attachment 10 – FA500025R0007

SMALL BUSINESS SUBCONTRACTING PLAN

All prime contractors designated in the System for Award Management (SAM) as “Other than Small business”, that hold a contract expected to exceed $750,000 ($1.5M for construction) are required to submit an acceptable subcontracting plan with their proposals and/or within the time limit prescribed by the contracting officer. Once accepted, the subcontracting plan will become part of the contract award.

To be completed by Contractors as required by FAR 19.702 and including all required information as set forth at contract clause FAR 52.219-9

1. Company Information:

• Contractor Name:

• Address:

• Unique Entity Identifier (UEI):

• Contract Number (If applicable):

• Solicitation Number (If applicable):

• Total Contract Value

• Type of Plan: (Check one) Individual Plan: means a subcontracting plan that covers the entire contract period (including option periods), applies to a specific contract, and has goals that are based on the offeror’s planned subcontracting in support of the specific contract, except that indirect costs incurred for common or joint purposes may be allocated on a prorated basis to the contract.

Master Plan: means a subcontracting plan that contains all the required elements of an individual contract plan, except goals, and may be incorporated into individual contract plans, provided the master plan is approved.

Commercial Plan: means a subcontracting plan (including goals) that covers the offeror’s fiscal year and that applies to the entire production of commercial items sold by either the entire company or a portion thereof (e.g. division, plant, or product line)

2. Plan Period:

• Start Date:

• End Date:

(Note: For individual plans, this typically aligns with the contract period.)

3. Contract/Project Description:

• Briefly describe the project or contract for which this plan is being submitted. This should include the primary services or products being provided.

4. Goals (FAR 52.219-9(d)(1) & (2)):

a. * Federal Acquisition Regulation (FAR), paragraph 19.708(b)(1)) prescribes the use of the clause at FAR 52.219-9 entitled "Small Business Subcontracting Plan." The following is a suggested model for use when formulating such subcontracting plan.

While this model plan has been designed to be consistent with FAR 52.219-9, other formats of a subcontracting plan may be acceptable. However, failure to include the essential information as exemplified in this model may be cause for either a delay in acceptance or the rejection of a bid or offer where the clause is applicable. Further, the use of this model is not intended to waive other requirements that may be applicable under FAR 52.219-9 or that may appear in the Government’s solicitation.

"SUBCONTRACT," as used in this clause, means any agreement (other than one involving an employer-employee relationship) entered into by a federal government prime contractor or subcontractor calling for supplies or services required for performance of the contract or subcontract.

b. Instructions: Complete the tables below. Provide goals in both total dollars and percentage of total subcontracting dollars. If the Contracting Officer requires goals as a percentage of total contract dollars, include those as well (use separate tables for those).

If this is an individual plan, create separate tables for the basic contract and each option year, as applicable.

c. The following is a list of separate percentage goals for using small business (including Alaska Native Corporations (ANCs) and Indian tribes), veteran-owned small business (VOSB), service-disabled veteran-owned small business (SDVOB), HUBZone small business (HUBZone), small disadvantaged business (SDB)(including ANCs and Indian tribes), and women-owned small business (WOSB) concerns, and historically black colleges and universities and minority serving institutions where applicable as subcontractors.

d. The following is a statement of the total dollars planned to be subcontracted and a statement of the total dollars planned to subcontracted to small business (including ANCs and Indian tribes), veteran-owned small business, service-disabled veteran-owned small business, HUBZone small business, small disadvantaged business (including ANCs and Indian tribes), and women-owned small business concerns, as a percentage of total subcontract dollars. For individual subcontracting plans only, a contracting officer may require the goals referenced above to be calculated as a percentage of total contract dollars, in addition to the goals established as a percentage of total subcontract dollars. (The following table is an example.)

TABLE 1:

**DFARS 219.705-4(d) – Goals in all the small business categories, including SBs (including ANC and Indian tribes); VOSBs; SDVOSBs; HUBZone SBs; SDBs (including ANCs and Indian tribes); and WOSBs must be greater than zero. Small-disadvantaged business goal must be equal to or greater than five percent (5%).

• Additional Tables (pages 17 and 18): Create separate tables for each option year (if applicable to an individual plan).

o Option Years: (State the goals for the option years. If the same percentages will be used, state, “Same percentages as noted above will be used for each option year.” If there are no option years, leave this portion out of your plan.)

Total Planned Subcontracting dollars under this contract estimated to go to SB Categories listed below:

Amount Percent

a. All types of business concerns under this contract (Large and small)

b. Total dollars planned to be subcontracted out

c. Small Business Concerns [including American Native Corporations

(ANC) and Indian tribes]. (% of “b”)

d. Veteran-Owned Small Business Concerns. (% of “b”)

e. Service-Disabled Veteran-Owned Small Business Concerns. (% of “b”)

f. HUBZone Business Concerns. (% of “b”)

g. Small Disadvantaged Business Concerns (including ANCs and Indian tribes). (% of “b”)

h. Women-owned Small Business Concerns. (% of “b”) Total Dollars/Percentages Planned to be Subcontracted (Individual Plan):

5. Principal Types of Supplies/Services to be Subcontracted (FAR 52.219-9(d)(3)):

a. The following is a statement of the principal types of supplies and services to be subcontracted and the types planned for subcontracting to small business (including ANCs and Indian tribes), veteran-owned small business, service-disabled veteran-owned small business, HUBZone small business, small disadvantaged business (including ANCs and Indian tribes), and women-owned small business concerns, as a percentage of total subcontract dollars. (The following table is an example. Blank table included on page 19)

Provide listing of subcontractors, contact information such as phone number or email address, their business size, type of work, and amount to be subcontracted. For example:

TABLE 2:

Contractor Contract info Size Type of Work Amount Percent S&S Sampling (999)555-5555 SB Soil Drilling $5,000 5% ABC Testing abc@dot.com SDB Material testing $15,000 15% XYZ Consultants (999)444-4444 WOSB Civil Engineering $7,500 7.5% John Doe Surveying (000)333-3333 HUBZone Survey $15,000 15% ACME Plumbing acme@dot.com SDB and

VOSB

Plumbing $8,250 8.2%

Ace Equipment ace@dot.com SDVOSB and VOSB

Equipment Rental $5,000 5%

6. Method Used to Develop Subcontracting Goals (FAR 52.219-9(d)(4)):

a. Instructions: Describe the method used to establish the subcontracting goals. This should include a description of how potential subcontracting opportunities were identified and how the goals were determined to be realistically achievable.

b. Example: "Our subcontracting goals were developed based on a thorough review of the project requirements and an analysis of potential subcontracting opportunities. We considered historical subcontracting data from similar projects, market research to identify qualified small businesses, and our internal capabilities to determine the appropriate level of subcontracting. We also considered the availability of qualified small businesses in the relevant geographic area and the potential for set-aside opportunities."

c. Further Details:

o Market research conducted? (Yes/No) If yes, describe.

o Consideration of past performance? (Yes/No) If yes, describe.

o Benchmarking against industry standards? (Yes/No) If yes, describe.

o Analysis of project requirements? (Yes/No) If yes, describe.

7. Method Used to Identify Potential Small Business Sources (FAR 52.219-9(d)(5)):

a. Instructions: Describe the methods used to identify potential small business sources for solicitation purposes.

b. Example: "We will utilize the following methods to identify potential small business subcontractors:

I. System for Award Management (SAM): We will use SAM to identify registered small businesses, including VOSBs, SDVOSBs, HUBZones, SDBs, and WOSBs.

II. Dynamic Small Business Search (DSBS): We will utilize the DSBS to identify small businesses.

III. Existing Company Source Lists: We maintain an internal database of qualified small business subcontractors.

IV. Veterans Service Organizations: We will contact veterans service organizations to identify potential VOSB and SDVOSB subcontractors.

V. Small Business Trade Associations: We will contact small business trade associations to identify potential small business subcontractors.

VI. Conferences and Trade Fairs: We will attend industry conferences and trade fairs to network with small businesses."

c. Include: Specific websites, organizations, databases, and events you will utilize.

8. Indirect Costs (FAR 52.219-9(d)(6)): (Indirect cost are required for commercial plans, skip this question if indirect costs are not included)

a. Instructions: State whether or not indirect costs were included in establishing subcontracting goals. If indirect costs were included, describe the method used to determine the proportionate share of indirect costs to be incurred with each small business category.

b. Example (Indirect Costs Included): "Yes, indirect costs were included in establishing subcontracting goals. We allocated indirect costs based on the proportion of direct labor hours associated with each small business category. This method ensures that a fair share of indirect costs is attributed to small business subcontracting."

c. Example (Indirect Costs Excluded): "No, indirect costs were not included in establishing subcontracting goals. We believe that focusing on direct subcontracting dollars provides a more accurate measure of our commitment to small business participation. We exclude the following types of indirect costs: Employee salaries and benefits; payments for petty cash; depreciation; interest; income taxes; property taxes;

lease payments; bank fees; fines, claims, and dues; original equipment manufacturer relationships during warranty periods (negotiated up front with the product); utilities and other services purchased from a municipality or an entity solely authorized by the municipality to provide those services in a particular geographical region; and philanthropic contributions."

9. Subcontracting Program Administrator (FAR 52.219-9(d)(7)):

• Name:

• Title:

• Address:

• Email:

• Phone:

• Duties of the above-named person(s) involve:

a. "The Subcontracting Program Administrator is responsible for administering the company's subcontracting program, including developing and implementing the subcontracting plan, identifying potential small business subcontractors, conducting outreach activities, monitoring subcontracting performance, and reporting to the government."

b. Specific Duties: (List specific responsibilities, e.g., "Maintaining source lists," "Reviewing solicitations," "Attending outreach events," "Preparing reports.")

10. Efforts to Ensure Equitable Opportunity (FAR 52.219-9(d)(8)):

a. Instructions: This part requires a description of efforts that your company will make to ensure that small, HUBZone small, small disadvantaged, women-owned small, veteran-owned small, and service-disabled veteran-owned small business concerns will have an equitable opportunity to compete for subcontracts. Please indicate which of the following activities your company is engaged in and describe any additional efforts..

b. Examples: "We will make the following efforts to ensure that small businesses have an equitable opportunity to compete for subcontracts:

1. Outreach: We will actively participate in outreach events to connect with small businesses.

2. Solicitation Review: We will review all solicitations to identify opportunities for small business participation.

3. Technical Assistance: We will provide technical assistance to small businesses to help them prepare competitive bids.

4. Subcontracting Workshops: We will conduct subcontracting workshops to educate small businesses about our subcontracting process.

5. Mentoring: We will provide mentoring to small businesses to help them grow and develop their capabilities.

6. Timely Payments: We will ensure timely payments to small business subcontractors."

c. Include: Specific activities, programs, and initiatives.

11. Assurances Regarding Subcontracting Clause (FAR 52.219-9(d)(9)):

a. Example: "We assure that we will include the clause of this contract entitled 'Utilization of Small Business Concerns' in all subcontracts that offer further subcontracting opportunities."

b. Example: "We assure that we will require all subcontractors (except small business concerns, including entities that are treated as small business concerns by statute for certain purposes (e.g., ANCs, see 13 CFR 125.3(b)(2)) that receive subcontracts in excess of the applicable threshold specified in FAR 19.702(a) on the date of subcontract award, with further subcontracting possibilities to adopt a subcontracting plan that complies with the requirements of this clause."

12. Assurances Regarding Cooperation and Reporting (FAR 52.219-9(d)(10)): Assurances Examples Below:

a. "We assure that we will cooperate in any studies or surveys as may be required."

b. "We assure that we will submit periodic reports so that the Government can determine the extent of compliance by the Contractor with the subcontracting plan."

c. (If applicable to the contract): "We assure that, after November 30, 2017, we will include subcontracting data for each order when reporting subcontracting achievements for indefinite-delivery, indefinite-quantity contracts with individual subcontracting plans where the contract is intended for use by multiple agencies."

d. "We assure that we will submit the Individual Subcontract Report (ISR) and/or the Summary Subcontract Report (SSR), in accordance with paragraph (l) of this clause using the Electronic Subcontracting Reporting System (eSRS) at http://www.esrs.gov.

The reports shall provide information on subcontract awards to small business concerns (including ANCs and Indian tribes that are not small businesses), veteran-owned small business concerns, service-disabled veteran-owned small business concerns, HUBZone small business concerns, small disadvantaged business concerns (including ANCs and http://www.esrs.gov/

Indian tribes that have not been certified by the Small Business Administration as small disadvantaged businesses), women-owned small business concerns, and for NASA only, Historically Black Colleges and Universities and Minority Institutions. Reporting shall be in accordance with this clause, or as provided in agency regulations."

e. "We assure that our subcontractors with subcontracting plans agree to submit the ISR and/or the SSR using eSRS."

f. "We assure that we will provide our prime contract number, our unique entity identifier, and the e-mail address of our official responsible for acknowledging receipt of or rejecting the ISRs, to all first-tier subcontractors with subcontracting plans so they can enter this information into the eSRS when submitting their ISRs."

g. "We assure that we will require that each subcontractor with a subcontracting plan provide the prime contract number, its own unique entity identifier (UEI), and the e-mail address of the subcontractor's official responsible for acknowledging receipt of or rejecting the ISRs, to its subcontractors with subcontracting plans."

13. Record Keeping (FAR 52.219-9(d)(11)):

a. Instructions: Describe the types of records that will be maintained to comply with the plan.

b. Example: "We will maintain the following records concerning procedures adopted to comply with the requirements and goals in this plan:

1. Source lists (e.g., SAM), guides, and other data that identify small business concerns.

2. Records of organizations contacted in an attempt to locate small business sources.

3. Records on each subcontract solicitation resulting in an award of more than the simplified acquisition threshold, indicating whether small business concerns were solicited and, if not, why not.

4. Records of any outreach efforts to contact trade associations, business development organizations, conferences and trade fairs, and veterans service organizations.

5. Records of internal guidance and encouragement provided to buyers through workshops, seminars, training, etc., and monitoring performance to evaluate compliance with the program's requirements.

6. On a contract-by-contract basis, records to support award data submitted to the Government, including the name, address, and business size of each subcontractor (Contractors having commercial plans need not comply with this requirement)."

14. Good Faith Effort to Utilize Small Businesses (FAR 52.219-9(d)(12)):

a. Example: "We assure that we will make a good faith effort to acquire articles, equipment, supplies, services, or materials, or obtain the performance of construction work from the small business concerns that it used in preparing the bid or proposal, in the same or greater scope, amount, and quality used in preparing and submitting the bid or proposal. Responding to a request for a quote does not constitute use in preparing a bid or proposal. The Offeror used a small business concern in preparing the bid or proposal if–

(i) The Offeror identifies the small business concern as a subcontractor in the bid or proposal or associated small business subcontracting plan, to furnish certain supplies or perform a portion of the subcontract; or (ii) The Offeror used the small business concern's pricing or cost information or technical expertise in preparing the bid or proposal, where there is written evidence of an intent or understanding that the small business concern will be awarded a subcontract for the related work if the Offeror is awarded the contract."

15. Written Explanation for Failure to Utilize Small Businesses (FAR 52.219-9(d)(13)):

a. Example: "We assure that we will provide the Contracting Officer with a written explanation if we fail to acquire articles, equipment, supplies, services or materials or obtain the performance of construction work as described in (d)(12) of this clause. This written explanation will be submitted to the Contracting Officer within 30 days of contract completion."

16. Subcontractor Communication (FAR 52.219-9(d)(14)):

a. Example: "We assure that we will not prohibit a subcontractor from discussing with the Contracting Officer any material matter pertaining to payment to or utilization of a subcontractor."

17. Timely Payment to Small Business Subcontractors (FAR 52.219-9(d)(15)):

a. Example: "We assure that we will pay our small business subcontractors on time and in accordance with the terms and conditions of the underlying subcontract and notify the contracting officer when the prime contractor makes either a reduced or an untimely payment to a small business subcontractor (see 52.242-5)."

18. Implementation Functions (FAR 52.219-9(e)):

a. To effectively implement this plan to the extent consistent with efficient contract performance, we will perform the following functions:

1. Assist small business, veteran-owned small business, service-disabled veteran-owned small business, HUBZone small business, small-disadvantaged business, and women-owned small business concerns by arranging solicitations, time for the preparation of bids, quantities, specifications, and delivery schedules to facilitate the participation by such concerns. Where our lists of potential small business subcontractors are excessively long, reasonable effort shall be made to give all such small business concerns an opportunity to compete over a period of time.

2. Provide adequate and timely consideration of the potentialities of small business, veteran-owned small business, service-disabled veteran-owned small business, HUBZone small business, small-disadvantaged business, and women-owned small business concerns in all ‘make-or-buy’ decisions.

3. Counsel and discuss subcontracting opportunities with representatives of small business firms.

4. Confirm that a subcontractor representing itself as a HUBZone small business concern is certified by SBA as a HUBZone small business concern by accessing SAM or by accessing the Dynamic Small Business Search (DSBS) at https://web.sba.gov/pro-net/search/dsp_dsbs.cfm.

5. Provide notice to subcontractors concerning penalties and remedies for misrepresentations of business status as small, veteran-owned small business, HUBZone small, small disadvantaged, or women-owned small business for the purpose of obtaining a subcontract that is to be included as part or all of a goal contained in our subcontracting plan.

6. For all competitive subcontracts over the simplified acquisition threshold, in which a small business concern received a small business preference, upon determination of the successful subcontract offeror, prior to award of the subcontract, we must inform each unsuccessful small business subcontract offeror in writing of the name and location of the apparent successful offeror and if the successful subcontract offeror is a small business, veteran-owned small business, service-disabled veteran-owned small business, HUBZone small business, small disadvantaged business, or women-owned small business concern.

7. Assign each subcontract the NAICS code and corresponding size standard that best describes the principal purpose of the subcontract.

https://web.sba.gov/pro-net/search/dsp_dsbs.cfm

19. Signatures:

This subcontracting plan was submitted by:

(Must be a company official with authority to contractually obligate the company.)

Signed:

Date:

Typed Name:

Title:

Phone Number:

Agency Small Business Professional Review:

Typed Name: ______________________________

Signed: Date Reviewed:

Small Business Professional

U. S. Small Business Administration1

Typed Name: ______________________________

Signed: Date Reviewed:

Procurement Center Representative

Small Business Administration

1 By statute, SBA does not approve or disapprove a subcontracting plan; rather, SBA’s comments are advisory, and the contracting officer approves or disapproves the plan.

Contracting Officer Approval:

Typed Name: ______________________

Signed: Date Approved:

Contracting Officer

END OF SECTION

Additional Tables:

Option Year 1:

Option Year 2:

Amount Percent

a. All types of business concerns under this contract (Large and small)

b. Total dollars planned to be subcontracted out

c. Small Business Concerns [including American Native Corporations

(ANC) and Indian tribes]. (% of “b”)

d. Veteran-Owned Small Business Concerns. (% of “b”)

e. Service-Disabled Veteran-Owned Small Business Concerns. (% of “b”)

f. HUBZone Business Concerns. (% of “b”)

Amount Percent

a. All types of business concerns under this contract (Large and small)

b. Total dollars planned to be subcontracted out

c. Small Business Concerns [including American Native Corporations

(ANC) and Indian tribes]. (% of “b”)

d. Veteran-Owned Small Business Concerns. (% of “b”)

e. Service-Disabled Veteran-Owned Small Business Concerns. (% of “b”)

f. HUBZone Business Concerns. (% of “b”)

Option Year 3:

Option Year 4:

Amount Percent

a. All types of business concerns under this contract (Large and small)

b. Total dollars planned to be subcontracted out

c. Small Business Concerns [including American Native Corporations

(ANC) and Indian tribes]. (% of “b”)

d. Veteran-Owned Small Business Concerns. (% of “b”)

e. Service-Disabled Veteran-Owned Small Business Concerns. (% of “b”)

f. HUBZone Business Concerns. (% of “b”)

Amount Percent

a. All types of business concerns under this contract (Large and small)

b. Total dollars planned to be subcontracted out

c. Small Business Concerns [including American Native Corporations

(ANC) and Indian tribes]. (% of “b”)

d. Veteran-Owned Small Business Concerns. (% of “b”)

e. Service-Disabled Veteran-Owned Small Business Concerns. (% of “b”)

f. HUBZone Business Concerns. (% of “b”)

Contractor Contract info Size Type of Work Amount Percent