SBE SUBCONTRACTNG PLAN | Revised October 2023

SBE Subcontracting Plan FAQs & Checklist

This Checklist and FAQs are being provided to assist you in completing the SBE Subcontracting Plan. You must submit the Subcontracting Plan for all construction and non-construction contracts for government-assisted projects and for any application for a Class A Operator, Class B Operator, or Management Service Provider (MSP) license to be issued by the Office of Lottery & Gaming (OLG). You must adhere to all District laws regarding the requirements of Subcontracting Plans, the instructions on the SBE Subcontracting Plan (below), and any instructions provided by the procuring agency or OLG.

FREQUENTLY ASKED QUESTIONS

➢ Who is required to complete an SBE Subcontracting Plan?

o All beneficiaries of construction or non-construction contracts for government-assisted projects in excess of $250,000 must submit an SBE Subcontracting Plan unless the subcontracting requirement is otherwise fully waived by the Director of the Department of Small & Local Business Development. A partial waiver still requires an SBE Subcontracting Plan.

➢ What is the duration for allocating at least 35% of the contract value to SBE?

o For an agency contract at least 35% of the dollar volume of the contract shall be subcontracted to a qualified SBE for each performance period for the life of the contract.

➢ I am a CBE Prime Contractor doing 100% of the work under my contract, am I required to complete the SBE Subcontracting Plan?

o If a CBE Prime is selected as a beneficiary of a construction or non-construction contract and will perform 100% of the work, subcontracting is not required. If 100% of the work is performed by the CBE Prime, it shall attest to completing 100% of the work. However, if a CBE Prime subcontracts any portion of the work, 35% of the total amount subcontracted must be with anSBE. For example, if a CBE Prime receives a contract for $1,000,000 and will perform only $900,000 of the contract, 35% of the remaining $100,000 (i.e., $35,000) must be subcontracted to qualified SBEs. The SBE Subcontracting Plan, based on this example, should be completed.

➢ Will DSLBD credit 100% of a CBE’s subcontract towards my subcontracting goal?

o DSLBD will only provide credit towards your subcontracting goal for work whereby a SBE provides a commercially useful function. For example, if a Prime contractor awards a $100,000 contract to an SBE subcontractor to procure software licenses at $95,000, and the remaining $5,000 is paid to the SBE for obtaining those software licenses, only the $5,000 will be credited towards the subcontracting goal. Any pass-thru costs or other work where the SBE is not providing a commercially useful function--with its own organization and resources--will not be credited.

➢ Does my SBE Subcontracting Plan have to cover all options periods of the contract or solely the current performance period?

o The SBE Subcontracting Plan should only include information for the current period of performance. Thus, the SBE Subcontracting Plan should not represent anticipated option periods.

A new subcontracting plan must be submitted and executed before the start of each period of performance.

➢ The base period of my contract was awarded during the COVID-19 Public Health Emergency (i.e., March 11, 2020, through November 5, 2021). What is my subcontracting requirement for my performance periods that fall outside of those dates?

o If the base period of your contract was awarded during the public health emergency, you are required to maintain a 50% subcontracting requirement for all options and extensions associated with that contract unless otherwise reduced or waived by the Director of DSLBD.

➢ I do not believe I can meet the required 35% or 50% subcontracting requirement. What must I do to waive this requirement?

o If you believe you cannot achieve the required subcontracting requirements, you should communicate this concern to the contracting officer or other procuring staff before signing your contract. Only the Director of DSLBD can waive the subcontracting requirements, and DSLBD does not retroactively approve waivers. For instance, if a contract is executed before a final determination has been rendered by DSLBD’s Director, you will be required to achieve the subcontracting requirement, or the contract may be voided, pursuant to District law.

o The contracting officer is required to submit a waiver request to DSLBD for the contract for each period of performance. Beneficiaries are not permitted to submit a waiver request. DSLBD does not approve waivers retroactively; therefore, contracting officers and beneficiaries should ensure that the waiver is approved prior to executing the contract. Otherwise, the contract is voidable pursuant to District law.

➢ Can I utilize any CBE to meet my subconctrcting requirements or does it have to be an SBE specifically?

If there are insufficient qualified SBEs to completely fulfill the subcontracting requirement, then the requirement may be satisfied by subcontracting a CBE; provided, that all reasonable efforts shall be made to ensure that qualified SBEs are significant participants in the overall subcontracting work.

SBE SUBCONTRACTING PLAN

INSTRUCTIONS: All construction & non-construction contracts for government-assisted projects (agency contracts & private projects with a District subsidy) over $250,000, shall require at least 35% of the total dollar volume of the contract (i.e., the total amount of agency contract or total private project development costs) be subcontracted to Small Business Enterprises (SBE), and if insufficient qualified SBEs to Certified Business Enterprises (CBE). The SBE Subcontracting Plan must list all SBE and CBE subcontracts at every tier. Once the SBE Subcontracting Plan is submitted for agency contracts, options, and extension, it can only be amended by the Director of the Department of Small & Local Business Development

SUBMISSION OF CBE PLAN:

For agency solicitations – submit to the agency with bid/proposal.

For agency options & extensions – submit to the agency before an option or extension is exercised.

For public-private projects – submit to DSLBD, the agency project manager, and with each quarterly report. As private projects may not have awarded all contracts at the time the District subsidy is granted, the SBE Subcontracting Plan may be submitted simultaneously with each quarterly report and list all SBE/CBE subcontracts executed by the time of submission.

CREDIT: For each subcontract listed on the SBE Subcontracting Plan, credit will only be given for the portion of the subcontract performed, at every tier, by an SBE/CBE using its own organization and resources. COPIES OF EACH FULLY EXECUTED SUBCONTRACT WITH SBEs AND CBEs (AT

EVERY TIER) MUST BE PROVIDED TO RECEIVE CREDIT.

CERTIFICATION INFORMATION: Certification as a Local Business Enterprise (LBE) is a prerequisite to be certified in any additional business enterprise category within the CBE Program.

The Small Business Enterprise (SBE) is a category of the Certification. However, not all CBEs have a Small Business Enterprise (SBE) category. If the subcontracting plan is with a CBE without the SBE category, the contract may not receive credit towards the subcontracting goal for work provided by the CBE if there were qualified SBEs that could have been utilized to completely fulfill the subcontracting requirement.

The certification number must include the Local Business Enterprise (LBE) and Small Business Enterprise (SBE) categories. i.e., Certification Number:LSXXXXXXXXX2026.

SUBCONTRACTING CREDIT PURSUANT D.C. LAW 24-39:

Pursuant to the Coronavirus Support Temporary Amendment Act of 2021 and the Public Emergency Extension and Eviction and Utility Moratorium Phasing Emergency Amendment Act of 2021, contracts awarded during the Public Health Emergency shall receive credit as follows:

(1) For every dollar expended by a beneficiary with a resident-owned business, the beneficiary shall receive a credit for $1.10 against the CBE minimum expenditure.

(2) For every dollar expended by a beneficiary with a disadvantaged business enterprise, the beneficiary shall receive a credit for $1.25 against the CBE minimum expenditure.

(3) For every dollar expended by a beneficiary that uses a company designated as both a disadvantaged business enterprise and as a resident-owned business, the beneficiary shall receive a maximum credit for $1.30 against the CBE minimum expenditure.

EXEMPTION: If the Beneficiary (e.g., the Prime Contractor or Developer) is a CBE and will perform the ENTIRE government-assisted project with its own organization and resources and will NOT subcontract any portion of the services and goods, then the CBE Beneficiary is not required to subcontract to SBEs.

SECTION 1.BENEFICIARY AND SOLICITATION/CONTRACT/SPORTS WAGERING

APPLICANTINFORMATION

Section 1A. BENEFICIARY INFORMATION

Company: ______________ Contact #: __________ Email address: ________________

Street Address: ____________________________ City/ State/ Zip Code: ____________________________

Company’s point of contact for agency contract, private project, or Sports Wagering Licensee:

Point of Contact: ________________ Title: ________________

Contact #: _____________ Email address: _________________

Street Address: ____________________________________

Section 1B. SOLICITATION/CONTRACT/SPORTS WAGERING APPLICANT INFORMATION

Solicitation /Contract/ApplicantNo.: ________________ Solicitation Due Date: ________________

Agency: _____________ Total Dollar Amount of Contract: _________________

Please select all the applicable subcontracting requirements for this solicitation:

35% Subcontracting Requirement 50% Subcontracting Requirement DSLBD approved an adjusted subcontracting requirement:

➢ Adjusted Subcontracting Requirement: ____%

Total Value of ALL CBE Subcontracts: _________________ (Include all lower tiers)

I affirm that the value of all my CBE Subcontracts meets or exceeds the subcontracting requirement required under this solicitation or contract. Further, I understand that DSLBD will only provide credit towards my SBE Subcontracting Requirement for work whereby a CBE provided a commercially useful function with its own organization and resources.

I AGREE

I DISAGREE

Section 1C. CBE BENEFICIARY (ONLY COMPLETE IF THE BENEFICIARY IS A CERTIFIED BUSINESS ENTERPRISE)

If the Beneficiary is a Certified Business Enterprise, select all that apply and provide the following information:

I am a CBE that WILL perform 100% of the contracting effort with my own organization and resources and will not subcontract any portion of the contract. Therefore, I am NOT required to submit an SBE Subcontracting Plan that demonstrates subcontracting.

I am a CBE that WILL NOT perform 100% of the contracting effort with my own organization and resources and will subcontract a portion of the contract. Therefore, I understand I am required to submit an SBE Subcontracting Plan (located in Section on 2) that demonstrates that the required subcontracting amount, as indicated above, will go to qualified CBEs.

Please include the percentage of the contract the CBE Prime will perform under the contract or project.

➢ The CBE Prime will self-perform ____% of the contract’s total dollar volume of the contract or project.

Please provide the current CBE Certification Number of the CBE Prime.

➢ CBE Certification No. ______________

BENEFICIARY ATTESTATION

I declare, certify, verify, attest, and state under penalty of perjury that the information provided above is true and correct to the best of my knowledge and belief. Pursuant to D.C. Official Code § 22-2402, I understand that a person convicted of perjury shall be fined not more than $5,000 or imprisoned for not more than 10 years, or both. I understand that any false or fraudulent statement that I provide or assert may be grounds for revocation of my CBE registration pursuant to D.C. Official Code § 2-218.63. Further, a Prime Contractor, Developer, CBE, Certified Joint Venture, or Sports Wagering Licensee that fails to comply with the requirements of the Small and Certified Business Enterprise Development and Assistance Amendment Act of 2005, as amended, (D.C. Law 20-108) (the “Act”), shall be subject to penalties as outlined in the Act.

PRINT NAME: ____________________________ SIGNATURE: ____________________________

JOB TITLE: ____________________________ DATE: ____________________________

Section 2. SBE/CBE SUBCONTRACTORS (FOR EACH TIER):

CBE Subcontractor Company Name

Address Certification

No.

Price to be paid to the

CBE Subcontractor

Description of subcontract scope of work to be performed that shall be for a commercially useful function by the CBE

SBE/CBE Point of Contact:

CBE Subcontractor Self-Performance Indicator:

Name: _________

Title: _______

Telephone Number: ________

Email Address: ________

This CBE will perform the ENTIRE subcontract with its own organization and resources.

This CBE will subcontract a portion of the subcontract and will perform ____% of the subcontract’s total dollar volume.

NOTE: If the CBE will not self-perform 100% of the subcontract, it must list each lower-tier CBE subcontractor below.

LOWER TIER

Name Address Certification No.

Price to be paid to the CBE Subcontractor

Description of subcontract scope of work to be performed that shall be for a commercially useful function by the CBE

Tier (e.g., 1st, 2nd, 3rd, 4th, etc.)

Address Certification

No.

Price to be paid to the

CBE Subcontractor

Description of subcontract scope of work to be performed that shall be for a commercially useful

This CBE will subcontract a portion of the subcontract and will perform ____% of the subcontract’s total dollar volume.

NOTE: If the CBE will not self-perform 100% of the

Name Address Certification No.

Price to be paid to the CBE Subcontractor

Description of subcontract scope of work to be performed that shall be for a commercially useful function by the CBE

Tier (e.g., 1st, 2nd, 3rd, 4th, etc.)

Address Certification

No.

Price to be paid to the

CBE Subcontractor

Description of subcontract scope of work to be performed that shall be for a commercially useful

This CBE will subcontract a portion of the subcontract and will perform ____% of the subcontract’s total dollar volume.

NOTE: If the CBE will not self-perform 100% of the

Name Address Certification No.

Price to be paid to the CBE Subcontractor

Description of subcontract scope of work to be performed that shall be for a commercially useful

Tier (e.g., 1st, 2nd, 3rd, 4th, etc.)

Address Certification

No.

Price to be paid to the

CBE Subcontractor

Description of subcontract scope of work to be performed that shall be for a commercially useful

This CBE will subcontract a portion of the subcontract and will perform ____% of the subcontract’s total dollar volume.

NOTE: If the CBE will not self-perform 100% of the

Name Address Certification No.

Price to be paid to the CBE Subcontractor

Description of subcontract scope of work to be performed that shall be for a commercially useful function by the CBE

Tier (e.g., 1st, 2nd, 3rd, 4th, etc.)

AGENCY CONTRACT AWARD

Agency: ________ Prime Contractor: ________ Contract Number: ________ Date SBE Subcontracting Plan Accepted: ________ Date agency contract signed: ________

Anticipated Start Date of Contract: ________ Anticipated End Date of Contract: ________

Total Dollar Amount of Contract: $________

*Design-Build must include total contract amount for both design and build phase of the project.

35% of the Total Contract Amount: $________

35% of the Applicable Performance Period: $________

50% of Total Dollar Amount of Contract: $______________ (pursuant to D.C. Law 24-39)

Total Amount of All SBE/CBE Subcontracts: $________ (include every tier)

(✓ if applies)

Base Period Contract – Option/Extension Period: ________ Multi-year Contract

First Year (Period) of Contract: ________ Current Year (Period) of Contract: ________

Design-Build – Date of Guaranteed Contract: ________

Check if prime contractor is a CBE and will perform the ENTIRE government-assisted project (agency contract) with its own organization and resources and NOT subcontract any portion of the services or goods.

PRIVATE PROJECT SUBSIDY AWARD

Agency Providing Subsidy: ________ District Subsidy: ________ Developer: ________ Amount of District Subsidy: ________ Date District Subsidy Provided/ contract signed: ________

Anticipated Start Date of Project: ________ Anticipated End Date of Project: ________

Project Name: ________ Project Address: ________

Total Development Project Budget: $________ (include pre-construction and construction costs)

35% of the Total Development Project Budget: $________

50% of Total Dollar Amount of Contract: $______________ (pursuant to D.C. Law 24-39)

Total Amount of All SBE/CBE Subcontracts: $________ (include every lower tier)

Check if developer is a CBE and will perform the ENTIRE government-assisted project (private project) with its own organization and resources and NOT subcontract any portion of services or goods.

AGENCY CONTRACTING OFFICER’S AFFIRMATION OR AGENCY PROJECT MANAGER’S AFFIRMATION

(✓ which applies)

The below Agency Contracting Officer or Agency Project Manager affirms the following (✓ to affirm):

If the Beneficiary is a CBE, DSLBD was contacted to confirm Beneficiary’s CBE certification.

The fully executed Contract (Base or Option or Extension or Multi-Year) or subsidy document, between the Beneficiary and Agency, was emailed to DSLBD at Compliance.Enforcement@dc.gov within five (5) days of signing:

FOR AGENCY CONTRACT the SBE Subcontracting Plan, submitted by Beneficiary, was emailed to DSLBD at Compliance.Enforcement@dc.gov within five (5) days of signing the contract between the Beneficiary and Agency.

Name of Agency Contracting Officer or Agency Project Manager

Title of Agency Contracting Officer or Agency Project Manager

Signature

Date