R1SubconPlan - January2008.doc

(COMPANY NAME)

Small Business Subcontracting Plan

The following General Services Administration (GSA) Model plan meets the minimum requirements of Section 8(d) of 15 U.S.C. 637 and Subpart 19.7 of the Federal Acquisition Regulation (FAR). It is to be used as a guideline and not intended to replace any existing corporate plan that may be more extensive. Your company is expected to thoroughly review the requirements set forth in FAR 19.704 (Subcontracting plan requirements) and FAR Clause 52.219-9 (Small Business Subcontracting Plan) before submitting your plan. Please note that GSA has subcontracting goals of 37% for Small Business (SB), 3% for HUBZone Small Business (HZSB), 6% for Small Disadvantaged Business (SDB), 5% for Women-Owned Small Business (WOSB), 5% for Veteran-Owned Small Business (VOSB) and 3% for Service-Disabled Veteran-Owned Small Business (SDVOSB) for Fiscal Years 2006-2007.

1. IDENTIFICATION DATA:

Date Prepared:

Company Name:

Address:

City/State/Zip:

Product(s)/Service(s):

Estimated Contract Dollar Value (Base or Option):

Commercial Plan Period:

2. TYPE OF PLAN (Choose only one)

COMMERCIAL PRODUCTS PLAN: used when the contractor sells large quantities of off-the-shelf products to many Government agencies. Goals are negotiated on a company-wide basis and the plan is done annually (effective during contractor's fiscal year). It is approved by the first Federal agency awarding a contract for commercial products during the contractor's fiscal year and is applicable to all additional federal contracts for the commercial products awarded to the contractor during the contractor's same fiscal year. A new plan must be obtained and approved 30 days prior to the expiration of the current plan. The contractor must provide a copy of the plan approved by the initial agency and submit an annual Standard Form (SF) 295 to GSA.

INDIVIDUAL CONTRACT PLAN: covers the entire contract period (including option periods) and has goals based on the contractor's planned subcontracting and purchasing in support of the performance of all elements developed specifically for this contract. Indirect costs incurred for common or joint purposes may be allocated on a prorated basis to the contract.

INDIVIDUAL CONTRACT PLAN INCORPORATING MASTER PLAN: is an approved master plan containing all the required elements incorporated into an individual contract plan, except for the goals. A master plan must be approved once every three years. Once incorporated into a contract with specific goals, it is valid for the life of the contract.

3. GOALS

A. FAR 19.704(a)(1) requires separate percentage goals for using SB, HZSB, SDB, WOSB, VOSB and SDVOSB concerns as subcontractors and a statement of the total dollars planned to be subcontracted. Reflect all dollar goals as a percentage of the total planned subcontracted dollars.

BASE GOALS are expressed in dollars and percentages of total planned subcontracted dollars. (Note: Small Disadvantaged Women-Owned Businesses are counted in BOTH 3 and 4.)

PLANNED SUBCONTRACTING TO:

1. ALL Business Types (No exclusions).

100%

2. HUBZone Small Businesses (HZSB).

3. Small Disadvantaged Businesses (SDB).

4. Women-Owned Small Businesses (WOSB).

5. Veteran-Owned Small Businesses (VOSB).

6. Service-Disabled Veteran-Owned Small Businesses (SDVOSB)

7. Other Small Businesses (SB) (SBs not included in 2, 3, 4, 5 or 6).

8. ALL Small Businesses (Total 2 + 3 + 4 + 5 + 6 + 7).

9. Large Businesses (Other than Small) (1 – 8 = 9).

1ST OPTION GOALS (Note: HUBZone Small Disadvantaged Businesses are counted in BOTH 2 and 3.)

1. ALL Business Types (No exclusions).

100%

2. HUBZone Small Businesses (HZSB).

3. Small Disadvantaged Businesses (SDB).

4. Women-Owned Small Businesses (WOSB).

5. Veteran-Owned Small Businesses (VOSB).

6. Service-Disabled Veteran-Owned Small Businesses (SDVOSB)

7. Other Small Businesses (SB) (SBs not included in 2, 3, 4, 5 or 6).

8. ALL Small Businesses (Total 2 + 3 + 4 + 5 + 6 + 7).

9. Large Businesses (Other than Small) (1 – 8 = 9).

2ND OPTION GOALS (Note: HUBZone Women-Owned Small Businesses are counted in BOTH 2 and 4.)

1. ALL Business Types (No exclusions).

100%

2. HUBZone Small Businesses (HZSB).

3. Small Disadvantaged Businesses (SDB).

4. Women-Owned Small Businesses (WOSB).

5. Veteran-Owned Small Businesses (VOSB).

6. Service-Disabled Veteran-Owned Small Businesses (SDVOSB)

7. Other Small Businesses (SB) (SBs not included in 2, 3, 4, 5 or 6).

8. ALL Small Businesses (Total 2 + 3 + 4 + 5 + 6 + 7).

9. Large Businesses (Other than Small) (1 – 8 = 9).

3RD OPTION GOALS (Note: Women-Owned Veteran-Owned Small Businesses are counted in BOTH 4 and 5.)

1. ALL Business Types (No exclusions).

100%

2. HUBZone Small Businesses (HZSB).

3. Small Disadvantaged Businesses (SDB).

4. Women-Owned Small Businesses (WOSB).

5. Veteran-Owned Small Businesses (VOSB).

6. Service-Disabled Veteran-Owned Small Businesses (SDVOSB)

7. Other Small Businesses (SB) (SBs not included in 2, 3, 4, 5 or 6).

8. ALL Small Businesses (Total 2 + 3 + 4 + 5 + 6 + 7).

9. Large Businesses (Other than Small) (1 – 8 = 9).

4TH OPTION GOALS (Note: HUBZone Service-Disabled Veteran-Owned Small Businesses are counted in THREE SB Categories 2, 5 and 6.)

1. ALL Business Types (No exclusions).

100%

2. HUBZone Small Businesses (HZSB).

3. Small Disadvantaged Businesses (SDB).

4. Women-Owned Small Businesses (WOSB).

5. Veteran-Owned Small Businesses (VOSB).

6. Service-Disabled Veteran-Owned Small Businesses (SDVOSB)

7. Other Small Businesses (SB) (SBs not included in 3, 4, 5, 6 or 7).

8. ALL Small Businesses (Total 2 + 3 + 4 + 5 + 6 + 7).

9. Large Businesses (Other than Small) (1 – 8 = 9).

B. FAR 19.704(a)(3) requires a description of the principal products and services to be subcontracted and an identification of the types of subcontractors to be used (SB, HZSB, SDB, WOSB, VOSB, SDVOSB and LARGE).

BUSINESS CATEGORY OR SIZE

C. FAR 19.704(a)(4) requires a description of the method used to develop the subcontracting goals.

(1) Explain method used to develop subcontracting goals for SB, HZSB, SDB, WOSB, VOSB and SDVOSB:

(2) Explain how products/services to be subcontracted were determined and the types of small businesses to be used:

(3) Explain how the capabilities of the SB, HZSB, SDB, WOSB, VOSB and SDVOSB concerns were determined:

(4) Identify all source lists used in the determination process (i.e., Existing Company Source Lists, Small Business Administration (SBA)’s PRO-Net [now Dynamic Small Business Search on www.ccr.gov], National Minority Purchasing Council Vendor Information Services, the Department of Commerce Minority Business Development Agency, Trade Associations):

D. FAR 19.704(a)(6) requires a statement as to whether or not your company included indirect costs in establishing the subcontracting goals and a description of the method used to determine the proportionate share of indirect and overhead costs incurred with SB, HZSB, SDB, WOSB, VOSB and SDVOSB concerns.

Indirect costs. If indirect and overhead costs HAVE been included, explain the method used to determine the proportionate share to be allocated to SB, HZSB, SDB, WOSB, VOSB and SDVOSB concerns.

HAVE been included.

HAVE NOT been included.

4. PROGRAM ADMINISTRATOR

FAR 19.704(a)(7) requires the following information about the company employee who will administer the Subcontracting Program (i.e., the Small Business Liaison Officer or SBLO).

Name:

Company Title:

Address:

City/State/Zip:

Telephone #:

FAX #:

Position:

Duties: The Program Administrator shall have general overall responsibility for the Contractor’s Subcontracting Program, (i.e., developing, preparing and executing individual subcontracting plans and monitoring performance relative to this particular plan. These duties include, but are not limited to, the following activities:

A. Developing and promoting company/division policy statements that demonstrate the company’s/division’s support for awarding contracts and subcontracts to SB, HZSB, SDB, WOSB, VOSB and SDVOSB concerns.

B. Developing and maintaining bidders’ lists of SB, HZSB, SDB, WOSB, VOSB and SDVOSB concerns from all possible sources.

C. Ensuring periodic rotation of potential subcontractors on bidders’ lists.

D. Assuring that SB, HZSB, SDB, WOSB, VOSB and SDVOSB concerns are included on the bidders’ list for every subcontract solicitation for products and services they are capable of providing.

E. Ensuring that subcontract procurement “packages” are designed to permit the maximum possible participation of SB, HZSB, SDB, WOSB, VOSB and SDVOSB concerns.

F. Reviewing subcontract solicitations to remove statements, clauses, etc., which might tend to restrict or prohibit SB, HZSB, SDB, WOSB, VOSB and SDVOSB concerns.

G. Ensuring that the subcontract bid proposal review board documents its reasons for not selecting any low bids submitted by SB, HZSB, SDB, WOSB, VOSB and SDVOSB concerns.

H. Overseeing the establishment and maintenance of contract and subcontract award records.

I. Attending or arranging for the attendance of company counselors at Business Opportunity Workshops, Minority Business Enterprise Seminars, Trade Fairs, etc.

J. Directly or indirectly counseling SB, HZSB, SDB, WOSB, VOSB and SDVOSB concerns on subcontracting opportunities and how to prepare bids to the company.

K. Providing notice to subcontractors concerning penalties for misrepresentations of business status as SB, WOSB, VOSB and SDVOSB for the purpose of obtaining a subcontract that is to be included as part or all of a goal contained in the contractor’s subcontracting plan. HZSB and SDB shall provide a copy of their Small Business Administration (SBA) certification.

Each SB, WOSB, VOSB and SDVOSB concern on record as a potential subcontractor shall complete a self-certification form stating their business size. A penalties clause for falsifying information will also be on the form according to the legal statute 15 U.S.C. 645(d). Note, this notice would read near the business owner's signature:

"NOTICE: In accordance with U.S.C. 645(d), any person who misrepresents a firm's proper size classification shall (1) be punished by imposition of a fine, imprisonment, or both, (2) be subject to administrative remedies, and (3) be ineligible for participation in programs conducted under the authority of the Small Business Act."

L. Conducting or arranging training for purchasing personnel regarding the intent and impact of Section 8(d) of the Small Business Act on purchasing procedures.

M. Developing and maintaining an incentive program for buyers that supports subcontracting program.

N. Monitoring the company’s performance and making any adjustments necessary to achieve the subcontract plan goals.

O. Preparing and submitting timely reports.

P. Coordinating the company’s activities during compliance reviews by Federal agencies.

5. EQUITABLE OPPORTUNITY

FAR 19.704(a)(8) requires a description of the efforts the contractor will make to ensure that SB, HZSB, SDB, WOSB, VOSB and SDVOSB concerns have an equitable opportunity to compete for subcontracts.

(Company Name) will make every effort to ensure that SB, HZSB, SDB, WOSB, VOSB and SDVOSB concerns will have an equitable opportunity to compete for subcontracts. These efforts include, but are not limited to, the following activities:

A. Outreach efforts to obtain sources:

(1) Contacting minority and small business trade associations.

(2) Contacting business development organizations.

(3) Requesting sources from the Small Business Administration’s Procurement Marketing and Access Network (PRO-Net) System [now Dynamic Small Business Search on www.ccr.gov].

(4) Attending small, minority, and women-owned small business procurement conferences and trade fairs.

B. Internal efforts to guide and encourage purchasing personnel:

(1) Presenting workshops, seminars and training programs.

(2) Establishing, maintaining and using SB, HZSB, SDB, WOSB, VOSB and SDVOSB source lists, guides and other data for soliciting subcontracts.

(3) Requesting sources from the SBA's PRO-Net (now Dynamic Small Business Search on www.ccr.gov).

(4) Monitoring activities to evaluate compliance with the subcontracting plan.

C. Additional efforts: (Please describe.)

6. CLAUSE INCLUSION AND FLOW DOWN

FAR 19.704(a)(9) requires that your company includes FAR 52.219-8, "Utilization of Small Business Concerns", in all subcontracts that offer further subcontracting opportunities. Your company must require all subcontractors, except small business concerns, that receive subcontracts in excess of $500,000 ($1,000,000 for construction) to adopt a plan that complies with the requirements of the clause at FAR 52.219-9, “Small Business Subcontracting Plan.”

(Company Name) agrees to include the clause at FAR 52.219-8, "Utilization of Small Business Concerns", in all subcontracts that offer further subcontracting opportunities and will further require all subcontractors (except small business concerns) who receive subcontracts in excess of $500,000 ($1,000,000 for construction), to adopt a plan that complies with the requirements of the clause at FAR 52.219-9, “Small Business Subcontracting Plan.

7. REPORTING AND COOPERATION

FAR 19.704(a)(10) requires that your company agree to:

A. Cooperate in any studies or surveys as may be required.

B. Submit periodic reports which show compliance with the subcontracting plan.

C. Submit SF 294, “Subcontracting Reports for Individual Contracts,” and SF 295, “Summary Subcontract Report,” in accordance with the instructions on the forms. (Now submitted electronically at www.eSRS.gov)

D. Ensure that subcontractors agree to submit SF 294 and SF 295.

The Contracting Officer; Associate Administrator, Office of Small Business Utilization; Small Business Specialist/Small Business Technical Advisor (SBTA); and SBA Commercial Market Representative (CMR) must receive the report(s) within 30 days after the close of each calendar period indicated below (now submitted electronically at www.eSRS.gov):

SF 294 and SF 295 Reports shall be submitted electronically (http://www.eSRS.gov).

Mr. Jerry D. Smith, SBTA

General Services Administration (1AB)

10 Causeway Street, Room 901, Boston, MA 02222

Associate Administrator, Office of Small Business Utilization

General Services Administration (E)

18th and F Streets, NW, Room 6029, Washington, DC 20405

Ms. Debra B. Libow, PCR Small Business Administration 26 Federal Plaza, Room 3108, New York, NY 10278

(Maine, New Hampshire, Rhode Island, Connecticut, Vermont and Massachusetts) - For all other states, call SBA Answer Desk at 1-800-827-5722 for address of appropriate SBA CMR.)

8. RECORDKEEPING

FAR 19.704(a)(11) requires a list of the types of records your company will maintain to demonstrate the procedures adopted to comply with the requirements and goals in the subcontracting plan.

(Company Name) will maintain at least the following types of records to demonstrate procedures adopted to comply with the requirements and goals in he subcontracting plan. These records will include, but not be limited to:

A. SB, HZSB, SDB, WOSB, VOSB and SDVOSB concerns source lists, guides and other data identifying such vendors.

B. Organizations contacted for SB, HZSB, SDB, WOSB, VOSB and SDVOSB sources.

C. On a contract-by-contract basis, records on all subcontract solicitations over $100,000 which indicate for each solicitation

(1) Whether small business concerns were solicited, and if not, why not.

(2) Whether HUBZone small business concerns were solicited, and if not, why not.

(3) Whether small disadvantaged business concerns were solicited, and if not, why not.

(4) Whether women-owned small business concerns were solicited, and if not, why not.

(5) Whether veteran-owned small business concerns were solicited, and if not, why not.

(6) Whether service-disabled veteran-owned small business concerns were solicited, and if not, why not.

(7) Reasons for the failure of solicited SB, HZSB, SDB, WOSB, VOSB and SDVOSB concerns to receive the subcontract award.

D. Records to support other outreach efforts (i.e., contacts with minority and small business trade associations; attendance at SB, HZSB, SDB, WOSB, VOSB, and SDVOSB procurement conferences and trade fairs).

E. Records to support internal activities to:

(1) Guide and encourage purchasing personnel (i.e., workshops, seminars, training programs, incentive awards).

(2) Monitor activities to evaluate compliance.

F. On a contract-by-contract basis, records to support subcontract award data including the name, address and business size of each subcontractor. (This item is not required for company or division-wide commercial products plans.)

G. Other records to support your compliance with the subcontracting plan. (Please describe.)

9. TIMELY PAYMENTS TO SUBCONTRACTORS

FAR 19.702 requires your company to establish and use procedures to ensure the timely payment of amounts due pursuant to the terms of your subcontracts with SB, HZSB, SDB, WOSB, VOSB and SDVOSB concerns.

(Company Name) uses procedures to ensure timely payments of amounts due, pursuant to the terms of its subcontracts with small business concerns, as required in FAR 19.702.

10. DESCRIPTION OF GOOD FAITH EFFORT

Maximum practicable utilization of SB, HZSB, SDB, WOSB, VOSB and SDVOSB concerns as subcontractors in Government contracts is a matter of national interest with both social and economic benefits. When a contractor fails to make a good faith effort to comply with a subcontracting plan, these objectives are not achieved, and 15 U.S.C. 637(d)(4)(F) directs that liquidated damages shall be paid by the contractor. In order to demonstrate your compliance with a good faith effort to achieve the small business subcontracting goals, outline the steps below that your company plans to take.

(Company Name) will take the following steps to demonstrate compliance with a good faith effort in achieving small business subcontracting goals:

Description of good faith effort:

These steps will be negotiated with the contracting officer prior to approval of the plan. (Company Name) understands that this subcontracting plan will be made a material part of the contract and the submission of the SF 294 and SF 295 will be made a line item deliverable in the contract.

11. SIGNATURES REQUIRED

This subcontracting plan was SUBMITTED by:

Signature:

Typed/Printed Name:

Title:

Date:

1 Rev. 12/04/06