Attachment_3_Subcontracting_(2)_(2).pdf

SOLICITATION HSFE60-14-R-0002

ATTACHMENT 3

SUBCONTRACTING INFORMATION

August 14, 20014

Offerors (large business) under this solicitation are required to submit a subcontracting plan in accordance with FAR 19.704. The subcontracting plan shall include the goals set forth below for small businesses and each socio-economic grouping. The goals will be applied to the total value of the contract, including options years, if applicable.

For Example:

The total value of a base year contract with 4 option years is $5,000,000. The total amount to be subcontracted is 60% of $5,000,000 which equals $3,000,000. Of the $3,000,000, the total amount to be subcontracted to large businesses is 35% which equals $1,050,000. The total amount to be subcontracted to small businesses is 65% which equals $1,950,000.

$1,050,000 + $1,950,000 = $3,000,000. $3,000, 000 is the total amount to be subcontracted.

Category Subcontracting Goal

All Small Businesses 65% -$1,950,000

Small Disadvantaged Businesses 5% - $97,500

Women-Owned Small Businesses 5% - $97,500

Service-Disabled Veteran-Owned Small Businesses 3% - $58,500

Historically Underutilized Business Zone Small 3% - $58,500

Businesses

The subcontracting goals for this contract are as follows.

Category Subcontracting Goal

All Small Businesses 65%

Small Disadvantaged Businesses 15%

Women-Owned Small Businesses 15%

Service-Disabled Veteran-Owned Small Businesses 10%

Historically Underutilized Business Zone Small 10%

Businesses

In addition to submitting a subcontracting plan, offerors must comply with the Federal Register

Final Rule, August 15, 2013, regarding the Small Business Administration’s Subcontracting

Program, 13 Code of Federal Regulations, Part 125. With respect to the Final Rule on

Subcontracting, the following guidance is provided for contractors:

• Large prime contractors must notify the Contracting Officer in writing when payments to a subcontractor have been reduced.

• Large prime contractors must notify the Contracting Officer when payments to subcontractors are 90 days or more past due.

• Large prime contractors including small business prime contractors (small businesses are not required to have subcontracting plans but are responsible for subcontracting when feasible) that receive Federal contracts over the simplified acquisition threshold, are responsible for ensuring that small businesses have the maximum practicable opportunity to participate in the contract.

• Large prime contractors must conduct market research to identify small business subcontractors.

• A prime contractor or subcontractor may not require the use of SAM (or any successor system) for purposes of representing size or socioeconomic status in connection with a subcontract.

• The contractor must provide pre-award written notification to unsuccessful small business offerors on all subcontracts over $150,000 where a small business received a preference. The notification must include:

Name and location of the offeror

Socioeconomic category (i.e. WOSB, HUBZone, SDVOSB, etc.)

• The contractor may also provide pre-award written notification to unsuccessful small businesses on subcontracts under $150,000.

• An offeror must represent to the Contracting Officer that it will make a good-faith effort to acquire goods and services from the small business(s) that it used in preparing the bid or proposal, in the same scope, amount, and quality used in preparing and submitting the bid or proposal.

• An offeror is considered to have used a small business in preparing a bid or proposal if:

The offeror references the small business in the bid or proposal or subcontracting plan

Has a subcontract or agreement to subcontract with the small business

The small business drafted any portion of the bid or proposal or the offoror used the small business’s pricing or cost information or technical expertise in preparing the bid or proposal

• In addition, any written evidence, including e-mail or an intent or understanding that the small business will be awarded a subcontract if the offeror is awarded a contract constitutes the use of a small business in a bid or proposal.

• The prime contractor must provide a written explanation to the Contracting Officer if it fails to obtain goods and services from the referenced small business(s) prior to the invoice for final payment and contract close-out.

• At the conclusion of the contract, the prime contractor must provide the Contracting

Officer a written explanation if it fails to meet all of its small business subcontracting goals. The Contracting Officer uses this information to evaluate whether the prime contractor acted in good faith, per the subcontracting plan.