SubcontractingPlan.pdf

Parker Hannifin Corporation Parker Aerospace 14300 Alton Parkway Irvine, California 92618-1898 USA

SUBCONTRACTING PLAN FOR SMALL BUSINESS CONCERNS

Solicitation/ Quote No.: SPRHA4-19-R-1158

Prime Contract #: SPE4A1-17-G-0011

Part Number: 3833000-22 & 3833000-23

Contract Value: $6,293,114.41

Customer: DLA Aviation - Ogden Michelle.leschke@dla.mil

Plan No.: EL0651

Contractor:

Parker Aerospace Customer Support Military

14300 Alton Parkway Irvine, CA 92618 Contractor Code: 59211

Facilities:

Parker Aerospace Military Flight Control Division – Irvine

Prepared by:

Grace Cheng _______________________________

PH 949-809-8020

Grace.cheng@parker.com

Title:

Small Business Liaison Officer Subcontract Procurement Specialist

Date:

7/13/2020 7/29/2020 revised per attached email 8/11/2020 revised per attached email

8/14/2020

SOURCE SELECTION INFORMATION -- SEE FAR 2.101 AND 3.104

PART 1. PERCENTAGE AND SUBCONTRACTING DOLLAR GOALS

The following goals are expressed in terms of percentage of total subcontract dollars and dollar goal amount to be subcontracted to Small Business concerns.

A. Large Business Totals 40 % $ 941,476

B. Small Business Totals 60 % $1,412,214

(1) HUBZone Small Business 0% $0

(2) Small Disadvantaged Business 5% $117,685

(3) Women-Owned Small Business 5 % $117,685

(4) Veteran-Owned Small Business

3% $ 70,611

(5) Service-Disabled Veteran-Owned Small Business

3% $ 70,611

(6) Historically Black Colleges, Universities and Minority Institutions

0% $0

HBCU/MI is zero because this particular effort does not lend itself to use of higher educational or minority institution requirements.

(7) Alaska Native Corporations (ANCs) and Indian Tribes that are not Small Businesses.

0% $0

C. Total Subcontract Dollars 100 % $2,353,690

Principal supply and service areas consist of:

Raw Material, Castings/Forgings, and the purchase of components including bearings, machined parts, connectors, nameplates, seals, assemblies, and standard hardware.

Principle Types of Supplies and Services Large Small SDB WOSB HUBZ VOSB SDVOSB

Raw Material X

Castings/Forgings X

Machined Parts X X X X

Bearings X

Nameplates X

Seals X X

Assemblies X X

Metal Finishing X

Hardware X X X

- Small Business Subcontracting is planned in areas of;

Machined Parts, Bearings, Nameplates, Seals, Assemblies, Metal Finishing, Hardware

- HUBZone Small Business Subcontracting is planned in areas of;

One of our Outside Processing suppliers located in a HubZone was bought by a Large Business. Best effort will be made to meet minimum public law requirement.

-Small Disadvantaged Business Subcontracting is planned in areas of;

Hardware Suppliers have already been pre-qualified to provide flight critical parts. Best effort will be made to meet minimum public law requirement.

-Women-Owned Small Business Subcontracting is planned in areas of;

Machined Parts Suppliers have already been pre-qualified to provide flight critical parts. Best effort will be made to meet minimum public law requirement.

- Service-Disabled Veteran-Owned Small Business subcontracting is planned in areas of;

Machined Parts Suppliers have already been pre-qualified to provide flight critical parts. Best effort will be made to meet minimum public law requirement.

- Veteran-Owned Small Business subcontracting is planned in the areas of;

Machined Parts.

-Historically Black Colleges, Universities and Minority Institutions This particular effort does not lend itself to use of higher educational or minority institution requirements.

-Alaska Native Corporations (ANCs) and Indian Tribes that are not Small Businesses.

This particular effort does not lend itself to use ANCs and Indian Tribes.

- The method used in developing the planned Subcontracting goals was based on;

Using Parker’s procurement history, previous suppliers are identified as likely candidates to supply required items. After the potential suppliers are identified, Parker’s Approved Supplier Listing and CCR.gov (Dynamic Small Business Search) are utilized to determine and confirm the type of small business category for each supplier.

Once the suppliers have been identified, the figures are calculated for each reported Small Business category.

Whenever possible, equitable opportunity is extended to small business suppliers.

- The method used to identify potential sources for solicitation purposes;

The Division Subcontracting Plan Representative has information about qualified Small Businesses using the following resources:

DoD Western Regional Council for Small Business Education and Advocacy.

Outreach efforts through tradeshows.

Interface with other Parker Small Business Liaison Officers from various Divisions to exchange supplier information and other small business-related issues.

Utilize Parker’s approved supplier listing to identify suppliers.

Utilize Procurement Technical Assistance Centers, to search for potential small business suppliers.

Small Business is an agenda item during Purchasing Meetings.

Method used to determine the proportionate share of indirect costs to be incurred with Small Business, Veteran-Owned Small Business, HUBZone Small Business, Small Disadvantaged Business, and Women-Owned Small Business concerns.

No Indirect costs were calculated during the preparation of this Subcontract Plan.

PART 2. SUBCONTRACTING PLAN ADMINISTRATOR

A. Name

Grace Cheng – Procurement, will serve as the Small Business Liaison Officer (SBLO).

Address: 14300 Alton Parkway, Irvine, CA 92618 M/S 10PO PH: 949-809-8020 Grace.Cheng@parker.com

Grace Cheng, reporting to the Procurement Team Leader, has been designated as the Subcontracting Plan Administrator (SPA) for the Customer Support Division.

B. Duties

It will be the responsibility of the SPA to:

1. Maintain Liaison with the Division Contract Administrator or Business Team Leader and with Government Agencies on Small Business matters.

2. Coordinate compliance with the "Utilization of Small Business Concerns" clause.

FAR 52.219-8

3. Coordinate compliance with the flow down provisions for the "Utilization of Small Business Concerns" clause and the "Subcontracting Plan for Small Business Concerns" clause.

FAR 52.219-9

4. Administer the Division's compliance with the Small Business Concerns Subcontracting Plans.

5. Submit such information and periodic reports as may be called for, at such time as forms duly authorized by the Federal Government are provided by the procuring activity

6. When required by the Contracting Agency, Parker will submit the Individual Subcontract Report (ISR) and/or the Summary Subcontract Report (SSR), in accordance with the FAR using the Electronic Subcontracting Reporting System (eSRS) at http://www.esrs.gov. The reports shall provide information on subcontract awards to small business concerns, veteran-owned small business concerns, service-disabled veteran-owned small business concerns, Hubzone small business concerns, small disadvantaged small business concerns, women-owned small business concerns, and when applicable Historically Black Colleges and Universities and Minority Institutions.

When required, Parker will ensure that its subcontractors with subcontracting plans agree to submit the ISR and/or SSR using eSRS, provide its prime contract number, its DUNs number, and the emails address of the Government or Contractor official responsible for acknowledging or rejecting the reports to all first-tier subcontractors with subcontracting plans so they can enter this information into the eSRS when submitting their reports and require that each subcontractor with a subcontracting plan provide the Prime Contract number, its own DUNS number, and the email address of the Government or Contractor official responsible for acknowledging or rejecting the reports, to its subcontractors with subcontracting plans.

7. Cooperate with the Contracting Officer and Small Business Administration in any studies and surveys of the Division's subcontracting procedures and practices that the Contracting Officer and Small Business Administration may from time to time conduct.

It will be the responsibility of the SPA to prepare subcontracting plans as follows:

1. Obtain estimated subcontract dollars from the contract cost estimate.

2. Analyze the priced bill of materials for major subcontract items.

3. Coordinate with purchasing to identify actual or potential Small Business, Service-Disabled Veteran-Owned Small Business, Veteran-Owned Small Business, HUBZone Small Business, Small Disadvantaged Business, and Women-Owned Small Business items.

4. Apply a percentage based on past history for the balance of the subcontract dollars.

5. Add items from "4" above to obtain the goal expressed in percent and dollar value of the total subcontract dollars.

PART 3. DESCRIPTION OF EFFORTS

A. In order to effectively implement this plan, the Division shall:

1. Issue and promulgate policy statements in support of this effort, develop written procedures and work instructions, and assign specific responsibilities regarding requirements of this clause.

2. Demonstrate continuing management interest and involvement in support of this effort through such actions as regular reviews of progress and support of overall divisional goals and objectives.

3. Train and motivate division personnel regarding the support of Small Business, Service- Disabled Veteran-Owned Small Business, Veteran-Owned Small Business, HUBZone Small Business, Small Disadvantaged Business, and Women-Owned Small Business firms.

4. Assist Small Business concerns by arranging solicitations, time for the preparation of bids, quantities, specifications, and delivery schedules to facilitate the participation of such concerns.

Where 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.

5. Provide adequate and timely consideration of the potentialities of all Small Business concerns in all "make-or-buy" decisions.

6. Counsel and discuss subcontracting opportunities with representatives of Small Business firms.

B. Notwithstanding the above, the Purchasing Department shall have the following responsibilities:

1. Require, to the extent practicable, widespread solicitation of qualified Small Business, Service-Disabled Veteran-Owned Small Business, Veteran-Owned Small Business, HUBZone Small Business, Small Disadvantaged Business, and Women-Owned Small Business concerns prior to award of purchase orders.

2. Prior to the solicitation of quotation, buying personnel will review the List of Small Disadvantaged Business Concerns in an effort to include at least one (1) Small Disadvantaged Business concern in each bid solicitation, whenever it has been determined that such firms have the desired production or service capabilities.

3. Provide adequate and timely consideration of the potentialities of known Small Business concerns in all "make-or-buy" decisions.

4. Allow sufficient time for competent Small Business concerns to submit bids.

5. Permit Small Business concerns, to the extent practicable, to submit bids for quantities less than the total requirements.

6. Make appropriate specifications and drawings readily available to qualified interested Small Business concerns.

7. Establish realistic delivery schedules, consistent with contractual requirements, that do not preclude submission of bids from competent Small Business concerns.

8. Establish procedures as required to comply with contractual Subcontracting Plan requirements.

9. Maintain records showing whether each prospective subcontractor is a Small Business, Service-Disabled Veteran-Owned Small Business, Veteran-Owned Small Business, HUBZone Small Business, Small Disadvantaged Business, or Women-Owned Small Business concern.

10. Maintain records on a contract-by-contract basis with respect to each purchase order exceeding $150,000, information substantially as follows:

a. Whether small business was solicited and if not, why not;

b. Whether HUBZone Small Business was solicited and if not, why not;

c. Whether small disadvantaged business was solicited and if not, why not;

d. Whether Women-Owned Small Business was solicited and if not, why not; and

e. Whether Veteran-Owned Small Business, was solicited and if not, why not; and

f. Whether Service Disabled Veteran-Owned Small Business, was solicited and if not, why not

g. Reasons for the failure of responding Small Businesses to receive the subcontract award.

11. On a contract-by-contract basis, records to support award data submitted to the Government are to include name, address, and size status of subcontractor.

12. The information required in 10 above, plus a breakdown of Large Business, Small Business, Veteran-Owned Small Business, Service Disabled Veteran-Owned Small Business, HUBZone Small Business, Small Disadvantaged Business, and Women-Owned Small Business awards, will be summarized semi-annually and submitted to the Subcontracting Plan Administrator and any other additional internal distribution as desired. The summary report will segregate purchase orders awarded into the following categories:

a. Awards under DOD prime contracts and subcontracts.

b. Awards under NASA prime contracts and subcontracts.

c. Indirect charge awards.

d. Awards under Commercial Contracts.

e. Breakout awards to Small Disadvantaged Business concerns by NAIC Subsector Code.

13. The Utilization of Small Business Concerns clause in FAR 52.219-8 shall be included in all subcontracts that offer further subcontracting opportunities except those which will be performed entirely outside of any state, territory, or possession of the United States, the District of Columbia, or the Commonwealth of Puerto Rico or those which are for services personal in nature.

14. The clause at FAR 52.219-9 entitled "Small Business Subcontracting Plan," is included in all Government contract-related requests for quotation where the price is expected to be in excess of $700,000 and subsequently, in all subcontracts awarded to Large Business concerns with a contract value in excess of $700,000, placed under Government prime contracts or subcontracts. This is to ensure that the subcontractor will adopt a plan in consonance with the clause.

15. The Contractor will provide the Contracting Officer a written explanation if the Contractor fails to acquire articles, equipment, supplies, services, materials, performance, as described above. Written explanation to be submitted to Contracting Officer within 30 days of contract completion per FAR 52.219-9(d)(13), 19.704(a)(13), 19.705.

16. The Contractor will not prohibit a subcontractor from discussing with the Contracting Officer any material matter pertaining to payment to or utilization of a subcontractor per FAR 52.219- 9(d)(14), 19.704(a)(14), 19.705.

17. The offeror will pay its small business subcontractors on time and in accordance with terms and conditions of the underlying subcontract and notify the Contracting Officer when the offeror makes a reduced or untimely payment to a small business subcontractor per FAR 52.219- 9(d)(15), 19.704(a)(15), 52.242-5, 19.705.

PART 4. ASSURANCES: FLOW DOWN

The Division will include the clause entitled Utilization of Small Business Concerns in all subcontracts and will require all subcontractors (except small business concerns) who receive subcontracts in excess of $700,000 to submit a plan in consonance with the applicable Subcontracting Plan for Small Business concerns clause. Subcontractors must submit Individual Subcontract Report (ISR) and the Summary Subcontract Report (SSR) using the Electronic Subcontracting Reporting Systems (eSRS) as required by the contracting agency or the Small Business Administration.

PART 5. ASSURANCES: REPORTS

The Division will submit such periodic reports, including ISR and SSR, and cooperate in any studies or surveys as may be required by the contracting agency or the Small Business Administration in order to determine the extent of compliance with the subcontracting plan.

After November 30, 2017 report subcontracting data for each order when reporting subcontracting achievements for indefinite-delivery, indefinite-quantity intended for use by multiple agencies.

PART 6. ASSURANCES: RECORDS

The Division will maintain the following records to demonstrate compliance with the requirements and goals set forth in the plan:

a. Each purchase order will be coded to indicate whether the supplier is a Large Business, Small Business, Veteran-Owned Small Business, Service Disabled Veteran-Owned Small Business, HUBZone Small Business, Small Disadvantaged Business, or Women-Owned Small Business concern.

b. All purchase order commitments will be entered on data processing records.

c. A data processing report summarizing all purchase commitments semi-annually against DOD contracts, NASA contracts, other Federal contracts, and Commercial contracts will be prepared and utilized for preparation of the ISR and SSR electronic reports.

d. The semi-annual processing report will list pertinent data for each purchase order.

e. A list of Small Disadvantaged Business and HubZone Business concerns will be maintained.

This is a listing of all such Suppliers, which have been specifically approved for use by the Division and certified by the SBA as disadvantaged and operating in a HubZone.

f. The Supplier List will be marked to identify each supplier as a Large Business, Small Business, Service-Disabled Veteran-Owned Small Business, Veteran-Owned Small Business, HUBZone Small Business, Small Disadvantaged Business, or Women-Owned Small Business concern.

g. Written representations of Supplier status as a Large Business, Small Business, Service- Disabled Veteran-Owned Small Business, Veteran-Owned Small Business, HUBZone Small Business, Small Disadvantaged Business, or Women-Owned Small Business concern will be maintained.

Suppliers claiming Disadvantaged or HUBZone Small Business status are verified against the CCR Dynamic Small Business search.

h. An annual processing report will list a "breakout" of subcontract awards, in whole dollars, to Small Disadvantaged Business concerns by the North American Industry Classification System (NAICS) Subsector code.

i. Maintain records to support such efforts as:

i) contacts with Small Business, Service-Disabled Veteran-Owned Small Business, Veteran-Owned Small Business, HUBZone Small Business, Small Disadvantaged Business, and Women-Owned Small Business.

ii) contacts with business development organizations; and

iii) attendance at small business procurement conferences and trade fairs.

j. Maintain records to support internal activities to guide and encourage buyers such as;

i) workshops, seminars, training programs, etc.; and

ii) monitoring activities to evaluate compliance.

PART 7.

Accumulate purchases for Large Business, Small Business, Veteran-Owned Small Business, HUBZone Small Business, Small Disadvantaged Business, and Women-Owned Small Business and then allocate to DOD, NASA, other Federal and commercial contracts based on total dollars.