Do you understand how the rules similarly established by the SBA for small businesses affect subcontracting? (3) Any contract amendment that results in the value of a contract without a subcontract plan exceeding $700,000 ($1.5 million for construction) requires the contractor to provide a subcontract plan for the contract if the contractor determines that there are subcontracting opportunities. (e) Payment of damages. 1. If, after weighing all relevant data, the Client determines that the Contractor has not made good faith efforts to comply with its subcontracting plan, the Client shall make a final decision to the Contractor to that effect and require the payment of liquidated damages in the amount indicated. The final decision of the contractor stipulates that the contractor has the right to appeal in accordance with the contractual clause entitled “Disputes”. Calculations and procedures must be performed in accordance with 52.219-16, Contractual Penalty – Subcontracting Plan. The latter rule requires a major contractor with a commercial subcontracting plan to include indirect costs in its subcontracting objectives. The advantage of the requirement to include indirect costs in subcontracting objectives in commercial subcontracting plans is that it increases the subcontracting objective for small businesses, thereby increasing the amount of financing that the prime contractor will provide to small businesses, thereby creating more subcontracting opportunities for small businesses. (iii) after 30 years. November 2017 Provide subcontracting data for each order when subcontracting is declared for unlimited delivery contracts and indefinite quantity with individual subcontracting plans, if the contract is intended for use by several agencies; 2. The amount of damages attributable to the contractor`s non-compliance is equal to the actual dollar amount by which the contractor failed to achieve each subcontracting objective. For the calculation of business plans, see point (f) of this section. D) The authority to recognize or reject SSRs for business plans rests with the contractor who approved the business plan.

(k) Contractor`s or Subcontractor`s failure to comply in good faith with (1) the “Small Business Use” clause of this Agreement or (2) an approved plan required under this clause will constitute a material breach and may be taken into account in any prior performance evaluation by the Contractor. (ii) the bidder used the small business` price or cost information or technical expertise to prepare the bid or tender if there is written evidence of intent or understanding that the small business will be subcontracted for the related work when the bidder is awarded the contract; For immediate assistance with your small business outsourcing plans, please call us at 1-866-601-5518. Important actions in good faith. The rule contains examples of actions that indicate good faith efforts to comply with the outsourcing plan. These include: (b) identify good faith efforts. 1. In determining whether a contractor has not made good faith efforts to comply with its subcontracting plan, it shall take into account all measures taken by the contractor in accordance with the information and assurances contained in its plan. The contractor`s failure to achieve its subcontracting objectives does not in itself constitute a breach of good faith (see 19.701). Despite a contractor`s diligent efforts to identify and solicit bids from small businesses, veteran-owned small businesses, small businesses owned by disabled veterans, HUBZone small businesses, disadvantaged small businesses, and women-owned small businesses, factors such as unavailability of anticipated sources or unreasonable prices may counteract the impairment.

the contractor`s subcontracting objectives. The Contractor may consider any of the following, but not exhaustive, indicators of bona fide efforts: Individual subcontracting plan: a subcontracting plan covering the entire duration of the contract (including option periods), applicable to a specific contract and having objectives based on the subcontracting planned by the supplier in support of the specific contract; However, indirect costs incurred for common or common purposes may be charged proportionately to the contract. (i) Subcontracts awarded to an NCA or Native American tribe are taken into account in the subcontracting objectives of small and disadvantaged small businesses, regardless of the size or certification status of the NCA Small Business Administration or the Indian tribe; and Section 1821 promotes the administration`s goal of supporting small businesses. It advocates on behalf of small business subcontractors by encouraging good faith efforts by large prime contractors to find and use small businesses as subcontractors, creating valuable opportunities for small businesses. A) This report shall cover all subcontracts under framework contracts and subcontracts with an executive agency, irrespective of the monetary value of the subcontracting. That report shall also take into account pro-rata indirect costs where indirect costs are excluded from subcontracting objectives. (vii) assist interested small businesses in obtaining necessary guarantees, lines of credit, insurance, equipment, supplies, materials or services. Data from the Federal Procurement Data System for fiscal years 2018 to 2020 shows that there were 7,656 companies with 30,414 new contracts requiring subcontracting plans. Of the 30,414 new contracts, 18%, or 5,399, required commercial procurement plans. In addition, 31%, or 2,318 of the 7,656 unique winners, required commercial subcontracting plans. According to the Federal Grants and Transparency Reporting System (SFRS) of the Federal Funding Accountability Act, 19,596 unique businesses are subcontractors.

Approximately 80% of the companies registered in the Price Management System are small businesses. As a result, we estimate that 80% (15,677) of FSRS`s subcontractors are small businesses. These small businesses can benefit from this rule. Comment: One respondent stated that the proposed wording in 19.705-7(d) is much broader than the SBA`s final rule and that it is not clear whether the term “material breach” refers to the subcontracting plan or to a breach of contract itself. Create a Small Business Subcontracting Plan (SBSP) if my contract requires it? (ix) Participation in a formal sheltered mentoring program with one or more small business protégés leading to development assistance for protégés. (1) Support small businesses, veteran-led small businesses, small businesses run by disabled veterans, HUBZone small businesses, disadvantaged small businesses, and women-owned small businesses by organizing calls, time to prepare quotes, quantities, specifications, and delivery schedules to facilitate the participation of these businesses. If the lists of potential small businesses, veteran-owned small businesses, disabled veterans-owned small businesses, HUBZone small businesses, disadvantaged small businesses, and women-owned small businesses are excessively long, reasonable efforts must be made to give all of these small businesses the opportunity to compete over a period of time. (j) Subcontracting plans of subcontractors are not required if the main contract contains the clause of FAR 52.212-5, General Conditions for the Implementation of Articles of Association or Executive Decrees – Commercial Products and Services, or if the subcontractor provides a commercial product or service in accordance with the clause of FAR 52.244-6, Subcontracting of commercial products and commercial services, under a Master Agreement. The Electronic Contracting Contract Reporting System (ERS) is the government-wide web-based electronic system for reporting on small business contracting out programs. The eSRS is located in

(11) a description of the types of records kept in relation to the procedures adopted to meet the requirements and objectives of the plan, including the establishment of lists of sources; and a description of the vendor`s efforts to identify and contract small businesses, veteran-owned small businesses, disabled veterans-owned small businesses, HUBZone small businesses, disadvantaged small businesses, and women-owned small businesses.