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52.219-9 / Basic
Far 52.219-9 small business subcontracting plan. basic (sep 2023) (current).
As prescribed in 19.708(b),
1) Insert the clause at 52.219-9, Small Business Subcontracting Plan, in solicitations and contracts that offer subcontracting possibilities, are expected to exceed $750,000 ($1.5 million for construction of any public facility), and are required to include the clause at 52.219-8, Utilization of Small Business Concerns, unless the acquisition is set aside or is to be accomplished under the 8(a) program. When-
(i) Contracting by sealed bidding rather than by negotiation, the contracting officer shall use the clause with its Alternate I;
(ii) Contracting by negotiation, and subcontracting plans are required with initial proposals as provided for in 19.705-2(d), the contracting officer shall use the clause with its Alternate II;
(iii) The contract action will not be reported in the Federal Procurement Data System pursuant to 4.606(c)(5), or (c)(6), the contracting officer shall use the clause with its Alternate III; or
(iv) Incorporating a subcontracting plan due to a modification as provided for in 19.702(a)(1)(iii), the contracting officer shall use the clause with its Alternate IV.
(2) Insert the clause at 52.219-16, Liquidated Damages-Subcontracting Plan, in all solicitations and contracts containing the clause at 52.219-9, Small Business Subcontracting Plan, or the clause with its Alternate I, II, III, or IV.
Small Business Subcontracting Plan (Sep 2023)
(a) This clause does not apply to small business concerns.
(b) Definitions . As used in this clause—
Alaska Native Corporation ( ANC ) means any Regional Corporation, Village Corporation, Urban Corporation, or Group Corporation organized under the laws of the State of Alaska in accordance with the Alaska Native Claims Settlement Act, as amended ( 43 U.S.C. 1601 , et seq. ) and which is considered a minority and economically disadvantaged concern under the criteria at 43 U.S.C. 1626(e)(1) . This definition also includes ANC direct and indirect subsidiary corporations, joint ventures, and partnerships that meet the requirements of 43 U.S.C. 1626(e)(2) .
Commercial plan means a subcontracting plan (including goals) that covers the offeror ’s fiscal year and that applies to the entire production of commercial products and commercial services sold by either the entire company or a portion thereof ( e.g., division, plant, or product line).
Commercial product means a product that satisfies the definition of “ commercial product ” in Federal Acquisition Regulation (FAR) 2.101 .
Commercial service means a service that satisfies the definition of “ commercial service ” in FAR 2.101 .
Electronic Subcontracting Reporting System (eSRS ) means the Governmentwide, electronic, web-based system for small business subcontracting program reporting. The eSRS is located at http://www.esrs.gov .
Indian tribe means any Indian tribe , band, group, pueblo, or community, including native villages and native groups (including corporations organized by Kenai, Juneau, Sitka, and Kodiak) as defined in the Alaska Native Claims Settlement Act ( 43 U.S.C. 1601 et seq.), that is recognized by the Federal Government as eligible for services from the Bureau of Indian Affairs in accordance with 25 U.S.C. 1452(c) . This definition also includes Indian-owned economic enterprises that meet the requirements of 25 U.S.C. 1452(e) .
Individual subcontracting plan means a subcontracting plan that covers the entire contract period (including option periods), applies to a specific contract, and has goals that are based on the offeror 's planned subcontracting in support of the specific contract, except that indirect costs incurred for common or joint purposes may be allocated on a prorated basis to the contract.
Master subcontracting plan means a subcontracting plan that contains all the required elements of an individual subcontracting plan , except goals, and may be incorporated into individual subcontracting plans , provided the master subcontracting plan has been approved.
Reduced payment means a payment that is for less than the amount agreed upon in a subcontract in accordance with its terms and conditions, for supplies and services for which the Government has paid the prime contractor.
Subcontract means any agreement (other than one involving an employer-employee relationship) entered into by a Federal Government prime Contractor or subcontractor calling for supplies or services required for performance of the contract or subcontract .
Total contract dollars means the final anticipated dollar value, including the dollar value of all options .
Untimely payment means a payment to a subcontractor that is more than 90 days past due under the terms and conditions of a subcontract for supplies and services for which the Government has paid the prime contractor.
(c)(1) The Offeror , upon request by the Contracting Officer, shall submit and negotiate a subcontracting plan, where applicable, that separately addresses subcontracting with small business, veteran-owned small business, service-disabled veteran-owned small business, HUBZone small business, small disadvantaged business, and women-owned small business concerns . If the Offeror is submitting an individual subcontracting plan , the plan must separately address subcontracting with small business, veteran-owned small business, service-disabled veteran-owned small business, HUBZone small business, small disadvantaged business, and women-owned small business concerns , with a separate part for the basic contract and separate parts for each option (if any). The subcontracting plan shall be included in and made a part of the resultant contract. The subcontracting plan shall be negotiated within the time specified by the Contracting Officer . Failure to submit and negotiate the subcontracting plan shall make the Offeror ineligible for award of a contract.
(2)(i) The Contractor may accept a subcontractor's written representations of its size and socioeconomic status as a small business, small disadvantaged business, veteran-owned small business, service-disabled veteran-owned small business, or a women-owned small business if the subcontractor represents that the size and socioeconomic status representations with its offer are current, accurate, and complete as of the date of the offer for the subcontract .
(ii) The Contractor may accept a subcontractor's representations of its size and socioeconomic status as a small business, small disadvantaged business, veteran-owned small business, service-disabled veteran-owned small business, or a women-owned small business in the System for Award Management (SAM ) if–
(A) The subcontractor is registered in SAM ; and
(B) The subcontractor represents that the size and socioeconomic status representations made in SAM are current, accurate and complete as of the date of the offer for the subcontract .
(iii) The Contractor may not require the use of SAM for the purposes of representing size or socioeconomic status in connection with a subcontract .
(iv) In accordance with 13 CFR 121.411, 126.900, 127.700, and 128.600, a contractor acting in good faith is not liable for misrepresentations made by its subcontractors regarding the subcontractor's size or socioeconomic status.
(d) The Offeror ’s subcontracting plan shall include the following:
(1) Separate goals, expressed in terms of total dollars subcontracted, and as a percentage of total planned subcontracting dollars, for the use of small business, veteran-owned small business, service-disabled veteran-owned small business, HUBZone small business, small disadvantaged business, and women-owned small business concerns as subcontractors. For individual subcontracting plans , and if required by the Contracting Officer , goals shall also be expressed in terms of percentage of total contract dollars , in addition to the goals expressed as a percentage of total subcontract dollars. The Offeror shall include all subcontracts that contribute to contract performance, and may include a proportionate share of products and services that are normally allocated as indirect costs . In accordance with 43 U.S.C. 1626 :
(i) Subcontracts awarded to an ANC or Indian tribe shall be counted towards the subcontracting goals for small business and small disadvantaged business concerns , regardless of the size or Small Business Administration certification status of the ANC or Indian tribe ; and
(ii) Where one or more subcontractors are in the subcontract tier between the prime Contractor and the ANC or Indian tribe , the ANC or Indian tribe shall designate the appropriate Contractor(s) to count the subcontract towards its small business and small disadvantaged business subcontracting goals.
(A) In most cases, the appropriate Contractor is the Contractor that awarded the subcontract to the ANC or Indian tribe .
(B) If the ANC or Indian tribe designates more than one Contractor to count the subcontract toward its goals, the ANC or Indian tribe shall designate only a portion of the total subcontract award to each Contractor. The sum of the amounts designated to various Contractors cannot exceed the total value of the subcontract .
(C) The ANC or Indian tribe shall give a copy of the written designation to the Contracting Officer , the prime Contractor, and the subcontractors in between the prime Contractor and the ANC or Indian tribe within 30 days of the date of the subcontract award.
(D) If the Contracting Officer does not receive a copy of the ANC ’s or the Indian tribe ’s written designation within 30 days of the subcontract award, the Contractor that awarded the subcontract to the ANC or Indian tribe will be considered the designated Contractor.
(2) A statement of–
(i) Total dollars planned to be subcontracted for an individual subcontracting plan ; or the Offeror 's total projected sales, expressed in dollars, and the total value of projected subcontracts , including all indirect costs except as described in paragraph (g) of this clause, to support the sales for a commercial plan;
(ii) Total dollars planned to be subcontracted to small business concerns (including ANC and Indian tribes );
(iii) Total dollars planned to be subcontracted to veteran-owned small business concerns ;
(iv) Total dollars planned to be subcontracted to service-disabled veteran-owned small business;
(v) Total dollars planned to be subcontracted to HUBZone small business concerns;
(vi) Total dollars planned to be subcontracted to small disadvantaged business concerns (including ANCs and Indian tribes ); and
(vii) Total dollars planned to be subcontracted to women-owned small business concerns .
(3) A description of the principal types of supplies and services to be subcontracted, and an identification of the types planned for subcontracting to-
(i) Small business concerns;
(ii) Veteran-owned small business concerns ;
(iii) Service-disabled veteran-owned small business concerns ;
(iv) HUBZone small business concerns;
(v) Small disadvantaged business concerns ; and
(vi) Women-owned small business concerns .
(4) A description of the method used to develop the subcontracting goals in paragraph (d)(1) of this clause.
(5) A description of the method used to identify potential sources for solicitation purposes ( e.g. , existing company source lists, SAM , veterans service organizations, the National Minority Purchasing Council Vendor Information Service, the Research and Information Division of the Minority Business Development Agency in the Department of Commerce, or small, HUBZone , small disadvantaged, and women-owned small business trade associations). A firm may rely on the information contained in SAM as an accurate representation of a concern's size and ownership characteristics for the purposes of maintaining a small, veteran-owned small, service-disabled veteran-owned small, HUBZone small, small disadvantaged, and women-owned small business source list. Use of SAM as its source list does not relieve a firm of its responsibilities ( e.g. , outreach, assistance, counseling, or publicizing subcontracting opportunities) in this clause.
(6) A statement as to whether or not the Offeror included indirect costs in establishing subcontracting goals, and a description of the method used to determine the proportionate share of indirect costs to be incurred with–
(i) Small business concerns (including ANC and Indian tribes );
(v) Small disadvantaged business concerns (including ANC and Indian tribes ); and
(7) The name of the individual employed by the Offeror who will administer the Offeror 's subcontracting program, and a description of the duties of the individual.
(8) A description of the efforts the Offeror will make to assure that small business, veteran-owned small business, service-disabled veteran-owned small business, HUBZone small business, small disadvantaged business, and women-owned small business concerns have an equitable opportunity to compete for subcontracts .
(9) Assurances that the Offeror will include the clause of this contract entitled "Utilization of Small Business Concerns" in all subcontracts that offer further subcontracting opportunities, and that the Offeror will require all subcontractors (except small business concerns) that receive subcontracts in excess of the applicable threshold specified in FAR 19.702 (a) on the date of subcontract award, with further subcontracting possibilities to adopt a subcontracting plan that complies with the requirements of this clause.
(10) Assurances that the Offeror will–
(i) Cooperate in any studies or surveys as may be required;
(ii) Submit periodic reports so that the Government can determine the extent of compliance by the Offeror with the subcontracting plan;
(iii) After November 30, 2017, include subcontracting data for each order when reporting subcontracting achievements for indefinite-delivery, indefinite-quantity contracts with individual subcontracting plans where the contract is intended for use by multiple agencies;
(iv) Submit the Individual Subcontract Report (ISR) and/or the Summary Subcontract Report (SSR), in accordance with paragraph (l) of this clause using the Electronic Subcontracting Reporting System (eSRS ) at http://www.esrs.gov . The reports shall provide information on subcontract awards to small business concerns (including ANCs and Indian tribes that are not small businesses), veteran-owned small business concerns , service-disabled veteran-owned small business concerns , HUBZone small business concerns, small disadvantaged business concerns (including ANCs and Indian tribes that have not been certified by the Small Business Administration as small disadvantaged businesses), women-owned small business concerns , and for NASA only, Historically Black Colleges and Universities and Minority Institutions . Reporting shall be in accordance with this clause, or as provided in agency regulations;
(v) Ensure that its subcontractors with subcontracting plans agree to submit the ISR and/or the SSR using eSRS ;
(vi) Provide its prime contract number, its unique entity identifier , and the e-mail address of the Offeror ’s official responsible for acknowledging receipt of or rejecting the ISRs, to all first-tier subcontractors with subcontracting plans so they can enter this information into the eSRS when submitting their ISRs; and
(vii) Require that each subcontractor with a subcontracting plan provide the prime contract number, its own unique entity identifier , and the e-mail address of the subcontractor’s official responsible for acknowledging receipt of or rejecting the ISRs, to its subcontractors with subcontracting plans.
(11) A description of the types of records that will be maintained concerning procedures that have been adopted to comply with the requirements and goals in the plan, including establishing source lists; and a description of the offeror ’s efforts to locate small business, veteran-owned small business, service-disabled veteran-owned small business, HUBZone small business, small disadvantaged business, and women-owned small business concerns and award subcontracts to them. The records shall include at least the following (on a plant-wide or company-wide basis, unless otherwise indicated):
(i) Source lists ( e.g., SAM ), guides, and other data that identify small business, veteran-owned small business, service-disabled veteran-owned small business, HUBZone small business, small disadvantaged business, and women-owned small business concerns .
(ii) Organizations contacted in an attempt to locate sources that are small business, veteran-owned small business, service-disabled veteran-owned small business, HUBZone small business, small disadvantaged business, or women-owned small business concerns .
(iii) Records on each subcontract solicitation resulting in an award of more than the simplified acquisition threshold , as defined in FAR 2.101 on the date of subcontract award, indicating-
(A) Whether small business concerns were solicited and, if not, why not;
(B) Whether veteran-owned small business concerns were solicited and, if not, why not;
(C) Whether service-disabled veteran-owned small business concerns were solicited and, if not, why not;
(D) Whether HUBZone small business concerns were solicited and, if not, why not;
(E) Whether small disadvantaged business concerns were solicited and, if not, why not;
(F) Whether women-owned small business concerns were solicited and, if not, why not; and
(G) If applicable, the reason award was not made to a small business concern.
(iv) Records of any outreach efforts to contact-
(A) Trade associations;
(B) Business development organizations;
(C) Conferences and trade fairs to locate small, HUBZone small, small disadvantaged, service-disabled veteran-owned, and women-owned small business sources; and
(D) Veterans service organizations.
(v) Records of internal guidance and encouragement provided to buyers through-
(A) Workshops, seminars, training, etc.; and
(B) Monitoring performance to evaluate compliance with the program’s requirements.
(vi) On a contract-by-contract basis, records to support award data submitted by the offeror to the Government, including the name, address, and business size of each subcontractor. Contractors having commercial plans need not comply with this requirement.
(12) Assurances that the Offeror will make a good faith effort to acquire articles, equipment, supplies , services, or materials, or obtain the performance of construction work from the small business concerns that it used in preparing the bid or proposal, in the same or greater scope, amount, and quality used in preparing and submitting the bid or proposal. Responding to a request for a quote does not constitute use in preparing a bid or proposal. The Offeror used a small business concern in preparing the bid or proposal if–
(i) The Offeror identifies the small business concern as a subcontractor in the bid or proposal or associated small business subcontracting plan, to furnish certain supplies or perform a portion of the subcontract ; or
(ii) The Offeror used the small business concern's pricing or cost information or technical expertise in preparing the bid or proposal, where there is written evidence of an intent or understanding that the small business concern will be awarded a subcontract for the related work if the Offeror is awarded the contract.
(13) Assurances that the Contractor will provide the Contracting Officer with a written explanation if the Contractor fails to acquire articles, equipment, supplies , services or materials or obtain the performance of construction work as described in (d)(12) of this clause. This written explanation must be submitted to the Contracting Officer within 30 days of contract completion.
(14) Assurances that 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.
(15) Assurances that the offeror will pay its small business subcontractors on time and in accordance with the terms and conditions of the underlying subcontract , and notify the contracting officer when the prime contractor makes either a reduced or an untimely payment to a small business subcontractor (see 52.242-5).
(e) In order to effectively implement this plan to the extent consistent with efficient contract performance, the Contractor shall perform the following functions:
(1) Assist small business, veteran-owned small business, service-disabled veteran-owned small business, HUBZone small business, small disadvantaged business, and women-owned small business concerns by arranging solicitations , time for the preparation of bids, quantities, specifications, and delivery schedules so as to facilitate the participation by such concerns. Where the Contractor’s lists of potential small business, veteran-owned small business, service-disabled veteran-owned small business, HUBZone small business, small disadvantaged business, and women-owned 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.
(2) Provide adequate and timely consideration of the potentialities of small business, veteran-owned small business, service-disabled veteran-owned small business, HUBZone small business, small disadvantaged business, and women-owned small business concerns in all "make-or-buy" decisions.
(3) Counsel and discuss subcontracting opportunities with representatives of small business, veteran-owned small business, service-disabled veteran-owned small business, HUBZone small business, small disadvantaged business, and women-owned small business firms.
(4) Confirm that a subcontractor representing itself as a HUBZone small business concern is certified by SBA as a HUBZone small business concern by accessing SAM or by accessing the Dynamic Small Business Search (DSBS) at https://web.sba.gov/pro-net/search/dsp_dsbs.cfm .
(5) Provide notice to subcontractors concerning penalties and remedies for misrepresentations of business status as small, veteran-owned small business, HUBZone small, small disadvantaged, or women-owned small business 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.
(6) For all competitive subcontracts over the simplified acquisition threshold , as defined in FAR 2.101 on the date of subcontract award, in which a small business concern received a small business preference, upon determination of the successful subcontract offeror , prior to award of the subcontract the Contractor must inform each unsuccessful small business subcontract offeror in writing of the name and location of the apparent successful offeror and if the successful subcontract offeror is a small business, veteran-owned small business, service-disabled veteran-owned small business, HUBZone small business, small disadvantaged business, or women-owned small business concern .
(7) Assign each subcontract the NAICS code and corresponding size standard that best describes the principal purpose of the subcontract .
(f) A master subcontracting plan on a plant or division-wide basis that contains all the elements required by paragraph (d) of this clause, except goals, may be incorporated by reference as a part of the subcontracting plan required of the Offeror by this clause; provided-
(1) The master subcontracting plan has been approved;
(2) The Offeror ensures that the master subcontracting plan is updated as necessary and provides copies of the approved master subcontracting plan , including evidence of its approval, to the Contracting Officer ; and
(3) Goals and any deviations from the master subcontracting plan deemed necessary by the Contracting Officer to satisfy the requirements of this contract are set forth in the individual subcontracting plan .
(g) A commercial plan is the preferred type of subcontracting plan for contractors furnishing commercial products and commercial services . The commercial plan shall relate to the offeror ’s planned subcontracting generally, for both commercial and Government business, rather than solely to the Government contract. Once the Contractor’s commercial plan has been approved, the Government will not require another subcontracting plan from the same Contractor while the plan remains in effect, as long as the product or service being provided by the Contractor continues to meet the definition of a commercial product or commercial service . A Contractor with a commercial plan shall comply with the reporting requirements stated in paragraph (d)(10) of this clause by submitting one SSR in eSRS for all contracts covered by its commercial plan. A Contractor authorized to use a commercial subcontracting plan shall include in its subcontracting goals and in its SSR all indirect costs , with the exception of those such as the following: Employee salaries and benefits; payments for petty cash; depreciation ; interest; income taxes; property taxes; lease payments; bank fees; fines, claims , and dues; original equipment manufacturer relationships during warranty periods (negotiated up front with the product); utilities and other services purchased from a municipality or an entity solely authorized by the municipality to provide those services in a particular geographical region; and philanthropic contributions. This report shall be acknowledged or rejected in eSRS by the Contracting Officer who approved the plan. This report shall be submitted within 30 days after the end of the Government’s fiscal year.
(h) Prior compliance of the offeror with other such subcontracting plans under previous contracts will be considered by the Contracting Officer in determining the responsibility of the offeror for award of the contract.
(i) A contract may have no more than one subcontracting plan. When a contract modification exceeds the subcontracting plan threshold in FAR 19.702 (a), or an option is exercised, the goals of the existing subcontracting plan shall be amended to reflect any new subcontracting opportunities. When the goals in a subcontracting plan are amended, these goal changes do not apply retroactively.
(j) Subcontracting plans are not required from subcontractors when the prime contract contains the clause at FAR 52.212-5, Contract Terms and Conditions Required to Implement Statutes or Executive Orders- Commercial Products and Commercial Services , or when the subcontractor provides a commercial product or commercial service subject to the clause at FAR 52.244-6, Subcontracts for Commercial Products and Commercial Services , under a prime contract.
(k) The failure of the Contractor or subcontractor to comply in good faith with (1) the clause of this contract entitled "Utilization Of Small Business Concerns;" or (2) an approved plan required by this clause, shall be a material breach of the contract and may be considered in any past performance evaluation of the Contractor.
(l) The Contractor shall submit ISRs and SSRs using the web-based eSRS at http://www.esrs.gov . Purchases from a corporation, company, or subdivision that is an affiliate of the Contractor or subcontractor are not included in these reports. Subcontract awards by affiliates shall be treated as subcontract awards by the Contractor. Subcontract award data reported by the Contractor and subcontractors shall be limited to awards made to their immediate next-tier subcontractors. Credit cannot be taken for awards made to lower tier subcontractors, unless the Contractor or subcontractor has been designated to receive a small business or small disadvantaged business credit from an ANC or Indian tribe . Only subcontracts involving performance in the United States or its outlying areas should be included in these reports with the exception of subcontracts under a contract awarded by the State Department or any other agency that has statutory or regulatory authority to require subcontracting plans for subcontracts performed outside the United States and its outlying areas .
(1) ISR . This report is not required for commercial plans. The report is required for each contract containing an individual subcontracting plan .
(i) The report shall be submitted semi-annually during contract performance for the periods ending March 31 and September 30. A report is also required for each contract within 30 days of contract completion. Reports are due 30 days after the close of each reporting period, unless otherwise directed by the Contracting Officer . Reports are required when due, regardless of whether there has been any subcontracting activity since the inception of the contract or the previous reporting period. When the Contracting Officer rejects an ISR, the Contractor shall submit a corrected report within 30 days of receiving the notice of ISR rejection.
(ii)(A) When a subcontracting plan contains separate goals for the basic contract and each option , as prescribed by FAR 19.704 (c), the dollar goal inserted on this report shall be the sum of the base period through the current option ; for example, for a report submitted after the second option is exercised, the dollar goal would be the sum of the goals for the basic contract, the first option , and the second option .
(B) If a subcontracting plan has been added to the contract pursuant to 19.702 a)(1)(iii) or 19.301-2 (e), the Contractor's achievements must be reported in the ISR on a cumulative basis from the date of incorporation of the subcontracting plan into the contract.
(iii) When a subcontracting plan includes indirect costs in the goals, these costs must be included in this report.
(iv) The authority to acknowledge receipt or reject the ISR resides–
(A) In the case of the prime Contractor, with the Contracting Officer ; and
(B) In the case of a subcontract with a subcontracting plan, with the entity that awarded the subcontract .
(2) SSR .
(i) Reports submitted under individual contract plans–
(A) This report encompasses all subcontracting under prime contracts and subcontracts with an executive agency , regardless of the dollar value of the subcontracts . This report also includes indirect costs on a prorated basis when the indirect costs are excluded from the subcontracting goals.
(B) The report may be submitted on a corporate, company or subdivision ( e.g. plant or division operating as a separate profit center) basis, unless otherwise directed by the agency.
(C) If the Contractor or a subcontractor is performing work for more than one executive agency , a separate report shall be submitted to each executive agency covering only that agency's contracts, provided at least one of that agency's contracts is over the applicable threshold specified in FAR 19.702 (a), and the contractand contains a subcontracting plan. For DoD, a consolidated report shall be submitted for all contracts awarded by military departments/agencies and/or subcontracts awarded by DoD prime contractors.
(D) The report shall be submitted annually by October 30 for the twelve month period ending September 30. When a Contracting Officer rejects an SSR, the Contractor shall submit a revised report within 30 days of receiving the notice of SSR rejection.
(E) Subcontract awards that are related to work for more than one executive agency shall be appropriately allocated.
(F) The authority to acknowledge or reject SSRs in eSRS , including SSRs submitted by subcontractors with subcontracting plans, resides with the Government agency awarding the prime contracts unless stated otherwise in the contract.
(ii) Reports submitted under a commercial plan -
(A) The report shall include all subcontract awards under the commercial plan in effect during the Government's fiscal year and all indirect costs .
(B) The report shall be submitted annually, within thirty days after the end of the Government's fiscal year.
(C) If a Contractor has a commercial plan and is performing work for more than one executive agency , the Contractor shall specify the percentage of dollars attributable to each agency.
(D) The authority to acknowledge or reject SSRs for commercial plans resides with the Contracting Officer who approved the commercial plan.
(End of clause)
(j) Subcontracting plans are not required from subcontractors when the prime contract contains the clause at FAR 52.212-5, Contract Terms and Conditions Required to Implement Statutes or Executive Orders- Commercial Products and Commercial Services , or when the subcontractor provides a commercial product or commercial service subject to the clause at FAR 52.244-6, Subcontracts for Commercial Products and Commercial Services , under a prime contract.
(k) The failure of the Contractor or subcontractor to comply in good faith with (1) the clause of this contract entitled "Utilization Of Small Business Concerns;" or (2) an approved plan required by this clause, shall be a material breach of the contract and may be considered in any past performance evaluation of the Contractor.
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FAR Council Publishes Three Final Rules Aimed at Boosting Small Business Contracting
The Federal Acquisition Regulatory (FAR) Council published three final rules on Aug. 11, 2021, amending the FAR to implement changes mandated by various National Defense Authorization Acts (NDAAs) and to homogenize the FAR with regulatory changes made by the U.S. Small Business Administration (SBA).
Specifically, the final rules 1) provide examples of what constitutes a good faith effort to comply with a small business subcontracting plan, 2) revise the limitations on subcontracting under FAR 19.505, Limitations on Subcontracting and Nonmanufacturer Rule and 3) allow SBA procurement center representatives to review any proposed acquisition so that they may make recommendations for improving competition from small business concerns.
The long awaited changes bring the FAR small business contracting requirements in line with SBA's existing regulations, and, in the case of the limitation on subcontracting provisions, a deviation to the Defense Federal Acquisition Regulation Supplement (DFARS), which was issued in late 2018.
Each of the final rules, summarized below, become effective on Sept. 10, 2021 (arguably once the revised FAR clauses are incorporated into new solicitations, contracts and orders).
Small Business Subcontracting Plans and "Good Faith" Efforts
For negotiated procurements with an expected contract value in excess of $750,000 ($1.5 million for construction), a large prime offeror (i.e . , an other than small business offeror) must submit an acceptable small business subcontracting plan to the contracting officer in order to be eligible for award. FAR 19.704, Small Business Subcontracting Plan Requirements, and FAR 52.219-9, Small Business Subcontracting Plan, list the required contents of small business subcontracting plans, which must include an offeror's percentage goals for subcontracting work to small business concerns and a description of the efforts the offeror will make to ensure small business concerns "have an equitable opportunity to compete for subcontracts."
Subcontracting goals for commercial plans must include indirect costs
Under the existing regulations, contractors using commercial small business subcontracting plans – the "preferred type of subcontracting plan for contractors furnishing commercial items" – must include their indirect costs in their Summary Subcontract Reports (SSRs), which must be submitted to the government annually using the Electronic Subcontracting Reporting System (eSRS). While contractors are required to include their indirect costs in their SSRs submitted to eSRS, they are not required to include their indirect costs in establishing their small business subcontracting goals when creating a commercial plan. According to the FAR Council, this has led to inconsistencies when comparing the data reported in contractors' SSRs with their small business subcontracting goals.
The final rule amends FAR 19.704 and FAR 52.219-9 to require contractors' subcontracting goals established for commercial plans include all their indirect costs, with the exception of the following: "Employee salaries and benefits; payments for petty cash; depreciation; interest; income taxes; property taxes; lease payments; bank fees; fines, claims, and dues; original equipment manufacturer relationships during warranty periods (negotiated up front with the product); utilities and other services purchased from a municipality or an entity solely authorized by the municipality to provide those services in a particular geographical region; and philanthropic contributions."
The FAR Council believes this change will lead to increased small business subcontracting goals, and thus increased funds spent by prime contractors on small business concerns, "providing more opportunities for subcontract awards to small business concerns." At the same time, large businesses electing to utilize commercial plans that previously omitted indirect costs will need to adjust and expand the reach of their future commercial plans. Both plan development (goal setting) and plan administration (from market research to consideration of small business availability to fill requirements) will now have to include indirect costs, a change that may require new data collection regarding small business spending in the contractor's financial system and requests for size certifications from providers of indirect supplies and services by the purchasing organization.
Examples of a good faith effort and examples of a failure to make a good faith effort
A contractor's failure to "comply in good faith" with the requirements of its own small business subcontracting plan is considered a material breach of the contract and entitles the government to liquidated damages, in addition to any other remedies the government may have. (SeeFAR 19.705-7, Liquidated Damages; and FAR 52.219-16, Liquidated Damages—Subcontracting Plan.)
The final rule revises FAR 19.705-7 (no longer titled "Liquidated Damages" but instead "Compliance with Subcontracting Plan") to include the following non-exhaustive list of "indicators of good faith:"
- breaking out work to be subcontracted into economically feasible units, as appropriate, to facilitate small business participation
- conducting market research to identify potential small business subcontractors through all reasonable means, such as searching the System for Award Management (SAM), posting notices or solicitations on SBA's Subcontracting Network System (SUBNet), participating in business matchmaking events and attending preproposal conferences
- soliciting small business concerns as early in the acquisition process as practicable to allow them sufficient time to submit a timely offer for the subcontract
- providing interested small businesses with adequate and timely information about plans, specifications and requirements for performance of the prime contract to assist them in submitting a timely offer for the subcontract
- negotiating in good faith with interested small businesses
- directing small businesses that need additional assistance to SBA
- assisting interested small businesses in obtaining bonding, lines of credit, required insurance, necessary equipment, supplies, materials or services
- utilizing the available services of small business associations as well as local, state and federal small business assistance offices and other organizations
- participating in a formal mentor-protégé program with one or more small business protégés that results in developmental assistance to the protégés
- although failing to meet the subcontracting goal in one socioeconomic category, exceeding the goal by an equal or greater amount in one or more of the other categories
- fulfilling all of the requirements of the subcontracting plan
The regulation also includes the following non-exhaustive list of "indicators of a failure to make a good faith effort:"
- failure to attempt through market research to identify, contact, solicit or consider for contract award small business, veteran-owned small business, service-disabled veteran-owned small business, Historically Underutilized Business Zone (HUBZone) small business, small disadvantaged business or women-owned small business concerns, through all reasonable means including outreach, industry days or the use of federal systems such as SBA's Dynamic Small Business Search (DSBS) or SUBNet systems
- failure to designate and maintain a company official to administer the subcontracting program and monitor and enforce compliance with the plan
- failure to submit an acceptable Individual Subcontracting Report (ISR) or the Summary Subcontract Report (SSR), using the eSRS or, as provided in agency regulations, by the report due dates specified in 52.219-9, Small Business Subcontracting Plan
- failure to maintain records or otherwise demonstrate procedures adopted to comply with the plan including subcontracting flow-down requirements
- adoption of company policies or documented procedures that have as their objectives the frustration of the objectives of the plan
- failure to pay small business subcontractors in accordance with the terms of the contract with the prime contractor
- failure to correct substantiated findings from federal subcontracting compliance reviews or participate in subcontracting plan management training offered by the government
- failure to provide the contracting officer with a written explanation if the contractor fails to acquire articles, equipment, supplies, services or materials or obtain the performance of construction work as described in 19.704(a)(12)
- falsifying records of subcontract awards to small business concerns
While some of these indicators may seem obvious, it is helpful to have examples for reference and to understand just what the government considers "good faith efforts" to entail. But, by providing examples of a failure to make good faith efforts, the final rule substantially increases compliance risk for large contractors.
The final rule is clear that better enforcement is a goal: providing examples of a failure to make good faith effort is intended to "enable contracting officers to . . . hold large prime contractors accountable for failing to make good faith efforts to comply with their subcontracting plans." The enforcement mechanisms include adverse past performance assessments, default termination for a material breach and liquidated damages, all of which are linked directly to a finding of a failure to make good faith efforts per FAR 19.705-7(d).
For individual plans, the amount of liquidated damages is "an amount equal to the actual dollar amount by which the contractor failed to achieve each subcontracting goal." For commercial plans, the amount of liquidated damages is the amount by which the contractor failed to achieve each subcontracting goal, adjusted to reflect the percentage of the government's total payments contributed to the contractor's total sales. (SeeFAR 19.705-7(f).) The bottom-line is that the risk of liquidated damages is much more present now that contracting officers have a clear basis to find when a large prime has failed to make good faith efforts.
Limitations on Subcontracting
The second of the three final rules revises the FAR requirements with respect to limitations on subcontracting applicable to small business concerns and clarifies that the nonmanufacturer rule does not apply to small business set-asides at or below the simplified acquisition threshold (SAT), which is currently $250,000.
The revisions implement changes made to the Small Business Act by Section 1651 of the National Defense Authorization Act for Fiscal Year 2013 (NDAA FY 2013), which changed the formula for calculating the limitations on subcontracting under all types of small business set-aside contracts, principally to convert the analysis from one based on costs to one based on contract value. SBA revised its regulations in 2016 to implement section 1651 of the NDAA, which the U.S. Department of Defense (DoD) adopted in a 2018 class deviation – issued at the same time the FAR Council published its proposed rule amending the FAR. Finally, eight years after the NDAA FY 2013 revised the formula – and three years after issuing the proposed rule – the FAR Council has updated the FAR to catch up with SBA's regulations and DoD's class deviation.
Determining compliance with the limitations on subcontracting
Under the existing FAR regulations, FAR 19.505 and FAR 52.219-14, Limitations on Subcontracting, small business prime contractors are required to measure their compliance with the limitations on subcontracting based on the percentage of work they, as the prime contractor, have performed, as measured by the cost of the work. For example, under the preexisting version of the regulation small business prime contractors are required to perform "at least 50 percent of the cost incurred for personnel with its own employees" for set-aside services contracts (except construction).
The final rule shifts the focus of FAR's limitations on subcontracting from a percentage cost of work performed by the prime to a percentage of the overall award amount to be spent by the prime on subcontractors in relation to the total amount paid by the government to the prime. For example, under the revised FAR 19.505 and FAR 52.219-14, small business concerns must "not pay more than 50 percent of the amount paid by the Government for contract performance to subcontractors that are not similarly situated entities" when performing set-aside service contracts (except construction).
The final rule also increases workshare opportunities for first-tier small business subcontractors by exempting the amount prime contractors spend on subcontracts with "similarly situated entities" for purposes of determining compliance with the subcontracting limitations. Work performed by "similarly situated" first-tier subcontractors will be treated as if it were performed by the small business prime. In other words, a small business prime can determine compliance with the 50 percent limitation by including the amount performed by similarly situated first-tier subcontractors. (The final rule clarifies that lower tier subcontracting to similarly situated subcontractors cannot be counted towards compliance.) In a significant change from the proposed rule, the FAR Council is revising the definition of "similarly situated entity" to specify that the entity 1) must have the same small business program status as that which qualified the prime for award and 2) must be small under the North American Industry Classification System (NAICS) code assigned to the subcontract.
The final rule also clarifies the compliance period for the limitations on subcontracting. For a contract that has been set aside – including a set-aside indefinite delivery, indefinite quantity (IDIQ) contract – compliance with the limitations on subcontracting rule is required "by the end of the base term and then by the end of each subsequent option period, or by the end of the performance period for each order issued under the contract, at the contracting officer's discretion." For task orders set aside issued under full and open IDIQ contracts, partial set-aside contracts or contracts with small business reserves, compliance is required "by the end of the performance period for the order."
Significantly, the final rule makes no mention of the penalties articulated by SBA at 13 C.F.R. § 125.6(g). In SBA's regulation, whoever violates the limitations on subcontracting requirement "shall be subject to penalties prescribed in 15 U.S.C. 645(d), except that the fine shall be treated as the greater of $500,000 or the dollar amount spent, in excess of permitted levels, by the entity on subcontractors." Unlike in the instance of large businesses' compliance with small business subcontracting plans, the FAR Council elected not to assign any responsibility to contracting officers to monitor compliance with the limitations on subcontracting or to determine the applicability of penalties. With no reporting requirement imposed on prime contractors and no procedure for procuring agencies to monitor or audit compliance, it is uncertain how robust the government's enforcement will be.
The FAR Council believes that the shift in the focus of the limitations on subcontracting rules will reduce the "substantial burden" for small business contractors associated with tracking compliance and provide small businesses more options "for pursuing and winning larger contracts than before."
Clarifications to the nonmanufacturer rule
Additionally, the final rule clarifies that the nonmanufacturer rule, which requires prime contractors who are resellers of products (i.e . , a nonmanufacturer) to provide end products manufactured by small business concerns, does not apply to set-asides for small businesses with no additional socioeconomic restriction that are at or below the SAT. For small business socioeconomic category procurements (i.e., a set-aside or sole source contract for 8(a) participants, women-owned small businesses, HUBZone small businesses or Service-Disabled Veteran-Owned Small Business (SDVOSBs)), the limitations on subcontracting and the nonmanufacturer rule continue to apply to procurements regardless of contract value. For non-socioeconomic small business set-asides, this clarification is a welcomed change from the existing regulation, which had applied the nonmanufacturer rule to small business set-asides above $25,000.
Procurement Center Representative Review
Lastly, the final rule amends FAR 19.202-1, Encouraging Small Business Participation in Acquisitions, to allow SBA "procurement center representatives" to review any acquisition – even those set-aside or partially set-aside for small business concerns – when they deem it appropriate to do so.
Procurement center representatives are SBA personnel located at federal agencies, designed to assist contracting officers in identifying set-aside opportunities, conducting market research and communicating with the industry. Under the existing regulations, the contracting officer is required to provide the procurement center representative with a copy of the proposed acquisition package only in certain instances (e.g., if the proposed acquisition is for supplies or services currently being provided by a small business concern and "the proposed acquisition is of a quantity or estimated dollar value, the magnitude of which makes it unlikely that small businesses can compete for the prime contract").
The final rule revises FAR 19.202-1 to require contracting officers to provide procurement center representatives copies of any proposed acquisition package and other reasonably obtainable information related to the acquisition, if the representatives exercise their discretion to review the acquisition. Further, the rule revises procurement center representatives' duties under FAR 19.402, Small Business Administration Procurement Center Representatives, to allow them to recommend procurements be set-aside or awarded on a sole-source basis to a small business concern; advise the contracting officer to breakout discrete components, items and requirements for competition, and suggest other ways to improve competition for small business concerns.
The intent is that, with further input from SBA advocates, more opportunities will be set-aside or reserved for small business concerns, increasing small businesses' chances of performing federal prime contract work with the government.
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Challenging FAR 52.219-9 Small Business Subcontracting Plan Requirements
What is the Best Approach to Challenge the Requirements Under FAR 52.219-9? Minimize the Chance of Noncompliance and Contract Termination
FAR 52.219-9 small business subcontracting plan requirements are frequently seen in solicitations from the federal government. The underlying reason is to advance opportunities for small businesses in larger contracts. Contractors sometimes get into trouble because they fail to show good faith when trying to comply with the subcontracting requirements under the FAR, or promptly notify the government including failure to find new subcontractors or business locally that can perform the work.
This is an example of Congress ’s efforts to provide more contracting vehicles to smaller companies.
FAR Subcontracting Plan requirements usually seek to provide additional opportunities to Small Disadvantaged Business veteran (SDB) , Woman-Owned Small Businesses (WOSB), VOSB, SDVOSB and each HUBZone small business concern.
What Should Your Plan Include? FAR 52.219 9 Small Business Subcontracting Plan Requirements
When you submit a subcontractor plan, it must include the following:
Separate goals, expressed in terms of total dollars subcontracted, and as a percentage of total planned subcontracting dollars, for the use of small business, veteran-owned small business, service-disabled veteran-owned small business, HUBZone small business, small disadvantaged business, and women-owned small business concerns as subcontractors.
- For individual plans, and if required by the Contracting Officer, goals shall also be expressed in terms of percentage of total contract dollars, in addition to the goals expressed as a percentage of total subcontract dollars.
The small business subcontracting plan shall also include all subcontracts that contribute to contract performance, and may include a proportionate share of products and services that are normally allocated as indirect costs.
- A description of the method used to develop the subcontracting goals
- A description of the method used to identify potential sources for solicitation purposes
- A statement as to whether or not the Offeror included indirect costs in establishing goals and a description of the method used to determine the proportionate share of indirect costs to be incurred by your subcontractors
A common hurdle for bidders when developing FAR Clause 52.219-9 small business subcontracting organization requirements s whether there are actual contractors that are available to do the work. Others fear that when they submit the requirement in their bid, whether the Agency could terminate them for failure to meet the requirements.
These are valid concerns. However, Small Business Subcontracting Plans should be viewed as goals. Large businesses can run into problems when they do not in good faith try to meet those goals. Be aware that the SBA has issued new rules about FAR 52.219-9 subcontracting plan requirements .
Do You have to Use Small-Business Subcontractors During Performance of the Contract?
If you have proposed to use small businesses in your proposal, then Yes. The new SBA rules now require you as a prime contractor under FAR clause 52.219-9 to make good-faith efforts to utilize their proposed small-business subcontractors during performance to the same degree that such small businesses were relied on when the prime prepared the response to the government’s bid. If the prime contractor is unable to make this effort, it must explain in writing to the contracting officer. There also is something to be said for the requirements of similarly situated small business rules when trying to meet this requirement.
Be Aware of Other Provisions Besides FAR 52.219-9
When challenging FAR 52.219 9 small business subcontracting plan requirements in a bid protest, be mindful that some agencies may also have their own local rules in addition to FAR 52.219-9. When responding to a solicitation, contractors should also look for additional information the agency requests that are over and beyond the basic government regulations.
- When filing a bid protest, making the argument that the goals are unrealistic will not get a favorable result.
- Agencies have the discretion to decide what is best when choosing their procurement strategies.
If there are no viable sources to meet the subcontracting plan requirements, then bidders should provide evidence to that effect in their proposals. If the source selection penalizes you, then you may have a viable challenge in a bid protest if the agency cannot provide conflicting facts. See also Small Business Set Aside Bid Protests.
Under the new rules, the agency contracting officer can require a subcontracting plan during contract performance in two situations:
- Demand that you provide a subcontracting plan when your small business size changes from small to large as a result of a size re certification on a federal contract that contains FAR clause 52.219-9.
- When there is a contract modification of any value causes a contract’s value without a subcontracting plan to exceed the subcontracting plan threshold and other subcontracting opportunities exist. See also FAR 52.217 9.
Government’s Obligation: FAR 19.705-2, titled “Determining the need for a subcontracting plan,” requires a contracting officer to ascertain, for each offeror, whether subcontracting possibilities exist before directing the offeror to submit a small business subcontracting plan. See also limitations on subcontracting .
Challenging the CO’s decision to include small business subcontracting plan requirements in the RFP almost never wins in a protest. Instead, you may want to look for vague terms, our show that there are no viable sources. Providing a copy of a SAM report with your proposal could help companies choosing to file a protest. See information about government contract bundling .
Government Contract Tips When Challenging FAR 52.219-9 Small Business Subcontracting Plan Requirements
Disputes arise when the government contract agencies may not tell you that your subcontracting plan did not meet the agency’s expectations. First, bidders may want to see whether or not subcontracting plans were supposed to be evaluated. In negotiated procurements, the solicitation will provide guidance as to what weight, if any, is given to FAR 52.219-9 Subcontracting Plans.
- Your goal when submitting a government proposal is to always see whether you can exceed the agency’s expectation as to the percentage for each subcategory.
Next, businesses who submit proposals for federal government contracts must understand that agencies are not required to discuss the contents of your Small Business Subcontracting Plan simply because it received a lower score than your competition. More specifically, this issue comes up in meaningful discussions . If your Subcontracting Plan was the tiebreaker between your company and the awardee, then maybe there could be an argument when filing a bid protest.
Does Your Plan Meet the Government’s Requirements? Do you Stand the Chance of Losing Your Contract Award?
If you are challenging FAR 52.219-9 small business subcontracting plan requirements in a bid protest to GAO or U.S. Court of Federal Claims, call our government contracts and bid protest lawyers at 1-866-601-5518. FREE INITIAL CONSULTATION.
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Federal Acquisition Regulation: Good Faith in Small Business Subcontracting
A Rule by the Defense Department , the General Services Administration , and the National Aeronautics and Space Administration on 08/11/2021
This document has been published in the Federal Register . Use the PDF linked in the document sidebar for the official electronic format.
- Document Details Published Content - Document Details Agencies Department of Defense General Services Administration National Aeronautics and Space Administration Agency/Docket Numbers FAC 2021-07 FAR Case 2019-004 Item IV Docket No. FAR-2019-0030, Sequence No. 1 CFR 48 CFR 19 48 CFR 42 48 CFR 52 Document Citation 86 FR 44249 Document Number 2021-16366 Document Type Rule Pages 44249-44255 (7 pages) Publication Date 08/11/2021 RIN 9000-AN87 Published Content - Document Details
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- Document Dates Published Content - Document Dates Effective Date 09/10/2021 Dates Text Effective September 10, 2021. Published Content - Document Dates
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Supplementary information:, i. background, ii. discussion and analysis, a. summary of significant changes from the proposed rule, b. analysis of public comments, 1. clarify applicability to subcontracts for commercial items and commercially available off-the-shelf (cots) items, 2. material breach, a. far language broader than sba language, b. recommended language to be added to final rule, 3. clarifications, a. ensure consistency between far 52.219-16 and proposed far 19.705-7(b)(2), b. clarify the intent of the proposed language at far 19.705-7(b)(2)(vi), c. clarify intent of far 19.705-7(b)(2)(vii), d. clarify applicability to contracts at or below the simplified acquisition threshold, e. clarify intent of far 19.705-7(b)(1)(v), 4. outside the scope of this rule, iii. applicability to contracts at or below the simplified acquisition threshold (sat) and for commercial items, including commercially available off-the-shelf (cots) items, a. applicability to contracts at or below the sat, b. applicability to contracts for the acquisition of commercial items, c. applicability to contracts for the acquisition of cots items, iv. expected impact of the rule, v. executive orders 12866 and 13563, vi. congressional review act, vii. regulatory flexibility act, viii. paperwork reduction act, list of subjects in 48 cfr parts 19 , 42 , and 52, part 19—small business programs, part 42—contract administration and audit services, part 52—solicitation provisions and contract clauses, contract terms and conditions required to implement statutes or executive orders—commercial items (sep 2021), small business subcontracting plan (sep 2021), liquidated damages—subcontracting plan (sep 2021).
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Department of Defense
General services administration, national aeronautics and space administration.
- 48 CFR Parts 19, 42, and 52
- [FAC 2021-07; FAR Case 2019-004; Item IV; Docket No. FAR-2019-0030, Sequence No. 1]
- RIN 9000-AN87
Department of Defense (DoD), General Services Administration (GSA), and National Aeronautics and Space Administration (NASA).
Final rule.
DoD, GSA, and NASA are issuing a final rule amending the Federal Acquisition Regulation to implement a section of the National Defense Authorization Act for Fiscal Year 2017, which requires examples of failure to make good faith efforts to comply with a small business subcontracting plan.
Effective September 10, 2021.
Ms. Dana Bowman, Procurement Analyst, at 202-803-3188, or by email at [email protected] , for clarification of content. For information pertaining to status or publication schedules, contact the Regulatory Secretariat at 202-501-4755 or [email protected] . Please cite FAC 2021-07, FAR Case 2019-004.
DoD, GSA, and NASA published a proposed rule on June 3, 2020, at 85 FR 34155 , to implement section 1821 of the National Defense Authorization Act (NDAA) for Fiscal Year (FY) 2017 (section 1821(c) of Pub. L. 114-328 ; 15 U.S.C. 637 note ). Section 1821 requires the Small Business Administration (SBA) to amend its regulations to provide examples of activities that would be considered a failure to make a good faith effort to comply with a small business subcontracting plan. SBA issued a final rule at 84 FR 65647 , dated November 29, 2019, to implement section 1821 of the NDAA for FY 2017. In its final rule, SBA amended 13 CFR 125.3(d)(3) to provide guidance on evaluating whether the prime contractor made a good faith effort to comply with its small business subcontracting plan and a list of examples of activities reflective of a failure to make a good faith effort.
Additionally, SBA revised 13 CFR 125.3(c)(1)(iv) to require that prime contractors with commercial subcontracting plans include indirect costs in their subcontracting goals. Other than small business concerns that have a commercial subcontracting plan report on performance through a summary subcontract report (SSR). Prior to the publication of its final rule, SBA's regulations required that contractors using a commercial subcontracting plan must include all indirect costs in their SSRs, but did not require these contractors to include indirect costs in their subcontracting goals, which led to inconsistencies when comparing the data reported in the SSR to the goals in the commercial subcontracting plan.
Small business subcontracting plans are required from large prime contractors when a contract is expected to exceed $750,000 ($1.5 million for construction) and has subcontracting possibilities. FAR 19.704 lists the elements of the plan, which include the contractor's goals for subcontracting to small business concerns and a description of the efforts the contractor will make to ensure that small business, veteran-owned small business, service-disabled veteran-owned small business, HUBZone small business, small disadvantaged business, and women-owned small business concerns have an equitable opportunity to compete for subcontracts. Failure to make a good faith effort to comply with the plan may result in the assessment of liquidated damages per FAR 52.219-16, Liquidated Damages—Subcontracting Plan.
This final FAR rule requires that all indirect costs, with certain exceptions, are included in commercial plans and SSRs.
FAR 19.705-7 contains examples of a good faith effort, and examples of a failure to make a good faith effort.
Four respondents submitted public comments in response to the proposed rule.
The Civilian Agency Acquisition Council and the Defense Acquisition Regulations Council (the Councils) reviewed the public comments in the development of the final rule. A discussion of the comments received and any changes made to the rule as a result of the public comments are provided as follows:
There are no changes made to the final rule.
Comment: One respondent commented that the rule should clarify that the “good faith” requirement is not applicable to subcontracts for commercial and COTS items under prime contracts. The respondent commented that the proposed rule does not address FAR 52.219-9(j), which states that subcontracting plans are not required from subcontractors when the prime contract contains the clause at 52.212-5, Contract Terms and Conditions Required to Implement Statutes or Executive Orders—Commercial Items, or when the subcontractor provides a commercial item subject to the clause at 52.244-6, Subcontracts for Commercial Items, under a prime contract.
Response: This rule does not revise the conditions for when a subcontracting plan is required. If a subcontracting plan is not required, then the examples of activities that would be considered a failure to make a good faith effort to comply with a small business subcontracting plan are not applicable. No changes were made to the final rule as a result of this comment.
Comment: One respondent stated that the proposed FAR language at 19.705-7(d) is much broader than the SBA final rule and is unclear on whether “material breach” refers to the subcontracting plan or a breach of the contract itself.
Response: FAR 19.705-5(a)(5) requires that the subcontracting plan become a “material part of the contract upon award.” The final rule text at FAR 19.705-7(d), similar to the SBA final rule, cites FAR 52.219-16, Liquidated Damages—Subcontracting Plan, which provides the corrective actions available to all Federal Government contracting officers when a contractor fails to make a good faith effort to comply with the subcontracting plan, while also giving consideration to other Federal contracting regulations. In this context, a failure to make a good faith effort to comply with a subcontracting plan is a material breach, sufficient for the assessment of liquidated damages, and also for other remedies the Government may have. No changes were made to the final rule as a result of this comment. ( print page 44250)
Comment: One respondent requested the proposed FAR language at 19.705-7(d) include language to indicate that the contractor has an opportunity to rebut and appeal before a determination of noncompliance is rendered and provided recommended text.
Response: The clause at FAR 52.219-16, Liquidated Damages—Subcontracting Plan, which is cited in proposed FAR text 19.705-7(d), specifically 52.219-16(c), allows the contractor an opportunity to demonstrate what good faith efforts have been made and to discuss the matter, before the contracting officer's final decision. No changes were made to the final rule as a result of this comment.
Comment: One respondent recommended that to remain consistent, the proposed language at FAR 19.705-7(b)(2) should either include the language contained in 52.219-16 or include references to the intent of 52.219-16, as the examples provided at FAR 19.705-7(b)(2) may occur without willful or intentional behavior. The respondent also recommended that intent and examples should be read together providing that an occurrence of the examples without intent would not constitute a violation. Specifically, failure to make a good faith effort must meet the “willful or intentional” standard. The respondent also provided various reasons why the FAR should make it clear that an occurrence of the examples without intent would not constitute a violation.
Response: This final rule is implementing current SBA regulation. SBA's language at 13 CFR 125.3(d)(3) provides guidance on evaluating whether the prime contractor made a good faith effort to comply with its small business subcontracting plan. This language parallels the language in SBA's rule providing contracting officers with examples to consider, in the context of the contractor's total effort, as possible indicators of a failure to make a good faith effort. SBA's rule does not reference the “willful and intentional” language. The FAR text will not be revised to incorporate the requested language as the “willful and intentional” language already appears in the definition of “failure to make a good faith effort to comply with the subcontracting plan” at both FAR 19.701 and in the clause at FAR 52.219-16. No changes were made to the final rule as a result of this comment.
Comment: One respondent stated FAR 19.705-7(b)(2)(vi), as written, could be misinterpreted to hold a lower-tier contractor to the terms of a prime contractor's contract with the Government and recommended a revision to provide the intent of the text is to ensure a contractor pays its small business subcontractors in accordance with the terms of their contract with the small business.
Response: The current text states, “Failure to pay small business subcontractors in accordance with the terms of the contract with the prime contractor;” and provides that the intent pertains to the subcontractor's contract with the prime contractor. The final rule FAR text will not be revised to include the recommended text.
Comment: One respondent stated that the language at FAR 19.705-7(b)(2)(vii) should be revised to expressly require prime contractors to attend training as a remedy to any performance review findings. The respondent further stated that this is necessary given that a failure to attend the training offered by the Government could be perceived as a failure to make a good faith effort. The respondent provided recommended revisions to 19.705-7(b)(2)(vii).
Response: The respondent's interpretation of the language at FAR 19.705-7(b)(2)(vii) is correct. If a contractor does not either correct substantiated findings or participate in subcontracting plan management training offered by the Government, it could be perceived by the contracting officer as a failure to make a good faith effort. This is not all inclusive of failure to make a good faith effort, but is one of many instances and examples used to show a lack of good faith effort on behalf of the prime contractor. Additionally, the contracting officer has the choice of requiring or recommending other corrective remedies as deemed necessary. The respondent's recommended language is more restrictive by suggesting “and” instead of “or” as written in the SBA rule. The final rule FAR text will not be revised to include the recommended text.
Comment: One respondent stated that the preamble to the proposed rule indicates that the FAR Council is considering expanding the scope of the rule to include contracts at or below the simplified acquisition threshold (SAT) and recommended that the final FAR rule under this case should specify that it does not apply to contracts at or below the SAT. The respondent further stated that contracts at or below the SAT must be exempt from any policy or regulatory requirements pertaining to Small Business Plans.
Response: Section 8(d) of the Small Business Act ( 15 U.S.C. 637(d) ) requires subcontracting plans only for acquisitions valued above $750,000 ($1.5 million for construction contracts). As stated in section III of this preamble, the requirements of section 1821 of the NDAA for FY 2017 ( Pub. L. 114-328 ; 15 U.S.C 637 note ) do not apply to contracts at or below the SAT.
Comment: One respondent stated that the language at FAR 19.705-7(b)(1)(v) does not make clear how a contracting officer would make a determination that a contractor has “negotiated in good faith with interested small business.” The respondent also states that it is not clear how a contractor would negotiate with a small business that is merely interested in participating as a subcontractor.
Response: The language at FAR 19.705-7(b)(1)(v) is broadly written, as the intent is not to restrict or limit the contracting officer's authority or ability to determine the prime contractor's effort to negotiate in good faith. No changes were made to the FAR final rule as a result of this comment.
Comment: One respondent had no issue with the proposed changes and clarifications in the language (FAR text) and agreed that the requirements should be consistent. However, the respondent disagreed with commercial subcontracting plans allowing large businesses to “capture and be credited for small dollars spent” that have nothing to do with the specific awarded Federal contract. The respondent recommended a maximum cap proposed at 0.5 percent to the large business and that any remaining credit or subcontracting expenditure allowed be with the small business directly involved and subcontracted to the ( print page 44251) specific awarded Federal contract. The respondent further reiterated the original intent of the subcontracting law was to encourage large business primes to work and subcontract with small businesses in support of the Federal contract awarded and not to receive credit for unrelated work. Another respondent acknowledged the importance of prime contractors making a good faith effort to comply with SBA's small business subcontracting plan. The respondent further stated that the country is in the midst of a deadly pandemic and offered additional political commentary irrelevant to the subject FAR case.
Response: The comments are outside the scope of this rule. The intent of this rule is to provide guidance on evaluating whether a prime contractor made a good faith effort to comply with its small business subcontracting plan and to provide a list of examples of activities reflective of a failure to make a good faith effort. Additionally, this rule is amending the FAR to require that all indirect costs, minus certain exceptions, are included in both commercial plans and summary subcontract reports.
This rule implements a statutory requirement to provide examples of activities that would be considered a failure to make a good faith effort to comply with a small business subcontracting plan. The Federal Acquisition Regulatory Council (FAR Council) does not intend to apply the requirements of section 1821 of the NDAA for FY 2017 ( Pub. L. 114-328 ; 15 U.S.C 637 note ) to contracts at or below the SAT, but intends to apply those requirements to contracts for the acquisition of commercial items, including COTS items. The clauses at FAR 52.219-9 and 52.219-16 are revised by this rule.
Pursuant to 41 U.S.C. 1905 , a provision of law is not applicable to acquisitions at or below the SAT unless the law (i) contains criminal or civil penalties; (ii) specifically refers to 41 U.S.C. 1905 and states that the law applies to acquisitions at or below the SAT; or (iii) the FAR Council makes a written determination that it is not in the best interest of the Federal Government to exempt contracts or subcontracts at or below the SAT. If none of these conditions are met, the FAR is required to include the statutory requirement(s) on a list of provisions of law that are inapplicable to acquisitions at or below the SAT.
The purpose of this rule is to implement section 1821 of the NDAA for FY 2017. Section 1821 requires SBA to provide examples of activities that would be considered a failure to make a good faith effort to comply with a small business subcontracting plan.
The FAR Council does not intend to apply this rule to acquisitions at or below the SAT.
Pursuant to 41 U.S.C. 1906 , acquisitions of commercial items (other than acquisitions of COTS items, which are addressed in 41 U.S.C. 1907 ) are exempt from a provision of law unless the law (i) contains criminal or civil penalties; (ii) specifically refers to 41 U.S.C. 1906 and states that the law applies to acquisitions of commercial items; or (iii) the FAR Council makes a written determination and finding that it would not be in the best interest of the Federal Government to exempt contracts for the procurement of commercial items from the provision of law. If none of these conditions are met, the FAR is required to include the statutory requirement(s) on a list of provisions of law that are inapplicable to the acquisition of commercial items.
The purpose of this rule is to implement section 1821 of the NDAA for FY 2017 and SBA's implementing regulations. Section 1821 requires SBA to provide examples of activities that would be considered a failure to make a good faith effort to comply with a small business subcontracting plan. Both the FAR and SBA's regulations require contractors with small business subcontracting plans—including commercial plans—to make a good faith effort to comply with the plans. SBA's final rule did not exempt the acquisition of commercial items.
Section 1821 furthers the Administration's goal of supporting small business. It advances the interests of small business subcontractors by promoting good faith efforts by large prime contractors to find and use small business concerns as subcontractors, thereby providing valuable opportunities for small business concerns.
For these reasons, it is in the best interest of the Federal Government to apply the requirements of this rule to the acquisition of commercial items.
Pursuant to 41 U.S.C. 1907 , acquisitions of COTS items will be exempt from a provision of law unless the law (i) contains criminal or civil penalties; (ii) specifically refers to 41 U.S.C. 1907 and states that the law applies to acquisitions of COTS items; (iii) concerns authorities or responsibilities under the Small Business Act ( 15 U.S.C. 644 ) or bid protest procedures developed under the authority of 31 U.S.C. 3551 et seq., 10 U.S.C. 2305(e) and (f) , or 41 U.S.C. 3706 and 3707 ; or (iv) the Administrator for Federal Procurement Policy makes a written determination and finding that it would not be in the best interest of the Federal Government to exempt contracts for the procurement of COTS items from the provision of law. If none of these conditions are met, the FAR is required to include the statutory requirement(s) on a list of provisions of law that are inapplicable to the acquisition of COTS items.
The purpose of this rule is to implement section 1821 of the NDAA for FY 2017 and SBA's implementing regulations. Section 1821 requires SBA to provide examples of activities that would be considered a failure to make a good faith effort to comply with a small business subcontracting plan. Both the FAR and SBA's regulations require contractors with small business subcontracting plans—including commercial plans—to make a good faith effort to comply with the plans. SBA's final rule did not exempt the acquisition of COTS items.
For these reasons, it is in the best interest of the Federal Government to apply the requirements of this rule to the acquisition of COTS items.
This rule provides examples of activities that contracting officers may consider when evaluating whether the prime contractor made a good faith effort to comply with its small business subcontracting plan. The contracting officers also have consistent and uniform examples to identify and hold large prime contractors accountable for failing to make a good faith effort to ( print page 44252) comply with their subcontracting plans. Encouraging large prime contractors to meet their subcontracting goals may have a positive economic impact on any small business entity that wishes to participate in Federal procurement as a subcontractor.
The final rule also requires prime contractors with commercial subcontracting plans to include indirect costs, with certain exceptions, in their subcontracting goals. This will ensure that the data reported in the summary subcontract report is consistent with the goals in the commercial subcontracting plan.
Executive Orders (E.O.s) 12866 and 13563 direct agencies to assess all costs and benefits of available regulatory alternatives and, if regulation is necessary, to select regulatory approaches that maximize net benefits (including potential economic, environmental, public health and safety effects, distributive impacts, and equity). E.O. 13563 emphasizes the importance of quantifying both costs and benefits, of reducing costs, of harmonizing rules, and of promoting flexibility. This is not a significant regulatory action and, therefore, was not subject to review under section 6(b) of E.O. 12866 , Regulatory Planning and Review, dated September 30, 1993.
As required by the Congressional Review Act ( 5 U.S.C. 801-808 ) before an interim or final rule takes effect, DoD, GSA, and NASA will send the rule and the “Submission of Federal Rules Under the Congressional Review Act” form to each House of the Congress and to the Comptroller General of the United States. A major rule cannot take effect until 60 days after it is published in the Federal Register . The Office of Information and Regulatory Affairs (OIRA) in the Office of Management and Budget has determined that this is not a major rule under 5 U.S.C. 804 .
DoD, GSA, and NASA have prepared a Final Regulatory Flexibility Analysis (FRFA) consistent with the Regulatory Flexibility Act, 5 U.S.C. 601-612 . The FRFA is summarized as follows:
The objective of this final rule is to implement section 1821 of the NDAA for FY 2017 and SBA's implementing regulations, which provide examples of activities that would be considered a failure to make a good faith effort to comply with a small business subcontracting plan. SBA amended 13 CFR 125.3(d)(3) to provide guidance on evaluating whether the prime contractor made a good faith effort to comply with its small business subcontracting plan and a list of examples of activities reflective of a failure to make a good faith effort.
Additionally, SBA amended 13 CFR 125.3(c)(1)(iv) to require that large prime contractors with commercial subcontracting plans include indirect costs in the commercial subcontracting plan goals. Large prime contractors that have a commercial subcontracting plan report on performance through a Summary Subcontract Report (SSR) in the Electronic Subcontracting Reporting System (eSRS). The FAR currently requires—as SBA's regulations required prior to publication of SBA's final rule—that a contractor using a commercial subcontracting plan include all indirect costs in its SSR. However, these regulations did not require contractors to include indirect costs in their commercial subcontracting plan goals, which leads to inconsistencies when comparing the data reported in the SSR to the goals in the commercial subcontracting plan.
There were no significant issues raised by the public comments in response to the initial regulatory flexibility analysis.
This rule may have a positive economic impact on any small entity that wishes to participate in Federal procurement as a subcontractor.
DoD, GSA, and NASA do not expect this rule to have a significant economic impact on a substantial number of small entities. This rule provides guidance to the contracting officer on evaluating whether the prime contractor made a good faith effort to comply with its small business subcontracting plan and a list of examples of activities reflective of a failure to make a good faith effort.
By providing examples of a failure to make a good faith effort to comply with small business subcontracting plans, the FAR will enable contracting officers to determine more easily whether large prime contractors have made a good faith effort to comply with their subcontracting plans and to hold large prime contractors accountable for failing to make a good faith effort to comply with their subcontracting plans. More diligence in developing and meeting subcontracting goals on the part of large prime contractors could have a positive impact of giving small business concerns more opportunities to subcontract on Federal contracts.
Data from the Federal Procurement Data System for fiscal years 2018 through 2020 indicate that there were 7,656 entities with 30,414 new awards that required subcontracting plans. Of the 30,414 new awards, 18 percent or 5,399 required commercial subcontracting plans. Additionally, 31 percent or 2,318 of the 7,656 unique awardees required commercial subcontracting plans. According to the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS), there are 19,596 unique entities who are subcontractors. Approximately 80 percent of the entities registered in the System for Award Management are small entities. Therefore, we estimate that 80 percent (15,677) of the subcontractors in FSRS are small entities. These small entities may benefit from this rule.
This final rule requires a large prime contractor with a commercial subcontracting plan to include indirect costs in its subcontracting goals. The benefit of requiring that indirect costs be included in subcontracting goals in commercial subcontracting plans is that it will increase the small business subcontracting goal and thus, increase the amount of funds the prime contractor will subcontract to small business concerns, providing more opportunities for subcontract awards to small business concerns.
This final rule does not include any new reporting, recordkeeping, or other compliance requirements for small entities.
There are no known significant alternative approaches that would accomplish the stated objectives of the applicable statute.
Interested parties may obtain a copy of the FRFA from the Regulatory Secretariat Division. The Regulatory Secretariat Division has submitted a copy of the FRFA to the Chief Counsel for Advocacy of the Small Business Administration.
The Paperwork Reduction Act ( 44 U.S.C. 3501-3521 ) applies to this rule; however, these changes to the FAR do not impose additional information collection requirements to the paperwork burden previously approved under OMB Control Number 9000-0007, Subcontracting Plans.
- Government procurement
William F. Clark,
Director, Office of Government-wide Acquisition Policy, Office of Acquisition Policy, Office of Government-wide Policy.
Therefore, DoD, GSA, and NASA amend 48 CFR parts 19 , 42 , and 52 as set forth below:
1. The authority citation for 48 CFR parts 19 , 42 , and 52 continues to read as follows:
Authority: 40 U.S.C. 121(c) ; 10 U.S.C. chapter 137 ; and 51 U.S.C. 20113 .
2. Amend section 19.704 by—
a. In paragraph (a)(6) removing the phrase “subcontracting goals” and adding the phrase “subcontracting goals (for commercial plans, see paragraph (d) of this section)” in its place;
b. Revising paragraph (d) introductory text; and
c. In paragraph (d)(4) removing the phrase “one SSR” and adding the phrase “one SSR that includes all indirect costs, except as described in paragraph (d) of this section,” in its place. ( print page 44253)
The revision reads as follows:
(d) A commercial plan (as defined in 19.701) is the preferred type of subcontracting plan for contractors furnishing commercial items. The subcontracting goals established for a commercial plan shall include all indirect costs with the exception of those such as the following: Employee salaries and benefits; payments for petty cash; depreciation; interest; income taxes; property taxes; lease payments; bank fees; fines, claims, and dues; original equipment manufacturer relationships during warranty periods (negotiated up front with the product); utilities and other services purchased from a municipality or an entity solely authorized by the municipality to provide those services in a particular geographical region; and philanthropic contributions. Once a contractor's commercial plan has been approved, the Government shall not require another subcontracting plan from the same contractor while the plan remains in effect, as long as the product or service being provided by the contractor continues to meet the definition of a commercial item. The contractor shall—
3. In section 19.705-4 amend paragraph (c), in the fourth sentence, by removing the phrase “faith effort” and adding the phrase “faith effort (see 19.705-7)” in its place.
4. Amend section 19.705-6 by revising paragraphs (g)(1), (h), and (i) to read as follows:
(1) Assess whether the prime contractor made a good faith effort to comply with its small business subcontracting plan. See 19.705-7(b) for more information on the determination of good faith effort.
(h) Initiate action to assess liquidated damages in accordance with 19.705-7 upon a recommendation by the administrative contracting officer, if one is assigned, or receipt of other reliable evidence to indicate that assessing liquidated damages is warranted.
(i) Take action to enforce the terms of the contract upon receipt of a notice from the contract administration office under 19.706(f).
5. Amend section 19.705-7 by—
a. Revising the section heading;
b. In paragraph (a)—
i. Adding a paragraph heading;
ii. Removing the phrase “small disadvantaged business” and adding the phrase “small disadvantaged business,” in its place;
c. Revising paragraphs (b), (c), (d), and (e);
d. Adding a paragraph heading to the introductory text of paragraph (f);
e. Removing paragraph (g); and
f. Redesignating paragraph (h) as paragraph (f)(5).
The revisions and additions read as follows:
(a) General. * * *
(b) Determination of good faith effort. (1) In determining whether a contractor failed to make a good faith effort to comply with its subcontracting plan, a contracting officer must look to the totality of the contractor's actions, consistent with the information and assurances provided in its plan. The fact that the contractor failed to meet its subcontracting goals does not, in and of itself, constitute a failure to make a good faith effort (see 19.701). For example, notwithstanding a contractor's diligent effort to identify and solicit offers from any of the small business, veteran-owned small business, service-disabled veteran-owned small business, HUBZone small business, small disadvantaged business, and women-owned small business concerns, factors such as unavailability of anticipated sources or unreasonable prices may frustrate achievement of the contractor's subcontracting goals. The contracting officer may consider any of the following, though not all inclusive, to be indicators of a good faith effort:
(i) Breaking out work to be subcontracted into economically feasible units, as appropriate, to facilitate small business participation.
(ii) Conducting market research to identify potential small business subcontractors through all reasonable means, such as searching SAM, posting notices or solicitations on SBA's SUBNet, participating in business matchmaking events, and attending preproposal conferences.
(iii) Soliciting small business concerns as early in the acquisition process as practicable to allow them sufficient time to submit a timely offer for the subcontract.
(iv) Providing interested small businesses with adequate and timely information about plans, specifications, and requirements for performance of the prime contract to assist them in submitting a timely offer for the subcontract.
(v) Negotiating in good faith with interested small businesses.
(vi) Directing small businesses that need additional assistance to SBA.
(vii) Assisting interested small businesses in obtaining bonding, lines of credit, required insurance, necessary equipment, supplies, materials, or services.
(viii) Utilizing the available services of small business associations; local, state, and Federal small business assistance offices; and other organizations.
(ix) Participating in a formal mentor-protégé program with one or more small business protégés that results in developmental assistance to the protégés.
(x) Although failing to meet the subcontracting goal in one socioeconomic category, exceeding the goal by an equal or greater amount in one or more of the other categories.
(xi) Fulfilling all of the requirements of the subcontracting plan.
(2) When considered in the context of the contractor's total effort in accordance with its plan, the contracting officer may consider any of the following, though not all inclusive, to be indicators of a failure to make a good faith effort:
(i) Failure to attempt through market research to identify, contact, solicit, or consider for contract award small business, veteran-owned small business, service-disabled veteran-owned small business, HUBZone small business, small disadvantaged business, or women-owned small business concerns, through all reasonable means including outreach, industry days, or the use of Federal systems such as SBA's Dynamic Small Business Search or SUBNet systems.
(ii) Failure to designate and maintain a company official to administer the subcontracting program and monitor and enforce compliance with the plan.
(iii) Failure to submit an acceptable ISR, or the SSR, using the eSRS, or as provided in agency regulations, by the report due dates specified in 52.219-9, Small Business Subcontracting Plan.
(iv) Failure to maintain records or otherwise demonstrate procedures adopted to comply with the plan including subcontracting flowdown requirements.
(v) Adoption of company policies or documented procedures that have as their objectives the frustration of the objectives of the plan.
(vi) Failure to pay small business subcontractors in accordance with the ( print page 44254) terms of the contract with the prime contractor.
(vii) Failure to correct substantiated findings from Federal subcontracting compliance reviews or participate in subcontracting plan management training offered by the Government.
(viii) Failure to provide the contracting officer with a written explanation if the contractor fails to acquire articles, equipment, supplies, services, or materials or obtain the performance of construction work as described in 19.704(a)(12).
(ix) Falsifying records of subcontract awards to small business concerns.
(c) Documentation of good faith effort. If, at completion of the basic contract or any option, or in the case of a commercial plan, at the close of the fiscal year for which the plan is applicable, a contractor has failed to comply with the requirements of its subcontracting plan, which includes meeting its subcontracting goals, the contracting officer shall review all available information for an indication that the contractor has not made a good faith effort to comply with the plan. If no such indication is found, the contracting officer shall document the file accordingly.
(d) Notice of failure to make a good faith effort. If the contracting officer decides in accordance with paragraph (b) of this section that the contractor failed to make a good faith effort to comply with its subcontracting plan, the contracting officer shall give the contractor written notice in accordance with 52.219-16, Liquidated Damages—Subcontracting Plan, specifying the material breach, which may be included in the contractor's past performance information, advising the contractor of the possibility that the contractor may have to pay to the Government liquidated damages, and providing a period of 15 working days (or longer period as necessary) within which to respond. The notice shall give the contractor an opportunity to demonstrate what good faith efforts have been made before the contracting officer issues the final decision and shall further state that failure of the contractor to respond may be taken as an admission that no valid explanation exists.
(e) Payment of liquidated damages. (1) If, after consideration of all the pertinent data, the contracting officer finds that the contractor failed to make a good faith effort to comply with its subcontracting plan, the contracting officer shall issue a final decision to the contractor to that effect and require the payment of liquidated damages in an amount stated. The contracting officer's final decision shall state that the contractor has the right to appeal under the clause in the contract entitled Disputes. Calculations and procedures shall be in accordance with 52.219-16, Liquidated Damages—Subcontracting Plan.
(2) The amount of damages attributable to the contractor's failure to comply shall be an amount equal to the actual dollar amount by which the contractor failed to achieve each subcontracting goal. For calculations for commercial plans see paragraph (f) of this section.
(3) Liquidated damages shall be in addition to any other remedies that the Government may have.
(f) Commercial plans. * * *
6. In section 19.706 amend paragraph (f) by removing the phrase “subcontracting plan” and adding the phrase “subcontracting plan (see 19.705-7(b) for more information on the determination of good faith effort)” in its place.
7. Amend section 42.1501 by redesignating paragraphs (a)(5) thru (a)(7) as paragraphs (a)(6) thru (a)(8) and adding a new paragraph (a)(5) to read as follows:
(5) Complying with the requirements of the small business subcontracting plan (see 19.705-7(b));
8. Amend section 52.212-5 by revising the date of the clause and paragraphs (b)(17)(i), (b)(17)(v), and (b)(20) to read as follows:
__(17)(i) 52.219-9, Small Business Subcontracting Plan (SEP 2021) ( 15 U.S.C. 637(d)(4) ).
__(v) Alternate IV (SEP 2021) of 52.219-9.
__(20) 52.219-16, Liquidated Damages—Subcontracting Plan (SEP 2021) ( 15 U.S.C. 637(d)(4)(F)(i) ).
9. Amend section 52.219-9 by—
a. Revising the date of the clause;
b. In paragraph (d)(2)(i) removing the word “subcontracts” and adding the phrase “subcontracts, including all indirect costs except as described in paragraph (g) of this clause,” in its place;
c. Adding a new fifth sentence to paragraph (g);
d. Revising the date of Alternate IV, and paragraph (d)(2)(i) of Alternate IV.
The revised and added text reads as follows:
(g) * * * A Contractor authorized to use a commercial subcontracting plan shall include in its subcontracting goals and in its SSR all indirect costs, with the exception of those such as the following: Employee salaries and benefits; payments for petty cash; depreciation; interest; income taxes; property taxes; lease payments; bank fees; fines, claims, and dues; original equipment manufacturer relationships during warranty periods (negotiated up front with the product); utilities and other services purchased from a municipality or an entity solely authorized by the municipality to provide those services in a particular geographical region; and philanthropic contributions. * * *
Alternate IV (SEP 2021). * * *
(i) Total dollars planned to be subcontracted for an individual subcontracting plan; or the Contractor's total projected sales, expressed in dollars, and the total value of projected subcontracts to support the sales for a commercial plan, including all indirect costs, with the exception of those such as the following: Employee salaries and benefits; payments for petty cash; depreciation; interest; income taxes; property taxes; lease payments; bank fees; fines, claims, and dues; original equipment manufacturer relationships during warranty periods (negotiated up front with the product); utilities and ( print page 44255) other services purchased from a municipality or an entity solely authorized by the municipality to provide those services in a particular geographical region; and philanthropic contributions;
10. Amend 52.219-16 by—
a. Revising the date of the clause; and
b. In paragraph (b) in the second sentence removing the phrase “plan, established” and adding “plan (see 19.705-7), established” in its place.
[ FR Doc. 2021-16366 Filed 8-10-21; 8:45 am]
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48 CFR § 52.219-9 - Small Business Subcontracting Plan.
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As prescribed in 19.708(b) , insert the following clause:
(a) This clause does not apply to small business concerns.
(b) Definitions. As used in this clause—
Alaska Native Corporation (ANC) means any Regional Corporation, Village Corporation, Urban Corporation, or Group Corporation organized under the laws of the State of Alaska in accordance with the Alaska Native Claims Settlement Act , as amended ( 43 U.S.C. 1601 , et seq. ) and which is considered a minority and economically disadvantaged concern under the criteria at 43 U.S.C. 1626(e)(1) . This definition also includes ANC direct and indirect subsidiary corporations, joint ventures, and partnerships that meet the requirements of 43 U.S.C. 1626(e)(2) .
Commercial plan means a subcontracting plan (including goals) that covers the offeror 's fiscal year and that applies to the entire production of commercial products and commercial services sold by either the entire company or a portion thereof ( e.g., division, plant, or product line).
Commercial product means a product that satisfies the definition of “commercial product” in Federal Acquisition Regulation (FAR) 2.101 .
Commercial service means a service that satisfies the definition of “commercial service” in FAR 2.101 .
Electronic Subcontracting Reporting System (eSRS) means the Governmentwide, electronic, web-based system for small business subcontracting program reporting. The eSRS is located at http://www.esrs.gov.
Indian tribe means any Indian tribe , band, group, pueblo, or community, including native villages and native groups (including corporations organized by Kenai, Juneau, Sitka, and Kodiak) as defined in the Alaska Native Claims Settlement Act ( 43 U.S.C. A. 1601 et seq. ), that is recognized by the Federal Government as eligible for services from the Bureau of Indian Affairs in accordance with 25 U.S.C. 1452(c) . This definition also includes Indian-owned economic enterprises that meet the requirements of 25 U.S.C. 1452(e) .
Individual subcontracting plan means a subcontracting plan that covers the entire contract period (including option periods), applies to a specific contract , and has goals that are based on the offeror 's planned subcontracting in support of the specific contract , except that indirect costs incurred for common or joint purposes may be allocated on a prorated basis to the contract .
Master subcontracting plan means a subcontracting plan that contains all the required elements of an individual subcontracting plan , except goals, and may be incorporated into individual subcontracting plans, provided the master subcontracting plan has been approved.
Reduced payment means a payment that is for less than the amount agreed upon in a subcontract in accordance with its terms and conditions, for supplies and services for which the Government has paid the prime contractor.
Subcontract means any agreement (other than one involving an employer-employee relationship) entered into by a Federal Government prime Contractor or subcontractor calling for supplies or services required for performance of the contract or subcontract .
Total contract dollars means the final anticipated dollar value, including the dollar value of all options.
Untimely payment means a payment to a subcontractor that is more than 90 days past due under the terms and conditions of a subcontract for supplies and services for which the Government has paid the prime contractor.
(1) The Offeror , upon request by the Contracting Officer , shall submit and negotiate a subcontracting plan, where applicable, that separately addresses subcontracting with small business, veteran-owned small business, service-disabled veteran -owned small business, HUBZone small business, small disadvantaged business, and women-owned small business concerns. If the Offeror is submitting an individual subcontracting plan , the plan must separately address subcontracting with small business, veteran-owned small business, service-disabled veteran -owned small business, HUBZone small business, small disadvantaged business, and women-owned small business concerns, with a separate part for the basic contract and separate parts for each option (if any). The subcontracting plan shall be included in and made a part of the resultant contract . The subcontracting plan shall be negotiated within the time specified by the Contracting Officer . Failure to submit and negotiate the subcontracting plan shall make the Offeror ineligible for award of a contract .
(i) The Contractor may accept a subcontractor 's written representations of its size and socioeconomic status as a small business, small disadvantaged business, veteran-owned small business, service-disabled veteran -owned small business, or a women-owned small business if the subcontractor represents that the size and socioeconomic status representations with its offer are current, accurate, and complete as of the date of the offer for the subcontract .
(ii) The Contractor may accept a subcontractor 's representations of its size and socioeconomic status as a small business, small disadvantaged business, veteran-owned small business, service-disabled veteran -owned small business, or a women-owned small business in the System for Award Management (SAM) if—
(A) The subcontractor is registered in SAM ; and
(B) The subcontractor represents that the size and socioeconomic status representations made in SAM are current, accurate and complete as of the date of the offer for the subcontract .
(iii) The Contractor may not require the use of SAM for the purposes of representing size or socioeconomic status in connection with a subcontract .
(iv) In accordance with 13 CFR 121.411 , 126.900 , 127.700 , and 128.600 , a contractor acting in good faith is not liable for misrepresentations made by its subcontractors regarding the subcontractor 's size or socioeconomic status.
(d) The Offeror 's subcontracting plan shall include the following:
(1) Separate goals, expressed in terms of total dollars subcontracted, and as a percentage of total planned subcontracting dollars, for the use of small business, veteran-owned small business, service-disabled veteran -owned small business, HUBZone small business, small disadvantaged business, and women-owned small business concerns as subcontractors. For individual subcontracting plans, and if required by the Contracting Officer , goals shall also be expressed in terms of percentage of total contract dollars , in addition to the goals expressed as a percentage of total subcontract dollars. The Offeror shall include all subcontracts that contribute to contract performance, and may include a proportionate share of products and services that are normally allocated as indirect costs. In accordance with 43 U.S.C. 1626 —
(i) Subcontracts awarded to an ANC or Indian tribe shall be counted towards the subcontracting goals for small business and small disadvantaged business concerns, regardless of the size or Small Business Administration certification status of the ANC or Indian tribe ; and
(ii) Where one or more subcontractors are in the subcontract tier between the prime Contractor and the ANC or Indian tribe , the ANC or Indian tribe shall designate the appropriate Contractor(s) to count the subcontract towards its small business and small disadvantaged business subcontracting goals.
(A) In most cases, the appropriate Contractor is the Contractor that awarded the subcontract to the ANC or Indian tribe .
(B) If the ANC or Indian tribe designates more than one Contractor to count the subcontract toward its goals, the ANC or Indian tribe shall designate only a portion of the total subcontract award to each Contractor. The sum of the amounts designated to various Contractors cannot exceed the total value of the subcontract .
(C) The ANC or Indian tribe shall give a copy of the written designation to the Contracting Officer , the prime Contractor, and the subcontractors in between the prime Contractor and the ANC or Indian tribe within 30 days of the date of the subcontract award.
(D) If the Contracting Officer does not receive a copy of the ANC 's or the Indian tribe 's written designation within 30 days of the subcontract award, the Contractor that awarded the subcontract to the ANC or Indian tribe will be considered the designated Contractor.
(2) A statement of—
(i) Total dollars planned to be subcontracted for an individual subcontracting plan ; or the Offeror 's total projected sales, expressed in dollars, and the total value of projected subcontracts , including all indirect costs except as described in paragraph (g) of this clause, to support the sales for a commercial plan ;
(ii) Total dollars planned to be subcontracted to small business concerns (including ANC and Indian tribes);
(iii) Total dollars planned to be subcontracted to veteran-owned small business concerns;
(iv) Total dollars planned to be subcontracted to service-disabled veteran -owned small business;
(v) Total dollars planned to be subcontracted to HUBZone small business concerns;
(vi) Total dollars planned to be subcontracted to small disadvantaged business concerns (including ANCs and Indian tribes); and
(vii) Total dollars planned to be subcontracted to women-owned small business concerns.
(3) A description of the principal types of supplies and services to be subcontracted, and an identification of the types planned for subcontracting to—
(i) Small business concerns;
(ii) Veteran-owned small business concerns;
(iii) Service-disabled veteran -owned small business concerns;
(iv) HUBZone small business concerns;
(v) Small disadvantaged business concerns; and
(vi) Women-owned small business concerns.
(4) A description of the method used to develop the subcontracting goals in paragraph (d)(1) of this clause.
(5) A description of the method used to identify potential sources for solicitation purposes (e.g., existing company source lists, SAM , veterans service organizations, the National Minority Purchasing Council Vendor Information Service, the Research and Information Division of the Minority Business Development Agency in the Department of Commerce , or small, HUBZone , small disadvantaged, and women-owned small business trade associations). A firm may rely on the information contained in SAM as an accurate representation of a concern's size and ownership characteristics for the purposes of maintaining a small, veteran-owned small, service-disabled veteran -owned small, HUBZone small, small disadvantaged, and women-owned small business source list. Use of SAM as its source list does not relieve a firm of its responsibilities (e.g., outreach, assistance, counseling, or publicizing subcontracting opportunities) in this clause.
(6) A statement as to whether or not the Offeror included indirect costs in establishing subcontracting goals, and a description of the method used to determine the proportionate share of indirect costs to be incurred with—
(i) Small business concerns (including ANC and Indian tribes);
(v) Small disadvantaged business concerns (including ANC and Indian tribes); and
(7) The name of the individual employed by the Offeror who will administer the Offeror 's subcontracting program, and a description of the duties of the individual .
(8) A description of the efforts the Offeror will make to assure that small business, veteran-owned small business, service-disabled veteran -owned small business, HUBZone small business, small disadvantaged business, and women-owned small business concerns have an equitable opportunity to compete for subcontracts .
(9) Assurances that the Offeror will include the clause of this contract entitled “Utilization of Small Business Concerns” in all subcontracts that offer further subcontracting opportunities, and that the Offeror will require all subcontractors (except small business concerns) that receive subcontracts in excess of the applicable threshold specified in FAR 19.702(a) on the date of subcontract award, with further subcontracting possibilities to adopt a subcontracting plan that complies with the requirements of this clause.
(10) Assurances that the Offeror will—
(i) Cooperate in any studies or surveys as may be required;
(ii) Submit periodic reports so that the Government can determine the extent of compliance by the Offeror with the subcontracting plan;
(iii) After November 30, 2017, include subcontracting data for each order when reporting subcontracting achievements for indefinite-delivery, indefinite-quantity contracts with individual subcontracting plans where the contract is intended for use by multiple agencies;
(iv) Submit the Individual Subcontract Report (ISR) and/or the Summary Subcontract Report (SSR), in accordance with paragraph (l) of this clause using the Electronic Subcontracting Reporting System (eSRS) at http://www.esrs.gov. The reports shall provide information on subcontract awards to small business concerns (including ANCs and Indian tribes that are not small businesses), veteran-owned small business concerns , service-disabled veteran -owned small business concerns , HUBZone small business concerns , small disadvantaged business concerns (including ANCs and Indian tribes that have not been certified by SBA as small disadvantaged businesses), women-owned small business concerns , and for NASA only, Historically Black Colleges and Universities and Minority Institutions. Reporting shall be in accordance with this clause, or as provided in agency regulations;
(v) Ensure that its subcontractors with subcontracting plans agree to submit the ISR and/or the SSR using eSRS;
(vi) Provide its prime contract number, its unique entity identifier , and the email address of the Offeror 's official responsible for acknowledging receipt of or rejecting the ISRs, to all first -tier subcontractors with subcontracting plans so they can enter this information into the eSRS when submitting their ISRs; and
(vii) Require that each subcontractor with a subcontracting plan provide the prime contract number, its own unique entity identifier , and the email address of the subcontractor 's official responsible for acknowledging receipt of or rejecting the ISRs, to its subcontractors with subcontracting plans.
(11) A description of the types of records that will be maintained concerning procedures that have been adopted to comply with the requirements and goals in the plan, including establishing source lists; and a description of the offeror 's efforts to locate small business, veteran-owned small business, service-disabled veteran -owned small business, HUBZone small business, small disadvantaged business, and women-owned small business concerns and award subcontracts to them. The records shall include at least the following (on a plant-wide or company-wide basis, unless otherwise indicated):
(i) Source lists (e.g., SAM), guides, and other data that identify small business, veteran-owned small business, service-disabled veteran -owned small business, HUBZone small business, small disadvantaged business, and women-owned small business concerns.
(ii) Organizations contacted in an attempt to locate sources that are small business, veteran-owned small business, service-disabled veteran -owned small business, HUBZone small business, small disadvantaged business, or women-owned small business concerns.
(iii) Records on each subcontract solicitation resulting in an award of more than the simplified acquisition threshold , as defined in FAR 2.101 on the date of subcontract award, indicating—
(A) Whether small business concerns were solicited and, if not, why not;
(B) Whether veteran-owned small business concerns were solicited and, if not, why not;
(C) Whether service-disabled veteran-owned small business concerns were solicited and, if not, why not;
(D) Whether HUBZone small business concerns were solicited and, if not, why not;
(E) Whether small disadvantaged business concerns were solicited and, if not, why not;
(F) Whether women-owned small business concerns were solicited and, if not, why not; and
(G) If applicable, the reason award was not made to a small business concern .
(iv) Records of any outreach efforts to contact—
(A) Trade associations;
(B) Business development organizations;
(C) Conferences and trade fairs to locate small, HUBZone small, small disadvantaged, service-disabled veteran -owned, and women-owned small business sources; and
(D) Veterans service organizations.
(v) Records of internal guidance and encouragement provided to buyers through—
(A) Workshops, seminars, training, etc.; and
(B) Monitoring performance to evaluate compliance with the program's requirements.
(vi) On a contract -by-contract basis, records to support award data submitted by the offeror to the Government, including the name, address, and business size of each subcontractor . Contractors having commercial plans need not comply with this requirement.
(12) Assurances that the Offeror will make a good faith effort to acquire articles, equipment , supplies , services, or materials , or obtain the performance of construction work from the small business concerns that it used in preparing the bid or proposal, in the same or greater scope, amount, and quality used in preparing and submitting the bid or proposal. Responding to a request for a quote does not constitute use in preparing a bid or proposal. The Offeror used a small business concern in preparing the bid or proposal if—
(i) The Offeror identifies the small business concern as a subcontractor in the bid or proposal or associated small business subcontracting plan, to furnish certain supplies or perform a portion of the subcontract ; or
(ii) The Offeror used the small business concern 's pricing or cost information or technical expertise in preparing the bid or proposal, where there is written evidence of an intent or understanding that the small business concern will be awarded a subcontract for the related work if the Offeror is awarded the contract .
(13) Assurances that the Contractor will provide the Contracting Officer with a written explanation if the Contractor fails to acquire articles, equipment , supplies , services or materials or obtain the performance of construction work as described in (d)(12) of this clause. This written explanation must be submitted to the Contracting Officer within 30 days of contract completion.
(14) Assurances that 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 .
(15) Assurances that the offeror will pay its small business subcontractors on time and in accordance with the terms and conditions of the underlying subcontract , and notify the contracting officer when the prime contractor makes either a reduced or an untimely payment to a small business subcontractor (see 52.242-5 ).
(e) In order to effectively implement this plan to the extent consistent with efficient contract performance, the Contractor shall perform the following functions:
(1) Assist small business, veteran-owned small business, service-disabled veteran -owned small business, HUBZone small business, small disadvantaged business, and women-owned small business concerns by arranging solicitations, time for the preparation of bids, quantities, specifications, and delivery schedules so as to facilitate the participation by such concerns. Where the Contractor's lists of potential small business, veteran-owned small business, service-disabled veteran -owned small business, HUBZone small business, small disadvantaged business, and women-owned 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.
(2) Provide adequate and timely consideration of the potentialities of small business, veteran-owned small business, service-disabled veteran -owned small business, HUBZone small business, small disadvantaged business, and women-owned small business concerns in all “make-or-buy” decisions.
(3) Counsel and discuss subcontracting opportunities with representatives of small business, veteran-owned small business, service-disabled veteran -owned small business, HUBZone small business, small disadvantaged business, and women-owned small business firms.
(4) Confirm that a subcontractor representing itself as a HUBZone small business concern is certified by SBA as a HUBZone small business concern by accessing SAM or by accessing the Dynamic Small Business Search (DSBS) at https://web.sba.gov/pro-net/search/dsp_dsbs.cfm.
(5) Provide notice to subcontractors concerning penalties and remedies for misrepresentations of business status as small, veteran-owned small business, HUBZone small, small disadvantaged, or women-owned small business 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.
(6) For all competitive subcontracts over the simplified acquisition threshold , as defined in FAR 2.101 on the date of subcontract award, in which a small business concern received a small business preference, upon determination of the successful subcontract offeror , prior to award of the subcontract the Contractor must inform each unsuccessful small business subcontract offeror in writing of the name and location of the apparent successful offeror and if the successful subcontract offeror is a small business, veteran-owned small business, service-disabled veteran -owned small business, HUBZone small business, small disadvantaged business, or women-owned small business concern .
(7) Assign each subcontract the NAICS code and corresponding size standard that best describes the principal purpose of the subcontract .
(f) A master subcontracting plan on a plant or division-wide basis that contains all the elements required by paragraph (d) of this clause , except goals, may be incorporated by reference as a part of the subcontracting plan required of the Offeror by this clause; provided—
(1) The master subcontracting plan has been approved;
(2) The Offeror ensures that the master subcontracting plan is updated as necessary and provides copies of the approved master subcontracting plan , including evidence of its approval, to the Contracting Officer ; and
(3) Goals and any deviations from the master subcontracting plan deemed necessary by the Contracting Officer to satisfy the requirements of this contract are set forth in the individual subcontracting plan .
(g) A commercial plan is the preferred type of subcontracting plan for contractors furnishing commercial products and commercial services. The commercial plan shall relate to the offeror 's planned subcontracting generally, for both commercial and Government business, rather than solely to the Government contract . Once the Contractor's commercial plan has been approved, the Government will not require another subcontracting plan from the same Contractor while the plan remains in effect, as long as the product or service being provided by the Contractor continues to meet the definition of a commercial product or commercial service . A Contractor with a commercial plan shall comply with the reporting requirements stated in paragraph (d)(10) of this clause by submitting one SSR in eSRS for all contracts covered by its commercial plan . A Contractor authorized to use a commercial subcontracting plan shall include in its subcontracting goals and in its SSR all indirect costs, with the exception of those such as the following: Employee salaries and benefits; payments for petty cash; depreciation ; interest ; income taxes ; property taxes ; lease payments ; bank fees; fines, claims, and dues; original equipment manufacturer relationships during warranty periods (negotiated up front with the product); utilities and other services purchased from a municipality or an entity solely authorized by the municipality to provide those services in a particular geographical region; and philanthropic contributions. This report shall be acknowledged or rejected in eSRS by the Contracting Officer who approved the plan. This report shall be submitted within 30 days after the end of the Government's fiscal year.
(h) Prior compliance of the offeror with other such subcontracting plans under previous contracts will be considered by the Contracting Officer in determining the responsibility of the offeror for award of the contract .
(i) A contract may have no more than one subcontracting plan. When a contract modification exceeds the subcontracting plan threshold in FAR 19.702(a) , or an option is exercised, the goals of the existing subcontracting plan shall be amended to reflect any new subcontracting opportunities. When the goals in a subcontracting plan are amended, these goal changes do not apply retroactively.
(j) Subcontracting plans are not required from subcontractors when the prime contract contains the clause at FAR 52.212-5 , Contract Terms and Conditions Required to Implement Statutes or Executive Orders— Commercial Products and Commercial Services, or when the subcontractor provides a commercial product or commercial service subject to the clause at FAR 52.244-6 , Subcontracts for Commercial Products and Commercial Services, under a prime contract .
(k) The failure of the Contractor or subcontractor to comply in good faith with (1) the clause of this contract entitled “Utilization Of Small Business Concerns,” or (2) an approved plan required by this clause, shall be a material breach of the contract and may be considered in any past performance evaluation of the Contractor.
(l) The Contractor shall submit ISRs and SSRs using the web-based eSRS at http://www.esrs.gov. Purchases from a corporation, company, or subdivision that is an affiliate of the Contractor or subcontractor are not included in these reports. Subcontract awards by affiliates shall be treated as subcontract awards by the Contractor. Subcontract award data reported by the Contractor and subcontractors shall be limited to awards made to their immediate next-tier subcontractors . Credit cannot be taken for awards made to lower tier subcontractors , unless the Contractor or subcontractor has been designated to receive a small business or small disadvantaged business credit from an ANC or Indian tribe . Only subcontracts involving performance in the United States or its outlying areas should be included in these reports with the exception of subcontracts under a contract awarded by the State Department or any other agency that has statutory or regulatory authority to require subcontracting plans for subcontracts performed outside the United States and its outlying areas .
(1) ISR. This report is not required for commercial plans. The report is required for each contract containing an individual subcontracting plan .
(i) The report shall be submitted semi-annually during contract performance for the periods ending March 31 and September 30. A report is also required for each contract within 30 days of contract completion. Reports are due 30 days after the close of each reporting period, unless otherwise directed by the Contracting Officer . Reports are required when due, regardless of whether there has been any subcontracting activity since the inception of the contract or the previous reporting period. When the Contracting Officer rejects an ISR, the Contractor shall submit a corrected report within 30 days of receiving the notice of ISR rejection.
(A) When a subcontracting plan contains separate goals for the basic contract and each option , as prescribed by FAR 19.704(c) , the dollar goal inserted on this report shall be the sum of the base period through the current option ; for example, for a report submitted after the second option is exercised, the dollar goal would be the sum of the goals for the basic contract , the first option , and the second option .
(B) If a subcontracting plan has been added to the contract pursuant to 19.702(a)(1)(iii) or 19.301-2(e) , the Contractor's achievements must be reported in the ISR on a cumulative basis from the date of incorporation of the subcontracting plan into the contract .
(iii) When a subcontracting plan includes indirect costs in the goals, these costs must be included in this report.
(iv) The authority to acknowledge receipt or reject the ISR resides—
(A) In the case of the prime Contractor, with the Contracting Officer ; and
(B) In the case of a subcontract with a subcontracting plan, with the entity that awarded the subcontract .
(i) Reports submitted under individual subcontracting plans.
(A) This report encompasses all subcontracting under prime contracts and subcontracts with an executive agency , regardless of the dollar value of the subcontracts . This report also includes indirect costs on a prorated basis when the indirect costs are excluded from the subcontracting goals.
(B) The report may be submitted on a corporate, company or subdivision (e.g. plant or division operating as a separate profit center) basis, unless otherwise directed by the agency .
(C) If the Contractor or a subcontractor is performing work for more than one executive agency , a separate report shall be submitted to each executive agency covering only that agency 's contracts, provided at least one of that agency 's contracts is over the applicable threshold specified in FAR 19.702(a) , and the contract contains a subcontracting plan. For DoD, a consolidated report shall be submitted for all contracts awarded by military departments/agencies and/or subcontracts awarded by DoD prime contractors.
(D) The report shall be submitted annually by October 30 for the twelve month period ending September 30. When a Contracting Officer rejects an SSR, the Contractor shall submit a revised report within 30 days of receiving the notice of SSR rejection.
(E) Subcontract awards that are related to work for more than one executive agency shall be appropriately allocated.
(F) The authority to acknowledge or reject SSRs in eSRS, including SSRs submitted by subcontractors with subcontracting plans, resides with the Government agency awarding the prime contracts unless stated otherwise in the contract .
(ii) Reports submitted under a commercial plan.
(A) The report shall include all subcontract awards under the commercial plan in effect during the Government's fiscal year and all indirect costs.
(B) The report shall be submitted annually, within thirty days after the end of the Government's fiscal year.
(C) If a Contractor has a commercial plan and is performing work for more than one executive agency , the Contractor shall specify the percentage of dollars attributable to each agency .
(D) The authority to acknowledge or reject SSRs for commercial plans resides with the Contracting Officer who approved the commercial plan .
Alternate I (NOV 2016). As prescribed in 19.708(b)(1)(i) , substitute the following paragraph (c)(1) for paragraph (c)(1) of the basic clause:
(1) The apparent low bidder, upon request by the Contracting Officer , shall submit a subcontracting plan, where applicable, that separately addresses subcontracting with small business, veteran-owned small business, service-disabled veteran -owned small business, HUBZone small business, small disadvantaged business, and women-owned small business concerns. If the bidder is submitting an individual subcontracting plan , the plan must separately address subcontracting with small business, veteran-owned small business, service-disabled veteran -owned small business, HUBZone small business, small disadvantaged business, and women-owned small business concerns, with a separate part for the basic contract and separate parts for each option (if any). The plan shall be included in and made a part of the resultant contract . The subcontracting plan shall be submitted within the time specified by the Contracting Officer . Failure to submit the subcontracting plan shall make the bidder ineligible for the award of a contract .
Alternate II (NOV 2016). As prescribed in 19.708(b)(1)(ii) , substitute the following paragraph (c)(1) for paragraph (c)(1) of the basic clause:
(1) Proposals submitted in response to this solicitation shall include a subcontracting plan that separately addresses subcontracting with small business, veteran-owned small business, service-disabled veteran -owned small business, HUBZone small business, small disadvantaged business, and women-owned small business concerns. If the Offeror is submitting an individual subcontracting plan , the plan must separately address subcontracting with small business, veteran-owned small business, service-disabled veteran -owned small business, HUBZone small business, small disadvantaged business, and women-owned small business concerns, with a separate part for the basic contract and separate parts for each option (if any). The plan shall be included in and made a part of the resultant contract . The subcontracting plan shall be negotiated within the time specified by the Contracting Officer . Failure to submit and negotiate a subcontracting plan shall make the Offeror ineligible for award of a contract .
Alternate III (JUN 2020). As prescribed in 19.708(b)(1)(iii) , substitute the following paragraphs (d)(10) and (l) for paragraphs (d)(10) and (l) in the basic clause:
(iii) Submit Standard Form (SF) 294 Subcontracting Report for Individual Contract in accordance with paragraph (l) of this clause. Submit the Summary Subcontract Report (SSR), in accordance with paragraph (l) of this clause using the Electronic Subcontracting Reporting System (eSRS) at http://www.esrs.gov. The reports shall provide information on subcontract awards to small business concerns (including ANCs and Indian tribes that are not small businesses), veteran-owned small business concerns , service-disabled veteran -owned small business concerns , HUBZone small business concerns , small disadvantaged business concerns (including ANCs and Indian tribes that have not been certified by the Small Business Administration as small disadvantaged businesses), women-owned small business concerns, and for NASA only, Historically Black Colleges and Universities and Minority Institutions. Reporting shall be in accordance with this clause, or as provided in agency regulations; and
(iv) Ensure that its subcontractors with subcontracting plans agree to submit the SF 294 in accordance with paragraph (l) of this clause. Ensure that its subcontractors with subcontracting plans agree to submit the SSR in accordance with paragraph (l) of this clause using the eSRS.
(l) The Contractor shall submit a SF 294. The Contractor shall submit SSRs using the web-based eSRS at http://www.esrs.gov. Purchases from a corporation, company, or subdivision that is an affiliate of the Contractor or subcontractor are not included in these reports. Subcontract awards by affiliates shall be treated as subcontract awards by the Contractor. Subcontract award data reported by the Contractor and subcontractors shall be limited to awards made to their immediate next-tier subcontractors . Credit cannot be taken for awards made to lower tier subcontractors , unless the Contractor or subcontractor has been designated to receive a small business or small disadvantaged business credit from an ANC or Indian tribe . Only subcontracts involving performance in the U.S. or its outlying areas should be included in these reports with the exception of subcontracts under a contract awarded by the State Department or any other agency that has statutory or regulatory authority to require subcontracting plans for subcontracts performed outside the United States and its outlying areas .
(1) SF 294. This report is not required for commercial plans. The report is required for each contract containing an individual subcontracting plan . For Contractors the report shall be submitted to the Contracting Officer , or as specified elsewhere in this contract . In the case of a subcontract with a subcontracting plan, the report shall be submitted to the entity that awarded the subcontract .
(i) The report shall be submitted semi-annually during contract performance for the periods ending March 31 and September 30. A report is also required for each contract within 30 days of contract completion. Reports are due 30 days after the close of each reporting period, unless otherwise directed by the Contracting Officer . Reports are required when due, regardless of whether there has been any subcontracting activity since the inception of the contract or the previous reporting period. When a Contracting Officer rejects a report, the Contractor shall submit a revised report within 30 days of receiving the notice of report rejection.
(B) If a subcontracting plan has been added to the contract pursuant to 19.702(a)(1)(iii) or 19.301-2(e) , the Contractor's achievements must be reported in the report on a cumulative basis from the date of incorporation of the subcontracting plan into the contract .
(2) SSR . (i) Reports submitted under individual subcontracting plans .
(B) The report may be submitted on a corporate, company or subdivision (e.g., plant or division operating as a separate profit center) basis, unless otherwise directed by the agency .
(C) If the Contractor and/or a subcontractor is performing work for more than one executive agency , a separate report shall be submitted to each executive agency covering only that agency 's contracts, provided at least one of that agency 's contracts is over the applicable threshold specified in FAR 19.702(a) , and the contract and contains a subcontracting plan. For DoD, a consolidated report shall be submitted for all contracts awarded by military departments/agencies and/or subcontracts awarded by DoD prime contractors.
(D) The report shall be submitted annually by October 30, for the twelve month period ending September 30. When a Contracting Officer rejects an SSR, the Contractor is required to submit a revised SSR within 30 days of receiving the notice of report rejection.
(F) The authority to acknowledge or reject SSRs in the eSRS, including SSRs submitted by subcontractors with subcontracting plans, resides with the Government agency awarding the prime contracts unless stated otherwise in the contract .
(ii) Reports submitted under a commercial plan .
(B) The report shall be submitted annually, within 30 days after the end of the Government's fiscal year.
Alternate IV (SEP 2023). As prescribed in 19.708(b)(1)(iv) , substitute the following paragraphs (c) and (d) for paragraphs (c) and (d) of the basic clause:
(1) The Contractor, upon request by the Contracting Officer , shall submit and negotiate a subcontracting plan, where applicable, that separately addresses subcontracting with small business, veteran-owned small business, service-disabled veteran -owned small business, HUBZone small business, small disadvantaged business, and women-owned small business concerns. If the Contractor is submitting an individual subcontracting plan , the plan shall separately address subcontracting with small business, veteran-owned small business, service-disabled veteran -owned small business, HUBZone small business, small disadvantaged business, and women-owned small business concerns, with a separate part for the basic contract and separate parts for each option (if any). The subcontracting plan shall be incorporated into the contract . The subcontracting plan shall be negotiated within the time specified by the Contracting Officer . The subcontracting plan does not apply retroactively.
(i) The prime Contractor may accept a subcontractor 's written representations of its size and socioeconomic status as a small business, small disadvantaged business, veteran-owned small business, service-disabled veteran -owned small business, or a women-owned small business if the subcontractor represents that the size and socioeconomic status representations with its offer are current, accurate, and complete as of the date of the offer for the subcontract .
(d) The Contractor's subcontracting plan shall include the following:
(1) Separate goals, expressed in terms of total dollars subcontracted and as a percentage of total planned subcontracting dollars, for the use of small business, veteran-owned small business, service-disabled veteran -owned small business, HUBZone small business, small disadvantaged business, and women-owned small business concerns as subcontractors. For individual subcontracting plans, and if required by the Contracting Officer , goals shall also be expressed in terms of percentage of total contract dollars , in addition to the goals expressed as a percentage of total subcontract dollars. The Contractor shall include all subcontracts that contribute to contract performance, and may include a proportionate share of products and services that are normally allocated as indirect costs. In accordance with 43 U.S.C. 1626 —
(C) The ANC or Indian tribe shall give a copy of the written designation to the Contracting Officer , the Contractor, and the subcontractors in between the prime Contractor and the ANC or Indian tribe within 30 days of the date of the subcontract award.
(i) Total dollars planned to be subcontracted for an individual subcontracting plan ; or the Contractor's total projected sales, expressed in dollars, and the total value of projected subcontracts to support the sales for a commercial plan , including all indirect costs, with the exception of those such as the following: Employee salaries and benefits; payments for petty cash; depreciation ; interest ; income taxes ; property taxes ; lease payments ; bank fees; fines, claims, and dues; original equipment manufacturer relationships during warranty periods (negotiated up front with the product); utilities and other services purchased from a municipality or an entity solely authorized by the municipality to provide those services in a particular geographical region; and philanthropic contributions;
(5) A description of the method used to identify potential sources for solicitation purposes (e.g., existing company source lists, SAM , veterans service organizations, the National Minority Purchasing Council Vendor Information Service, the Research and Information Division of the Minority Business Development Agency in the Department of Commerce , or small, HUBZone , small disadvantaged, and women-owned small business trade associations). The Contractor may rely on the information contained in SAM as an accurate representation of a concern's size and ownership characteristics for the purposes of maintaining a small, veteran-owned small, service-disabled veteran -owned small, HUBZone small, small disadvantaged, and women-owned small business source list. Use of SAM as its source list does not relieve a firm of its responsibilities (e.g., outreach, assistance, counseling, or publicizing subcontracting opportunities) in this clause.
(6) A statement as to whether or not the Contractor included indirect costs in establishing subcontracting goals, and a description of the method used to determine the proportionate share of indirect costs to be incurred with—
(7) The name of the individual employed by the Contractor who will administer the Contractor's subcontracting program, and a description of the duties of the individual .
(8) A description of the efforts the Contractor will make to assure that small business, veteran-owned small business, service-disabled veteran -owned small business, HUBZone small business, small disadvantaged business, and women-owned small business concerns have an equitable opportunity to compete for subcontracts .
(9) Assurances that the Contractor will include the clause of this contract entitled “Utilization of Small Business Concerns” in all subcontracts that offer further subcontracting opportunities, and that the Contractor will require all subcontractors (except small business concerns) that receive subcontracts in excess of the applicable threshold specified in FAR 19.702(a) on the date of subcontract award, with further subcontracting possibilities to adopt a subcontracting plan that complies with the requirements of this clause.
(10) Assurances that the Contractor will—
(ii) Submit periodic reports so that the Government can determine the extent of compliance by the Contractor with the subcontracting plan;
(iii) After November 30, 2017, include subcontracting data for each order when reporting subcontracting achievements for an indefinite-delivery, indefinite-quantity contract with an individual subcontracting plan where the contract is intended for use by multiple agencies;
(vi) Provide its prime contract number, its unique entity identifier , and the email address of the Contractor's official responsible for acknowledging receipt of or rejecting the ISRs, to all first -tier subcontractors with subcontracting plans so they can enter this information into the eSRS when submitting their ISRs; and
(11) A description of the types of records that will be maintained concerning procedures that have been adopted to comply with the requirements and goals in the plan, including establishing source lists; and a description of the Contractor's efforts to locate small business, veteran-owned small business, service-disabled veteran -owned small business, HUBZone small business, small disadvantaged business, and women-owned small business concerns and award subcontracts to them. The records shall include at least the following (on a plant-wide or company-wide basis, unless otherwise indicated):
(vi) On a contract -by-contract basis, records to support award data submitted by the Contractor to the Government, including the name, address, and business size of each subcontractor . Contractors having commercial plans need not comply with this requirement.
(12) Assurances that the Contractor will make a good faith effort to acquire articles, equipment , supplies , services, or materials , or obtain the performance of construction work from the small business concerns that it used in preparing the proposal for the modification, in the same or greater scope, amount, and quality used in preparing and submitting the modification proposal. Responding to a request for a quote does not constitute use in preparing a proposal. The Contractor used a small business concern in preparing the proposal for a modification if—
(i) The Contractor identifies the small business concern as a subcontractor in the proposal or associated small business subcontracting plan, to furnish certain supplies or perform a portion of the subcontract ; or
(ii) The Contractor used the small business concern 's pricing or cost information or technical expertise in preparing the proposal, where there is written evidence of an intent or understanding that the small business concern will be awarded a subcontract for the related work when the modification is executed.
(14) Assurances that the Contractor will not prohibit a subcontractor from discussing with the contracting officer any material matter pertaining to the payment to or utilization of a subcontractor .
- Alaska Native Claims Settlement Act
Money blog: 'Should I top up my national insurance and could it really get me £6,000 extra?'
Welcome to the Money blog, your place for personal finance and consumer news and tips. Today's posts include a Money Problem on the benefits or otherwise of topping up your national insurance. Leave your problem or consumer dispute below - remember to include contact details.
Monday 19 August 2024 07:49, UK
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By Jimmy Rice, Money blog editor
Every Monday the Money team answers your Money Problems or consumer disputes. Find out how to submit yours at the bottom of this post. Today's question is...
I'm 62 and have 10 years of gaps in my national insurance record as I worked for my parents' import business without a fixed wage during most of my twenties and thirties, and had periods of unemployment in my fifties. What are the benefits of topping up before I retire in a few years and can I really get £6,000 added to my pension for every £900 I put in? Tony, Palmers Green
This is a question many people approaching retirement will be asking themselves, Tony.
First, it's worth us outlining why your national insurance record matters and who can top up.
If you reached pension age after 6 April 2016 you need 10 years of NI contributions to get a state pension - and 35 years to get the full £221.20 a week. Before that 2016 date, it's 30 years.
People may have gaps in their record for numerous reasons including: being unemployed, on a low income, self-employed, having worked abroad, or having taken a break from work to raise a family.
Ordinarily, you can pay voluntary contributions for the past six years - but currently there's an extended period meaning a man born after 5 April 1951 or a woman born after 5 April 1953 can pay voluntary contributions to make up for gaps between April 2006 and April 2016.
The deadline for this is 5 April 2025.
How much could topping up earn you?
It would cost £907.40 to cover all NI contributions from the 2023-24 tax year - each year is different but this is a good guide. Going back to your question, if you went on to enjoy 20 years of retirement, you would get back £6,000. It would take just three years to get your £907.40 back.
Who might want to think twice?
Just to stress, as always, that this post is not intended as financial advice. Instead, we're outlining things you should think about.
The first thing anyone should consider is if they'll fill gaps naturally through working - in which case there'd be no point topping up. Given your age, Tony, it could be an option for you - but check your state pension forecast here .
There are lots of other things to factor in and you should seek independent financial advice.
Wealth management firm Charles Stanley says a key consideration is whether a higher pension would either:
- Drag you into paying tax when you retire;
- Mean you no longer qualify for certain benefits.
"You might not benefit from the full amount of extra money as some will be taken in income tax," they say.
"In addition, boosting state pension income can affect entitlements to means-tested benefits. Notably, if you claim pension credit, which tops up the income of very low earners over state pension age, any increase in the state pension would normally reduce an award. This often means that you would be no better off paying voluntary contributions."
Another consideration - and this isn't something most people want to contemplate - is that if you don't think you'll live long enough into retirement (you might be in ill-health or have a terminal illness) to benefit from topping up, then it's probably not worth it.
People should also look into whether they could transfer contributions from their spouse or civil partner .
One more way to top up
Which? advises: "Ensure that you are getting any NI credits you are entitled to before contemplating paying voluntary NI contributions for a particular year.
"These are free and will apply, say, if you are caring for a child in the family as a parent or grandparent, claiming statutory sick pay or looking after a sick/disabled person."
If you're below state pension age, you can contact the Future Pension Centre to see if you'll benefit from topping up - they're on 0800 731 0175. If you already claim the state pension, call the Pension Service on 0800 731 0469.
Again, before taking any action you should seek independent financial advice.
If you do decide to top up, you'll need a Government Gateway account.
On there, you can see gaps, the cost of filling them and how much you could benefit - you can then pay online.
This feature is not intended as financial advice - the aim is to give an overview of the things you should think about. Submit your dilemma or consumer dispute via:
- The form above - you need to leave a phone number or email address so we can contact you for further details;
- Email [email protected] with the subject line "Money blog";
- WhatsApp us here.
Winter energy bills are projected to rise by 9%, according to a closely watched forecast.
The price cap from October to December will go up to £1,714 a year for the average user, Cornwall Insight says.
It would be a £146 rise from the current cap, which is controlled by energy regulator Ofgem and aims to prevent households on variable tariffs being ripped off.
The cap doesn't represent a maximum bill. Instead it creates an average bill by limiting how much you pay per unit of gas and electricity, as well as setting a maximum daily standing charge (which all households must pay to stay connected to the grid).
Ofgem will announce the October cap this Friday.
"This is not the news households want to hear when moving into the colder months," said the principal consultant at Cornwall, Dr Craig Lowrey.
"Following two consecutive falls in the cap, I'm sure many hoped we were on a steady path back to pre-crisis prices.
"However, the lingering impact of the energy crisis has left us with a market that's still highly volatile and quick to react to any bad news on the supply front.
"Despite this, while we don't expect a return to the extreme prices of recent years, it's unlikely that bills will return to what was once considered normal. Without significant intervention, this may well be the new normal."
Cornwall Insight warned that the highly volatile energy market and unexpected global events, such as the recent escalating tensions in the Russia-Ukraine war, could see prices rise further at the start of the new year.
To avoid this vulnerability, Cornwall Insight said domestic renewable energy production should increase and Britain should wean itself off energy imports.
Kellogg's appears to have shrunk its packets of Corn Flakes.
Two of its four different pack sizes have reduced in weight by 50g, according to The Sun.
What used to be 720g boxes are now 670g, while 500g boxes have become 450g.
The newspaper says the 670g boxes are being sold for £3.20 in Tesco - the same price customers were paying for the larger box back in May.
The 450g boxes are being sold for £2.19, only slightly less than the previous price of £2.25.
Other supermarkets have similar pricing, although in Morrisons the price has gone down in proportion to the size reduction.
The 250g and 1kg pack sizes remain unchanged.
Kellogg's has said it is up to shops to choose what they charge, but Tesco said the manufacturer should comment on pricing.
Sky News has contacted Kellogg's for comment.
A spokesperson is quoted by The Sun: "Kellogg's Corn Flakes are available in four different box sizes to suit different shopper preferences and needs.
"As the cost of ingredients and production processes increase, it costs us more to make our products than it used to.
"This can impact the recommended retail price. It's the grocer's absolute discretion and decision what price to charge shoppers."
WHSmith has launched a café brand as it seeks to expand into the food-to-go market.
The first café is in Princess Anne Hospital in Southampton and offers teas and coffees, hot breakfasts and pastries
Its branding is the same as the Smith Family Kitchen food-to-go range launched three months ago.
WHSmith UK travel managing director Andrew Harrison said: "Whether it's in a hospital or on their journeys, customers tell us that quality food and drink options are what they prioritise most in the different locations we serve.
"That's why we have been doubling down on our food ranges and formats to ensure our customers don't need to compromise on quality or value, as demonstrated today with the launch of Smith's Kitchen."
Thanks for popping into Money, our live blog for consumer and personal finance news and tips, as we kick off a new week. Here are five reasons to pop back over the coming days...
Topping up your national insurance
Coming up this morning is this week's Money Problem , focusing on a question from reader Tony, in Palmers Green, who wants to know if he could really add £6,000 to his retirement pot with a £900 top-up to his national insurance.
Bring back Spangles
Thousands of you have got involved in our Bring It Back series in the last few weeks, suggesting the old-school sweets or treats that you'd love to see revived. This week, published first thing tomorrow, we're looking at a classic that's been mentioned time and again in our comments section - Spangles. We'll be hearing what Mars had to say about a potential return.
Why should you pay with credit card?
We'll also take a deeper dive into one of the most common pieces of consumer advice: that you should try to pay on credit card for big purchases. Why do you get extra protection, how does it work and what is and isn't covered - we'll have all the answers in Tuesday's Basically .
Yorkshire pudding secrets from top Yorkshire chef in Cheap Eats
Anyone who makes their own Yorkshire puddings - or wants to - should check back on Wednesday morning as one of Yorkshire's top chefs, James Mackenzie from the Michelin-starred Pipe and Glass in South Dalton, picks his Cheap Eats in East Yorkshire and at home - revealing his secrets for perfect/huge Yorkies, including a common mistake many people make.
Everything to know about savings and mortgages
Every Thursday we hear from Savings Champion founder Anna Bowes, who offers some advice for making the most of your spare cash and reveals the best rates on the market right now. Then on Fridays we do similarly with mortgages, hearing from industry experts on what anyone seeking to borrow needs to know at the minute before rounding up the best rates with the help of the guys from Moneyfacts.
We've got lots of others tips and features planned for this week, so bookmark news.sky.com/money and check back from 7am each weekday - or 8am on Saturday for our weekend feature.
The Money blog is produced by the Sky News live team, with contributions from Bhvishya Patel, Jess Sharp, Katie Williams, Brad Young, Ollie Cooper and Mark Wyatt, with sub-editing by Isobel Souster. It is edited by Jimmy Rice.
By Emily Mee , news reporter
Openly discussing how you split your finances with your partner feels pretty taboo - even among friends.
As a consequence, it can be difficult to know how to approach these conversations with our partner or what is largely considered fair - especially if there's a big imbalance salary-wise.
Research by Hargreaves Lansdown suggests in an average household with a couple, three-quarters of the income is earned by one person.
Even when there is a large disparity, some couples will want to pay the same amount on bills as they want to contribute equally.
But for others, one partner can feel resentful if they are spending all of their money on bills while the other has much more to spend and is living a different lifestyle as a result.
At what stage of the relationship can you talk about money?
"We've kind of formally agreed there is some point in a relationship you start talking about kids - there is no generally agreed time that we start talking about money," says Sarah Coles, head of personal finance at Hargreaves Lansdown.
Some couples may never get around to mentioning it, leading to "lopsided finances".
Ms Coles says if you want to keep on top of finances with your partner, you could set a specific date in the year that you go through it all.
"If it's in the diary and it's not emotional and it's not personal then you can properly go through it," she says.
"It's not a question of 'you need to pull more weight'. It's purely just this is what we've agreed, this is the maths and this is how we need to do that."
While many people start talking about finances around Christmas, Ms Coles suggests this can be a "trying time" for couples so February might be a "less emotional time to sit down".
How do you have the conversation if you feel the current arrangement is unfair?
Relationship counsellor at Relate , Peter Saddington, says that setting out the balance as "unfair" shouldn't be your starting point.
You need to be honest about your position, he says, but your conversation should be negotiating as a couple what works for both of you.
Before you have to jump into the conversation, think about:
- Letting your partner know in advance rather than springing it on them;
- Making sure you and your partner haven't drunk alcohol before having the conversation, as this can make it easy for it to spiral;
- Having all the facts to hand, so you know exactly how much you are spending;
- Using 'I' statements rather than 'you'. For example, you could say to your partner: "I'm really worried about my finances and I would like to sit down and talk about how we manage it. Can we plan a time when we can sit down and do it?"
Mr Saddington says if your partner is not willing to help, you should look at the reasons or question if there are other things in the relationship that need sorting out.
If you're having repeated arguments about money, he says you might have opposite communication styles causing you to "keep headbutting".
Another reason could be there is a "big resentment" lurking in the background - and it may be that you need a third party such as a counsellor, therapist or mediator to help resolve it.
Mr Saddington says there needs to be a "safe space" to have these conversations, and that a third party can help untangle resentments from what is happening now.
He also suggests considering both of your attitudes to money, which he says can be formed by your early life and your family.
"If you grew up in a family where there wasn't any money, or it wasn't talked about, or it was pushed that you save instead of spend, and the other person had the opposite, you can see where those conversations go horribly wrong.
"Understanding what influences each of you when it comes to money is important to do before you have significant conversations about it."
What are the different ways you can split your finances?
There's no one-size-fits-all approach, but there are several ways you can do it - with Money blog readers getting in touch to let us know their approach...
1. Separate personal accounts - both pay the same amount into a joint account regardless of income
Paul Fuller, 40, earns approximately £40,000 a year while his wife earns about £70,000.
They each have separate accounts, including savings accounts, but they pay the same amount (£900) each a month into a joint account to pay for their bills.
Paul says this pays for the things they both benefit from or have a responsibility for, but when it comes to other spending his wife should be able to spend as she likes.
"It's not for me to turn around to my wife and expect her to justify why she thinks it's appropriate to spend £150 in a hairdresser. She works her backside off and she has a very stressful job," he says.
However, their arrangement is still flexible. Their mortgage is going up by £350 a month soon, so his wife has agreed to pay £200 of that.
And if his wife wants a takeaway but he can't afford to pay for it, she'll say it's on her.
"Where a lot of people go wrong is being unable to have those conversations," says Paul.
2. Separate personal accounts - whoever earns the most puts more into a joint account
This is a more formal arrangement than the hybrid approach Paul and his wife use, and many Money blog readers seem to do this in one form or another judging by our inbox.
There's no right or wrong way to do the maths - you could both put in the same percentage of your individual salaries, or come up with a figure you think is fair, or ensure you're both left with the same amount of spending money after each payday.
3. Everything is shared
Gordon Hurd and his wife Brenda live by their spreadsheet.
Brenda earns about £800 more a month as she is working full-time while Gordon is freelance. Previously Gordon had been the breadwinner - so it's a big turnaround.
They each have separate accounts with different banks, but they can both access the two accounts.
How much is left in each account - and their incomings and outgoings - is all detailed in the spreadsheet, which is managed weekly.
Whenever they need to buy something, they can see how much is left in each account and pay from either one.
Gordon says this means "everyone knows how much is available" and "each person's money belongs to the other".
"We have never in the last decade had a single disagreement about money and that is because of this strategy," he says.
Money blog reader Shredder79 got in touch to say he takes a similar approach.
"I earn £50k and my wife earns just under £150k. We have one joint bank account that our wages go into and all our outgoings come out of. Some friends can't get their head around that but it's normal for us."
Another reader, Curtis, also puts his wages into a joint account with his wife.
"After all, when you have a family (three kids) it shouldn't matter who earns more or less!" he says.
Reader Alec goes further and says he questions "the authenticity of any long-term relationship or the certainly of a marriage if a couple does not completely share a bank account for all earnings and all outgoings".
"As for earning significantly more than the other, so what? If you are one couple or long-term partnership you are one team and you simply communicate and share everything," he says.
"Personally I couldn't imagine doing it any other way and I do instinctively wonder what issues or insecurities, whether it be in trust or something else, sit beneath the need to feel like you need to keep your finances separate from one another, especially if you are a married couple."
A reader going by the name lljdc agrees, saying: "I earn half of what my husband does because I work part-time. Neither of us has a solo account. We have one joint account and everything goes into this and we just spend it however we like. All bills come out of this too. Sometimes I spend more, sometimes he spends more."
4. Separate accounts - but the higher earner pays their partner an 'allowance'
If one partner is earning much more than the other, or one partner isn't earning for whatever reason, they could keep separate accounts and have the higher earner pay their partner an allowance.
This would see them transfer an agreed amount each week or month to their partner's account.
Let us know how you and your partner talk about and split finances in the comments box - we'll feature some of the best next week
The centre-point of a significant week in the economy was inflation data, released first thing on Wednesday, that showed price rises accelerated in July to 2.2%.
Economists attributed part of the rise to energy prices - which have fallen this year, but at a much slower rate than they did last year.
As our business correspondent Paul Kelso pointed out, it felt like the kind of mild fluctuation we can probably expect month to month now that sky high price hikes are behind us, though analysts do expect inflation to tick up further through the remainder of the year...
Underneath the bonnet, service inflation, taking in restaurants and hotels, dropped from 5.7% to 5.2%.
This is important because a large part of this is wages - and they've been a concern for the Bank of England as they plot a route for interest rates.
On Tuesday we learned average weekly earnings had also fallen - from 5.7% to 5.4% in the latest statistics.
High wages can be inflationary (1/ people have more to spend, 2/ employers might raise prices to cover staff costs), so any easing will only aid the case for a less restrictive monetary policy. Or, to put it in words most people use, the case for interest rate cuts.
Markets think there'll be two more cuts this year - nothing has changed there.
Away from the economy, official data also illustrated the pain being felt by renters across the UK.
The ONS said:
- Average UK private rents increased by 8.6% in the 12 months to July 2024, unchanged from in the 12 months to June 2024;
- Average rents increased to £1,319 (8.6%) in England, £748 (7.9%) in Wales, and £965 (8.2%) in Scotland;
- In Northern Ireland, average rents increased by 10% in the 12 months to May 2024;
- In England, rents inflation was highest in London (9.7%) and lowest in the North East (6.1%).
Yesterday, we found the UK economy grew 0.6% over three months to the end of June.
That growth rate was the second highest among the G7 group of industrialised nations - only the United States performed better with 0.7%, though Japan and Germany have yet to released their latest data.
Interestingly, there was no growth at all in June, the Office for National Statistics said, as businesses delayed purchases until after the general election.
"In a range of industries across the economy, businesses stated that customers were delaying placing orders until the outcome of the election was known," the ONS said.
Finally, a shout for this analysis from business presenter Ian King examining what's gone wrong at Asda. It's been one of our most read articles this week and is well worth five minutes of your Friday commute or weekend...
We're signing out of regular updates now until Monday - but do check out our weekend read from 8am on Saturday. This week we're examining how couples who earn different amounts split their finances.
Each week we feature comments from Money blog readers on the story or stories that elicited most correspondence.
Our weekend probe into the myriad reasons for pub closures in the UK prompted hundreds of comments.
Landlords and campaigners, researchers and residents revealed to Sky News the "thousand cuts" killing Britain's boozers - and what it takes to survive the assault.
Here was your take on the subject...
I've been a publican for 19 years. This article is bang on! It's like you've overheard my conversations with my customers - COVID, cost of living, wages - the traditional British boozer going out of fashion. (My place: no food, no small children). Hey Jood
I own a small craft ale bar or micropub as some say. The current climate is sickening for the whole hospitality sector. This summer has been ridiculously quiet compared to previous ones. Micropubs were on the rise pre-COVID, but not now even we're struggling to survive… Lauren
I am an ex-landlord. It's ridiculous you can buy 10 cans for £10 or one pint for £5 now. It's not rocket science, it's a no-brainer: reverse the situation. Make supermarket beer more expensive than pub beer, then people will start to go out and mix again rather than getting drunk at home. Ivanlordpeers
Bought four pints of my regular drink at a supermarket for less than one pint in our local pub. It's becoming a luxury to go to a pub these days. Torquay David
Traditional pubs are being taken over by conglomerates who don't sell traditional beer, only very expensive lager, usually foreign, and other similar gassy drinks. How can they be called traditional pubs? Bronzestraw
The main reason for pubs closing is twofold! 1: The out-of-reach rents that the big groups charge landlords. 2: Landlords are told what stock they can hold and restrict where they can purchase it from. Strange, but most pubs belonged to the same groups! A pub-goer
Less pubs are managed now, pub companies are changing them to managed partnerships, putting the pressure onto inexperienced young ex-managers. Locals complain that their local pub has gone. but they don't use them enough. Can government regulate rents and beer prices for business owners? John Darkins
I was a brewery tenant in Scotland for many years and sequestrated because of the constant grabbing at my money by greedy brewers who wanted more and more. I made my pub very successful and was penalised by the brewery. James MacQuarrie
The only reason pubs are closing is locals only use them on Boxing Day, New Year's Eve, and one Sunday a year. Plus breweries don't need pubs, they sell enough through supermarkets! Use them or lose them. Peter Smith
The closing of pubs is a terrible shame. I still go to my local and have great memories of getting drunk in many in my hometown. They are important places in society. As someone once said: "No good story ever started with a salad." Kev K
It's the taxman killing pubs. £1 of every £3 sold. Utter disgrace. Stef
I go with my girlfriend, Prue, every day to my local. It's a shame what's happening to prices. It used to be full of people and joy but now it's a ghost town in the pub since prices are too high now. I wish we could turn back time and find out what went wrong. Niall Benson
Minimum wage is around £11 and the tax threshold is £12,600 per year. How can you possibly afford a night in a pub out when a pint costs between £3 and £8 a pint on those wages? Allan7777blue
Unfortunately, the very people who have kept these establishments going over the years (the working man) have been priced out, and they're paying the price. Dandexter
The pubs are too expensive for people to go out regularly as we once did a decade or so ago. People's priorities are on survival, not recreation. Until the living wage increases beyond an inflation that wages haven't risen above in years, then we will see shops, pubs, etc. close JD
Who wants to spend hard-earned money going into a pub that's nearly always empty. It takes away one of the main attractions - socialising. Michael
Monzo has been named the best bank in the UK for customer satisfaction, according to a major survey.
More than 17,000 personal current account customers rated their bank on the quality of its services and how likely they would be to recommend to friends or family.
Digital banks made up the top three, with Monzo coming out on top, followed by Starling Bank and then Chase.
Some 80% of Monzo customers said they would recommend the bank.
The digital banking app said topping the tables "time and time again" was not something it would "ever take for granted".
Royal Bank of Scotland (RBS) was bottom of the ranking for another year.
The banks with the best services in branches were Nationwide, Lloyds Bank and Metro Bank.
Gail's bakery chain has come under fire for repurposing unsold pastries into croissants and selling them for almost £4 the next day.
The retailer lists the "twice baked" chocolate almond croissants as part of its "Waste Not" range, which means it is made using leftover croissants that are then "topped with almond frangipane and flaked almonds".
The scheme has been hit with criticism online, with many pointing out the £3.90 price tag is 95p more than the original croissant.
One X user said: "The audacity of bragging about it being part of their 'Waste Not' range like we should be grateful to them and proud of ourselves for contributing to reducing food waste when they could just sell it for less money – not one pound more than yesterday.
"Unsure whether to be impressed or horrified that someone has come up with a concept to capitalise on yellow sticker goods to make more profit."
It should be added, however, that the practice was not invented by Gail's - and almond croissants were originally created by French boulangeries to reuse day-old croissants and stop them going stale.
When factoring in the extra ingredients (almond frangipane and flaked almonds) and baking time, the bakery chain would likely defend the increased price by pointing to the additional costs incurred.
It comes as locals in a trendy London neighbourhood signed a petition against a Gail's bakery setting up shop in their area.
After (unconfirmed) rumours began circulating that the chain was looking to open a site in Walthamstow village, more than 600 have signed a petition opposing the plans.
The petition says the village "faces a threat to its uniqueness" should Gail's move into the area (see yesterday's 11.54am post for more).
Gail's has been contacted for comment.
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FAC Number: 2024-05 Effective Date: 05/22/2024
52.219-8 Utilization of Small Business Concerns.
As prescribed in 19.708 (a) , insert the following clause:
Utilization of Small Business Concerns (Feb 2024)
(a) Definitions . As used in this contract—
HUBZone small business concern means a small business concern that meets the requirements described in 13 CFR 126.200 , certified by the Small Business Administration (SBA) and designated by SBA as a HUBZone small business concern in the Dynamic Small Business Search (DSBS) and SAM.
Service-disabled veteran-owned small business (SDVOSB) concern means a small business concern —
(i) Not less than 51 percent of which is owned and controlled by one or more service-disabled veterans or, in the case of any publicly owned business, not less than 51 percent of the stock of which is owned by one or more service-disabled veterans; and
(ii) The management and daily business operations of which are controlled by one or more service-disabled veterans or, in the case of a service-disabled veteran with permanent and severe disability, the spouse or permanent caregiver of such veteran; or
(2) A small business concern eligible under the SDVOSB Program in accordance with 13 CFR part 128 (see subpart 19.14 ).
(3) Service-disabled veteran, as used in this definition, means a veteran, as defined in 38 U.S.C.101(2) , with a disability that is service-connected, as defined in 38 U.S.C.101(16) , and who is registered in the Beneficiary Identification and Records Locator Subsystem, or successor system that is maintained by the Department of Veterans Affairs’ Veterans Benefits Administration, as a service-disabled veteran.
Service-disabled veteran-owned small business (SDVOSB) concern eligible under the SDVOSB Program means an SDVOSB concern that—
(1) Effective January 1, 2024, is designated in the System for Award Management (SAM ) as certified by the Small Business Administration (SBA) in accordance with 13 CFR 128.300; or
(2) Has represented that it is an SDVOSB concern in SAM and submitted a complete application for certification to SBA on or before December 31, 2023.
Service-disabled veteran-owned small business (SDVOSB) Program means a program that authorizes contracting officers to limit competition, including award on a sole-source basis, to SDVOSB concerns eligible under the SDVOSB Program.
Small business concern means a concern, including its affiliates , that is independently owned and operated, not dominant in its field of operation and qualified as a small business under the criteria and size standards in 13 CFR part 121 , including the size standard that corresponds to the NAICS code assigned to the contrac t or subcontract.
Small disadvantaged business concern , consistent with 13 CFR 124.1001 , means a small business concern under the size standard applicable to the acquisition , that-
(1) Is at least 51 percent of which is owned and controlled (as defined at 13 CFR 124.105 ) by-
(i) One or more socially disadvantaged (as defined at 13 CFR 124.103 ) and economically disadvantaged (as defined at 13 CFR 124.104 ) individuals who are citizens of the United States ; and
(ii) Each individual claiming economic disadvantage has a net worth not exceeding the threshold at 13 CFR 124.104(c)(2) after taking into account the applicable exclusions set forth at 13 CFR 124.104(c)(2) ; and
(2) The management and daily business operations of which are controlled (as defined at 13.CFR 124.106) by individuals, who meet the criteria in paragraphs (1)(i) and (ii) of this definition.
Veteran-owned small business concern means a small business concern -
(1) Not less than 51 percent of which is owned by one or more veterans (as defined at 38 U.S.C.101(2) ) or, in the case of any publicly owned business, not less than 51 percent of the stock of which is owned by one or more veterans; and
(2) The management and daily business operations of which are controlled by one or more veterans.
Women-owned small business concern means a small business concern -
(1) That is at least 51 percent owned by one or more women, or, in the case of any publicly owned business, at least 51 percent of the stock of which is owned by one or more women; and
(2) Whose management and daily business operations are controlled by one or more women.
(b) It is the policy of the United States that small business concerns , veteran-owned small business concerns , service-disabled veteran-owned small business concerns , HUBZone small business concerns , small disadvantaged business concerns , and women-owned small business concerns shall have the maximum practicable opportunity to participate in performing contracts let by any Federal agency , including contracts and subcontracts for subsystems, assemblies, components , and related services for major systems . It is further the policy of the United States that its prime contractors establish procedures to ensure the timely payment of amounts due pursuant to the terms of their subcontracts with small business concerns , veteran-owned small business concerns , service-disabled veteran-owned small business concerns , HUBZone small business concerns , small disadvantaged business concerns , and women-owned small business concerns .
(1) A joint venture qualifies as a small business concern if—
(i) Each party to the joint venture qualifies as small under the size standard for the solicitation ; or
(ii) The protégé is small under the size standard for the solicitation in a joint venture comprised of a mentor and protégé with an approved mentor-protégé agreement under a SBA mentor-protégé program. (See 13 CFR 125.9(d).)”; and
(2) A joint venture qualifies as a HUBZone small business concern if it complies with the requirements in 13 CFR 126.616(a) through (c) .
(d) The Contractor hereby agrees to carry out this policy in the awarding of subcontracts to the fullest extent consistent with efficient contract performance. The Contractor further agrees to cooperate in any studies or surveys as may be conducted by the United States Small Business Administration or the awarding agency of the United States as may be necessary to determine the extent of the Contractor's compliance with this clause.
(1) The Contractor may accept a subcontractor's written representations of its size and socioeconomic status as a small business, small disadvantaged business, veteran-owned small business, service-disabled veteran-owned small business, or a women-owned small business if the subcontractor represents that the size and socioeconomic status representations with its offer are current, accurate, and complete as of the date of the offer for the subcontract.
(2) The Contractor may accept a subcontractor's representations of its size and socioeconomic status as a small business, small disadvantaged business, veteran-owned small business, service-disabled veteran-owned small business, or a women-owned small business in the System for Award Management (SAM ) if–
(i) The subcontractor is registered in SAM; and
(ii) The subcontractor represents that the size and socioeconomic status representations made in SAM are current, accurate and complete as of the date of the offer for the subcontract.
(3) The Contractor may not require the use of SAM for the purposes of representing size or socioeconomic status in connection with a subcontract.
(4) In accordance with 13 CFR 121.411, 126.900, 127.700, and 128.600, a contractor acting in good faith is not liable for misrepresentations made by its subcontractors regarding the subcontractor's size or socioeconomic status.
(5) The Contractor shall confirm that a subcontractor representing itself as a HUBZone small business concern is certified by SBA as a HUBZone small business concern by accessing SAM or by accessing DSBS at https://web.sba.gov/pro-net/search/dsp_dsbs.cfm . If the subcontractor is a joint venture, the Contractor shall confirm that at least one party to the joint venture is certified by SBA as a HUBZone small business concern . The Contractor may confirm the representation by accessing SAM.
(End of clause)
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COMMENTS
FAR; 52.219-9 Small Business Subcontracting Plan. FAR. FAC Number: 2024-05 Effective Date: 05/22/2024 Leave this field blank « Previous ... The Contractor identifies the small business concern as a subcontractor in the proposal or associated small business subcontracting plan, ...
As prescribed in 19.708(b), 1) Insert the clause at 52.219-9, Small Business Subcontracting Plan, in solicitations and contracts that offer subcontracting possibilities, are expected to exceed $750,000 ($1.5 million for construction of any public facility), and are required to include the clause at 52.219-8, Utilization of Small Business Concerns, unless the acquisition is set aside or is to ...
However, the contracting officer may require a subcontracting plan for a contract containing 52.219-9, Small Business Subcontracting Plan, if a prime contractor's size status changes from small to other than small as a result of a size rerepresentation (see 19.705-2(b)(3)).
52.219-9 Small business subcon-tracting plan. As prescribed in 19.708(b), insert the following clause: SMALL BUSINESS SUBCONTRACTING PLAN (JAN 2011) ... Federal Acquisition Regulation 52.219-9 small business, small disadvantaged busi-ness, and women-owned small business con-
19.708 Contract clauses. (a) Insert the clause at 52.219-8, Utilization of Small Business Concerns, in solicitations and contracts when the contract amount is expected to exceed the simplified acquisition threshold unless-. (1) A personal services contract is contemplated (see 37.104 ); or. (2) The contract, together with all of its ...
L BUSINESS SUBCONTRACTING PLAN (JAN 2002)This clause. es not apply. to small business concerns.Definitions. As used in this clause— Commercial item means a product or service that satisfies the definition of commercial item in section 2.1. of the Federal Acquisi-tion Regulation.Commercial plan means a subcontracting plan (including goals ...
Federal contracts awarded to "other than small" businesses over a certain dollar threshold must contain a small business subcontracting plan. In this plan, which follows the requirements of FAR 52.219-9, the prime contractor sets goals for what it plans to subcontract to small businesses, small disadvantaged businesses, women-owned small ...
52.219-9 SMALL BUSINESS SUBCONTRACTING PLAN (JAN 2011) (ALTERNATE II - OCT 2001) (a) This clause does not apply to small business concerns. (b) Definitions. As used in this clause — ... 2.101 of the Federal Acquisition Regulation. Commercial plan means a subcontracting plan (including goals) that covers the offeror's fiscal year and ...
FAR 19.704, Small Business Subcontracting Plan Requirements, and FAR 52.219-9, Small Business Subcontracting Plan, list the required contents of small business subcontracting plans, which must include an offeror's percentage goals for subcontracting work to small business concerns and a description of the efforts the offeror will make to ensure ...
FAR 52.219 9 Small Business Subcontracting Plan Requirements. When you submit a subcontractor plan, it must include the following: Separate goals, expressed in terms of total dollars subcontracted, and as a percentage of total planned subcontracting dollars, for the use of small business, veteran-owned small business, service-disabled veteran ...
FAR. FAC Number: 2024-05 Effective Date: 05/22/2024 ... (see 19.701) that contains all the elements required by the clause at 52.219-9, Small Business Subcontracting Plan, except goals. Master plans shall be effective for a 3-year period after approval by the contracting officer; ...
Both the FAR and SBA's regulations require contractors with small business subcontracting plans—including commercial plans—to make a good faith effort to comply with the plans. SBA's final rule did not exempt the acquisition of commercial items. Section 1821 furthers the Administration's goal of supporting small business.
SMALL BUSINESS PARTICIPATION PLAN Small Business Participation Plan /Commitment Document EVALUATION Subcontracting Plan ASSESSMENT FAR 15.304, DFARS 215.304 FAR 19.704 ... SMALL BUSINESS SUBCONTRACTING PLAN 9 ELEMENTS FAR 52.219-9 1. Separate Goals, in terms of total dollars subcontracted, and as a percentage of total ...
SMALL BUSINESS SUBCONTRACTING PLAN ... * This template is a suggested model for use when formulating a subcontracting plan pursuant to the requirements at FAR 52.219-9(d). While this model plan has been designed to be consistent with FAR 52.219-9, other formats may be acceptable. However, failure to include the essential information as set ...
(b)(1)(A) Use the basic, alternate I, or alternate II clause at 252.219-7003, Small Business Subcontracting Plan (DoD Contracts), in solicitations and contracts, including solicitations and contracts using FAR part 12 procedures for the acquisition of commercial products and commercial services, that contain the clause at FAR 52.219-9, Small ...
This template is designed to be consistent with FAR 19.704, Subcontracting Plan Requirements and FAR clause 52.219-9, Small Business Subcontracting Plan ("subcontracting plan"). ... (ANCs) and Indian Tribes as prescribed in FAR 19.703(c) & FAR 52.219-9. (** Small business concerns include SBs, Small Disadvantaged Businesses (SDB), Women-Owned
(c) (1) Proposals submitted in response to this solicitation shall include a subcontracting plan that separately addresses subcontracting with small business, veteran-owned small business, service-disabled veteran-owned small business, HUBZone small business, small disadvantaged business, and women-owned small business concerns. If the Offeror is submitting an individual subcontracting plan ...
52.219-9 SMALL BUSINESS SUBCONTRACTING PLAN (JAN 2017) (a) This clause does not apply to small business concerns. (b) Definitions. As used in this clause — ... 2.101 of the Federal Acquisition Regulation. Commercial plan means a subcontracting plan (including goals) that covers the offeror's fiscal year and
The clause at FAR 52.219-9 applies to all contractors, including foreign contractors, unless the contract work, including all subcontracted work, will be performed entirely outside of the United States and its outlying areas. See Federal Acquisition Regulation 19.708.
forth in FAR 19.704, Subcontracting Plan Requirements and FAR clause 52.219-9, Small Business Subcontracting Plan before submitting their subcontracting plans. ... to comply in good faith with the clause at FAR 52.219-8 or an approved plan required by FAR 52.219-9 shall be a material breach of the contract. The Contractor shall submit the ...
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As prescribed in 19.708(a), insert the following clause:. Utilization of Small Business Concerns (Feb 2024) (a) Definitions.As used in this contract— HUBZone small business concern means a small business concern that meets the requirements described in 13 CFR 126.200, certified by the Small Business Administration (SBA) and designated by SBA as a HUBZone small business concern in the Dynamic ...
52.219-9 SMALL BUSINESS SUBCONTRACTING PLAN (AUG 2018) (ATERNATE II - NOV 2016) (a) This clause does not apply to small business concerns. (b) Definitions. As used in this clause — ... 2.101 of the Federal Acquisition Regulation. Commercial plan means a subcontracting plan (including goals) that covers the offeror's fiscal year and ...
52.219-9 Small Business Subcontracting Plan. As prescribed in 19.708(b), insert the following clause: Small Business Subcontracting Plan (Sep 2023) (a) This clause does not apply to small business concerns. (b) Definitions. As used in this clause— Alaska Native Corporation (ANC) means any Regional Corporation, Village Corporation, Urban