Small Business Subcontracting Plans &...
Transcript of Small Business Subcontracting Plans &...
NCURA Region II Spring Meeting
Princeton, New Jersey April 25-27, 2010
Small Business SubcontractingPlans & Reporting
A Pre-award Plan with
Post-Award Ramifications
NCURA Region II Spring Meeting
Princeton, New Jersey April 25-27, 2010
Session Expectations
• History of this requirement• Policy and Regulations behind Small Business
Subcontracting Plans (SBSP) and subsequent reporting
• Determine the need for a SBSP• Examine the elements of a SBSP• Methodology used to complete a SBSP
NCURA Region II Spring Meeting
Princeton, New Jersey April 25-27, 2010
Session Expectations, cont’d
• Tools to assist in the development of required SBSP goals
• Review and acceptance by the Federal Government (or not!)
• SBSP reporting
NCURA Region II Spring Meeting
Princeton, New Jersey April 25-27, 2010
History Lesson
• The Small Business Act, Public Law 83-163 (1958) – “The Act”– Established the authority for loans, procurement
set-asides, management counseling, certificates of competency and advocacy to assist small businesses
NCURA Region II Spring Meeting
Princeton, New Jersey April 25-27, 2010
History Lesson
• Public Law 95-507 (1978)
• Amended “The Act” to require that Small Business Concerns have the maximum practicable opportunity to participate in the performance of contracts awarded by any federal agency.
NCURA Region II Spring Meeting
Princeton, New Jersey April 25-27, 2010
History Lesson
• Public Law 95-507, cont’d – Established subcontracting plan requirements for
certain prime contracts and provided the statutory basis for the Business Development Program
– Further required the establishment of an Office of Small and Disadvantaged Business Utilization in each Federal agency.
NCURA Region II Spring Meeting
Princeton, New Jersey April 25-27, 2010
History Lesson
• Public Law 100-656 (1988) – amendment to “The Act”– Established a process for setting goals for
procurement prime contract and subcontract awards to small and small disadvantaged business concerns
NCURA Region II Spring Meeting
Princeton, New Jersey April 25-27, 2010
History Lesson
• Public Law 100-656 also– Required that liquidated damages be assessed
against prime contractors who fail to make a good faith effort to achieve their subcontracting plan goals
NCURA Region II Spring Meeting
Princeton, New Jersey April 25-27, 2010
History Lesson
• Public Law 100-533 (1988) –amended “The Act” to include participation by woman owned small businesses (WOSB)
• Public Law 103-355 (1994) – amended “The Act” to set a Government-wide goal of 5% of total prime contract awards to WOSB
NCURA Region II Spring Meeting
Princeton, New Jersey April 25-27, 2010
History Lesson
• Historically Underutilized Business Zone (HUBZone) Act of 1997 - Public Law 105-135 – Created HUBZone program
– To provide Federal contracting assistance for qualified small business concerns located in HUBZones in an effort to increase employment, investment and economic development in those areas
NCURA Region II Spring Meeting
Princeton, New Jersey April 25-27, 2010
History Lesson
• Public Law 106-50, 1999, The Veterans entrepreneurship and Small Business Development Act– Established a goal for subcontracts awarded by
prime contractors to Veterans, Service Disabled Veterans Owned and veteran controlled small business concerns
NCURA Region II Spring Meeting
Princeton, New Jersey April 25-27, 2010
CFR Part 48, FAR Subpart 19.7 and Part 319 of the HHSAR
• Implements the small business program
• Establish policy regarding small businesses and small disadvantaged businesses including subcontracting requirements for contracts valuded at $550,000 or more
NCURA Region II Spring Meeting
Princeton, New Jersey April 25-27, 2010
Honorable Mention –A-110 (2 CFR Part 215)
• § 215.44 Procurement procedures– (b) Positive efforts shall be made by recipients to
utilize small businesses, minority-owned firms, and women’s business enterprises, whenever possible. Recipients of Federal awards shall take all of the following steps to further this goal.
– (1) Ensure that small businesses, minority-owned firms, and women’s business enterprises are used to the fullest extent practicable.
NCURA Region II Spring Meeting
Princeton, New Jersey April 25-27, 2010
FAR 52.219-8 and 52.219-9
• FAR 52.219-8– “Utilization of Small Business Concerns”
• FAR 52.219-9– “Small Business Subcontracting Plan
NCURA Region II Spring Meeting
Princeton, New Jersey April 25-27, 2010
FAR Clause 52.219-9Small Business Subcontracting Plan
• Does not apply to small business concerns
• Applies to federal contracts, typically does not apply to federal assistance awards
• Includes helpful definitions – “Subcontract: 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 a contract or subcontract”
NCURA Region II Spring Meeting
Princeton, New Jersey April 25-27, 2010
FAR Clause 52.219-9, Cont’d
• “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 concerns, small disadvantaged business and women-owned business concerns.
NCURA Region II Spring Meeting
Princeton, New Jersey April 25-27, 2010
FAR Clause 52.219-9, cont’d
• “The plan shall be included in and made a part of the resultant contract.”
• “Failure to submit and negotiate the subcontracting plan shall make the offeror ineligible for award of a contract.”
NCURA Region II Spring Meeting
Princeton, New Jersey April 25-27, 2010
FAR 52.219-9, cont’d
• “…the offeror will require all subcontractors (except small business concerns) that receive subcontracts in excess of $550,000 to adopt a subcontracting plan that complies with the requirements of this clause.”
NCURA Region II Spring Meeting
Princeton, New Jersey April 25-27, 2010
FAR 52.219-9, cont’d
“The offeror will submit periodic reports so that the Government can determine the extend of compliance by the offeror with the subcontracting plan.”
“The offeror will ensure that its subcontractors agree to submit periodic reports.”
NCURA Region II Spring Meeting
Princeton, New Jersey April 25-27, 2010
FAR 52.219-9, cont’d
“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;” of
2) An approved plan required by this clause, shall be a material breach of the contract.”
NCURA Region II Spring Meeting
Princeton, New Jersey April 25-27, 2010
Determining the Need for a Plan
• FAR 19.705-2– Dollar Threshold:
• Contract or contract modification is expected to exceed $550,000 ($1,000,000 for construction)
– Subcontracting possibilities:• Contract solicitation appears to offer subcontracting
possibilities
NCURA Region II Spring Meeting
Princeton, New Jersey April 25-27, 2010
Determining the Need for a Plan
• SBSP are not required– From small business concerns
– For personal services contracts
– For contracts or modifications that will be performed entirely outside of the US
– For contract solicitations that do not contain 52.219-8, Utilization of Small Business Concerns
NCURA Region II Spring Meeting
Princeton, New Jersey April 25-27, 2010
Elements of the SBSP
• Must contain goals expressed in both dollars and percentages.
• A description of the principal types of supplies/services to be subcontracted
• A description of the method used to develop the subcontracting goals
• A statement as to whether indirect costs are included in establishing the subcontracting goals
NCURA Region II Spring Meeting
Princeton, New Jersey April 25-27, 2010
Elements of the SBSP
• The name of the individual who will administer the subcontracting program and a description of the duties of that person
• A description of the efforts that will be made to ensure that small business concerns have an equitable opportunity to compete for subcontracts
NCURA Region II Spring Meeting
Princeton, New Jersey April 25-27, 2010
Elements of the SBSP
• Assurances that FAR Clause 52.219-9, will be included in all subcontracts that offer subcontracting (procurement) opportunities.
• Assurances that the Contractor will 1) cooperate in any studies or surveys; 2) submit periodic reports so that the Government can determine the extend of compliance;
NCURA Region II Spring Meeting
Princeton, New Jersey April 25-27, 2010
Elements of the SBSP
• A description of the types of records that will be maintained concerning procedures adopted to comply with the requirements and goals of the SBSP
• Verification that your Institution has established and will utilize established procedures to ensure timely payment to small businesses
• Description of how you will make a “good faith effort” to comply with the approved SBSP
NCURA Region II Spring Meeting
Princeton, New Jersey April 25-27, 2010
Elements of the SBSP
• Signature page• Creator of the SBSP
• Federal Contracting Officer
• Small Business Specialist
• Small Business Administration Procurement Center Representative
NCURA Region II Spring Meeting
Princeton, New Jersey April 25-27, 2010
Elements of the SBSP
The Office of Acquisition Management and Policy at NIH posts a Fact Sheet on Subcontracting at:http://ocm.od.nih.gov/ProgramNotes/Subcontracting/SubcontractingFactSheet/subcontracting_fact_sheet.htmwhich explains the goals, flow-down and reporting requirements.
NCURA Region II Spring Meeting
Princeton, New Jersey April 25-27, 2010
Completing the Plan – Who?
• Who qualifies as a Small Business for purposes of the SBSP?– Disadvantaged Small Business Concern = A socially
and economically disadvantaged small business concern that is at least 51% owned and controlled by one or more socially and economically disadvantaged individuals
NCURA Region II Spring Meeting
Princeton, New Jersey April 25-27, 2010
Completing the Plan – Who?
• Who qualifies as a Small Business for purposes of the SBSP?– Woman Owned Small Business Concern (WOSB) = a small
business concern that is at least 51% owned and controlled by a woman or women.
– Historically Underutilized Business Zone Small Business Concern (HUBZone) = a small business concern that appears on the List of Qualified HUBZone Small Business Concerns maintained by the Small Business Administraiont
• www.sba.gov/hubzone
NCURA Region II Spring Meeting
Princeton, New Jersey April 25-27, 2010
Completing the Plan – Who?
• Who qualifies as a Small Business for purposes of the SBSP?– Service-Disabled Veteran Owned Business = a small
business concern that; a) not less than 51% of which is owned by one or more service-disabled veterans or, in the case of any publicly owned business, not less than 51% of the stock of which is owned by one or more service-disabled veterans and b) the management and daily business operation of which are controlled by one or more service-disabled veterans OR in the case of a veteran with a permenant and severe disability, the spouse or permanent caregive of such a service-disabled veteran
NCURA Region II Spring Meeting
Princeton, New Jersey April 25-27, 2010
Completing the Plan – Who?
• Who qualifies as a Small Business for purposes of the SBSP?– Veteran Owned Business = a small business
concern when; a) not less than 51% is owned by one or more veterans or, in the case of any publicly owned business, not less than 51% of the stock of which is owned by one or more veterans and b) the management and daily business operation of which are controlled by one or more veterans
NCURA Region II Spring Meeting
Princeton, New Jersey April 25-27, 2010
Completing the Plan – Who?
• “Other than small business” = any entity that is not classified as a small business (large businesses, state and local governments, non-profit organizations, public utilities, educational institutions and foreign-owned firms that receive federal contracts, if any portion of that contract is to be performed in the United States.
NCURA Region II Spring Meeting
Princeton, New Jersey April 25-27, 2010
Completing the SBSP – What?
• What purchases should be included in the SBSP?– All dollars that are spent outside the organization
(materials/supplies, travel, equipment, postage, advertisement, printing, subawards to other entities)
NCURA Region II Spring Meeting
Princeton, New Jersey April 25-27, 2010
Completing the Plan – What?
• What purchases should be excluded from the SBSP?– All dollars that are spent inside the organization
(direct labor/fringe, interdepartmental costs [photocopying, computer centers, animal care, postage], purchases from the federal government)
NCURA Region II Spring Meeting
Princeton, New Jersey April 25-27, 2010
Completing the Plan – Where?
• Where do I find small business to purchase from??– Purchasing/Procurement - If your Institution is a
major recipient of research funding from the Federal Government, the Institution is obligated to develop and maintain a program to promote the use of small and disadvantaged businesses when procuring goods and services.
NCURA Region II Spring Meeting
Princeton, New Jersey April 25-27, 2010
Completing the Plan – Where?• Some additional resources
– Central Contractor Registration CCR – www.ccr.gov• Dynamic Small Business Search
NCURA Region II Spring Meeting
Princeton, New Jersey April 25-27, 2010
Completing the Plan – Where?• Dynamic Small Business Search
NCURA Region II Spring Meeting
Princeton, New Jersey April 25-27, 2010
Completing the Plan – Where?
• Some additional resources– Local community websites (city, county,
organizational, etc)
– Examples• http://www.aaccwp.com/membership_directory.php
• http://www.alleghenycounty.us/mwdbe/
• http://www.veteranscorp.org/business/bizSearch.aspx
NCURA Region II Spring Meeting
Princeton, New Jersey April 25-27, 2010
Completing the SBSP – When?
• When is the SBSP done?– The Request for Proposals (RFP) should direct
offerors when to submit the SBSP– Some RFPs include a factor in the evaluation
criteria which weighs the SBSP goals in the consideration for award. If so, SBSP must be submitted with the initial proposal submission
– Sometimes, SBSP is not required until the offeror is notified that they are in a competitive range
NCURA Region II Spring Meeting
Princeton, New Jersey April 25-27, 2010
Completing the SBSP – How?
• How do we create the SBSP?– Detailed budgets for planned purchases must be
created (catalogue numbers, vendor, cost, units)
– Using the detailed budgets for items to be purchased, approach Small Businesses to determine if they can provide the items
NCURA Region II Spring Meeting
Princeton, New Jersey April 25-27, 2010
Completing the Plan - Goals
• Separate dollar and percentage goals for Small Businesses, Small Disadvantaged Businesses, Women-owned Small Businesses, HUBZone Businesses, Veteran Owned Small Businesses, Service-Disabled Veteran Owned Small Businesses, and “other than small businesses” must be presented in the plan.
NCURA Region II Spring Meeting
Princeton, New Jersey April 25-27, 2010
Completing the Plan - Goals
• Percentages are determined by dividing the planned purchases in each category into the total “planned subcontracted” dollar amount
• “Planned subcontracted” dollar amount is the dollar amount of the purchases that qualify
• My require separate goals by option/year
NCURA Region II Spring Meeting
Princeton, New Jersey April 25-27, 2010
Goals – Established by Statutes
• 23% - Small Businesses• 5% - Women-owned businesses• 3% - HUBZone small businesses• 3% - Veteran and Service-disabled veteran owned
small businesses
(Important Note – a small business may intersect multiple categories)
NCURA Region II Spring Meeting
Princeton, New Jersey April 25-27, 2010
Completing the SBSP – Helpful Tools
• Budget Worksheet
• Subcontracting Plan Worksheet
NCURA Region II Spring Meeting
Princeton, New Jersey April 25-27, 2010
SBSP Review & Acceptance
• Contracting Officers and Small Business Administration review for:– Accuracy– Completeness – are all six elements represented?– Past performance– Determination of whether the SBSP should be waived (no
subcontracting opportunities), requires concurrence by one level above Contracting Officer
NCURA Region II Spring Meeting
Princeton, New Jersey April 25-27, 2010
SBSP Review & Acceptance
• Federal Agency and SBA Can:– Conduct needs assessments and compliance
reviews
• Federal Agency and SBA Cannot:– Prescribe the amount of subcontracting
– Require the prime contractor to use a particular small business
NCURA Region II Spring Meeting
Princeton, New Jersey April 25-27, 2010
SBSP Post Award Responsbilities
• Meeting your agreed upon goals– Use small businesses whenever possible- regardless of the
cost
– Meet with purchasing on a continual basis to identify additional small business concerns
• Outreach– Continue to search out small businesses to purchase from
• Reporting
NCURA Region II Spring Meeting
Princeton, New Jersey April 25-27, 2010
SBSP Reporting Requirements
• October 2005 - The President’s Management Agenda, the Small Business Administration and the Integrated Acquisition Environment, along with a number of Federal Agency partners, collaborated to develop an electronic tool to collect subcontracting accomplishments
• Electronic Tool = eSRS (Electronic Subcontracting Reporting System)
• http://www.esrs.gov
NCURA Region II Spring Meeting
Princeton, New Jersey April 25-27, 2010
SBSP Reporting Requirements
• Electronic Tool = eSRS (Electronic Subcontracting Reporting System) – “Web-bsed Government-wide subcontracting system that allows electronic submission, management (acceptance, revision, rejection) reports, and analyses of subcontracting data”
• http://www.esrs.gov
NCURA Region II Spring Meeting
Princeton, New Jersey April 25-27, 2010
SBSP Reporting Requirements
• Two required reports– ISR (Individual Subcontracting Report), formerly
paper SF 294
– SSR (Summary Subcontracting Report), formerly paper SF 295
• Purpose – to document the dollars awarded in each goaled category.
NCURA Region II Spring Meeting
Princeton, New Jersey April 25-27, 2010
SBSP Reporting Requirements
• ISR – completed twice a year – by contract/subcontract– Due April 30 for purchases made October 1 –
March 31
– Due October 30 for purchases made April 1 –September 30
NCURA Region II Spring Meeting
Princeton, New Jersey April 25-27, 2010
SBSP Reporting Requirements
• SSR – completed once a year – Annual summary of subcontracts awarded by prime and subcontractors for a specific federal government Agency for the previous fiscal year.– Non-DOD agencies - Due October 30 for purchases made
October 1 – September 30
– DOD and NASA – semiannually • Due April 30 – for purchases made October 1- March 31
• Due October 30 – for purchases made April 1- September 30
NCURA Region II Spring Meeting
Princeton, New Jersey April 25-27, 2010
SBSP Reporting Requirements
• Prime contractors only report the subcontracts they awarded, not for dollars awarded by subcontractors at lower tiers
• Lower Tier Subcontractors report via eSRS independent from the prime
NCURA Region II Spring Meeting
Princeton, New Jersey April 25-27, 2010
SBSP Reporting Requirements
• Information needed by Prime Contractor to file an ISR– DUNS number as it appears on the contract– Product and Service Codes– NAICS code– Email address of Federal Government agency responsible for reviewing
(accepting or rejecting) your report– Current contract value– Approved SBSP– Time period the report covers – Indicated as “final” if final
NCURA Region II Spring Meeting
Princeton, New Jersey April 25-27, 2010
SBSP Reporting Requirements
• Information needed by lower tier subcontractor to file an ISR– Prime contract number– Subcontract number (number assigned by prime)– DUNS number of the Prime contractor– Email address of prime contracting official and the prime contractor’s
employee (your contact)– Product and Service Codes– NAICS– Approved Small Business Subcontracting Plan– Time period the report covers– Indicated as “final” if the report is final
NCURA Region II Spring Meeting
Princeton, New Jersey April 25-27, 2010
SBSP Reporting Requirements
• Information needed to file SSR– Essentially same data as needed for ISR
– Cummulative purchasing amounts from ISR submissions
– Time period the report covers
– Indicated as “final” if indeed final
NCURA Region II Spring Meeting
Princeton, New Jersey April 25-27, 2010
SBSP Reporting Requirements
If you are delinquent in submitting reports:
1) the Government can withhold payment
2) the delinquency will be noted in your performance report
3) Can affect future contract awards
NCURA Region II Spring Meeting
Princeton, New Jersey April 25-27, 2010
Liquidated Damages
• When a contractor fails to make a “good faith effort” to comply with a SBSP, FAR Cause 52.219-16 mandates that liquidated damages be paid to the federal government
• The amount of damages shall be equal to the actutal dollar amount by which the contractor failed to achieve the goal.
NCURA Region II Spring Meeting
Princeton, New Jersey April 25-27, 2010
What if I am not meeting the SBSP goals?
• The Contracting Officer may notify you (via the rejection of your reports) if you are not meeting your goals– Explain the reasons why you are not meeting you
plan and provide a well thought out plan for how you will move forward toward meeting them.
NCURA Region II Spring Meeting
Princeton, New Jersey April 25-27, 2010
Revising your Subcontracting Goals
• Reasons to revise your goals:– An increase in contract dollars of more then
$550,000
– Workscope has changed which prevents you from meeting your goals.
– Loss of primary vendor and inability to identify a small business concern to serve as a replacement
NCURA Region II Spring Meeting
Princeton, New Jersey April 25-27, 2010
Revising your Subcontracting Goals
• Increase in contract dollars exceeding $550,000– You will be asked to revise your SBSP to include the
increase in subcontract dollars
– Goals and Methodology will need to be revised as well
NCURA Region II Spring Meeting
Princeton, New Jersey April 25-27, 2010
Revising your Subcontracting Goals
• Workscope change prevents you from meeting your goals– You must request and be approved to submit
revised goals– A revised SBSP must be submitted with revised
goals and an explanation for the need to revise the goals
NCURA Region II Spring Meeting
Princeton, New Jersey April 25-27, 2010
Revising your Subcontracting Goals
• Loss of primary vendor and inability to identify a small business concern as a replacement– You must request and be approved to submit
revised goals– A revised plan must be submitted with revised
goals and an explanation for the need to reduce the goals.
NCURA Region II Spring Meeting
Princeton, New Jersey April 25-27, 2010
Small Business Administration’s Role
• Assist Federal agencies in evaluating proposed SBSP
• Assist small businesses in obtaining subcontracts under federal contracts
• Counsel small businesses on how to market their products and services as subcontractors
NCURA Region II Spring Meeting
Princeton, New Jersey April 25-27, 2010
SBSP and Reporting
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