Gsa Small Business Subcontracting Plan
Section 1614 amended the Small Business Act to provide that, "where a prime contractor has an individual subcontracting plan for a contract with a single executive agency, the prime contractor shall receive credit towards its subcontracting goals for awards made to small business concerns at any tier by subcontractors with individual subcontracting plans." In addition, Section 1614 provided new provisions for inclusion in subcontracting plans related to prime and upper-tier contractors' efforts to monitor the performance of their lower-tier contractors with respect to compliance with their respective subcontracting plans.
In addition, the final rule implemented the statutory requirements related to the new assurances and written statement to be included in subcontracting plans.The GAO noted that the FAR provides, with exceptions not relevant to this protest, that “if a solicitation is expected to result in a contract valued in excess of 0,000, with subcontracting possibilities, the solicitation shall require the apparently successful offeror to submit a small business subcontracting plan prior to award.” Additionally, FAR 52.219-9 “requires an apparently successfully offeror to submit an acceptable small business subcontracting plan in order to receive a contract award, and provides further guidance on the type of information that should be included in the plan.” The GAO concluded “[t]hus, notwithstanding the protester’s assertions to the contrary, [the FAR] does not contemplate a contracting officer making a determination of the need for a subcontracting plan on an offeror-by-offeror basis after proposals have been submitted; rather, the subcontracting plan determination is made prior to the issuance of the solicitation.” The GAO denied the University’s protest.The GAO’s decision in is good news for small business subcontractors.Lower-tier subcontract means any subcontract other than a subcontract directly with the prime contractor. Reorganize the existing text at FAR 19.704 to group together basic requirements for all subcontracting plans, special requirements for commercial plans, special requirements for individual subcontracting plans, and special requirements for master subcontracting plans. Revise existing text regarding the requirements for the current (i.e., first-tier) goals for clarity (but the requirements are unchanged). Add text concerning the new assurances related to monitoring the performance of subcontractors with regard to subcontracting plans, and the written statement regarding the contractor's records to demonstrate procedures adopted to ensure subcontractors at all tiers comply with their subcontracting plans. Add new paragraph (d) entitled "Special requirements for individual subcontracting plans" to address existing and new requirements specific to individual plans. Proposes to amend FAR 42.1503(d) by replacing "plan elements" in "Marginal" with "plan elements, including lower-tier goals as applicable." 5.This paragraph covers existing requirements such as individual subcontract reports in e SRS, as well as the new requirements related to lower-tier goals. Proposes to add the below new paragraph to FAR 42.1501: (a) * * * (5) Good faith effort to comply with the requirements of the small business subcontracting plan (see 19.705-7(d)). Proposes to amend FAR 42.1503(e) by replacing "contract/order" in "Unsatisfactory" with "contract/order, including lower-tier goals as applicable." Proposes to amend the following contract clauses: 1.This site displays a prototype of a “Web 2.0” version of the daily Federal Register.It is not an official legal edition of the Federal Register, and does not replace the official print version or the official electronic version on GPO’s If the GAO had reached the opposite conclusion, it could have opened the door for prime contractors to wiggle out of their small business subcontracting obligations.Instead, the GAO held that the small business subcontracting plan requirement applies broadly, even when the prospective prime contractor is a university. General Services Administration (GSA), and the National Aeronautics and Space Administration (NASA), (collectively, the Agencies) just issued a Proposed Rule that addresses increased opportunities for contractors to receive credit for lower-tier small business subcontracting. Prime contractors with existing robust compliance systems to track subcontractor compliance with small business contracting plans will benefit from the additional potential credit.Finally, Section 1614 revised the definition of "subcontract" in the Small Business Act to include lower-tier contractors. The SBA's final rule required a prime contractor with an individual subcontracting plan to receive subcontracting credit for subcontracts awarded to small business concerns at any tier by subcontractors with individual subcontracting plans.