DIR's Supplier Diversity Information Resource Guide 20, Jan 2012 | Page 78

Federal Small Disadvantaged/Women-Owned Business Utilization/Compliance
COPYRIGHT 2012, DIVERSITY INFORMATION RESOURCES, MINNEAPOLIS, MN

General Guidelines
In contracting with Federal agencies, all solicitations for negotiated or formally advertised contracts greater
than $500,000 or $1,000,000 for construction contracts shall include a provision which requires the prime
contractor to submit a detailed subcontracting plan prior to the award. Negotiated contracts cannot be
awarded until an acceptable plan has been negotiated, and subcontracting plans are incorporated as part of
the contract awarded. (See Contract Bundling, Section 5: Department of Defense).
Failure to comply in good faith will be a material breach of the contract/subcontract. If a breach occurs in a
prime contract, the contracting officer may:
• terminate the contract pursuant to the termination for default clause.
• reduce the contract price.
• negotiate a revised subcontracting plan to correct deficiencies.
• institute other measures.
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Mandatory Components of a Subcontracting Plan Include:
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• Separate percentage goals for use of small businesses/SDBs as subcontractors. (Example: 5% & 20% goal
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means 5% SDB goal wrapped into an overall 20% small business goal.)
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• Name and responsibilities of the prime’s subcontracting administrator (SBLO).
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• Description of what the prime will do to ensure that small businesses and SDBs have opportunities to
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compete fairly.
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• Assurance that the prime contractor will include the Utilization of Small and Disadvantaged Business
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Concerns clause in subcontracts; ensure that non-small business subcontractors adopt a similar small
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business/SDB utilization subcontracting plan. (Flow down clause. For more information review the FAR)
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• Assurance that the prime will cooperate in any studies or surveyspolis,
which may be required, submit periodic
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reports which allow the Government to determine the extentinof compliance, submit Subcontracting
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Report for Individual Contracts (SF 294).
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• Document efforts prime contractor has made to comply with the requirements and goals in the plan,
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including source lists and a description of effortsmtoo locate SDBs.
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Subcontracting plans are submitted to, approved and monitored by, the appropriate contracting officer. (For
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more information on the provisions of r the subcontracting plan, please review the FAR.)
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SECTION 9

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2012 Supplier Diversity Information Resource Guide

CONTENT MAY BE EXPIRED; SEE WWW.DIVERSITYINFORESOURCES.COM FOR LATEST VERSION

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