Small Business Subcontracting Program

The University of Texas at Austin

Arthur A. McDonald HUB/SADBO Coordinator-Director/Small Business Plan Administrator Annette Smith HUB/SADBO Staff Associate John Trevino HUB/SADBO Staff Associate Tiffany Dockery HUB/SADBO Staff Associate
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Subcontracting Program
Small Business Program Subcontracting Plan Requirements Subcontracting Plan Review Evaluate Subcontracting in Source Selection New Small Business Program Changes Subcontracting Plan Implementation Master Subcontracting Plans
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Subcontracting Program
Small Business Program
Policy: To place a fair proportion of the Universitys acquisitions, including contracts and subcontracts, with small business, service-disabled veteran-owned small business, veteran-owned small business, HUBZone small business, small disadvantaged business and women-owned small business concerns.
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Subcontracting Program
Policy:

It is further the policy of the University of Texas at Austin that its prime contractors establish procedures to ensure timely payment of amounts due pursuant to terms of their subcontract with small business, service-disabled veteran-owned small business, veteran-owned small business, HUBZone Small business, small and disadvantaged business and women-owned small business concerns.
FAR 19.702
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What is Small?
Type of Business Construction R&DR&D Aircraft Educational Engineering Services (Military) Engineering Services (General) Management Services Computer Programming Computer Equipment Not to Exceed $ 17 Million Annually* 500 Employees 1500 Employees $ 5 Million Annually $ 20 Million Annually $ 2.5 Million Annually $ 5 Million Annually $ 18 Million Annually 1000 Employees
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* Annually - Average annual receipts over a three-year period

Subcontracting Program
Subcontract Coding and Size Standards
North American Industry Classification System (NAICS) replaces Standard Industrial Classification (SIC) Codes effective 1 October 2000 Available at http://www.sba.gov/size/indextableofsize.html Examples: Industry R&D Chemicals Engineering Admin Services SIC Code 8731 2819 8711 8741 NAICS 541710 325188 541330 561110 Size Standard 500 employees 1000 employees $ 4 Million Annually $ 5 Million Annually
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Subcontracting Program
Subcontracting Program Implementation
52.219-8 Utilization of Small Business Concerns In all solicitations and contracts expected to exceed simplified acquisition threshold except: For personal services Performed entirely outside the United States 52.219-9 Small Business Subcontracting Plan When contracting by negotiation or sealed bid Subcontracting possibilities exist Cumulative value expected to exceed $ 500,000 ($ 1M construction) except: From small business concerns HBCU/MI/TCUs for DOD contracts (DFARS 252.219-7003) For personal services contract Performance entirely outside the United States 52.219-10 Incentive Subcontracting Program
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Subcontracting Program Goals

Small Business Veteran-Owned Small Business Service-Disabled VOSB HUBZone Small Business Small Disadvantaged Business Women-Owned Small Business FY 02 23.0% 3.0% 3.0% 2.5% 5.0% 5.0%

Acceptance of an SDB goal of less than 5% requires approval two levels above PCO (DFARS 219.705-2)
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Subcontracting Program
Subcontracting Plan Requirements
1. Separate percentage goals for small business (SB). Veteranowned small business (VOSB), service-disabled veteran-owned small business (SDVOSB), HUBZone small business, small disadvantaged business (SDB) and women-owned small business (WOSB) concerns. 2. Statement of total dollars planned to be subcontracted for SB, HUBZone, SDB, SDVOSB,VOSB and WOSB concerns. 3. Description of principal types of supplies and services to be subcontracted and identification of types planned for subcontracting to each small business entity. 4. Description of method used to develop goals.
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Subcontracting Program
Subcontracting Plan Requirements
(Continued)

5. Description of method(s) used to identify sources Existing source lists SBAs PRO-Net and SBAs

https://eweb1.sba.gov/hubzone/internet/ web site

National Minority Purchasing Vendor Information Service Small Business Trade Association 6. Statement regarding inclusion of indirect costs in goals
7. Name of individual administering subcontracting program Employed by offeror Description of duties 8. Description of efforts to ensure small business entities have the opportunities to compete

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Subcontracting Program
Subcontracting Plan Requirements
(Continued)

9. Assurances that clauses are included in subcontracts 52.219-8 Utilization of Small Business Concerns 52.219-9 Small Business Subcontracting Plan 10. Assurances that offeror will: Cooperate in studies and surveys Submit periodic reports: SF 294 - Subcontracting Report of Individual Contract SF 295 - Summary Subcontract Report Ensure subcontractors agree to submit SF 294 and SF 295 reports
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Subcontracting Program
Subcontracting Plan Requirements
(Continued)

11. Recitation of types of records maintained:

Established source lists Efforts to locate SB, SDVOSB, VOSB, HUBZone SB, SDB and WOSB concerns Organizations contacted to locate small business sources Records on each subcontract solicitation/award of $100,000 or more:
Were SB, SDVOSB, VOSB, HUBZone SB, SDB and WOSB concerns solicited? If not, why not? Reason not awarded to small business

Records of outreach efforts Records of internal guidance, encouragement to buyers, training and monitoring program compliance Records to support award data submitted to Government Name, address and business size of each subcontractor On contract-by-contract basis 12

Subcontracting Program
Subcontract Plan Review
Contracting Officer
1. Reviews, Obtains Advice and Recommendations from: SADBO and ACO SBA Procurement Center Representative Rejects, Negotiates, Accepts

2.

Acceptability based on:

1. 2. 3. ALL Essential Elements Included Offerors Past Performance Attainable Goals relative to: Subcontracting opportunities Pool of Eligible subcontractors available Offerors actual subcontracting plan execution

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Subcontracting Program
Subcontract Plan Review
(Continued)

Acceptability based on: Subcontracting Potential considering: Make-or-buy policy Nature of subcontracted products/services Availability of SB, SDVOSB, VOSB, HUBZone SB, SDB (HBCU/MI/TCUS) and WOSBs in area of work performance Offerors relationship with its suppliers Are separate goals included for each option period? Are subcontracting goals realistic? Are goals consistent with cost or pricing data?
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Subcontracting Program
Evaluation of Subcontracting in Source Selection
SDB participation in unrestricted acquisitions expected to exceed $500,000
( FAR 15.304 (c) (4) )

In acquisitions requiring FAR 219-9 Small Business Subcontracting Plan For acquisitions other than those based on lowest price technically acceptable process ( DFARS 215.304 (c) (i) ) Structure source selection criteria to allow for consideration of offers from SBs

Evaluation may be separate from Subcontracting Plan

Ensure SBs, HBCU/MI/TCUs and WOSBs are listed in subcontracting plan
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Subcontracting Program
Evaluation of Subcontracting in Source Selection
(Continued)

Evaluation of commitment to and extent of participation in performance of contract by SBs and HBCU/MI/TCUs
Factors may include: Extent firms are specifically identified Extent of actual commitment to use such firms Extent of participation compared to value of acquisition Complexity and variety of work firms are to perform Realism of proposal Prior performance regarding compliance with: 52.219-8 Utilization of Small Business Concerns 52.219-9 Small Business Subcontracting Plan
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Subcontracting Program
Evaluation of Subcontracting in Source Selection
(Continued)

Contract Administration
Substitution of Subcontractors: SB, SDB, WOSB firms identified in plans

Contractor must notify ACO in writing of substitution

within reasonable period of awarding subcontract Notice in contractor format

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Subcontracting Program
New SB Program Change
SDB Participation Program
- Source Selection Evaluation of SDB participation - Incentive Subcontracting Program for SDBs HUBZone Small Business Program Service-Disabled Veteran-Owned Small Business Program

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Subcontracting Program
SB Participation Program
Mechanisms to evaluate extent of participation of SDBs for contracts in NAICS (formally SIC) major groups:
Source selection evaluation factor of sub-factor for SDB

participation in performance of contract

Evaluation factor considerations:

Extent SDBs are specifically identified in proposal

Extent of commitment to use of SDBs

Complexity and variety of work SDBs will perform Realism of proposal Past performance of offerors complying with subcontracting plan goals Extent of SDB participation compared to value of acquisition
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Subcontracting Program
SB Participation Program
(Continued)

Proposals must include SDB targets in dollars and percentage by NAICS major groups of total contract value Targets incorporated in resulting contract SDBs listed in contract SDBs must be certified by SBA (http://pro-net.sba.gov) Provisions and clauses:
52.219-24 Small Disadvantaged Business Participation Program - Targets 52.219-25 Small Disadvantaged Business Participation Program Disadvantaged Status Reporting Contractor format Optional Form 312 May be submitted with final SF 294, Subcontracting Report for Individual Contracts 20

Report on SDB target achievement at contract completion

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Subcontracting Program
SB Participation Program
(Continued)

Incentive Subcontracting with SDBs - Encourage increased subcontracting opportunities in NAICS

major groups Monetary incentives based on actual achievements compared to targets Separate from SDB subcontracting plan goals Clause

52.219-26 Small Disadvantaged Business Participation Program - Incentive Subcontracting

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Subcontracting Program
Historically Underutilized Business Zone Program
Purpose: To provide contracting assistance for qualified SBs located in
historically underutilized business zones to increase employment opportunities, investment and economic development

Applies to all federal agencies after 30 September 2000

Status as HUBZone Small Business:
Determined by SBA Must be listed on SBAs website: http://www.sba.gov/hubzone

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Subcontracting Program
Veteran-Owned Small Business
Purpose: Provide new assistance programs for veterans and servicedisabled veterans who own and operate businesses

Establishes: Service-Disabled Veteran-Owned Small Business prime

contract goal and Veteran-Owned Small Business subcontracting goal

Effective: 11 October 2000 Statute: Veterans Entrepreneurship and Small Business Development Act of
1999 (P.L. 106-50)
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Subcontracting Program
Subcontracting Plan Implementation
Contractor performs following functions: Assist SBs, SDVOSBs, VOSBs, HUBZone SBs, SDBs and WOSBs
concerns to facilitate participation Provide adequate and timely consideration of small business entities capabilities

Counsel and discuss subcontracting opportunities with small business representatives

Provide notice to subcontractors concerning penalties and remedies misrepresentation of status

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Subcontracting Program
52.219-10 Incentive Subcontracting Program
Monetary incentive to increase subcontracting opportunities for
SB, HUBZone SB and WOSB concerns Prime receives percentage of excess at contract completion PCO determines amount to be paid based on contractors efforts: - Unique outreach programs - Technical assistance to SB entities Determinations NOT subject to dispute clause If CPFF contract, sum of fixed fee and incentive fee earned cannot exceed fee limitations (FAR 15.404-4)

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Subcontracting Program
Subcontracting Plan Reporting
SF 294 - Subcontractor Report for Individual Contracts
Required under Small Business Act of 1958

- Semi-annually
- For each contract over $500,000 with subcontracting plan

Submitted to the Contracting Officer awarding the contract (Block 8) Copy to cognizant contract administration office (Block 6 )

SF 295 - Summary Subcontract Report

Required under Small Business Act of 1958
- Contractor has one or more contracts with subcontracting plan(s) - Semi-annual for DOD - Annually for Civilian Agencies - Commercial products plan - Annually - Reports submitted to individual agencies

Report all subcontracts awarded

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Subcontracting Program
Subcontracting Plan Reporting
Distribution
DOD Send to cognizant contract administration office NASA Office of Procurement (HS), Washington, DC 20546 Other Federal Departments or Civilian Agencies: Office of Small and Disadvantaged Business Utilization or as instructed by the Department or Agency
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Subcontracting Program
Master Subcontracting Plans
University-wide basis Contains all elements of plan except goals Approved by ACO Valid for three years Develop goals for individual contracts
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