U.S. Department of Health & Human Services
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Small Business Subcontracting Plan
(Revised December 2011) The following outline meets the minimum requirements of section 8(d) of the Small Business Act, as amended, and implemented by the Federal Acquisition Regulations (FAR) Subpart 19.7. The U.S. Department of Health and Human Services (HHS), Office of Small and Disadvantaged Business Utilization (OSDBU) recommend offerors use the following format to submit proposed Individual Subcontracting Plans, including modifications. It is not intended to replace any existing Corporate/Commercial Plan that is more extensive. A subcontracting Plan is required if the estimated cost of the contract may exceed $650,000 ($1,500,000 for construction) Small businesses are excluded. Questions should be forwarded to the Contracting Officer or Operating Division (OPDIV) Small Business Specialist. HHS Operating Division (OPDIV): ____________________________________ SOLICITATION OR CONTRACT NUMBER: __________________________ DATE OF PLAN: ___________________________________________________ CONTRACTOR: ____________________________________________________ ADDRESS: ________________________________________________________ STATE/ZIP CODE___________________________________________________ DUNN & BRADSTREET NUMBER: _____________________________________ ITEM/SERVICE (Description): _______________________________________ __________________________________________________________________ __________________________________________________________________ __________________________________________________________________ __________________________________________________________________ __________________________________________________________________
New/Initial ContractPERIOD OF CONTRACT PERFORMANCE (MM/DD/YYYY – MM/DD/YYYY):________ __________ Base (if options apply) $___________________ Performance Period/Quantity ____________ Option 1: $___________________ Performance Period/Quantity ____________ Option 2: $___________________ Performance Period/Quantity ____________ Option 3: $___________________ Performance Period/Quantity ____________ Option 4: $___________________ Performance Period/Quantity ____________ $___________________ Total Contract Cost
Contract Modification (if applicable)New Period of Contract Performance (MM/DD/YYYY – MM/DD/YYYY):__________________ Original/Base $___________________ Performance Period/Quantity _________ Modification $___________________ Performance Period/Quantity _________ Task Order $___________________ Performance Period/Quantity _________ $___________________ Modified Total Contract Cost Failure to include the essential information of FAR Subpart 19.7 may be cause for either a delay in acceptance or the rejection of a bid or offer when a subcontracting plan is required. “SUBCONTRACT,” as used in this clause, means any agreement (other than one involving an employer‑employee relationship) entered into by a Federal Government prime contractor or subcontractor requesting supplies or services required for performance of the contract or subcontract. If assistance is needed to locate small business sources, contact the Small Business Specialist (SBS) supporting the OPDIV. SBS contact information is located on the OSDBU website (http://www.hhs.gov/about/smallbusiness/osdbustaff.html) or you may contact the OSDBU headquarters at (202) 690-7300.
HHS current subcontracting goal is 33.0% for Small Business (hereafter referred to as SB), 5.00% for Small Disadvantaged Business, including 8(a) Program Participants, Alaska Native Corporations (ANC) and Indian Tribes (hereafter referred to as SDB), 5.00% for Women-Owned Small Business and Economically Disadvantaged Women-Owned Small Business (hereafter referred to as WOSB), 3.00% HubZone business (hereafter referred to as HUBZone), 3.00% Veteran Owned Small Business (hereafter referred to as VOSB) and 3.00% Service Disabled Veteran-Owned Small Business (hereafter referred to as SDVOSB) concerns for Fiscal Year (FY) 2012. For this procurement, HHS expects all proposed subcontracting plans to contain at a minimum the aforementioned percentages. These percentages shall be expressed as percentages of the total estimated subcontracting dollars.
_____ Individual plan (all elements developed specifically for this contract and applicable for the full term of this contract).
_____ Master plan (goals developed for this contract) all other elements standardized and approved by a lead agency Federal Official; must be renewed every three years and contractor must provide copy of lead agency approval.
_____ Commercial products/service plan (goals are negotiated with the initial agency on a company-wide basis rather than for individual contracts) this plan applies to the entire production of commercial service or items or a portion thereof. The contractor sells commercial products and services customarily used for non-government purposes. The plan is effective during the offeror’s fiscal year (attach a copy). The Summary Subcontracting Report (SSR) must include a breakout of subcontracting prorated for HHS and other Federal agencies.
2. Goals
Below indicate the dollar and percentage goals for Small Business (SB), Small Disadvantaged (SDB) including Alaska Native Corporations and Indian Tribes, Women‑owned and Economically Disadvantaged Women-Owned (WOSB), Historically Underutilized Business Zone (HUBZone), Veteran Owned Small Business (VOSB), Service-Disabled Veteran-Owned (SDVOSB) Small Businesses and “Other than Small Business” (Other) as subcontractors. Indicate the base year and each option year, as specified in FAR 19.704 or project annual subcontracting base and goals under commercial plans. If any contract has more four options, please attach additional sheets which illustrate dollar amounts and percentages. PLEASE NOTE: Zero dollars is not an acceptable goal for the SB, SDB, WOSB, HUBZone, VOSB or SDVOSB categories since this does not demonstrate a good faith effort throughout the period of performance of the contract. Formula for below: 2.b. + 2.h. = 2.a.
FY ___1st Option FY ___2nd Option FY ___3rd Option FY ___4th Option
$ _____________ $ _____________ $ _____________ $ _____________
$ ________________ and ________________% (Base Period - if options apply)
FY ___1st Option FY ___2nd Option FY ___3rd Option FY ___4th Option
$ _____________ $ _____________ $ _____________ $ _____________
FY ___1st Option FY ___2nd Option FY ___3rd Option FY ___4th Option
$ _____________ $ _____________ $ _____________ $ _____________
FY ___1st Option FY ___2nd Option FY ___3rd Option FY ___4th Option
$ _____________ $ _____________ $ _____________ $ _____________
(% of “a”) $ ________________ and _________% (Base Period - if options apply)
FY ___1st Option FY ___2nd Option FY ___3rd Option FY ___4th Option
$ _____________ $ _____________ $ _____________ $ _____________
FY ___1st Option FY ___2nd Option FY ___3rd Option FY ___4th Option
$ _____________ $ _____________ $ _____________ $ _____________
FY ___1st Option FY ___2nd Option FY ___3rd Option FY ___4th Option
$ _____________ $ _____________ $ _____________ $ _____________
h. Total estimated dollar and percent of planned subcontracting with “OTHER THAN SMALL BUSINESSES” (As defined by the Small Business Administration as “any entity that is not classified as a small business. This includes large businesses, state and local governments, non-profit organizations, public utilities, educational institutions and foreign-owned firms.) (% of “a”) $ ________________ and ________________% (Base Period - if options apply)
FY ___1st Option FY ___2nd Option FY ___3rd Option FY ___4th Option
$ _____________ $ _____________ $ _____________ $ _____________
i. Provide a description of ALL the products and/or services to be subcontracted under this contract, and indicate the size and type of business supplying them (check all that apply):
j. Provide a description of the method used to develop the subcontracting goals for SB, SDB, WOSB, HUBZone and SDVOSB concerns. Address efforts made to ensure that maximum practicable subcontracting opportunities have been made available for those concerns and explain the method used to identify potential sources for solicitation purposes. Explain the method and state the quantitative basis (in dollars) used to establish the percentage goals. Also, explain how the areas to be subcontracted to SB, WOSB, HUBZone, VOSB and SDVOSB concerns were determined, how the capabilities of these concerns were considered contract opportunities and how such data comports with the cost proposal. Identify any source lists or other resources used in the determination process. (Attach additional sheets, if necessary.) _____________________________________________________________ _____________________________________________________________
k. Indirect costs have ____ have not ____ been included in the dollar and percentage subcontracting goals above (check one).
l. If indirect costs have been included, explain the method used to determine the proportionate share of such costs to be allocated as subcontracts to SB, SDB, WOSB, HUBZone, VOSB and SDVOSB concerns: _________________________________________________________________ _________________________________________________________________ _________________________________________________________________
3. Program Administrator: NAME: ______________________________________________ TITLE: ______________________________________________ ADDRESS: ______________________________________________ ______________________________________________ TELEPHONE: ______________________________________________ E-MAIL: ______________________________________________
Duties: Does the individual named above have general overall responsibility for the company’s subcontracting program, i.e., developing, preparing, and executing subcontracting plans and monitoring performance relative to the requirements of those subcontracting plans and perform the following duties? (If NO is checked, please who in the company performs those duties, or indicate why the duties are not performed in your company on a separate sheet of paper and submit with the proposed subcontracting plan.)
________________________________________________________ ________________________________________________________
4. Equitable Opportunity
Describe efforts the offeror will undertake to ensure that SB, SDB, WOSB, HUBZone, VOSB and SDVOSB concerns will have an equitable opportunity to compete for subcontracts. These efforts include, but are not limited to, the following activities:
a. Outreach efforts to obtain sources:
b. Internal efforts to guide and encourage purchasing personnel:
Additional efforts: _____________________________________________________________ _____________________________________________________________
5. Flow Down Clause
The contractor agrees to include the provisions under FAR 52.219‑8, “Utilization of Small Business Concerns,” in all acquisitions exceeding the simplified acquisition threshold that offers further subcontracting opportunities. All subcontractors, except small business concerns, that receive subcontracts in excess of $650,000 ($1,500,000 for construction) must adopt and comply with a plan similar to the plan required by FAR 52.219‑9, “Small Business Subcontracting Plan.” Note: In accordance with FAR 52.212-5(e) and 52.244-6(c) the contractor is not required to include flow-down clause FAR 52.219.-9 if it is subcontracting commercial items.
6. Reporting and Cooperation
The contractor gives assurance of 1) cooperation in any studies or surveys that may be required; 2) submission of periodic reports which illustrate compliance with the subcontracting plan; 3) submission of its Individual Subcontracting Report (ISR) and Summary Subcontract Report (SSR); and 4) subcontractors submission of ISRs and SSRs. ISRs and SSRs shall be submitted via the Electronic Subcontracting Reporting System (eSRS) website https://esrs.symplicity.com/index?_tab=signin&cck=1
Please refer to FAR Part 19.7 for instruction concerning the submission of a Commercial Plan: SSR is due on 10/30 each year for the previous fiscal year ending 9/30.
Note: The Request for Proposal (RFP) will indicate whether a subcontracting plan is required. Due to the nature and complexity of many HHS contracts, particularly the Centers for Medicare and Medicaid (CMS), the contractor may not be required to submit its subcontracting reports through the eSRS. The Contracting Officer will confirm reporting requirements prior to the issuance of an award. For more information, contact Courtney Carter, Agency Coordinator-eSRS (Courtney.Carter@hhs.gov).
7. Record keeping
FAR 19.704(a) (11) requires a list of the types of records your company will maintain to demonstrate the procedures adopted to comply with the requirements and goals in the subcontracting plan. The following is a recitation of the types of records the contractor will maintain to demonstrate the procedures adopted to comply with the requirements and goals in the subcontracting plan. These records will include, but not be limited to, the following:
_____________________________________________________________ _____________________________________________________________ _____________________________________________________________
8. Timely Payments to Subcontractors
FAR 19.702 requires your company to establish and use procedures to ensure the timely payment of amounts due pursuant to the terms of your subcontracts with SB concerns, SDB, WOSB, HUBZone, VOSB and SDVOSB concerns. Your company has established and used such procedures: ________ yes _________ no
9. Description of Good Faith Effort
Maximum practicable utilization of SB, SDB, WOSB, HUBZone, VOSB and SDVOSB concerns as subcontractors in Government contracts is a matter of national interest with both social and economic benefits. When a contractor fails to make a good faith effort to comply with a subcontracting plan, these objectives are not achieved, and 15 U.S.C. 637(d) (4) (F) directs that liquidated damages shall be paid by the contractor. In order to demonstrate your compliance with a good faith effort to achieve the SB, SDB, WOSB, HUBZone, VOSB and SDVOSB small business subcontracting goals, outline the steps your company plans to take. These steps will be negotiated with the contracting official prior to approval of the plan. ____________________________________________________________________ ____________________________________________________________________ ____________________________________________________________________ SIGNATURE PAGE
Signatures Required:
This subcontracting plan was submitted by: Signature: __________________________________________________ Typed/Print Name: __________________________________________________ Title: __________________________________________________ Date: __________________________________________________
This plan was reviewed by: Signature: __________________________________________________ Typed/Print Name: __________________________________________________ Title: Contracting Officer Date: ______________
This plan was reviewed by: Signature: __________________________________________________ Typed/Print Name: __________________________________________________ Title: HHS Small Business Specialist Date: ______________
This plan was reviewed by: Signature: __________________________________________________ Typed/Print Name: __________________________________________________ Title: Small Business Administration Procurement Center Representative Date: __________________________________________________
This plan was approved by: Signature: __________________________________________________ Typed/Print Name: __________________________________________________ Title: Contracting Officer Date: ______________
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