(a) If an acquisition, excluding any multiple award schedule contract, will cover two or more Regions and is estimated to exceed $500 million (including options):
(1) In addition to the SBA PCR, provide the SBTA and Office of Small Business Utilization (E) a reasonable period of time to review any solicitation requiring submission of a subcontracting plan and to submit advisory findings before issuing the solicitation. Ensure that evaluation criteria contained in the solicitation do not unnecessarily limit subcontracting opportunities for small, HUBZone small, small disadvantaged, women-owned small, veteran-owned, and service-disabled veteran-owned small business concerns.
(2) For a negotiated acquisition, if you believe that the acquisition provides substantial subcontracting opportunities, consider including the offeror’s subcontracting plan as an evaluation factor for award. This may be most appropriate in acquisitions when you expect individual plans or master plans. You should consult with your SBTA or regional SBUC to obtain any needed assistance with developing subcontracting plan evaluation criteria before incorporating the plan into the solicitation as an evaluation factor..
Target goals in sealed bidding
(b) Unrealistic target goals tend to inhibit competition or increase acquisition costs if goals are too high. Target goals that offer no challenge to potential contractors reflect poorly on GSA’s commitment to ensure maximum practicable use of small, HUBZone small, small disadvantaged, women-owned small, veteran-owned, and service-disabled veteran-owned small business concerns as subcontractors.
(c) In establishing target goals for sealed bid solicitations, avoid using mechanical formulas or similar approaches that may be considered arbitrary. Reviewing historical performance by contractors performing similar work is valid, but you should consider each solicitation independently in terms of the potential for subcontracting. Use as many information sources as practical, including your own knowledge of the supplies or services. Factors to consider in setting targets include:
(1) Manufacturing processes involved.
(2) Availability and location of potential subcontractors.
(3) The basis for establishing subcontracting relationships.
(4) The diversity in prevailing economic conditions in the place of contract performance.
(d) If you cannot establish realistic target goals, do not state specific targets in the solicitation.
(1) Establishing realistic target goals is likely to be a problem in contracting for supplies because the place of contract performance may not be known prior to contract award.
(2) Even if you can predict the area of contract performance because a particular industry is concentrated there, the diversity of manufacturing processes may affect the amount of subcontracting and how subcontracting relationships are established. For example, some manufacturers may use formal teaming arrangements or long term relationships versus nonrepetitive purchase orders.
