(a) You may provide offerors a model subcontracting plan when you determine it appropriate, e.g., when it may facilitate evaluation or negotiation. You may use the model plan developed by the Office of Small Business Utilization (E) in Appendix 519A. Include the following notice on the transmittal, if you provide a model in response to a single request, or in the solicitation, if you include it as an attachment:
Notice to Offerors: “GSA provides this model plan as a tool. You must adapt this model plan to fit your subcontracting situation. The plan is NOT a fill-in-the-blank form and you must remove instructional language. This model does not establish minimum requirements for an acceptable plan. The model reflects objectives GSA encourages contractors to adopt.”
(b) Performance under other contracts is an indicator of an offeror’s understanding of the reasons for the law and benefits of the program.
(1) If an offeror prepared a subcontracting plan for another contract, contact the contracting officer responsible for administering the earlier plan to determine if the offeror met the plan’s objectives and submitted required reports in a timely manner.
(2) Consider overall compliance in your evaluation, not just whether or not the offeror met the goals established in the plan.
(3) Submission of timely reports is an indication the offeror takes its responsibilities seriously.
(c) Be flexible and guard against using arbitrary criteria when reviewing a subcontracting plan. If an offeror has not submitted a previously-approved commercial or master subcontracting plan, such detailed review may not be necessary. You may use the Subcontracting Plan Evaluation Checklist at Appendix 519B to identify potential weaknesses that should be called to the offeror’s attention.
(1) Remember that a positive goal is required to establish a gauge for measuring results and to provide an incentive for continuing efforts to increase the dollar value of subcontracts placed with small, HUBZone small, small disadvantaged, women-owned small, veteran-owned, and service-disabled veteran-owned small business concerns. Carefully scrutinize any subcontracting category (e.g., small business, HUBZone small business, etc.) where the offeror does not specify a goal and accept it only after assuring that no subcontracting opportunities exist. If you accept any category with no goal:
(i) You must document the file explaining why you accepted it.
(ii) The subcontracting plan must include an assurance that the contractor will make every effort to continue seeking subcontracting opportunities in the category that lacks a goal.
(2) One measure of the adequacy of a subcontracting plan is that it provides a challenge to the offeror and then builds upon previous achievements in subsequent contracts.
(3) Include in the contract file your basis for determining the subcontracting plan’s acceptability.
(d) You can not tell the offeror what its goals must be. You may tell the offeror what GSA’s national goals are. Ensure that an offeror’s subcontracting plan reflects realistic goals and provide the maximum opportunity practicable to small, HUBZone small, small disadvantaged, women-owned small, veteran-owned, and service-disabled veteran-owned small business concerns to participate as subcontractors. If necessary, obtain information from the offeror to substantiate the offeror’s proposed goals, past performance with respect to subcontracting, and the proposed good faith effort. This information may include the names of proposed subcontractors and other such data.
(e) When you receive subcontracting plans with initial offers, provide an opportunity to the SBTA to review the subcontracting plans of those offers in the competitive range. Allow the SBTA 5 workdays for review. Consider the SBTA’s comments in developing your negotiation strategy.
Negotiating Goals and Other Aspects of Plans
(f) For complex or large dollar value procurements, when an offeror proposes miniscule or minimally acceptable goals for small, HUBZone small, small disadvantaged, women-owned small, veteran-owned, and service-disabled veteran-owned small business concerns, ensure that the offeror has included all subcontracts that contribute to contract performance (see FAR 52.219-9(d)(1)).
(g) Develop a strategy for negotiating the subcontracting plan and goals just as you would for negotiating a contract. Be forceful in negotiating the subcontracting plan and, whenever possible, offer recommendations for subcontracting potential with small, HUBZone small, small disadvantaged, women-owned small, veteran-owned, and service-disabled veteran-owned small business concerns. Suggest organizations the offeror may contact to identify potential sources. For example, offerors may contact any of the following:
(1) Local SBA offices. These can provide an offeror assistance in accessing the Central Contractor Registration database to conduct market research and confirm the eligibility for SBA’s procurement preference programs.
(2) Department of Commerce, Minority Business Development Agencies (MBDA’s). An offeror can ask for access to the MBDA’s Profile System. Refer offerors to Internet address http://www.mbda.gov for more information.
(3) GSA Regional small business staffs and SBTAs, as well as Office of Small Business Utilization.
(4) State, county, and city government minority business offices.
(5) Small, minority, women-owned, and veteran business associations by accessing Internet address www.gsa.gov/smallbusiness.
(6) Local chambers of commerce.
(7) Trade associations, professional organizations, and Procurement Technical Assistance Centers.
(8) www.vetbiz.gov
(h) In developing a negotiation strategy, consider whether the offeror’s plan is realistic and does more than merely restate the elements required by FAR clause 52.219-9. Question aspects of the plan that do not appear to be realistic or do not demonstrate a serious attempt to address requirements.
Commercial plans
(i) Obtain from the contractor copies of any commercial plan for the company’s fiscal year and approval document from another GSA contracting activity or another Federal agency. Incorporate these documents in the contract.
(j) If GSA is the first agency to enter into a contract with a company during the company’s fiscal year, you must approve the commercial plan, ensure receipt of the SF 295, and evaluate compliance with the plan. If contract administration is delegated, the Administrative Contracting Officer (ACO) generally is assigned responsibility for receiving the SF 295 and evaluating compliance. Subsequent GSA contracts awarded during the company’s same fiscal year and incorporating the previously approved plan will not require submission of subcontracting reports.
(k) If the commercial plan was approved by another agency, the first GSA contracting officer entering into a contract with the company during the company’s same fiscal year in which the plan was approved requires the contractor to submit the SF 295 report and monitors receipt of the report. GSA requires no other monitoring or evaluation of this plan.
