(a) If you administer a contract with an individual contract plan, you must also monitor receipt of SF 294 reports.
(b) On all contracts with a subcontracting plan (individual or commercial), you must monitor receipt of the SF 295 reports.
(c) Review reports for progress in meeting subcontracting goals by comparing the applicable report with the plan. If percentage goals are not met, require the contractor to explain the shortfall in the “Remarks” block of the subcontracting report. You may also require the contractor to submit evidence of its outreach efforts to locate and provide subcontracting opportunities to small business, HUBZone small business, small disadvantaged business, women-owned small, veteran-owned, and service-disabled veteran-owned small business concerns.
(d) If an SF 294 or SF 295 is not received within 10 days of the due date, contact the contractor and request that the report be submitted immediately. For contracts with individual contract plans, pay particular attention to the final SF 294 required at contract completion. Issue to contractors who do not respond to the first notice a second notice by certified mail indicating:
(1) The named report has not been received.
(2) The contractor’s failure to submit the report is a material breach of its contract (see FAR 52.219-9, Small Business Subcontracting Plan).
(3) If the report is not received within 10 days from the date of the notice, you will consider withholding payments until the report is received or terminating the contract for default. To ensure that the facts support a termination for default, the notice should provide the contractor with the opportunity to show cause why the contract should not be terminated for default. [Note: These statements do not apply to leases of real property unless the terms of the lease expressly provide for withholding of payment or termination under this circumstance.]
(4) Failure to submit the report may affect the contractor’s ability to receive future awards from GSA (see FAR 9.104-3(c)) and willful failure to perform or a history of failure to perform may result in debarment from future contracting with the Government for a period of time (see FAR 9.406-2(b)).
(5) That the report should be submitted to you and a copy of the report must be sent to the Office of Small Business Utilization (E), if it is an SF 295 report, or to the appropriate SBTA, if it is an SF 294 report.
