Department Of Defense Sub-Contracting Program

The Basics of the Department Of Defense Sub-Contracting Program in Section 8(d) Small Business Act – 15 USC 637(d) Specifies that small businesses will have maximum practicable opportunity to participate in contract performance consistent with efficient performance.

Section 15(g) Small Business Act15 USC 644(g) Specifies government-wide goals for contracts and subcontracts awarded to small business concerns

Small businesses will have maximum practicable opportunity to participate in contract performance consistent with efficient performance Subcontracting Plan requirement Comply in good faith with subcontract plan requirements Imposition of liquidated damages

SEE FAR Regulations on sub-contracting opportunities:

When not required

For personal services contracts
For contracts / modifications performed entirely outside US & outlying areas

From small businesses
For personal services contracts
For contracts / modifications performed entirely outside US & outlying areas
For modifications to contracts within general scope of the contract that do not contain FAR 52.219-8 (or equivalent prior clauses, e.g., contracts awarded before enactment of PL 95-507)
If no subcontract opportunities, approval required level above CO & placed in contract

Types of Subcontracting Plans (FAR 19.7 / 52.219-9 and related DFARS)

Individual

1 contract – 1 plan
Goals support planned subcontracting for 1 contract
Covers entire contract period (including options)
Contains mandatory elements
Submit Subcontracting Reports
ISR* or SF 294 (Deviation) (semiannually)
SSR** (semiannually for DoD)
* Individual Subcontracting
Report (electronic version)
** Summary Subcontracting
Report (electronic version)

Master

Boilerplate info – contains same elements as individual plan minus goals
Goals negotiated for each applicable contract
Effective for 3 years after approval of Contracting Officer
May be developed on a Plant / Division basis
Subcontracting Reports required when goals negotiated for each applicable contract (same as for Individual plan)

Commercial

Preferred for contractors furnishing commercial items
Applies to entire production of commercial items sold by either entire company or a portion thereof (Division, plant or product line)
Based on contractor’s FY
Annual plan (applies to all government contracts in effect during that period)
Contains mandatory elements
Submit Subcontracting Reports
SSR (Annually)

 Comprehensive

DoD Test Program for Negotiation of Comprehensive SB Subcontracting Plans
Similar to a commercial plan
May be on a Plant / Division / Corporate basis
Annual plan (applies to DoD contracts in effect during period)
ONLY DCMA is delegated authority to negotiate plan & perform surveillance review functions (with input from MILDEPS / Defense Agencies)
Submit Subcontracting Reports
SSR (semiannually)

Mandatory Elements Included in Subcontracting Plan (FAR 19.7/52.219-9)

  • Goals (% based on total planned subcontracting $ for each SB category)

  • Total $ to be subcontracted (overall & by category)

  • Description of principal types of supplies/services to be subcontracted (total & by category)

  • Description of method used to develop subcontract goals

  • Description of method used to identify potential SB sources

  • Indirect Costs (included/not included) & methodology used to determine proportionate share of indirect costs for each category

  • Name of individual administering subcontracting program & description of duties. (Where are they located organizationally?)

  • Description of efforts to ensure SB has an equitable opportunity to compete for subcontracts

  • Assurances

    • Cooperate in studies / surveys

    • Submit reports, as required

    • Submit ISR (or SF 294) / SSR as required
       

  • Record-keeping: description / procedures / process

  • “Flow down” clauses & reporting requirements

    • 52.219-8 (Utilization of SB Concerns)

    • 52.219-9 (Su

Categories Included in Goals of a Subcontracting Plan (as defined in FAR 19/26 and DFARS 252.219-7003)

Small business (SB) – located in U.S., organized for profit, including affiliates is independently owned & operated, not dominant in field of operations in which it is bidding on Government contracts, AND meets Small Business Administration (SBA) size standards included in solicitation. The size standard is based upon the North American Industrial Classification System (NAICS) assigned to the specific procurement dependent upon product/service purchased. Self-certify FAR 52.219-9 also includes subcontracts awarded to Alaska Native Corporation (ANC) or Indian tribe, regardless of size or SBA certification status of ANC or Indian tribe. DFARS 252.219-7003 also includes subcontracts awarded to qualified non-profit agencies approved by Committee for Purchase from People Who Are Blind or Severely Disabled, the independent federal agency that administers AbilityOne Program, formerly JWOD (Javits-Wagner-O’Day Act) (41 USC 46-48(c).

Woman-owned Small Business (WOSB) – Small Business, at least 51% owned by ≥ 1 women, AND management & daily business operations controlled by ≥1 women. Self-certify

Historically Underutilized Business Zone (HUBZone) <– Small Business, owned & controlled 51% or more by ≥ 1 U.S. citizens, AND SBA-certified as a HUBZone concern (principal office located in a designated HUBZone AND ≥ 35% of employees live in a HUBZone).

Veteran-Owned Small Business (VOSB) – Small Business, veteran-owned as defined in 38 USC 101(2), ≥ 51% owned by ≥1 veterans, AND management & daily business operations controlled by ≥ 1 veterans. Self-certify

Service-Disabled Veteran-Owned Small Business (SD-VOSB) – Small Business, veteran-owned, ≥51% owned by ≥ 1 service-disabled veterans, AND management & daily business operations controlled by ≥1 service-disabled veterans OR in the case of veteran with permanent & severe disability, the spouse or permanent caregiver of such veteran, AND with 0% - 100% service-connected disability as defined in 38 USC 101(16) & documented on DD 214 or equivalent. Self-certify

Small Disadvantaged Business (SDB) – Small Business unconditionally owned & controlled by <≥ 1 socially & economically disadvantaged individuals who are in good character & citizens of the U.S. Self-certify

FAR 52.219-9, SDB also includes: subcontracts awarded to Alaska Native Corporation (ANC) or Indian tribe regardless of size or SBA certification status of ANC or Indian tribe

DFARS 252.219-7003, SDB also includes:

  1. Work performed on Indian lands or joint venture with Indian tribe / tribally-owned corporation & meets requirements of 10 USC 2323a.

  2. Subcontracts awarded by a mentor firm, under the DoD Pilot Mentor-Protégé Program, to (1) protégé firms which are qualified organizations employing severely handicapped and (2) former protégé firms that meet the criteria in Section 831(g)(4) of P.L 101-510 (not more than 2 times SBA-specified maximum size & previous mentor-protégé agreement was not terminated for cause).

Subcontracting Resources

Procurement Technical Assistance Centers (PTAC) http://www.dla.mil/db/procurem.htm 

    1. DefenseLink $5M award notices http://www.defenselink.mil/contracts

      Electronic Subcontracting Reporting System (eSRS) http://www.esrs.gov 

    2. SBA Subnet http://web.sba.gov/subnet 

  1. Subcontracting Opportunities with DoD Major Prime Contractors http://www.acq.osd.mil.osbp/doing_business/index.htm   

  1. Companies Participating in DoD Subcontracting Program Report

  2. http://www.acq.osd.mil/osbp/doing_business/Subcontracting_Directory_0908.pdf 

  3. DAU Small Business Community of Practice (SB COP)

  4. https://acc.dau.mil/smallbusiness 

  5. FEDBIZOPPS http://www.fbo.gov 

  6. SBA Subcontracting Opportunities Directory http://www.sba.gov/aboutsba/sbaprograms/gc/contacts/index.html 

Lockheed Martin’s Camden, Arkansas Operations,

Lockheed Martin’s Camden, Arkansas Operations, could be good place for some sub contact work.

Doing Business with Lockheed Martin http://www.lockheedmartin.com/suppliers/doingbusiness/ which employs approximately 450 in southern Arkansas, is the final assembly site for the in Multiple Launch Rocket System (MLRS) line of launchers and precision-strike rockets, the transformational High Mobility Artillery Rocket System (HIMARS) launcher and the Patriot Advanced Capability-3 (PAC-3) Missile, the world’s only fielded, combat-proven terminal air defense missile employing hit-to-kill technology.  Additionally, the Terminal High Altitude Area Defense (THAAD) launcher will be produced in Camden beginning in 2017 .

 http://www.missilethreat.com/missiledefensesystems/id.61/system_detail.asp carried by M-1075 truck [ http://www.olive-drab.com/idphoto/id_photos_pls_m1075.php ]

Headquartered in Bethesda, Md., Lockheed Martin employs about 140,000 people worldwide and is principally engaged in the research, design, development, manufacture, integration and sustainment of advanced technology systems, products and services.  The Corporation reported 2007 contracts of $41.9 billion

“We base our existence on delivering products that meet or exceed contractual commitments and customer requirements, while adhering to the highest ethical and professional standards” said Woods.  “We don't just pay lip service to quality here in Camden… it’s ingrained in our culture at every level.  And that includes our suppliers and subcontract partners.”

FAR Regulations concerning sub-contracting opportunities for small business from prime government contractors.

FAR 19.7 / DFARS 219.7, Small Business Subcontracting Program
FAR 52.219-8, Utilization of Small Business Concerns
FAR 52.219-9 / DFARS 252.219-7003 SB Subcontracting Plan (DEVIATION)
FAR 52.219-16, Liquidated Damages
DFARS 252.219-7004, SB Subcontracting Plan (Test ) (DEVIATION)

 


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