Gsa Small Business Subcontracting Plan
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Section 1614 also requires contractors to demonstrate their procedures established to ensure subcontractors at all tiers comply with their subcontracting plans.
If the GAO had reached the opposite conclusion, it could have opened the door for prime contractors to wiggle out of their small business subcontracting obligations.
Instead, the GAO held that the small business subcontracting plan requirement applies broadly, even when the prospective prime contractor is a university.
The proposal would make the following changes to three Subparts of the FAR: 1.
Update the definition of "subcontract" to the following: Subcontract means a legally binding agreement— (1) Between a contractor, that is under contract to another party to perform work, and a third party (i.e., the subcontractor); (2) For the subcontractor to perform a part of the work that the contractor has undertaken; and (3) That is not an employer-employee relationship. Add the following definitions of first-tier and lower-tier subcontract: First-tier subcontract means any subcontract directly with the prime contractor. Proposes to amend FAR 42.1503(a), (b) by replacing "goals as negotiated" with "goals as negotiated, including lower-tier goals as applicable" in the Evaluation Ratings Definitions, and Definitions in Exceptional, and Very Good. Proposes to amend FAR 42.1503(c) by replacing "subcontracting goals" with "subcontracting goals, including lower-tier goals as applicable" in the Definition of "Satisfactory." 4.
This requirement to have two sets of subcontracting goals applies only to the prime contractor's individual subcontracting plan and does not apply to subcontractors' subcontracting plans.
Per the SBA's final rule, the prime contractor's performance under the individual subcontracting plan will be evaluated based on its combined performance under the first-tier and lower-tier goals.
In addition, the final rule implemented the statutory requirements related to the new assurances and written statement to be included in subcontracting plans.
The University stated that it intended to submit a proposal under the solicitation, but had not done so because, as a university, it does not subcontract for the performance of the language services that it would be proposing to perform.
The University argued, in part, that the FAR contemplates an “offeror by offeror determination regarding the need for a small business subcontracting plan.” The University suggested that, based on this “offeror by offeror” analysis, the GSA should accept a proposal from the University, even if the proposal omitted a subcontracting plan.