[Part III - Section J]{.underline}

[Appendix E]{.underline}

Small Business and Small Disadvantaged

Business Subcontracting Plan

For

Sandia Corporation

Period of October 1, 1998 through September 30, 2003

This Small and Small Disadvantaged Business Subcontracting Plan is
submitted by Sandia Corporation in accordance with Section 8(d) of
Public Law 95-507. It is established between Sandia Corporation and the
Department of Energy (DOE) under prime Contract Number
DE‑AC04-94AL85000.

I. GOALS

> A. The Contractor\'s proposed Small Business (SB), Small Disadvantaged
> Business (SDB) and Woman-Owned Small Business (WOSB) goals shall be
> submitted in writing each fiscal year during the term of this
> contract, or by such later date as the Contracting Officer may
> authorize in writing. The established goals will be incorporated into
> this Plan by letter and will not require contract modification.
>
> The proposed goals shall be based upon an established percentage of
> estimated commercial purchases, excluding purchases on the Sandia
> National Laboratories (SANDIA) procurement card program, which will be
> derived from the current fiscal year budget. Goals may be changed
> within the first six months of each fiscal year with the approval of
> the contracting officer. In the event that there is a significant
> funding reduction for a specific program/project at SANDIA, SANDIA
> shall be allowed to submit a request for goal adjustment. The request
> will be supported by a detailed justification and signed by the
> Director of Supplier Relations. Goals for the utilization of SB, SDB,
> and WOSB subcontractors shall be submitted as follows unless otherwise
> requested by the Contracting Officer:
>
> 1\. Total commercial procurement dollars available for subcontracting.
>
> 2\. Total dollars and percentage planned to be subcontracted by SB's.
>
> 3\. Total dollars and percentage planned to be subcontracted to SB
> set-asides.
>
> 4\. Total dollars and percentage planned to be subcontracted to SDB's.
>
> 5\. Total dollars and percentage planned to be subcontracted to
> WOSB's.

###### B. PRODUCTS AND SERVICES 

> 1\. The principal products and services to be obtained in support of
> this Plan are those generally associated with a multi-program science
> and engineering laboratory. Small Business, Small Disadvantaged
> Business, and Woman Owned Small Business will generally supply a
> significant portion of the goods and services purchased. Examples of
> commodities are as indicated below.

######### Laboratory Equipment

####### Construction/Renovation

####### Office Supplies & Furniture

> Engineering Services & Supplies

# Chemicals & Adhesives

####### Tools

> Electronics
>
> Selected Services
>
> Computer and Office Supplies

# Specialty/Promotional items

#### Safety Equipment

> Mechanical Subassemblies
>
> Computer Supplies & Equipment

# Media Services and Supplies

> Selected Services
>
> Electrical Components & Assemblies

######## Clothing

######## 

> 2\. Methodology for Determining Subcontracting Goals
>
> Annual goals are developed, which are primarily based upon the
> previous years' records and experience. The anticipated needs and
> programs for the current year are also taken into consideration.
>
> 3\. Methodology for Identification of Suppliers
>
> Trade Fairs - The Contractor actively participates in Minority
> Business Opportunity Trade Fairs across the Southwest and across the
> United States. The Contractor shall participate in those trade fairs
> that will be most beneficial to the Contractor's efforts in
> identifying Small Businesses, Small Disadvantaged Businesses, and
> Woman-Owned Small Businesses.
>
> PRO-Net - SBA's PRO-Net internet database may be used as a source of
> potential small business suppliers.
>
> Supplier Facility Survey - The Contractor\'s buyers, engineers and
> other support personnel, as required, may visit selected facilities of
> prospective SB/SDB and WOSB suppliers to assess their capability,
> capacity, and potential to provide goods and services to the
> Laboratories.
>
> National, Regional, and Local Business & Trade Organizations - The
> Contractor shall be an active member in those organizations that best
> meet Sandia's requirements and are of benefit to the supplier
> community.
>
> Other Sources of Information - Various local, regional, and national
> small, disadvantaged and woman-owned small business directories and
> associations.
>
> 4\. Indirect costs have not been included in the dollar and percentage
> in subcontracting goals stated above.

II\. PROGRAM ADMINISTRATOR

> The Contractor\'s Director of Supplier Relations, Leonel V. Miranda,
> P.O. Box 5800 MS-1381, Albuquerque, NM 87185-1381, (505) 843-4120,
> will be responsible for the administration of this Subcontracting
> Plan. Responsibilities of the Director of Supplier Relations include:
>
> Assure success of the Plan by assisting Procurement in preparing
> directives and procedures.
>
> Serve as the Contractor\'s Small Business (SB), Small Disadvantaged
> Business (SDB), and Woman-Owned Small Business (WOSB) Liaison Officer.
>
> Search for SB, SDB, and WOSB sources for use by the Contractor in
> proposed procurements expected to exceed \$100,000.
>
> Review SB, SDB, and WOSB subcontracting plans submitted to the
> Contractor in connection with supply and/or service subcontract awards
> of \$500,000 or greater (or \$1,000,000 or greater for construction),
> and assure that such plans are consistent with PL95-507 requirements.
>
> Ensure flow down of appropriate clauses in subcontracts.
>
> Collect and prepare necessary data to submit reports to the
> Contracting Officer as required.
>
> Provide statistics to the Contractor\'s management on progress toward
> established goals and recognition of significant Buyer/Subcontract
> Specialist performance in this area.
>
> Assure inclusion of SB, SDB, and WOSB firms in solicitations where
> appropriate and cost efficient.
>
> Maintain business directories from national, regional, and local
> business and trade organizations, and other sources to expand and keep
> current listings of SB, SDB, and WOSB sources.
>
> Participate as the Contractor\'s representative in SB, SDB, and WOSB
> trade fairs, specifically directed toward offering opportunities for
> participants to do business with the Contractor.
>
> Serve as the Contractor\'s representative to business and trade
> organizations and other appropriate organizations.
>
> Hold periodic training and other meetings with the procurement staff
> on the Socioeconomic Programs.
>
> Conduct periodic meetings and otherwise communicate with all
> Laboratories' organizational components regarding the Plan's goals and
> status.
>
> Support Small Business Administration (SBA) activities.

III\. OUTREACH EFFORTS

> The following efforts shall be taken to assure that Small and Small
> Disadvantaged and Woman-Owned Business Concerns will have an equitable
> opportunity to compete for subcontracts:

#### A. External Efforts

> Attendance at local SB, SDB, and WOSB procurement conferences and
> trade fairs. Some examples include: Annual Small Minority Expo; Small
> Business Government Trade Fair; Annual Minority Business Enterprise
> (MBE) Trade Fair, and the Office of Small and Disadvantaged Business
> Utilization National Conference.
>
> Utilization of the following publications and directories to identify
> new SB, SDB, and WOSB sources:
>
> TRY US
>
> Thomas Register

## SBA's PRO-Net

> SupplierLink Data Base
>
> Local, regional business and trade organization directories
>
> In some instances, a Contractor engineer or other specialist may
> assist Procurement conducting an on-site survey of a SB, SDB, 8(a), or
> WOSB facility. These technical experts also assist (when needed)
> during subcontract performance.
>
> The Contractor will maintain an active membership and representation
> on the Board of Directors of organizations that the Contractor may
> partner with for the mutual benefit of the Contractor and the supplier
> community.

#### B. Internal Efforts

> Procurement activities shall be monitored to evaluate compliance with
> the Subcontracting Plan
>
> The Contractor shall establish Department goals for SB, SDB, and WOSB
> procurement activity that are established annually. These goals are
> made part of the Manager's performance evaluation and are monitored by
> Senior Procurement Management.
>
> Procurement activity is monitored on a monthly basis and reports are
> provided based on various criteria. A monthly-published procurement
> activity report is distributed to Procurement Management and buyers.
> The utilization of this report allows Procurement to forecast
> requirements necessary to accomplish its goals as a Laboratory.
>
> Every effort is made to ensure that adequate funding is available for
> participation in the various small and disadvantaged business trade
> fairs, conferences, and Board meetings. A separate annual budget is
> therefore established and approved during the beginning of the fiscal
> year, to be utilized strictly for socioeconomic outreach activities.

##### IV. SUBCONTRACTING PLAN FLOWDOWN 

> The contractor agrees that FAR 52.219-8 entitled "Utilization of
> Small, Small Disadvantaged, and Women-Owned Small Business Concerns"
> will be included in all subcontracts which offer further
> subcontracting opportunities. All subcontractors except small business
> concerns who receive subcontracts in excess of \$500,000 or
> \$1,000,000 for construction of a public facility will be required to
> adopt and comply with a Subcontracting Plan similar to this one. Such
> Plans will be reviewed by comparing them with the provisions of the
> clause, "Small, Small Disadvantaged, and Women-Owned Small Business
> Subcontracting Plan" (FAR 52.219-9), and assuring that all minimum
> requirements of an acceptable subcontracting plan have been satisfied.
> The acceptability of percentage and dollar goals shall be determined
> on a case-by-case basis depending on the supplies/services involved,
> the availability of potential small and small-disadvantaged and
> woman-owned subcontractors, and prior experience. Once approved and
> implemented, Plans will be monitored through the submission of
> periodic reports, and/or, as time and availability of funds permit,
> periodic visits to subcontractors' facilities to review applicable
> records and subcontracting program progress.

V. REPORTS AND SURVEYS

> The Contractor shall submit reports to the DOE, as requested, in a
> format agreed upon. The Contractor shall submit semi-annual SF 294
> reports and annual SF 295 reports and cooperate in any studies or
> surveys as may be required by the Contracting Officer or the SBA in
> order to determine the extent of compliance by the Contractor with the
> Subcontracting Plan and with the clause entitled "Utilization of
> Small, Small Disadvantaged, and Women-Owned Small Business Concerns,"
> contained in the Contract. Until directed otherwise, the SF 294 and SF
> 295 forms to be submitted are an older version (Rev. 1-90).

##### VI. RECORDS AND PROCEDURES 

> The Contractor shall maintain the following types of records to
> document compliance with this Subcontracting Plan:
>
> Procurement data is tracked by automated system that provides
> historical data related to each subcontract.
>
> On a contract-by-contract basis, records on all subcontract
> solicitations over \$100,000 will indicate on each solicitation (1)
> whether SB, SDB, or WOSB concerns were solicited, and if not, why not;
> and (2) reasons for the failure of solicited SB, SDB, or WOSB concerns
> to receive the subcontract award.
>
> Records to support other outreach efforts: Attendance at small and
> minority business procurement conferences and trade fairs.
>
> > Records to support internal activities to guide and encourage
> > buyers: workshops, seminars, training programs, award programs, etc.
> > monitoring activities to evaluate compliance.
>
> Organizations contacted in an attempt to locate small,
> small-disadvantaged, and woman-owned business sources.
>
> On a contract-by-contract basis, records to support subcontract award
> data to include name and address of subcontractor as well as the size
> and type of business that received the award.
>
> Small and Small Disadvantaged Business concern source lists, guides,
> and other data identifying SB, SDB, and WOSB suppliers.

SUBMITTED BY: Company Sandia Corporation

> Signature
> \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
>
> Typed name Leonel V. Miranda

### Title Director of Supplier Relations

### Date \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

PLAN CONCURRED IN BY:

> \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
>
> Lillian A. Retallack
>
> Small Business Program Manager
>
> Albuquerque Operations Office

### 

### Date \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

ACCEPTED BY:
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

> JoAnne M. Sackett
>
> Contracting Officer
>
> Albuquerque Operations Office

### Date \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_