52.219-9 Small Business Subcontracting Plan (Sept 2006)

\(a\) This clause does not apply to small business concerns.

\(b\) *Definitions*. As used in this clause---

"Commercial item" means a product or service that satisfies the
definition of commercial item in section 2.101 of the Federal
Acquisition Regulation.

"Commercial plan" means a subcontracting plan (including goals) that
covers the offeror's fiscal year and that applies to the entire
production of commercial items sold by either the entire company or a
portion thereof (*e.g., *division, plant, or product line).

"Individual contract plan" means a subcontracting plan that covers the
entire contract period (including option periods), applies to a specific
contract, and has goals that are based on the offeror's planned
subcontracting in support of the specific contract, except that indirect
costs incurred for common or joint purposes may be allocated on a
prorated basis to the contract.

"Master plan" means a subcontracting plan that contains all the required
elements of an individual contract plan, except goals, and may be
incorporated into individual contract plans, provided the master plan
has been approved.

"Subcontract" means any agreement (other than one involving an
employer-employee relationship) entered into by a Federal Government
prime Contractor or subcontractor calling for supplies or services
required for performance of the contract or subcontract.

\(c\) The offeror, upon request by the Contracting Officer, shall submit
and negotiate a subcontracting plan, where applicable, that separately
addresses subcontracting with small business, veteran-owned small
business, service-disabled veteran-owned small business, HUBZone small
business concerns, small disadvantaged business, and women-owned small
business concerns. If the offeror is submitting an individual contract
plan, the plan must separately address subcontracting with small
business, veteran-owned small business, service-disabled veteran-owned
small business, HUBZone small business, small disadvantaged business,
and women-owned small business concerns, with a separate part for the
basic contract and separate parts for each option (if any). The plan
shall be included in and made a part of the resultant contract. The
subcontracting plan shall be negotiated within the time specified by the
Contracting Officer. Failure to submit and negotiate the subcontracting
plan shall make the offeror ineligible for award of a contract.

\(d\) The offeror's subcontracting plan shall include the following:

\(1\) Goals, expressed in terms of percentages of total planned
subcontracting dollars, for the use of small business, veteran-owned
small business, service-disabled veteran-owned small business, HUBZone
small business, small disadvantaged business, and women-owned small
business concerns as subcontractors. The offeror shall include all
subcontracts that contribute to contract performance, and may include a
proportionate share of products and services that are normally allocated
as indirect costs.

\(2\) A statement of---

> \(i\) Total dollars planned to be subcontracted for an individual
> contract plan; or the offeror's total projected sales, expressed in
> dollars, and the total value of projected subcontracts to support the
> sales for a commercial plan;
>
> \(ii\) Total dollars planned to be subcontracted to small business
> concerns;
>
> \(iii\) Total dollars planned to be subcontracted to veteran-owned
> small business concerns;
>
> \(iv\) Total dollars planned to be subcontracted to service-disabled
> veteran-owned small business;
>
> \(v\) Total dollars planned to be subcontracted to HUBZone small
> business concerns;
>
> \(vi\) Total dollars planned to be subcontracted to small
> disadvantaged business concerns; and
>
> \(vii\) Total dollars planned to be subcontracted to women-owned small
> business concerns.

\(3\) A description of the principal types of supplies and services to
be subcontracted, and an identification of the types planned for
subcontracting to---

> \(i\) Small business concerns;
>
> \(ii\) Veteran-owned small business concerns;
>
> \(iii\) Service-disabled veteran-owned small business concerns;
>
> \(iv\) HUBZone small business concerns;
>
> \(v\) Small disadvantaged business concerns; and
>
> \(vi\) Women-owned small business concerns.

\(4\) A description of the method used to develop the subcontracting
goals in paragraph (d)(1) of this clause.

\(5\) A description of the method used to identify potential sources for
solicitation purposes (*e.g., *existing company source lists, the
Procurement Marketing and Access Network (PRO-Net) of the Small Business
Administration (SBA), veterans service organizations, the National
Minority Purchasing Council Vendor Information Service, the Research and
Information Division of the Minority Business Development Agency in the
Department of Commerce, or small, HUBZone, small disadvantaged, and
women-owned small business trade associations). A firm may rely on the
information contained in PRO-Net as an accurate representation of a
concern's size and ownership characteristics for the purposes of
maintaining a small, veteran-owned small, service-disabled veteran-owned
small, HUBZone small, small disadvantaged, and women-owned small
business source list. Use of PRO-Net as its source list does not relieve
a firm of its responsibilities (*e.g., *outreach, assistance,
counseling, or publicizing subcontracting opportunities) in this clause.

\(6\) A statement as to whether or not the offeror included indirect
costs in establishing subcontracting goals, and a description of the
method used to determine the proportionate share of indirect costs to be
incurred with---

> \(i\) Small business concerns;
>
> \(ii\) Veteran-owned small business concerns;
>
> \(iii\) Service-disabled veteran-owned small business concerns;
>
> \(iv\) HUBZone small business concerns;
>
> \(v\) Small disadvantaged business concerns; and
>
> \(vi\) Women-owned small business concerns.

\(7\) The name of the individual employed by the offeror who will
administer the offeror's subcontracting program, and a description of
the duties of the individual.

\(8\) A description of the efforts the offeror will make to assure that
small business, veteran-owned small business, service-disabled
veteran-owned small business, HUBZone small business, small
disadvantaged business, and women-owned small business concerns have an
equitable opportunity to compete for subcontracts.

\(9\) Assurances that the offeror will include the clause of this
contract entitled "Utilization of Small Business Concerns" in all
subcontracts that offer further subcontracting opportunities, and that
the offeror will require all subcontractors (except small business
concerns) that receive subcontracts in excess of \$550,000 (\$1,000,000
for construction of any public facility) to adopt a subcontracting plan
that complies with the requirements of this clause.

\(10\) Assurances that the offeror will---

> \(i\) Cooperate in any studies or surveys as may be required;
>
> \(ii\) Submit periodic reports so that the Government can determine
> the extent of compliance by the offeror with the subcontracting plan;
>
> \(iii\) Submit Standard Form (SF) 294, Subcontracting Report for
> Individual Contracts, and/or SF 295, Summary Subcontract Report, in
> accordance with paragraph (j) of this clause. The reports shall
> provide information on subcontract awards to small business concerns,
> veteran-owned small business concerns, service-disabled veteran-owned
> small business concerns, HUBZone small business concerns, small
> disadvantaged business concerns, women-owned small business concerns,
> and Historically Black Colleges and Universities and Minority
> Institutions. Reporting shall be in accordance with the instructions
> on the forms or as provided in agency regulations.
>
> \(iv\) Ensure that its subcontractors agree to submit SF 294 and
> SF 295.

\(11\) A description of the types of records that will be maintained
concerning procedures that have been adopted to comply with the
requirements and goals in the plan, including establishing source lists;
and a description of the offeror's efforts to locate small business,
veteran-owned small business, service-disabled veteran-owned small
business, HUBZone small business, small disadvantaged business, and
women-owned small business concerns and award subcontracts to them. The
records shall include at least the following (on a plant-wide or
company-wide basis, unless otherwise indicated):

> \(i\) Source lists (*e.g., *PRO-Net), guides, and other data that
> identify small business, veteran-owned small business,
> service-disabled veteran-owned small business, HUBZone small business,
> small disadvantaged business, and women-owned small business concerns.
>
> \(ii\) Organizations contacted in an attempt to locate sources that
> are small business, veteran-owned small business, service-disabled
> veteran-owned small business, HUBZone small business, small
> disadvantaged business, or women-owned small business concerns.
>
> \(iii\) Records on each subcontract solicitation resulting in an award
> of more than \$100,000, indicating---
>
> \(A\) Whether small business concerns were solicited and, if not, why
> not;
>
> \(B\) Whether veteran-owned small business concerns were solicited
> and, if not, why not;
>
> \(C\) Whether service-disabled veteran-owned small business concerns
> were solicited and, if not, why not;
>
> \(D\) Whether HUBZone small business concerns were solicited and, if
> not, why not;
>
> \(E\) Whether small disadvantaged business concerns were solicited
> and, if not, why not;
>
> \(F\) Whether women-owned small business concerns were solicited and,
> if not, why not; and
>
> \(G\) If applicable, the reason award was not made to a small business
> concern.
>
> \(iv\) Records of any outreach efforts to contact---
>
> \(A\) Trade associations;
>
> \(B\) Business development organizations;
>
> \(C\) Conferences and trade fairs to locate small, HUBZone small,
> small disadvantaged, and women-owned small business sources; and
>
> \(D\) Veterans service organizations.
>
> \(v\) Records of internal guidance and encouragement provided to
> buyers through---
>
> \(A\) Workshops, seminars, training, etc.; and
>
> \(B\) Monitoring performance to evaluate compliance with the program's
> requirements.

\(vi\) On a contract-by-contract basis, records to support award data
submitted by the offeror to the Government, including the name, address,
and business size of each subcontractor. Contractors having commercial
plans need not comply with this requirement.

\(e\) In order to effectively implement this plan to the extent
consistent with efficient contract performance, the Contractor shall
perform the following functions:

\(1\) Assist small business, veteran-owned small business,
service-disabled veteran-owned small business, HUBZone small business,
small disadvantaged business, and women-owned small business concerns by
arranging solicitations, time for the preparation of bids, quantities,
specifications, and delivery schedules so as to facilitate the
participation by such concerns. Where the Contractor's lists of
potential small business, veteran-owned small business, service-disabled
veteran-owned small business, HUBZone small business, small
disadvantaged business, and women-owned small business subcontractors
are excessively long, reasonable effort shall be made to give all such
small business concerns an opportunity to compete over a period of time.

\(2\) Provide adequate and timely consideration of the potentialities of
small business, veteran-owned small business, service-disabled
veteran-owned small business, HUBZone small business, small
disadvantaged business, and women-owned small business concerns in all
"make-or-buy" decisions.

\(3\) Counsel and discuss subcontracting opportunities with
representatives of small business, veteran-owned small business,
service-disabled veteran-owned small business, HUBZone small business,
small disadvantaged business, and women-owned small business firms.

\(4\) Confirm that a subcontractor representing itself as a HUBZone
small business concern is identified as a certified HUBZone small
business concern by accessing the Central Contractor Registration (CCR)
database or by contacting SBA.

\(5\) Provide notice to subcontractors concerning penalties and remedies
for misrepresentations of business status as small, veteran-owned small
business, HUBZone small, small disadvantaged, or women-owned small
business for the purpose of obtaining a subcontract that is to be
included as part or all of a goal contained in the Contractor's
subcontracting plan.

\(f\) A master plan on a plant or division-wide basis that contains all
the elements required by paragraph (d) of this clause, except goals, may
be incorporated by reference as a part of the subcontracting plan
required of the offeror by this clause; provided---

\(1\) The master plan has been approved;

\(2\) The offeror ensures that the master plan is updated as necessary
and provides copies of the approved master plan, including evidence of
its approval, to the Contracting Officer; and

\(3\) Goals and any deviations from the master plan deemed necessary by
the Contracting Officer to satisfy the requirements of this contract are
set forth in the individual subcontracting plan.

\(g\) A commercial plan is the preferred type of subcontracting plan for
contractors furnishing commercial items. The commercial plan shall
relate to the offeror's planned subcontracting generally, for both
commercial and Government business, rather than solely to the Government
contract. Commercial plans are also preferred for subcontractors that
provide commercial items under a prime contract, whether or not the
prime contractor is supplying a commercial item.

\(h\) Prior compliance of the offeror with other such subcontracting
plans under previous contracts will be considered by the Contracting
Officer in determining the responsibility of the offeror for award of
the contract.

\(i\) The failure of the Contractor or subcontractor to comply in good
faith with---

\(1\) The clause of this contract entitled "Utilization Of Small
Business Concerns;" or

\(2\) An approved plan required by this clause, shall be a material
breach of the contract.

\(j\) The Contractor shall submit the following reports:

> \(1\) *Standard Form 294, Subcontracting Report for Individual
> Contracts.* This report shall be submitted to the Contracting Officer
> semiannually and at contract completion. The report covers subcontract
> award data related to this contract. This report is not required for
> commercial plans.
>
> \(2\) *Standard Form 295, Summary Subcontract Report.* This report
> encompasses all of the contracts with the awarding agency. It must be
> submitted semi-annually for contracts with the Department of Defense
> and annually for contracts with civilian agencies. If the reporting
> activity is covered by a commercial plan, the reporting activity must
> report annually all subcontract awards under that plan. All reports
> submitted at the close of each fiscal year (both individual and
> commercial plans) shall include a breakout, in the Contractor's
> format, of subcontract awards, in whole dollars, to small
> disadvantaged business concerns by North American Industry
> Classification System (NAICS) Industry Subsector. For a commercial
>
> plan, the Contractor may obtain from each of its subcontractors a
> predominant NAICS Industry Subsector and report all awards to that
> subcontractor under its predominant NAICS Industry Subsector.

(End of clause)