52.219-9 Small Business Subcontracting

Plan.

As prescribed in 19.708(b), insert the following clause:

Small Business Subcontracting Plan (Sep 2023)

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

(b) Definitions. As used in this clause—

Alaska Native Corporation (ANC) means any Regional Corporation, Village Corporation, Urban

Corporation, or Group Corporation organized under the laws of the State of Alaska in accordance

with the Alaska Native Claims Settlement Act, as amended (43 U.S.C. 1601, et seq.) and which is

considered a minority and economically disadvantaged concern under the criteria at 43 U.S.C.

1626(e)(1). This definition also includes ANC direct and indirect subsidiary corporations, joint

ventures, and partnerships that meet the requirements of 43 U.S.C. 1626(e)(2).

Commercial plan means a subcontracting plan (including goals) that covers the offeror’s fiscal year

and that applies to the entire production of commercial products and commercial services sold by

either the entire company or a portion thereof (e.g., division, plant, or product line).

Commercial product means a product that satisfies the definition of “commercial product” in Federal

Acquisition Regulation (FAR) 2.101.

Commercial service means a service that satisfies the definition of “commercial service” in FAR

2.101.

Electronic Subcontracting Reporting System (eSRS) means the Governmentwide, electronic, webbased system for small business subcontracting program reporting. The eSRS is located at

http://www.esrs.gov.

Indian tribe means any Indian tribe, band, group, pueblo, or community, including native villages

and native groups (including corporations organized by Kenai, Juneau, Sitka, and Kodiak) as defined

in the Alaska Native Claims Settlement Act (43 U.S.C. 1601 et seq.), that is recognized by the

Federal Government as eligible for services from the Bureau of Indian Affairs in accordance with 25

U.S.C. 1452(c). This definition also includes Indian-owned economic enterprises that meet the

requirements of 25 U.S.C. 1452(e).

Individual subcontracting 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 subcontracting plan means a subcontracting plan that contains all the required elements of

an individual subcontracting plan, except goals, and may be incorporated into individual

subcontracting plans, provided the master subcontracting plan has been approved.

Reduced payment means a payment that is for less than the amount agreed upon in a subcontract in

accordance with its terms and conditions, for supplies and services for which the Government has
paid the prime contractor.

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.

Total contract dollars means the final anticipated dollar value, including the dollar value of all

options.

Untimely payment means a payment to a subcontractor that is more than 90 days past due under the

terms and conditions of a subcontract for supplies and services for which the Government has paid

the prime contractor.

(c)

(1) 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, small disadvantaged business, and women-owned small business concerns. If the

Offeror is submitting an individual subcontracting 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 subcontracting 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.

(2)

(i) The Contractor may accept a subcontractor's written representations of its size and

socioeconomic status as a small business, small disadvantaged business, veteran-owned small

business, service-disabled veteran-owned small business, or a women-owned small business if the

subcontractor represents that the size and socioeconomic status representations with its offer are

current, accurate, and complete as of the date of the offer for the subcontract.

(ii) The Contractor may accept a subcontractor's representations of its size and socioeconomic status

as a small business, small disadvantaged business, veteran-owned small business, service-disabled

veteran-owned small business, or a women-owned small business in the System for Award

Management (SAM) if–

(A) The subcontractor is registered in SAM; and

(B) The subcontractor represents that the size and socioeconomic status representations made in

SAM are current, accurate and complete as of the date of the offer for the subcontract.

(iii) The Contractor may not require the use of SAM for the purposes of representing size or

socioeconomic status in connection with a subcontract.

(iv) In accordance with 13 CFR 121.411, 126.900, 127.700, and 128.600, a contractor acting in good

faith is not liable for misrepresentations made by its subcontractors regarding the subcontractor's
size or socioeconomic status.

(d) The Offeror’s subcontracting plan shall include the following:

(1) Separate goals, expressed in terms of total dollars subcontracted, and as a percentage of total

planned subcontracting dollars, for the use of small business, veteran-owned small business, servicedisabled veteran-owned small business, HUBZone small business, small disadvantaged business, and

women-owned small business concerns as subcontractors. For individual subcontracting plans, and

if required by the Contracting Officer, goals shall also be expressed in terms of percentage of total

contract dollars, in addition to the goals expressed as a percentage of total subcontract dollars. 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. In

accordance with 43 U.S.C. 1626:

(i) Subcontracts awarded to an ANC or Indian tribe shall be counted towards the subcontracting

goals for small business and small disadvantaged business concerns, regardless of the size or Small

Business Administration certification status of the ANC or Indian tribe; and

(ii) Where one or more subcontractors are in the subcontract tier between the prime Contractor and

the ANC or Indian tribe, the ANC or Indian tribe shall designate the appropriate Contractor(s) to

count the subcontract towards its small business and small disadvantaged business subcontracting

goals.

(A) In most cases, the appropriate Contractor is the Contractor that awarded the subcontract to the

ANC or Indian tribe.

(B) If the ANC or Indian tribe designates more than one Contractor to count the subcontract toward

its goals, the ANC or Indian tribe shall designate only a portion of the total subcontract award to

each Contractor. The sum of the amounts designated to various Contractors cannot exceed the total

value of the subcontract.

(C) The ANC or Indian tribe shall give a copy of the written designation to the Contracting Officer,

the prime Contractor, and the subcontractors in between the prime Contractor and the ANC or

Indian tribe within 30 days of the date of the subcontract award.

(D) If the Contracting Officer does not receive a copy of the ANC’s or the Indian tribe’s written

designation within 30 days of the subcontract award, the Contractor that awarded the subcontract to

the ANC or Indian tribe will be considered the designated Contractor.

(2) A statement of–

(i) Total dollars planned to be subcontracted for an individual subcontracting plan; or the Offeror's

total projected sales, expressed in dollars, and the total value of projected subcontracts, including all

indirect costs except as described in paragraph (g) of this clause, to support the sales for a

commercial plan;

(ii) Total dollars planned to be subcontracted to small business concerns (including ANC and Indian

tribes);

(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 (including

ANCs and Indian tribes); 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, SAM, 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 SAM 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 SAM 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 (including ANC and Indian tribes);

(ii) Veteran-owned small business concerns;

(iii) Service-disabled veteran-owned small business concerns;

(iv) HUBZone small business concerns;

(v) Small disadvantaged business concerns (including ANC and Indian tribes); 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 the applicable threshold specified in FAR 19.702(a) on the date of subcontract award, with

further subcontracting possibilities 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) After November 30, 2017, include subcontracting data for each order when reporting

subcontracting achievements for indefinite-delivery, indefinite-quantity contracts with individual

subcontracting plans where the contract is intended for use by multiple agencies;

(iv) Submit the Individual Subcontract Report (ISR) and/or the Summary Subcontract Report (SSR),

in accordance with paragraph (l) of this clause using the Electronic Subcontracting Reporting

System (eSRS) at http://www.esrs.gov. The reports shall provide information on subcontract awards

to small business concerns (including ANCs and Indian tribes that are not small businesses),

veteran-owned small business concerns, service-disabled veteran-owned small business concerns,

HUBZone small business concerns, small disadvantaged business concerns (including ANCs and

Indian tribes that have not been certified by the Small Business Administration as small

disadvantaged businesses), women-owned small business concerns, and for NASA only, Historically

Black Colleges and Universities and Minority Institutions. Reporting shall be in accordance with this

clause, or as provided in agency regulations;

(v) Ensure that its subcontractors with subcontracting plans agree to submit the ISR and/or the SSR

using eSRS;

(vi) Provide its prime contract number, its unique entity identifier, and the e-mail address of the

Offeror’s official responsible for acknowledging receipt of or rejecting the ISRs, to all first-tier

subcontractors with subcontracting plans so they can enter this information into the eSRS when

submitting their ISRs; and

(vii) Require that each subcontractor with a subcontracting plan provide the prime contract number,

its own unique entity identifier, and the e-mail address of the subcontractor’s official responsible for

acknowledging receipt of or rejecting the ISRs, to its subcontractors with subcontracting plans.

(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., SAM), 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 the simplified

acquisition threshold, as defined in FAR 2.101 on the date of subcontract award, 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, servicedisabled veteran-owned, 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.

(12) Assurances that the Offeror will make a good faith effort to acquire articles, equipment,

supplies, services, or materials, or obtain the performance of construction work from the small

business concerns that it used in preparing the bid or proposal, in the same or greater scope,

amount, and quality used in preparing and submitting the bid or proposal. Responding to a request

for a quote does not constitute use in preparing a bid or proposal. The Offeror used a small business

concern in preparing the bid or proposal if–
(i) The Offeror identifies the small business concern as a subcontractor in the bid or proposal or

associated small business subcontracting plan, to furnish certain supplies or perform a portion of the

subcontract; or

(ii) The Offeror used the small business concern's pricing or cost information or technical expertise

in preparing the bid or proposal, where there is written evidence of an intent or understanding that

the small business concern will be awarded a subcontract for the related work if the Offeror is

awarded the contract.

(13) Assurances that the Contractor will provide the Contracting Officer with a written explanation if

the Contractor fails to acquire articles, equipment, supplies, services or materials or obtain the

performance of construction work as described in (d)(12) of this clause. This written explanation

must be submitted to the Contracting Officer within 30 days of contract completion.

(14) Assurances that the Contractor will not prohibit a subcontractor from discussing with the

Contracting Officer any material matter pertaining to payment to or utilization of a subcontractor.

(15) Assurances that the offeror will pay its small business subcontractors on time and in accordance

with the terms and conditions of the underlying subcontract, and notify the contracting officer when

the prime contractor makes either a reduced or an untimely payment to a small business

subcontractor (see 52.242-5).

(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

certified by SBA as a HUBZone small business concern by accessing SAM or by accessing the

Dynamic Small Business Search (DSBS) at https://web.sba.gov/pro-net/search/dsp_dsbs.cfm.

(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.

(6) For all competitive subcontracts over the simplified acquisition threshold, as defined in FAR

2.101 on the date of subcontract award, in which a small business concern received a small business
preference, upon determination of the successful subcontract offeror, prior to award of the

subcontract the Contractor must inform each unsuccessful small business subcontract offeror in

writing of the name and location of the apparent successful offeror and if the successful subcontract

offeror is a small business, veteran-owned small business, service-disabled veteran-owned small

business, HUBZone small business, small disadvantaged business, or women-owned small business

concern.

(7) Assign each subcontract the NAICS code and corresponding size standard that best describes the

principal purpose of the subcontract.

(f) A master subcontracting 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 subcontracting plan has been approved;

(2) The Offeror ensures that the master subcontracting plan is updated as necessary and provides

copies of the approved master subcontracting plan, including evidence of its approval, to the

Contracting Officer; and

(3) Goals and any deviations from the master subcontracting 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 products and commercial services. 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. Once the Contractor’s commercial plan has been approved, the

Government will not require another subcontracting plan from the same Contractor while the plan

remains in effect, as long as the product or service being provided by the Contractor continues to

meet the definition of a commercial product or commercial service. A Contractor with a commercial

plan shall comply with the reporting requirements stated in paragraph (d)(10) of this clause by

submitting one SSR in eSRS for all contracts covered by its commercial plan. A Contractor

authorized to use a commercial subcontracting plan shall include in its subcontracting goals and in

its SSR all indirect costs, with the exception of those such as the following: Employee salaries and

benefits; payments for petty cash; depreciation; interest; income taxes; property taxes; lease

payments; bank fees; fines, claims, and dues; original equipment manufacturer relationships during

warranty periods (negotiated up front with the product); utilities and other services purchased from

a municipality or an entity solely authorized by the municipality to provide those services in a

particular geographical region; and philanthropic contributions. This report shall be acknowledged

or rejected in eSRS by the Contracting Officer who approved the plan. This report shall be submitted

within 30 days after the end of the Government’s fiscal year.

(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) A contract may have no more than one subcontracting plan. When a contract modification

exceeds the subcontracting plan threshold in FAR 19.702(a), or an option is exercised, the goals of

the existing subcontracting plan shall be amended to reflect any new subcontracting opportunities.

When the goals in a subcontracting plan are amended, these goal changes do not apply retroactively.
(j) Subcontracting plans are not required from subcontractors when the prime contract contains the

clause at FAR 52.212-5, Contract Terms and Conditions Required to Implement Statutes or

Executive Orders-Commercial Products and Commercial Services, or when the subcontractor

provides a commercial product or commercial service subject to the clause at FAR 52.244-6,

Subcontracts for Commercial Products and Commercial Services, under a prime contract.

(k) 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 and may be considered in any past performance

evaluation of the Contractor.

(l) The Contractor shall submit ISRs and SSRs using the web-based eSRS at http://www.esrs.gov.

Purchases from a corporation, company, or subdivision that is an affiliate of the Contractor or

subcontractor are not included in these reports. Subcontract awards by affiliates shall be treated as

subcontract awards by the Contractor. Subcontract award data reported by the Contractor and

subcontractors shall be limited to awards made to their immediate next-tier subcontractors. Credit

cannot be taken for awards made to lower tier subcontractors, unless the Contractor or

subcontractor has been designated to receive a small business or small disadvantaged business

credit from an ANC or Indian tribe. Only subcontracts involving performance in the United States or

its outlying areas should be included in these reports with the exception of subcontracts under a

contract awarded by the State Department or any other agency that has statutory or regulatory

authority to require subcontracting plans for subcontracts performed outside the United States and

its outlying areas.

(1) ISR. This report is not required for commercial plans. The report is required for each contract

containing an individual subcontracting plan.

(i) The report shall be submitted semi-annually during contract performance for the periods ending

March 31 and September 30. A report is also required for each contract within 30 days of contract

completion. Reports are due 30 days after the close of each reporting period, unless otherwise

directed by the Contracting Officer. Reports are required when due, regardless of whether there has

been any subcontracting activity since the inception of the contract or the previous reporting period.

When the Contracting Officer rejects an ISR, the Contractor shall submit a corrected report within

30 days of receiving the notice of ISR rejection.

(ii)

(A) When a subcontracting plan contains separate goals for the basic contract and each option, as

prescribed by FAR 19.704(c), the dollar goal inserted on this report shall be the sum of the base

period through the current option; for example, for a report submitted after the second option is

exercised, the dollar goal would be the sum of the goals for the basic contract, the first option, and

the second option.

(B) If a subcontracting plan has been added to the contract pursuant to 19.702 a)(1)(iii) or

19.301-2(e), the Contractor's achievements must be reported in the ISR on a cumulative basis from

the date of incorporation of the subcontracting plan into the contract.

(iii) When a subcontracting plan includes indirect costs in the goals, these costs must be included in

this report.

(iv) The authority to acknowledge receipt or reject the ISR resides–
(A) In the case of the prime Contractor, with the Contracting Officer; and

(B) In the case of a subcontract with a subcontracting plan, with the entity that awarded the

subcontract.

(2) SSR.

(i) Reports submitted under individual contract plans–

(A) This report encompasses all subcontracting under prime contracts and subcontracts with an

executive agency, regardless of the dollar value of the subcontracts. This report also includes

indirect costs on a prorated basis when the indirect costs are excluded from the subcontracting

goals.

(B) The report may be submitted on a corporate, company or subdivision (e.g. plant or division

operating as a separate profit center) basis, unless otherwise directed by the agency.

(C) If the Contractor or a subcontractor is performing work for more than one executive agency, a

separate report shall be submitted to each executive agency covering only that agency's contracts,

provided at least one of that agency's contracts is over the applicable threshold specified in FAR

19.702(a), and the contractand contains a subcontracting plan. For DoD, a consolidated report shall

be submitted for all contracts awarded by military departments/agencies and/or subcontracts

awarded by DoD prime contractors.

(D) The report shall be submitted annually by October 30 for the twelve month period ending

September 30. When a Contracting Officer rejects an SSR, the Contractor shall submit a revised

report within 30 days of receiving the notice of SSR rejection.

(E) Subcontract awards that are related to work for more than one executive agency shall be

appropriately allocated.

(F) The authority to acknowledge or reject SSRs in eSRS, including SSRs submitted by

subcontractors with subcontracting plans, resides with the Government agency awarding the prime

contracts unless stated otherwise in the contract.

(ii) Reports submitted under a commercial plan-

(A) The report shall include all subcontract awards under the commercial plan in effect during the

Government's fiscal year and all indirect costs.

(B) The report shall be submitted annually, within thirty days after the end of the Government's

fiscal year.

(C) If a Contractor has a commercial plan and is performing work for more than one executive

agency, the Contractor shall specify the percentage of dollars attributable to each agency.

(D) The authority to acknowledge or reject SSRs for commercial plans resides with the Contracting

Officer who approved the commercial plan.

(End of clause)

Alternate I (Nov 2016). As prescribed in 19.708 (b)(1)(i), substitute the following paragraph (c)(1)
for paragraph (c)(1) of the basic clause:

(c)(1) The apparent low bidder, upon request by the Contracting Officer, shall submit 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, small disadvantaged business, and women-owned small business concerns. If the

bidder is submitting an individual subcontracting 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 submitted within the time specified by the Contracting Officer. Failure to submit the

subcontracting plan shall make the bidder ineligible for the award of a contract

Alternate II (Nov 2016). As prescribed in 19.708 (b)(1)(ii), substitute the following paragraph (c)(1)

for paragraph (c)(1) of the basic clause:

(c)(1) Proposals submitted in response to this solicitation shall include a subcontracting plan that

separately addresses subcontracting with small business, veteran-owned small business, servicedisabled veteran-owned small business, HUBZone small business, small disadvantaged business, and

women-owned small business concerns. If the Offeror is submitting an individual subcontracting

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 a subcontracting plan shall make the

Offeror ineligible for award of a contract.

Alternate III (Jun 2020). As prescribed in 19.708 (b)(1)(iii), substitute the following paragraphs

(d)(10) and (l) for paragraphs (d)(10) and (l) in the basic clause:

(d)(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 Contract in accordance

with paragraph (l) of this clause. Submit the Summary Subcontract Report (SSR), in accordance with

paragraph (l) of this clause using the Electronic Subcontracting Reporting System (eSRS) at

http://www.esrs.gov. The reports shall provide information on subcontract awards to small business

concerns (including ANCs and Indian tribes that are not small businesses), veteran-owned small

business concerns, service-disabled veteran-owned small business concerns, HUBZone small

business concerns, small disadvantaged business concerns (including ANCs and Indian tribes that

have not been certified by the Small Business Administration as small disadvantaged businesses),

women-owned small business concerns, and for NASA only, Historically Black Colleges and

Universities and Minority Institutions. Reporting shall be in accordance with this clause, or as

provided in agency regulations; and

(iv) Ensure that its subcontractors with subcontracting plans agree to submit the SF 294 in
accordance with paragraph (l) of this clause. Ensure that its subcontractors with subcontracting

plans agree to submit the SSR in accordance with paragraph (l) of this clause using the eSRS.

(I) The Contractor shall submit a SF 294. The Contractor shall submit SSRs using the web-based

eSRS at http://www.esrs.gov. Purchases from a corporation, company, or subdivision that is an

affiliate of the Contractor or subcontractor are not included in these reports. Subcontract awards by

affiliates shall be treated as subcontract awards by the Contractor. Subcontract award data reported

by the Contractor and subcontractors shall be limited to awards made to their immediate next-tier

subcontractors. Credit cannot be taken for awards made to lower tier subcontractors, unless the

Contractor or subcontractor has been designated to receive a small business or small disadvantaged

business credit from an ANC or Indian tribe. Only subcontracts involving performance in the U.S. or

its outlying areas should be included in these reports with the exception of subcontracts under a

contract awarded by the State Department or any other agency that has statutory or regulatory

authority to require subcontracting plans for subcontracts performed outside the United States and

its outlying areas.

(1) SF 294. This report is not required for commercial plans. The report is required for each contract

containing an individual subcontracting plan. For Contractors the report shall be submitted to the

Contracting Officer, or as specified elsewhere in this contract. In the case of a subcontract with a

subcontracting plan, the report shall be submitted to the entity that awarded the subcontract.

(i) The report shall be submitted semi-annually during contract performance for the periods ending

March 31 and September 30. A report is also required for each contract within 30 days of contract

completion. Reports are due 30 days after the close of each reporting period, unless otherwise

directed by the Contracting Officer. Reports are required when due, regardless of whether there has

been any subcontracting activity since the inception of the contract or the previous reporting period.

When a Contracting Officer rejects a report, the Contractor shall submit a revised report within 30

days of receiving the notice of report rejection.

(ii)(A) When a subcontracting plan contains separate goals for the basic contract and each option, as

prescribed by FAR 19.704(c), the dollar goal inserted on this report shall be the sum of the base

period through the current option; for example, for a report submitted after the second option is

exercised, the dollar goal would be the sum of the goals for the basic contract, the first option, and

the second option.

(B) If a subcontracting plan has been added to the contract pursuant to 19.702(a)(1)(iii) or

19.301-2(e), the Contractor's achievements must be reported in the report on a cumulative basis

from the date of incorporation of the subcontracting plan into the contract.

(iii) When a subcontracting plan includes indirect costs in the goals, these costs must be included in

this report.

(2)SSR. (i)Reports submitted under individual contract plans-

(A) This report encompasses all subcontracting under prime contracts and subcontracts with an

executive agency, regardless of the dollar value of the subcontracts. This report also includes

indirect costs on a prorated basis when the indirect costs are excluded from the subcontracting

goals.

(B) The report may be submitted on a corporate, company or subdivision (e.g., plant or division

operating as a separate profit center) basis, unless otherwise directed by the agency.

(C) If the Contractor and/or a subcontractor is performing work for more than one executive agency,
a separate report shall be submitted to each executive agency covering only that agency's contracts,

provided at least one of that agency's contracts is over the applicable threshold specified in FAR

19.702(a), and the contract contains a subcontracting plan. For DoD, a consolidated report shall be

submitted for all contracts awarded by military departments/agencies and/or subcontracts awarded

by DoD prime contractors.

(D) The report shall be submitted annually by October 30, for the twelve month period ending

September 30. When a Contracting Officer rejects an SSR, the Contractor is required to submit a

revised SSR within 30 days of receiving the notice of report rejection.

(E) Subcontract awards that are related to work for more than one executive agency shall be

appropriately allocated.

(F) The authority to acknowledge or reject SSRs in the eSRS, including SSRs submitted by

subcontractors with subcontracting plans, resides with the Government agency awarding the prime

contracts unless stated otherwise in the contract.

(ii) Reports submitted under a commercial plan-

(A) The report shall include all subcontract awards under the commercial plan in effect during the

Government's fiscal year and all indirect costs.

(B) The report shall be submitted annually, within 30 days after the end of the Government's fiscal

year.

(C) If a Contractor has a commercial plan and is performing work for more than one executive

agency, the Contractor shall specify the percentage of dollars attributable to each agency.

(D) The authority to acknowledge or reject SSRs for commercial plans resides with the Contracting

Officer who approved the commercial plan.

Alternate IV (Sep 2023). As prescribed in 19.708 (b)(1)(iv), substitute the following paragraphs (c)

and (d) for paragraphs (c) and (d) of the basic clause:

(c)(1) The Contractor, 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, small disadvantaged business, and women-owned small business concerns. If the

Contractor is submitting an individual subcontracting plan, the plan shall 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 subcontracting plan shall be incorporated into the contract. The subcontracting plan shall

be negotiated within the time specified by the Contracting Officer. The subcontracting plan does not

apply retroactively.

(2)(i) The prime Contractor may accept a subcontractor's written representations of its size and

socioeconomic status as a small business, small disadvantaged business, veteran-owned small

business, service-disabled veteran-owned small business, or a women-owned small business if the

subcontractor represents that the size and socioeconomic status representations with its offer are

current, accurate, and complete as of the date of the offer for the subcontract.

(ii) The Contractor may accept a subcontractor's representations of its size and socioeconomic status
as a small business, small disadvantaged business, veteran-owned small business, service-disabled

veteran-owned small business, or a women-owned small business in the System for Award

Management (SAM) if–

(A) The subcontractor is registered in SAM; and

(B) The subcontractor represents that the size and socioeconomic status representations made in

SAM are current, accurate and complete as of the date of the offer for the subcontract.

(iii) The Contractor may not require the use of SAM for the purposes of representing size or

socioeconomic status in connection with a subcontract.

(iv) In accordance with 13 CFR 121.411, 126.900, 127.700, and 128.600, a contractor acting in good

faith is not liable for misrepresentations made by its subcontractors regarding the subcontractor's

size or socioeconomic status.

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

(1) Separate goals, expressed in terms of total dollars subcontracted and as a percentage of total

planned subcontracting dollars, for the use of small business, veteran-owned small business, servicedisabled veteran-owned small business, HUBZone small business, small disadvantaged business, and

women-owned small business concerns as subcontractors. For individual subcontracting plans, and

if required by the Contracting Officer, goals shall also be expressed in terms of percentage of total

contract dollars, in addition to the goals expressed as a percentage of total subcontract dollars. The

Contractor 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. In

accordance with 43 U.S.C. 1626–

(i) Subcontracts awarded to an ANC or Indian tribe shall be counted towards the subcontracting

goals for small business and small disadvantaged business concerns, regardless of the size or Small

Business Administration certification status of the ANC or Indian tribe; and

(ii) Where one or more subcontractors are in the subcontract tier between the prime Contractor and

the ANC or Indian tribe, the ANC or Indian tribe shall designate the appropriate Contractor(s) to

count the subcontract towards its small business and small disadvantaged business subcontracting

goals.

(A) In most cases, the appropriate Contractor is the Contractor that awarded the subcontract to the

ANC or Indian tribe.

(B) If the ANC or Indian tribe designates more than one Contractor to count the subcontract toward

its goals, the ANC or Indian tribe shall designate only a portion of the total subcontract award to

each Contractor. The sum of the amounts designated to various Contractors cannot exceed the total

value of the subcontract.

(C) The ANC or Indian tribe shall give a copy of the written designation to the Contracting Officer,

the Contractor, and the subcontractors in between the prime Contractor and the ANC or Indian tribe

within 30 days of the date of the subcontract award.

(D) If the Contracting Officer does not receive a copy of the ANC's or the Indian tribe's written

designation within 30 days of the subcontract award, the Contractor that awarded the subcontract to

the ANC or Indian tribe will be considered the designated Contractor.
(2) A statement of–

(i) Total dollars planned to be subcontracted for an individual subcontracting plan; or the

Contractor's total projected sales, expressed in dollars, and the total value of projected subcontracts

to support the sales for a commercial plan, including all indirect costs, with the exception of those

such as the following: Employee salaries and benefits; payments for petty cash; depreciation;

interest; income taxes; property taxes; lease payments; bank fees; fines, claims, and dues; original

equipment manufacturer relationships during warranty periods (negotiated up front with the

product); utilities and other services purchased from a municipality or an entity solely authorized by

the municipality to provide those services in a particular geographical region; and philanthropic

contributions;

(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 (including ANCs and Indian tribes);

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, SAM, 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). The Contractor may rely on

the information contained in SAM 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 SAM 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 Contractor 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 (including ANC and Indian tribes);
(ii) Veteran-owned small business concerns;

(iii) Service-disabled veteran-owned small business concerns;

(iv) HUBZone small business concerns;

(v) Small disadvantaged business concerns (including ANC and Indian tribes); and

(vi) Women-owned small business concerns.

(7) The name of the individual employed by the Contractor who will administer the Contractor's

subcontracting program, and a description of the duties of the individual.

(8) A description of the efforts the Contractor will make to assure that small business, veteranowned 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 Contractor will include the clause of this contract entitled "Utilization of

Small Business Concerns" in all subcontracts that offer further subcontracting opportunities, and

that the Contractor will require all subcontractors (except small business concerns) that receive

subcontracts in excess of the applicable threshold specified in FAR 19.702(a) on the date of

subcontract award, with further subcontracting possibilities to adopt a subcontracting plan that

complies with the requirements of this clause.

(10) Assurances that the Contractor 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

Contractor with the subcontracting plan;

(iii) After November 30, 2017, include subcontracting data for each order when reporting

subcontracting achievements for an indefinite-delivery, indefinite-quantity contracts with individual

subcontracting plans where the contract is intended for use by multiple agencies;

(iv) Submit the Individual Subcontract Report (ISR) and/or the Summary Subcontract Report (SSR),

in accordance with paragraph (l) of this clause using the Electronic Subcontracting Reporting

System (eSRS) at http://www.esrs.gov. The reports shall provide information on subcontract awards

to small business concerns (including ANCs and Indian tribes that are not small businesses),

veteran-owned small business concerns, service-disabled veteran-owned small business concerns,

HUBZone small business concerns, small disadvantaged business concerns (including ANCs and

Indian tribes that have not been certified by SBA as small disadvantaged businesses), women-owned

small business concerns, and for NASA only, Historically Black Colleges and Universities and

Minority Institutions. Reporting shall be in accordance with this clause, or as provided in agency

regulations;

(v) Ensure that its subcontractors with subcontracting plans agree to submit the ISR and/or the SSR

using eSRS;

(vi) Provide its prime contract number, its unique entity identifier, and the e-mail address of the

Contractor's official responsible for acknowledging receipt of or rejecting the ISRs, to all first-tier

subcontractors with subcontracting plans so they can enter this information into the eSRS when
submitting their ISRs; and

(vii) Require that each subcontractor with a subcontracting plan provide the prime contract number,

its own unique entity identifier, and the e-mail address of the subcontractor's official responsible for

acknowledging receipt of or rejecting the ISRs, to its subcontractors with subcontracting plans.

(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 Contractor'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., SAM), 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 the simplified

acquisition threshold, as defined in FAR 2.101 on the date of subcontract award, 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, servicedisabled veteran-owned, 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 Contractor to

the Government, including the name, address, and business size of each subcontractor. Contractors

having commercial plans need not comply with this requirement.

(12) Assurances that the Contractor will make a good faith effort to acquire articles, equipment,

supplies, services, or materials, or obtain the performance of construction work from the small

business concerns that it used in preparing the proposal for the modification, in the same or greater

scope, amount, and quality used in preparing and submitting the modification proposal. Responding

to a request for a quote does not constitute use in preparing a proposal. The Contractor used a small

business concern in preparing the proposal for a modification if–

(i) The Contractor identifies the small business concern as a subcontractor in the proposal or

associated small business subcontracting plan, to furnish certain supplies or perform a portion of the

subcontract; or(ii) The Contractor used the small business concern's pricing or cost information or

technical expertise in preparing the proposal, where there is written evidence of an intent or

understanding that the small business concern will be awarded a subcontract for the related work

when the modification is executed.

(13) Assurances that the Contractor will provide the Contracting Officer with a written explanation if

the Contractor fails to acquire articles, equipment, supplies, services or materials or obtain the

performance of construction work as described in (d)(12) of this clause. This written explanation

must be submitted to the Contracting Officer within 30 days of contract completion.

(14) Assurances that the Contractor will not prohibit a subcontractor from discussing with the

contracting officer any material matter pertaining to the payment to or utilization of a subcontractor.

(15) Assurances that the offeror will pay its small business subcontractors on time and in accordance

with the terms and conditions of the underlying subcontract, and notify the contracting officer when

the prime contractor makes either a reduced or an untimely payment to a small business

subcontractor (see 52.242-5).

Parent topic: 52.219 [Reserved]