APPENDIX - DD Table Of Contents

Part 1 - Introduction

DD-100 Purpose.

DD-101 Applicability.

DD-102 Goals.

DD-103 Evaluation Rating.

DD-104 Modification of Guide.

DD-105 Use of Preaward Surveys.

Part 2 - Rating System

DD-201 Acceptable Plans.

DD-202 Unacceptable Plans.

Part 3 - Subcontracting Plan Requirements

DD-301 Requirements.

Part 1 - Introduction

DD-100 Purpose.

The guide provides a methodology for uniform and consistent evaluation of subcontracting plans

within the Army. It is designed to facilitate compliance with the mandates of 15 U.S.C. § 637(d) to

increase opportunities for small and small disadvantaged businesses.

DD-101 Applicability.

In accordance with requirements of FAR 19.705-4, DFARS 219.705-4 and AFARS 5119.705-4, the

contracting officer shall use this guide to review all subcontracting plans (except those for

commercial items), including those submitted in response to the provisions in FAR 19.705-2(d) and

(e). When the contract will require subcontracting plans, use the clauses designated by FAR

19.708(b)(1) and (2) and DFARS 219.708(b)(1)(A) in the solicitation. A copy of the completed

evaluation shall be included in the contract file.

DD-102 Goals.

Contracting officers must place special emphasis on negotiating subcontracting goals that are
realistic, challenging and attainable. The plan must express goals in terms of percentages of total

planned subcontracting dollars and must be comparable to the dollar commitments in the small

business participation plan. In accordance with FAR 19.705-4(d), the contracting officer must review

enough evidence to determine that the:

1.Offeror can meet subcontracting plan goals;

2.Offeror’s goals are consistent with their cost or pricing data or information other than cost or

pricing data;

3. Offeror will honor the terms of subcontract agreements (i.e., timely payments of amounts owed,

use of firms cited in proposal, etc.); and

4.Offeror’s make or buy policy or program does not conflict with the proposed subcontracting plan

and is in the Government’s best interest.

5. Plan includes the contractor’s commitment to adopt and comply with its requirements and goals

for small business utilization.

DD-103 Evaluation Rating.

Either the contracting officer, the small business representative, or both, shall evaluate and rate the

subcontracting plan as “acceptable” or “unacceptable,” in the context of the particular procurement.

For instance, in smaller dollar value contracts, or contracts for uniquely manufactured items, it

might be impracticable or not cost effective for offerors to take the type of actions that might be

appropriate in contracts for larger dollar values or commercial components. To receive an

“Acceptable” rating, the contractor must satisfy all objectives in Part 2 and meet each statutory

subcontracting plan requirement outlined in Part 3. Failure to receive a subcontracting plan rating

of acceptable could jeopardize the offeror’s selection for contract award. The contracting officer

must document the decisions in the contract file.

DD-104 Modification of Guide.

Pursuant to AFARS 5101.403, only senior contracting officials may approve individual deviations to

this evaluation guide. This approval authority may not be further delegated.

DD-105 Use of Preaward Surveys.

For contracts administered by the Defense Contract Management Agency, obtain information

needed to assess contractor compliance with subcontracting plans in current and previous contracts

by requesting a preaward survey in accordance with FAR 9.106, DFARS 209.106 and DFARS PGI

209.106.

Part 2 - Rating System
DD-201 Acceptable Plans.

Objective: The subcontracting plan meets all of the requirements outlined in Part 3. The offeror has

provided details that demonstrate an acceptable approach to assisting, promoting and utilizing small

businesses, small disadvantaged businesses, women-owned small businesses, historically

underutilized business zone small businesses, veteran-owned small businesses, service disabled

veteran-owned small businesses and, for Defense Research Programs, historically black colleges and

universities and minority serving institutions. The offeror has demonstrated an ability to meet prior

subcontracting plan goals and honor the terms of subcontract agreements. Offeror has outlined an

approach utilizing mentor protégé firms, joint venture teams, or other partners. The subcontracting

goals are realistic, challenging, and attainable. Clarifications and minor rework of the submission

may be required to correct slight omissions that do not prejudice other offers.

DD-202 Unacceptable Plans.

Objective: The subcontracting plan fails to meet a requirement outlined in Part 3. The offeror has

not provided an acceptable approach to assisting, promoting, and utilizing small businesses. The

offeror has a history of failing to honor subcontract agreements. The offeror did not discuss the

establishment of mentor protégé relationships, teaming, or joint venture agreements with other

firms. Ensure the proposed subcontracting goals are attainable in light of the contractor’s past

performance in meeting subcontracting goals. Proposed subcontracting goals reflect less than a

good faith effort. Substantial rework of the document is required to correct omissions and establish

realistic, challenging, and attainable goals. Failure to receive a rating of acceptable may jeopardize

offeror’s eligibility for contract award. See FAR 19.702(a)(1).

Part 3 - Subcontracting Plan Requirements

DD-301 Requirements.

If any of the following are answered “NO”, the plan is not acceptable, and the offeror must revise it

before contract award. Does the plan:

1. Contain a policy statement or evidence of internal guidance to company buyers that commits to

complying with the Small Business Act (Public Law 99-661, Section 1207 and Public Law 100-180)?

2. Identify separate percentage goals for utilizing small businesses (including Alaska Native

Corporations (ANCs) and Indian tribes), veteran-owned small businesses (VOSB), service-disabled

veteran-owned small businesses (SDVOSB), historically underutilized business zone small businesses

(HUBZone), small disadvantaged businesses (SDB), women-owned small businesses (WOSB), and,

for Defense Research Programs, historically black colleges and universities and minority serving

institutions where applicable? Negotiated subcontracting goals must correlate with percentages of

small business utilization identified in the contractor’s small business participation plan, see FAR

15.304 and DFARS 215-304, and/or minimum targets identified in the solicitation or contract

modification. FAR 19.704(a)(1)

3. Project the total dollars planned to be subcontracted and a separate statement of the total dollars

planned to be subcontracted to small business (including ANCs and Indian tribes), VOSB, SDVOSB,
HUBZone, SDB, and WOSB concerns? FAR 19.704(a)(2)

4. Describe the principal types of supplies and services to be subcontracted and identify the types

planned for subcontracting to small business (including ANCs and Indian tribes), VOSB, SDVOSB,

HUBZone, SDB and WOSB concerns?

5. Describe the method to be used to develop the subcontracting goals? FAR 19.704(a)(4)

6. Describe the method for identifying potential sources for solicitation purposes? FAR 19.704(a)(5)

7. State if 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 small

business, VOSB, SDVOSB, HUBZone, SDB (including ANCs and Indian tribes), and WOSB concerns?

FAR 19.704(a)(6)

8. Identify the name of the employee who will administer the offeror’s subcontracting program and

describe that person’s duties? FAR 19.704(a)(7)

9. Provide an approach for ensuring that small businesses, VOSB, SDVOSB, HUBZone, SDB,

(including ANCs and Indian tribes) and WOSB concerns will have an equitable opportunity to

compete for subcontracts?

10. Require the offeror to include the clause at FAR 52.219-8, Utilization of Small Business Concerns

in all subcontracts that offer further subcontracting opportunities and require all subcontractors

(except small business concerns) that receive subcontracts over $650,000 ($1,500,000 for

construction) to adopt a plan that complies with the requirements of the clause at FAR 52.219-9,

Small Business Subcontracting Plan?

11. Provide assurances that the offeror will:

a. Cooperate in required studies or surveys;

b. Submit periodic reports so that the Government can determine the extent of offeror’s compliance

with the subcontracting plan;

c. Submit semi-annual Individual Subcontract Reports (ISRs) and/or Summary Subcontract Reports

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

accordance with FAR 52.219-9 or provide other ancillary reports as requested by the contracting

officer or Army Small Business Office;

d. Ensure that its subcontractors with subcontracting plans agree to submit the ISRs and/or SSRs

using the eSRS;

e. Provide its prime contract number and its DUNS number and the e-mail address of the

Government or contractor employee responsible for acknowledging or rejecting the reports, to all

first-tier subcontractors with subcontracting plans so they can enter this information into the eSRS

when submitting their reports; and

f. Require each subcontractor with a subcontracting plan to provide the prime contract number and

its own DUNS number, and the e-mail address of the Government or contractor official responsible

for acknowledging or rejecting the reports, to its subcontractors with subcontracting plans? FAR

19.704(10)
12. Describe the types of records that the contractor will maintain concerning procedures 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, VOSB, SDVOSB, HUBZone, SDB, and

WOSB concerns and to award subcontracts to them? FAR 19.704(11)

13.Does plan, pursuant to FAR 19.704(11)(c), provide a separate goal for the basic contract and, if

applicable, each option?