Source: http://test.jurist.org/documents/rulemaking/2015-25234.php
Timestamp: 2019-03-22 10:28:50
Document Index: 370618218

Matched Legal Cases: ['§ 19', '§ 219', 'art 121', '§ 121', '§ 121', 'ART 125', 'art 125', '§ 125', '§ 121']

JURIST - Credit for Lower Tier Small Business Subcontracting
Comments closed on 2015-12-07
Other than small business prime contractors report on their small business subcontracting activity in various ways. Some firms have individual subcontracting plans for each and every Federal prime contract that meets certain threshold requirements. Other firms have commercial plans, which is a plan that covers a firm's entire fiscal year and the firm's entire commercial production sold by either the entire company or a portion thereof (e.g., division, plant, or product line). See Federal Acquisition Regulation (FAR) § 19.701. Some firms that do business with the Department of Defense have comprehensive subcontracting plans, where the firms' negotiate goals and report on a plant, division or company-wide basis, instead on each individual Federal contract. See Defense Federal Acquisition Regulation § 219.702. Section 1614 further provides that lower tier reporting credit shall not apply where a subcontracting plan applies to more than one contract or to one contract with more than one executive agency. Section 1614 applies only when determining whether or not a prime contractor has met its individual subcontracting plan goals. Thus, Section 1614 does not apply where the prime contractor has a commercial plan or comprehensive subcontracting plan. Section 1614 does not alter the requirement that lower tier subcontractors have subcontracting plans when the subcontracting threshold amounts are met. Section 1614 must be implemented so that subcontracting dollars are only reported once for the same award to avoid double and triple counting the dollars, notwithstanding the fact that a small business subcontract may be reported under more than one subcontracting plan. Section 1614 further provides that where a prime contractor or subcontractor is required to have an individual subcontracting plan, the prime contractor or the subcontractor will review and approve subcontracting plans submitted by their subcontractors, monitor their subcontractors' compliance with the subcontracting plans, ensure that reports are submitted by their subcontractors, acknowledge receipt of subcontractors' reports, monitor subcontractor performance, and discuss subcontractor performance with subcontractors where necessary.
For the purpose of Executive Order 13132, SBA has determined that this proposed rule will not have substantial direct effects on the States, on the relationship between the national government and the States, or on the distribution of power and responsibilities among the various layers of government. Therefore, SBA has determined that this proposed rule has no federalism implications warranting preparation of a federalism assessment.
Paperwork Reduction Act, 44 U.S.C. Ch. 35 Back to Top
Regulatory Flexibility Act, 5 U.S.C. 601-612 Back to Top
1.The authority citation for 13 CFR part 121 continues to read as follows:
2.Amend § 121.411 by removing the second sentence in paragraph (b) and adding two sentences in its place to read as follows:
§ 121.411 What are the size procedures for SBA's Section 8(d) Subcontracting Program?
PART 125—GOVERNMENT CONTRACTING PROGRAMS Back to Top
3.The authority citation for 13 CFR part 125 continues to read as follows:
15 U.S.C. 632(p), (q); 634(b)(6), 637, 644, 657f, and 657q.
4.Amend § 125.3 as follows:
(v) The contractor must assign to the solicitation and the resulting subcontract the NAICS code and corresponding size standard that best describes the principal purpose of the subcontract (see § 121.410 of this chapter). The prime contractor may rely on a subcontractor's electronic representations and certifications, if the solicitation for the subcontract contains a clause which provides that the subcontractor verifies by submission of the offer that the size or socioeconomic representations and certifications are current, accurate and complete as of the date of the offer for the subcontract. Electronic submission may include any method acceptable to the prime contractor including, but not limited to, size or socioeconomic representations and certifications made in SAM (or any successor system). A prime contractor or subcontractor may not require the use of SAM (or any successor system) for purposes of representing size or socioeconomic status in connection with a subcontract;
Citation: 80 FR 60300
citation:80 FR 60300 comments_close:2015-12-07 date: docnum:2015-25234 effective_date: html:https://www.federalregister.gov/articles/2015/10/06/2015-25234/credit-for-lower-tier-small-business-subcontracting pdf:http://www.gpo.gov/fdsys/pkg/FR-2015-10-06/pdf/2015-25234.pdf