CLC 059 Management of Subcontracting Compliance
When FAR 52.244-6 is included in noncommercial contracts, it identifies the clauses to be included in what kinds of subcontracts?
Subcontracts for commercial or non-developmental items.
How will the inclusion of the flow-down clauses in CD 2018-O0021 or FAR 52.244-6 impact post-award subcontracting compliance management? For all four contracts, the procuring contracting officer (PCO) has delegated all contract administration functions that can be delegated.
It is a best practice for the administrative contracting officer (ACO) to conduct a post-award orientation conference and review the required flow-down clauses with the prime contractor.
During post-award administration, we need to impress upon each prime contractor that it is the prime contractor's responsibility to ensure that its subcontractors are complying with the flow-down clauses.
Goal of Government Procurement
Small businesses should be provided maximum practicable opportunities to participate in government procurements.
What is a first-tier subcontract?
A first-tier subcontract is defined in FAR 52.204-10 and means a subcontract awarded directly by the prime contractor for the purpose of acquiring supplies or services (including construction) for performance of a prime contract.
(Don't forget the useful job aid that was provided earlier that contains common terms and definitions. It includes this term, first-tier subcontract, along with several others.)
Individual Subcontracting Plan
An individual subcontracting plan is a subcontracting plan that applies to a single contract and has goals that are based on the offeror's planned subcontracting in support of a single contract.
Master Subcontracting Plan
A master subcontracting plan is a subcontracting plan that is established on a plant, division, or company‑wide basis. It contains all the required elements of an individual subcontracting plan, except goals. Then, when an offeror responds to a solicitation, it submits the pre-approved master plan with a supplement that identifies the offeror's subcontracting goals for the specific contract.
Commercial Subcontracting Plan
A commercial subcontracting plan is 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, such as a division, plant, or product line. The commercial subcontracting plan is the preferred plan when the contractor is furnishing commercial items to the government. It includes the fifteen elements we'll go over shortly, but with some variation from the requirements for the individual subcontracting plan.
Comprehensive Subcontracting Plan
DFARS 219.702-70 describes a test program developed by DoD to determine whether comprehensive subcontracting plans on a corporate, division, or plant-wide basis will reduce administrative burdens while enhancing subcontracting opportunities for small and small disadvantaged business concerns. This program is referred to as the Test Program for Negotiation of Comprehensive Small Business Subcontracting Plans (Test Program).To become and remain eligible to participate in the Test Program, a business concern is required to have furnished supplies or services (including construction) under at least three DoD contracts during the preceding fiscal year, having an aggregate value of at least $100 million. Test Program participants use their comprehensive subcontracting plans, in lieu of individual subcontracting plans, when performing any DoD contract or subcontract that requires a subcontracting plan.
The offeror provided its small business goals expressed as total dollars subcontracted and percentages of the total it plans to award in subcontracts. This is an individual subcontracting plan; therefore, the offeror could have been required to also express its small business goals in terms of what?
Total contract dollars - A more complete picture is provided when the offeror is required to express its small business subcontracting goals in terms of total contract dollars, along with expressing its small business subcontracting goals in terms of total planned for subcontracting dollars.
In order to receive a contract award, the successful offeror (the prime contractor to be) must have an acceptable subcontracting plan. The plan may need to be negotiated to be determined acceptable. What happens if the apparently successful offeror or bidder does not submit or negotiate an acceptable subcontracting plan within the prescribed time limit? Please read FAR 19.702 to answer this question.
Contractor will be ineligible for contract award.
If a contract modification occurs, under what circumstances will a subcontracting plan be required?
If the modification causes the contract value to exceed the threshold in FAR 19.702, and subcontracting opportunities exist.