19.701
Definitions
FAR 19.701 defines essential terms for the Small Business Subcontracting Program, ensuring all parties interpret requirements and compliance obligations consistently.
Overview
FAR 19.701 provides definitions for key terms used throughout Subpart 19.7, which governs the Small Business Subcontracting Program. These definitions clarify the meaning of terms such as "Alaska Native Corporation (ANC)," "commercial plan," "individual subcontracting plan," "master subcontracting plan," and others that are critical for understanding and complying with subcontracting requirements. The section ensures that all parties—contracting officers, contractors, and subcontractors—have a common understanding of the terminology used in the context of small business subcontracting plans, reporting, and compliance obligations.
Key Rules
- Definitions of Key Entities and Plans
- Provides precise definitions for entities like ANCs and Indian tribes, and for types of subcontracting plans (commercial, individual, master).
- Clarification of Compliance Terms
- Defines what constitutes a "failure to make a good faith effort," "reduced payment," and "untimely payment" in the context of subcontracting.
- Reporting and System Requirements
- Establishes the meaning of the Electronic Subcontracting Reporting System (eSRS) and its role in compliance.
Responsibilities
- Contracting Officers: Must apply these definitions when evaluating subcontracting plans and compliance.
- Contractors: Must understand and use these definitions when preparing, executing, and reporting on subcontracting plans.
- Agencies: Ensure consistent application of these definitions across contracts and reporting systems.
Practical Implications
- This section exists to eliminate ambiguity in the interpretation of terms central to the Small Business Subcontracting Program.
- Accurate understanding of these definitions is essential for compliance, reporting, and avoiding disputes.
- Misinterpretation of terms like "good faith effort" or "untimely payment" can lead to compliance issues or penalties.