19.701 Definitions
Source: FAR 19.701 on acquisition.gov
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.
As used in this subpart-
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 (http://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title43-section1601&num=0&edition=prelim" target="_blank">43 U.S.C. 1601, et seq.) and which is considered a minority and economically disadvantaged concern under the criteria at http://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title43-section1626(e)(1)&num=0&edition=prelim" target="_blank">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 http://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title43-section1626(e)(2)&num=0&edition=prelim" target="_blank">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 performance of commercial services sold by either the entire company or a portion thereof (e.g., division, plant, or product line).
Electronic Subcontracting Reporting System (eSRS) means the Governmentwide, electronic, web-based system for small business subcontracting program reporting.
Failure to make a good faith effort to comply with the subcontracting plan means willful or intentional failure to perform in accordance with the requirements of the subcontracting plan, or willful or intentional action to frustrate the plan.
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.A. 1601 et seq.), that is recognized by the Federal Government as eligible for services from the Bureau of Indian Affairs in accordance with http://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title25-section1452(c)&num=0&edition=prelim" target="_blank">25 U.S.C. 1452(c). This definition also includes Indian-owned economic enterprises that meet the requirements of http://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title25-section1452(e)&num=0&edition=prelim" target="_blank">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 Government prime contractor or subcontractor calling for supplies and/or services required for performance of the contract, contract modification, 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.