Reviewing the subcontracting plan
Contracting officers must thoroughly review and ensure subcontracting plans are complete, realistic, and tailored to maximize small business participation for each acquisition.
Overview
FAR 19.705-4 outlines the process and criteria for contracting officers to review subcontracting plans submitted by offerors or bidders. The regulation ensures that plans are adequate, realistic, and compliant with the requirements for small business participation, as detailed in FAR 19.704. Contracting officers must evaluate each plan based on the specific acquisition context, considering past performance, proposed methods, and the likelihood of achieving stated goals. The review process differs for sealed bids and negotiated acquisitions, with specific steps for addressing deficiencies and negotiating acceptable goals. The regulation also requires contracting officers to consult with relevant stakeholders, such as the SBA and agency small business specialists, and to use available data to assess the offeror’s past performance and the attainability of proposed goals. The ultimate aim is to maximize small business subcontracting opportunities without compromising contract performance or increasing costs unreasonably.
Key Rules
- Plan Adequacy Review
- Contracting officers must ensure subcontracting plans include all required elements, goals, and assurances (see 19.704).
- Contextual Evaluation
- Each plan is reviewed based on acquisition-specific circumstances, including past small business involvement and proven methods.
- Sealed Bid Procedures
- Deficient plans must be revised by a set date; failure to comply results in ineligibility for award.
- Negotiated Acquisition Procedures
- Plans are negotiated to ensure goals are realistic and achievable through good faith efforts; unreasonably low goals are not acceptable.
- Assessment Actions
- Contracting officers must evaluate past performance, make-or-buy policies, subcontracting potential, and consistency with cost/pricing data.
- Stakeholder Consultation
- Input from SBA representatives and agency small business specialists is required.
Responsibilities
- Contracting Officers: Review and evaluate subcontracting plans for adequacy, realism, and compliance; request revisions as needed; consult with SBA and agency specialists; ensure goals are attainable and consistent with data.
- Contractors/Offerors: Submit complete and realistic subcontracting plans; revise plans promptly if deficiencies are identified; set achievable goals based on good faith efforts.
- Agencies: Provide oversight, ensure compliance, and facilitate coordination with SBA and small business specialists.
Practical Implications
- This section ensures that subcontracting plans are not just formalities but are actionable and tailored to each acquisition. Contractors must be diligent in preparing plans and responsive to feedback, while contracting officers must conduct thorough, context-driven reviews. Common pitfalls include submitting incomplete plans, setting unreasonably low goals, or failing to address past performance issues.