Small Business Subcontracting Plans
Small Business Subcontracting Plans
The Small Business Subcontracting Program is a requirement outlined in the Federal Acquisition Regulation. Its purpose is to increase small business involvement in federal procurement. The program stipulates that contractors who receive federal contracts must commit to providing small businesses, including veteran-owned, service-disabled veteran-owned, Historically Utilized Businesses (HUBZone), small disadvantaged, and women-owned businesses, with the best opportunity to participate. This is to ensure that small businesses have a fair chance to secure government contracts.
Master Plan
A master plan contains all the elements required by the clause at FAR 52.219-9, "Small Business Subcontracting Plan," except goals and may be incorporated into individual contracts, provided the master plan has been approved. The master plan does not refer to a specific project or contract. Additionally, the federal law requires a master subcontracting plan to detail how the federal funds recipient will encourage small business use – this plan contains no goals or percentages.
Master plans shall be effective for a three-year period after approval by the administrative contracting officer; however, it is incumbent upon contractors to maintain and update master plans. Changes required to update master plans are not effective until approved by the administrative contracting officer. A master plan shall apply to that contract throughout the life of the contract.
The University of Notre Dame has drafted a Master Subcontracting Plan and is available for review by cognizant federal awarding agencies upon request.
Individual Subcontracting Plan
This Individual Subcontracting Plan covers the entire contract period (including option periods), applies to the specific contract, and has goals that are based on the offeror's planned subcontracting in support of the specific contract.
Federal law mandates that all federal contracts in excess of $750,000 must have an approved Individual Subcontracting Plan in place (ref FAR 52.219-9). Such plans set percentage and dollar goals for subcontracts to be awarded to small businesses, small disadvantaged businesses, small woman-owned businesses and small businesses located in Historically Underutilized Business Zones (HUBzones).
When competing for federal contracts in excess of $750,000 only the goals for that particular contract need be established and approved by the awarding federal sponsor (Individual Subcontracting Plan). This is achieved by completing and attaching an individual subcontract plan that have been determined for each specific contract. The plan shall be included in and made a part of the resultant contract.
Principal Investigators (PI) need to work with Notre Dame Research Administration and Procurement Services completing an individual subcontract plan based upon the proposed project budget determining appropriate percentage goals for use of small or minority owned businesses. A template Individual Subcontracting Plan can be found here.
Please provide as much time for this activity as possible.
The final individual subcontract plan will be endorsed by an Authorized Official of Procurement after approval by PI. Notre Dame Research Administration will ensure that the signed plan is included in the proposal or award package and sent to the appropriate sponsor.
Reporting
The required semi-annual/annual reporting is the responsibility of Procurement Services and RSPA, who will reach out to Notre Dame Research Administration and PI for assistance on their specific contract.
Questions about the Individual Subcontract Plan and when to use it should be addressed to your assigned Procurement Specialist or Procurement Services at 574-631-4289.