Small Business Subcontracting Plans

Introduction

This page is intended to provide guidance on the preparation and reporting required for such plans, and to set out the responsibilities of the various parties involved in their preparation and submission.

The Small Business Subcontracting Program was designed to ensure that prime contractors further the goals of increasing participation of small businesses in federal procurement. A small business subcontracting plan is required on federal contracts that contain FAR 52.219-9 and/or DFARS 219.7, that are expected to total an estimated cost of $750,000 ($1.5 million for construction), for the entire period of performance. A small business subcontracting plan is also required of any subrecipient whose total dollar subcontract amount is expected to exceed total costs of $750,000 for the entire period of performance. Certain percentages of the direct cost expenditures must be spent with suppliers in small business categories.

The small business supplier categories and the federal prime contract percentage goals are:

  • Small Business Enterprise (SMB or SBE) – 23%
  • Small Disadvantaged Business (SDB) – 5%
  • Woman-owned Small Business (WOSB or WBE) – 5%
  • Historically Underutilized Business Zone (HUBZone) – 3%
  • Veteran-owned Small Business (VOSB) – 3%
  • Service-disabled Veteran-owned Small Business (SDVOSB) – 3%

Note: SDB, WBE, HUBZone, VOSB, and SDVOSB goals are subsets of SMB and are counted and reported in multiple categories, as appropriate.

Any non-personnel (non-salaried) supplies or services required for performance of the contract are legitimate expenses to consider for a subcontracting plan. The principal products/services subject to the purposes of a small business subcontracting plan include direct costs such as: lab supplies, lab equipment, travel, printing, and livery services that may be sponsored by the contract. Any work included in your budget which will be formally subcontracted (i.e., a portion of the scope of work is contracted out to a subrecipient via a subcontract) to another entity, may also be included in the plan to use a small business.

A sample form for a small business subcontracting plan is usually incorporated as an attachment link to a federal contract solicitation (RFP).

A small business subcontracting plan is generally required to be submitted with the proposal, and it is subject to negotiation during the negotiation phase of a proposal. Federal agencies have established subcontracting goals and generally include them with each RFP; the goals are also often set out in the sample form for a subcontracting plan. At the time of the proposal, it is generally sufficient to prepare the subcontracting plan for the total cost of a multi-year proposal.

Responsibilities of University Parties

PI and Departmental Administrator Responsibilities:

  • Prepare small business subcontracting plans, consulting with Procurement Services for suppliers as needed, and submit to ORA for final review and authorization/signature
  • Prepare and submit required reports through eSRS (send to ORA for review/approval 10 days prior to submission): visit the site for guidelines and information
  • Maintain a list of vendors used to create the Small Business Subcontracting Plan, and update the list as needed
  • Monitor plan performance and make adjustments as necessary to achieve the plan goals
  • Cooperate in compliance reviews or audit situations
  • Work with Procurement Services when a contract has been awarded that has a small business subcontracting plan.
    • If FAR Clause 52.232-40 is an award term and condition, then staff shall work with UMS Procurement during PO creation to take measures to ensure that UMaine pays small business subcontractors on an accelerated timetable to the maximum extent practicable, and upon receipt of accelerated payments from the Government.

Office of Research Administration (ORA) Responsibilities:

  • Review and authorize/sign final plan submitted with proposal
  • Review and authorize reports for submission to the sponsor

Procurement Services Responsibilities:

  • Make every effort to assist in the identification of small business suppliers for inclusion and use under the plan
  • Provided a link (single sign on required) to search for vendor/subcontractors who are designated with small business classifications. Click on Marketplace logo from Launch Pad. See further instructions to access business with specific diversity classes.
  • Provided a query, UMS_VENDORS_MM_CLASS, (single sign on required) to view a listing of University diversity designated vendors to satisfy the small business subcontracting plan requirements.
  • If FAR Clause 52.232-40 is an award term and condition, then UMS Procurement shall take measures to ensure that UMaine pays small business subcontractors on an accelerated timetable to the maximum extent practicable, and upon receipt of accelerated payments from the Government, as per PO creation as noted above in PI and Departmental responsibilities.