Presentation on theme: "U.S. General Services Administration Presenter: Karen Poole Office of Small Business Utilization General Services Administration May 2012 Subcontracting."— Presentation transcript:
U.S. General Services Administration Presenter: Karen Poole Office of Small Business Utilization General Services Administration May 2012 Subcontracting and Electronic Subcontracting Reporting System (eSRS) for the Prime Contractor and the Contracting Officer
2 The basic building block of good team building is for a leader to promote the feeling that every human being is unique and adds value. ~Unknown
SUBCONTRACTING ASSISTANCE PROGRAM Public Law Amended Section 8(d) of the Small Business Act and created the foundation for the Subcontracting Assistance Program. It requires that all small businesses have the maximum practicable opportunity to participate in the performance of Federal agency contracts and subcontracts. 3
SUBCONTRACTING ASSISTANCE PROGRAM Subcontracting is More than a Subcontracting Plan Federal Government awards billions of dollars in prime contracts for supplies and services to large or other-than small businesses. Subcontracting Program is comprised of activities to ensure small businesses receive a fair and equitable opportunity to participate in requirements awarded by Federal agencies, including subcontracts resulting from award of prime contracts. 4
SUBCONTRACTING ASSISTANCE PROGRAM 5 Small Business concerns are: Small business (SB) Veteran-owned Small Business (VOSB) Service-disabled Veteran-owned Small Business (SDVOSB) Historically Underutilized Business Zone Small Businesses (HUBZ) Small Disadvantaged Businesses (SDB) Woman-owned Small Businesses (WOSB)
SUBCONTRACTING ASSISTANCE PROGRAM FAR Subpart 19.7 – The Small Business Subcontracting Program outlines: Statutory requirements Eligibility requirements for participating in the program Subcontracting Plan Requirements Responsibilities of the contracting officer 6
SIZE STANDARDS FAR Government-wide North American Industry Classification System Codes (NAICS) Number of Employees OR Annual Revenue/Sales SBA Office of Size Standards Phone: , web site or 7
8 WHEN A PROCUREMENT NEED IS DETERMINED
9 WHEN A PROCUREMENT NEED IS DETERMINED Internal customer identifies procurement needs and discusses with the Contracting Officer. Contracting Officer, Administrative Contracting Officer (ACO) or Program Manager conducts market research, with assistance of the Small Business Office as needed, to identify potential small business concerns who can perform the requirements. If the procurement is not set-aside for small business, the CO must complete GSA Form 2689 Small Business Analysis Record and attach a written justification.
10 DETERMINING THE NEED FOR A SUBCONTRACTING PLAN FAR Determine prior to solicitation: Could the prime contractor be other than small business? Will the total contract value, including options, exceed $650,000 ($1,500,000 for construction)? Are there possible subcontracting opportunities?
11 DETERMINING THE NEED FOR A SUBCONTRACTING PLAN During solicitation preparation: Include Subcontracting Plan requirement in the solicitation, if applicable Include a subcontracting plan template in the solicitation (available from your local Small Business Technical Advisor) Include Subcontracting Plan as an evaluation factor, if applicable Provide solicitation to Small Business Technical Advisor (SBTA) and Procurement Center Representative (PCR) for review before issuing it Solicitation developed stipulates that the prime contractor must meet designated subcontracting guidelines of FAR Part 19
12 SUBCONTRACTING PLANS ARE NOT REQUIRED IF: FAR (b) From small business concerns For personal services contracts For contracts performed entirely outside the United States For previous contracts that do not contain clause
13 SUBCONTRACTING PLAN REQUIREMENTS
14 WHEN IS A SUBCONTRACTING PLAN REQUIRED TO BE SUBMITTED? FAR New contracts $650,000 or more ($1.5 million for construction). Include all options in determining contract value, whether exercised or not. Annual Update (Commercial Plans) Modifications that meet subcontracting threshold
15 TYPES OF SUBCONTRACTING PLANS FAR Commercial Plan: (company-wide) Individual Plan: (contract specific) Master Plan (when goals/dollars need to be submitted at a later time)
16 COMMERCIAL PLAN FAR , FAR (d) & FAR 12 Submitted and negotiated annually Company fiscal year (12 month period) Note: Leasing and construction do not offer commercial items
17 INDIVIDUAL PLAN FAR & FAR (c) Covers the entire contract period (including options, with goals/dollars stated separately) Specific to one contract Goals are based on the offerors 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.
18 MASTER PLAN FAR & (b) Contains all the required elements of an Individual Plan, except goals/dollars Eventually evolves into an Individual Plan (when goals/dollars are added), provided the Master Plan has been approved Include other Agency Approval Document, if applicable
19 The Eleven Subcontracting Statutory Requirements FAR Identification Data Type of Plan Goals Program Administrator Equitable Opportunity Assurances of Clause Inclusion and Flow Down Reporting and Cooperation Recordkeeping Statutory Requirements Description of Good Faith Effort Signature Required
20 CONTRACTOR IDENTIFICATION DATA COMMERCIAL PLAN Company Name and Address Date Prepared Description of Products/Services: general summary of commercial business to be covered by this plan for any government contract, awarded during the same fiscal year Commercial Plan Period: (Insert dates of offerors Fiscal Year) Estimated annual sales
21 CONTRACTOR IDENTIFICATION DATA INDIVIDUAL PLAN Company Name and Address Date Prepared Description of Product/Service covered by this specific contract Place of Performance/DUNS Number (under contract awarded) Solicitation Number Contract Number (if available) Individual Plan/Contract Period (stated separately for base and each option period) Base: Date Of Award – ?? Years; Option 1: ________; Option 2: ________; Option 3: ___________; Option 4: ___________ (N/A for MAS) Estimated Contract Value $______ (separate estimates for base & each option)
22 FISCAL YEAR 2010 & 2011 GSA WIDE SUBCONTRACTING GOALS Goaling Category Goal Small Business 30 Veteran-owned Small Business 3 Service-Disabled Veteran-owned small business 3 HUBZone Small Business 3 Small Disadvantaged Business 5 Women-owned Small Business 5
23 TOTAL DOLLARS AND PERCENTAGE GOALS FAR (a)(1) & (2) Separate Goals (percentage) for: Small Business Veteran Owned Small Business (VOSB) Service-Disabled Veteran-Owned Small Business (SDVOSB) Women-Owned Small Business (WOSB) Historically Underutilized Business Zone (HUBZ) Small Business Small Disadvantaged Business (SDB) including HBCU/MI, Hispanic Serving Institution, Tribal Colleges and Universities, 8(a) companies, Alaska Native Corporations (ANCs)
24 GOALS FAR (a)(2) Subcontracting Amounts: Total Dollars planned to be subcontracted Total Dollars planned to be subcontracted to each business group The dollar amounts planned for subcontracting to each of these categories must be expressed in the subcontracting plan as percentages of the total subcontracting dollars to both large and small businesses.
25 TOTAL DOLLARS AND PERCENTAGE GOALS INDIVIDUAL PLAN Dollar figures below are only examples to show the actual GSA target percentage goals BASE GOALS are expressed in dollars and percentages of total planned subcontracted dollars. PLANNED SUBCONTRACTING TO:DOLLARS $PERCENT % 1. Total Dollars to be Subcontracted (2 + 3 = 1) large and all small business must equal total amount to be subcontracted $100,000,000100% 2. Large Businesses (Other than Small)$ 70,000,000 70% 3. All Small Businesses$ 30,000,000 30% 4. Veteran-Owned Small Businesses (VOSB)$ 3,000,000 3% 5. Service-Disabled Veteran-Owned Small Businesses (SDVOSB) $ 3,000,000 3% 6. HUBZone Small Businesses (HUBZone)$ 3,000,000 3% 7. Small Disadvantaged Businesses (SDB)$ 5,000,000 5% 8. Women-Owned Small Businesses (WOSB)$ 5,000,000 5%
26 TOTAL DOLLARS AND PERCENTAGE GOALS COMMERCIAL PLAN 1. Estimated TOTAL dollars planned to be subcontracted; i.e. to all types of business concerns: Annual Commercial Expenditures: $_12,000,000__________= 100% subcontracted 2. Planned subcontracting to large business concerns (those classified as other than small): Annual Commercial Expenditures: $__8,400,000__________ = _70_ % of TOTAL above 3. Planned subcontracting to ALL small business concerns (including ANCs & Indian tribes, VOSB, SDVOSB, HUBZone small, SDB (including ANCs & Indian tribes), and WOSB): Annual Commercial Expenditures: $__3,600,000__________ = _30_ % of TOTAL 4. Planned subcontracting to veteran-owned small business concerns (which includes service-disabled veteran- owned small business): Annual Commercial Expenditures: $____360,000_________ = _3_ % of TOTAL 5. Planned subcontracting to service-disabled veteran-owned small business concerns (also a subset of total VOSB and cannot be higher than VOSB above): Annual Commercial Expenditures: $_____360,000______ = _3_ % of TOTAL 6. Planned subcontracting to HUBZone small business concerns: Annual Commercial Expenditures: $_____360,000____ = _3_ % of TOTAL 7. Planned subcontracting to small disadvantaged business concerns (including ANCs & Indian tribes): Annual Commercial Expenditures: $______600,000_____ __= _5_ % of TOTAL 8. Planned subcontracting to women-owned small business concerns: Annual Commercial Expenditures: $_____600,000_____ = _5_ % of TOTAL
27 DESCRIPTION OF SUPPLIES/SERVICES FAR (a)(3) Supplies/ServicesLarge SmallVOSBSDVOSBHUBZoneSDBWOSB Janitorial X X X Printing X Transportation X X Office Supplies X X Graphics X Temporary Services X X Food Services X X
28 DESCRIPTION OF SUPPLIES/SERVICES Supplies/ServicesLargeSmallVOSBSDVOSBHUBZoneSDBWOSB Lease Construction: ExcavationX X X Drywall Installation X DemolitionXX Lease Services: Lock and KeyX JanitorialX X Refuge RemovalX X
29 DESCRIPTION OF METHOD USED TO DEVELOP SUBCONTRACTING GOALS FAR (4) Statement that contractor has reviewed his prior subcontracting efforts, or previous history on similar contracts.
30 DESCRIPTION OF METHOD USED TO IDENTIFY POTENTIAL SOURCES FAR (5) & FAR (d)(5) Examples: Attended conferences and networking sessions Used existing suppliers Researched minority directories Central Contractor Register (CCR) at: GSA e-Library web site at:
31 INDIRECT COSTS FAR (a)(6) Provide a statement as to whether or not the offeror included indirect costs in establishing subcontracting goals, and Provide a description of the method used to determine the proportionate share of indirect costs to be incurred with all small business concerns.
32 EXAMPLES OF INDIRECT COSTS FAR (a)(6) LandscapingJanitorialPrinting GraphicsAdvertisingSignage Business CardsPromotion ItemsPhotography Telephone EducationTraining Travel AgencyOffice SuppliesOffice Equipment Office FurnitureCourier ServiceSecurity Service Temporary ServiceConsultingAudit services Food serviceCleaning/LaundryFreight Office repairsLegal servicesConference/Trade shows Equipment rental
33 NAME OF PROGRAM ADMINISTRATOR AND DUTIES FAR (a)(7) & (e) Description of Possible Duties Developing and promoting company policy that demonstrates the companys support for awarding contracts to SB, VOSB, SDVOSB, HZSB, SDB, and WOSB, concerns. Ensuring that subcontract procurements are structured to permit the maximum possible participation Preparing and submitting ISR and SSR Reports Coordinating the companys activities during compliance reviews by Federal agencies
34 EQUITABLE OPPORTUNITY FAR (a)(8) Provide a description of the efforts the offeror will make to ensure that small business, have an equitable opportunity to compete for subcontracts. Outreach events to locate sources Internal efforts to guide and encourage purchasing personnel to subcontract with small business concerns
35 ASSURANCES THAT THE OFFEROR WILL INCLUDE CLAUSE FLOWDOWN FAR (a)(9) FAR Clause , Utilization of Small Business Concerns FAR Clause , Small Business Subcontracting Plan
36 THE OFFEROR WILL: FAR (a)(10) (iii) Submit the Individual Subcontract Report (ISR), and the Summary Subcontract Report (SSR) using the Electronic Subcontracting Reporting System (eSRS) (http://www.esrs.gov), following the instructions in the eSRS; (iv) Ensure that its subcontractors with subcontracting plans agree to submit the ISR and/or the SSR using the eSRS;
37 THE OFFEROR WILL: FAR (a)(10) (v) Provide its prime contract number and its DUNS number and the e- mail address of the Government or Contractor official responsible for acknowledging or rejecting the reports, to all first-tier subcontractors with subcontracting plans so they can enter this information into the eSRS when submitting their reports; and
38 THE OFFEROR WILL: FAR (a)(10) (vi) Require that each subcontractor with a subcontracting plan provide the prime contract number and its own DUNS number, and the address of the Government or Contractor official responsible for acknowledging or rejecting the reports, to its subcontractors with subcontracting plans.
39 RECORDKEEPING FAR (a)(11) & (d)(11) Description of the Types of Records
40 STATUTORY REQUIREMENTS FAR Ensure indication of compliance with all: Maximum practicable opportunity; Timely payment; Failing to comply in good faith; Failure to make a good faith effort shall result in the imposition of liquidated damages
41 GOOD FAITH EFFORT FAR (a)(5) and U.S.C. 637(d)(4)(F) Maximum practicable utilization of SB, SDB, HUBZone, WOSB, VOSB and SDVOSB concerns as subcontractors in Government contracts is a matter of national interest with both social and economic benefits. When a contractor fails to make a good faith effort to comply with a subcontracting plan, these objectives are not achieved, and the above regulations directs that liquidated damages shall be paid by the contractor.
42 ALL PLANS MUST BE SIGNED AND DATED BY A COMPANY OFFICIAL Plans must be signed and dated by a company official who, at a minimum, is a higher level than the Plan Administrator. This ensures company buy-in of Plan contents and administration of those contents.
43 Teamwork is the ability to work together toward a common vision. The ability to direct individual accomplishments toward organizational objectives. It is the fuel that allows common people to attain uncommon results. ~Andrew Carnegie
44 CHECKLIST FOR REVIEW OF SUBCONTRACTING PLAN Guides you through the plan to ensure that each of the eleven required elements have been included Where the CO, Small Business Technical Advisor, and the Small Business Administration review/sign Note: The checklist does not currently have a form number (formerly GSA Form 3584). Watch for Acquisition Letters and GSAM Updates
45 EVALUATING THE SUBCONTRACTING PLAN Subcontracting Plans & Goals Should: Be realistic and achievable Provide a challenge (and build upon prior achievements) Include positive goals Reflect best faith efforts & maximum practicable opportunities
46 EVALUATING THE SUBCONTRACTING PLAN UPON RECEIPT OF A SUBCONTRACTING PLAN, CO MUST REVIEW TO ENSURE ADEQUACY AND THAT IT MEETS THE REQUIREMENTS OF FAR AND GSAM (SEE CLAUSE ) Ensure goals and dollar amounts are calculated correctly Find that Small Business Concerns are included in all applicable categories (allowed to double & triple count $$) Require an Offeror to justify or explain why their proposed goals are lower than the agency goals or the government-wide goals. If you cannot negotiate higher goals due to a unique situation, the plan should state how this reflects their best faith effort and what their challenges reside.
47 EVALUATING THE SUBCONTRACTING PLAN Also consider past subcontracting history and goal attainment -- overall compliance & efforts should be considered, not merely whether goals were met Obtain SBTA review, advice & recommendations Obtain SBAs Procurement Center Representative (PCR) review and concurrence Ensure the CO finds the Subcontracting Plan acceptable and incorporates it into and makes it a material part of the contract.
48 SUBCONTRACTING PLAN IS A MATERIAL PART OF THE CONTRACT Subcontracting Plans must be: o Approved prior to award o Made a material part of the contract at the time of award Failure to submit an acceptable Subcontracting Plan to CO makes the offeror ineligible for award. File APPROVED plan with Checklist (formerly called GSA Form 3584) under Tab 23(b)
49 DETERMINED THAT NO SUBCONTRACTING POSSIBILITIES EXIST? FAR (c) Must be approved at a level above the contracting officer and placed in the contract file.
50 DETERMINED THAT NO SUBCONTRACTING POSSIBILITIES EXIST? GSAM (d)
51 GENERAL SERVICES ADMINISTRATION DETERMINATION AND FINDINGS (If a subcontracting plan do not exist, a sample D&F may include) Example: Authority to Contract without a Subcontracting Plan I hereby find the following: Xxxxxxxxxxxxxxxxxxxxxxxx Based on the above findings, I hereby determine: Xxxxxxxxxxxxxxxxxxxxxxxx Prepared by :_______________________ Approved by_____________________ Contracting Officer Division Director or Office Title/Symbol Center Director Concurrence:____________________________ Concurrence:__________________________ Insert Name of SBTA Insert Name of Associate Administrator Small Business Technical Advisor Associate Administrator Office of Small Bus. Utilization (E)
52 TRUE OR FALSE DO WE REQUEST A NEW INDIVIDUAL PLAN FOR EACH OPTION PERIOD? Subk Plan Subk Plan
53 TRUE OR FALSE AN OFFEROR MUST USE THE MODEL SUBCONTRACTING PLAN?
54 TRUE OR FALSE IF A MODEL PLAN IS PROVIDED IN THE SOLICITATION, THE BELOW STATEMENT SHOULD BE INCLUDED Notice to Offerors: GSA provides this model plan as a tool. You must adapt this model plan to fit your subcontracting situation. The plan is NOT a fill-in-the-blank form and you must remove instructional language. This model does not establish minimum requirements for an acceptable plan. The model reflects objectives GSA encourages contractors to adopt. Plans may be created using the Model plan format or be the companys own creation.
55 TRUE OR FALSE GSA FORM 3584 CANNOT BE FOUND AMONG THE AVAILABLE ELECTRONIC FORMS?
56 TRUE OR FALSE A NEW CHECKLIST MUST BE PREPARED TO TRANSMIT SUBK PLAN REVISIONS FOR REVIEW?
57 TRUE OR FALSE COs MAY MAKE MINOR CHANGES TO THE CONTRACTORS SUBK PLAN AND SHOULD REFER CONTRACTORS TO THE SMALL BUSINESS OFFICE FOR QUESTIONS?
58 TRUE OR FALSE IF THE SBTA OR SBAs PCR DO NOT AGREE WITH THE PLAN, AND RETURNS THE CHECKLIST WITHOUT SIGNATURES, NOTHING CAN BE DONE? Refer to FAR (c) & (d), and GSAM
59 LIQUIDATED DAMAGES FAR (c) and Maximum practicable utilization of small business, veteran-owned small business, service-disabled veteran-owned small business, HUBZone small business, small disadvantaged business, and women-owned small business concerns as subcontractors in Government contracts is a matter of national interest with both social and economic benefits. When a contractor fails to make a good faith effort to comply with a subcontracting plan, these objectives are not achieved, and 15 U.S.C. 637(d)(4)(F) directs that liquidated damages shall be paid by the contractor.
60 PAST PERFORMANCE FAR WHY DO WE EVALUATE PAST PERFORMANCE? To have relevant information for future source selection purposes regarding a contractors actions under previously awarded contracts. Past performance evaluation shall include an assessment of contractor performance against, and efforts to achieve, the goals identified in the small business subcontracting plan when the contract includes the clause , Small Business Subcontracting Plan.
61 WHY DO WE EVALUATE PAST PERFORMANCE? To have relevant information for future source selection purposes regarding a contractors actions under previously awarded contracts. Past performance evaluation shall include an assessment of contractor performance against, and efforts to achieve, the goals identified in the small business subcontracting plan when the contract includes the clause , Small Business Subcontracting Plan.
62 SMALL BUSINESS JOBS ACT OF 2010 More accountability, integrity, and transparency for small businesses. Enforces stronger subcontracting plan requirements for large prime contractors to ensure small businesses are utilized in subcontracting. Discourages late payments to small subcontractors.
63 Subcontract Compliance and the Electronic Subcontracting Reporting System (eSRS)
64 Monitoring Subcontracting Compliance Monitoring Compliance After Award Compliance in eSRS Small Business Program Compliance Review (SBPCR) Seven Elements of a SBPCR
65 Monitoring Compliance – After Award Contracting Officer notify the Small Business Administration (SBA) Send copy to SBA Area Director where contractor is located Provide copy of Subcontracting Plan to SBA, Procurement Center Representative (PCR)
66 Monitoring Compliance – After Award Provide copy of award notice to SBTA within five days of contract award or contract modification Forward a copy of each plan or determination that no plan is required to the Administrative Contracting Officer (ACO) Ensure all reports, including Individual Subcontract Report (ISR) and Summary Subcontract Report (SSR) are submitted on time is complete and accurate Partner with SBA and SBTA to conduct Subcontracting Compliance Reviews
67 Monitoring Subcontracting Compliance SSR Status Report ISR First Tier Report Subcontracting Contractor Award Dollars Time-Phased Individual Subcontract Report 5 Year Contractor Trend Report Analysis of Subcontracting Plan Goal Attainment Subcontracting Achievements by Federal Agency ISR All Tiers Report ISR Status Report
68 Monitoring Subcontracting Compliance High dollar Recovery Projects Government-wide multiple award contracts Projects not meeting subcontracting goals (ISRs) Validate data in FPDS and eSRS, including delegated administrative roles Periodically provide progress updates and notify procurement teams of reports to review Clarify lower-tier reporting processes
69 Small Business Program Compliance Review (SBPCR) Public Law , 13 CFR 125, and SBA/Standard Operating Procedures (SOP) An on-site Small Business Program Compliance Review (SBPCR) is an objective and comprehensive formal evaluation of a Large Prime Contractors (LPC) compliance with its subcontracting plans.
70 SBPCR - continued Preparation for a SBPCR is extremely important: General background of the LPCs history, size, major product line Most recent ISR for agency contracts Current year and historical summary subcontracting data for five years List of sources referred to LPC A notification letter and preparation checklist should be issued to the LPC 30 days prior to on-site visit. Request the information be submitted two weeks in advance
71 The Seven Elements of a SBPCR Sourcing Validation of the subcontracting report for ISRs and SSRs Five year trend analysis Overall evaluation of Small Business Program Subcontracting plan goal analysis Sampling of subcontracts issued to large business Follow-up agency/SBAs prior recommendations
72 SBPCR - continued Conducted properly, a SBPCR review can have a significant impact on the way a LPC administers its small business program. Follow up is key!!!
73 Electronic Subcontracting Reporting System (eSRS)
74 eSRS What is eSRS? Who is required to use eSRS? How does eSRS work? How can you register in eSRS?
75 Registering in eSRS: Click on Government if you are a Federal employee Have password ready
77 Registering in eSRS - continued
78 Registering in eSRS
79 Registering in eSRS - continued
80 Registering in eSRS - continued
81 Registering in eSRS - continued
82 Registering in eSRS - continued
83 Registration Complete
84 Accept/Reject ISRs and SSRs
85 Reporting Requirements Individual Subcontract Report (ISR) (formerly SF 294) Semi-annually for: Oct 1 – March 31 April 1 – Sept 30 (Plus one SSR for year-end due Oct 30) Summary Subcontract Report (SSR) (formerly SF 295) AnnuallyOct 1 – Sept 30 Year-End SDB Supplemental Report o Due annually and at contract completion for ISRs o Per 48 CFR (j)(2) o Report (3-digit NAICS subsector) o Optional Form 312 (FAR Clause )
86 Selecting A Report
87 Defining Your Search
88 Accept/Reject ISR
89 Accept/Reject SSR
90 Acceptance/Rejection Note
91 SSR SDB Dollars
92 Accept/Reject Year-End SDB
93 SDB Participation Report Optional Form 312
94 REPORTS Pre-defined Reports 5 Year Contractor Trend Report Analysis of Subcontracting Plan Goal Attainment Subcontracting Achievements by Federal Agency Ad Hoc Reports Design report with more specific details
95 eSRS Resources Central and Regional OSBU POCs Quick Reference Guides Sample Reports
96 GSA, Office of Small Business Utilization Questions? Thank you.