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Hi All,

My questions are about the small business (SB) subcontracting requirements for an "other than small business (OTSB)" first-tier construction subcontractor (sub). From all the reading I've done so far, I have a few assumptions and some questions. I really appreciate any help as I am trying to set some sort of company policy. Because of the recent change regarding "Credit for Lower Tier Small Business Subcontracting"; I am guessing Prime Contractors (PC) will start coming after subs to get help from subs to meet PCs SB goals. Now questions;

1) Small Business Subcontracting Plan (SBSP): A construction sub is required to submit a SBSP i) if it's total contract value exceeds $1.5m and ii) if it "offers further subcontracting opportunities". 

a) Who determines if we offer further subcontracting opportunities? Is it the PC or Contracting Officer (CO) or someone else?

b) Does offering further subcontracting opportunities mean having the potential of hiring a Sub-subcontractor (sub-sub) to do a part of the work? (Note: If so, almost all of my projects with a contract exceeding $1.5m would fall under this category. Because of the nature of our work, we almost always use a sub-sub, even if its subcontract value might be as small as let's say $50K for my $1.5M contract. Therefore, I'd have to submit a SBSP for almost every project I work at with a contract exceeding $1.5m.)

2) Assuming I am required to submit a SBSP because I might hire a sub-sub, when am I required to submit it, prior to being awarded a subcontract (i.e. during the bid process) by the PC or after execution of the subcontract or anytime I am asked to submit a SBSP?

3) Assuming my planned "total subcontracted dollars" is only 3% of my subcontract value (i.e., $50K), can I submit a SBSP with 0% goal in each category? 

4) Who approves/rejects my SBSP? Can I be required to accept/adopt certain goals by PC (e.g. PC's own goals as submitted to the Government)?

5) Do my reports (ISR and SSR) go to the PC for review, not to the CO;  unless I add CO's email address to the list of the parties to be notified of my report on eSRS; or CO is automatically notified by eSRS and reviews/comments/approves/rejects/monitors my reports?

Please consider the recent LowerTier SB counting in your comments. I hope this tread will be a guide for any subcontractor getting into Federal projects. Thank you all very much in advance.

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Jahbulon - By my read FAR Case 2018-003 has not be moved forward yet or in other words the FAR has not been revised to implement the statute and the subsequent regulation of the SBA regarding "Credit for Lower Tier Small Business Subcontracting";.  Until such time that SBA's rule is implemented in the FAR I for one could not answer your questions.

Here is a WIFCON discussion that might help 

Here are a few references that makes me think your questions are premature.


https://www.acq.osd.mil/dpap/dars/far_case_status.html   which states - 2018-003 (S) Credit for Lower-Tier Small Business Subcontracting Implements section 1614 of the NDAA for FY 2014, as implemented in the SBA regulations on 12/23/2016 (81FR 94246), which allows prime contractors to receive credit toward goals in their small business subcontracting plans for subcontracts awarded by their subcontractors.11/15/2017 DARC Directort  asked Small Business Team to draft proposed FAR rule. Report due 01/10/2018. Report due date extended to 06/06/2018.

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