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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 my company offers 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 perform a part of my company's contract? (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. We could do it, but is it required?)

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 my company being awarded a subcontract (i.e. during the PC's 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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1 hour ago, Jahbulon said:

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

The PC "assures" that they will do it in their subcontracting plan (see FAR 52.219-9(d)(9)). The contracting officer could potentially dispute such a determination.

1 hour ago, Jahbulon said:

Does offering further subcontracting opportunities mean having the potential of hiring a Sub-subcontractor (sub-sub) to perform a part of my company's contract? (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. We could do it, but is it required?

The prime assures the Government that it will require OTSB subcontractors to submit a SBSP if the subcontract exceeds $1.5 million on the date of subcontract award.

1 hour ago, Jahbulon said:

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 my company being awarded a subcontract (i.e. during the PC's bid process) by the PC or after execution of the subcontract or anytime I am asked to submit a SBSP?

You are not required to submit a SBSP. The prime may require you to submit one as a condition of subcontract award, but you can choose to decline the subcontract.

1 hour ago, Jahbulon said:

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?

Yes, you can. However, the prime may tell you to aim higher.

1 hour ago, Jahbulon said:

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)?

The PC. Goals are negotiable. You can decline the subcontract if you don't want to accept the PC's goals.

2 hours ago, Jahbulon said:

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?

I don't know for sure.

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