CON 200 Business Decisions for Contracting 5.2 to 9 Master.pdf - CON200 Business Decisions for Contracting Lesson 5 3 Subcontra cting RHOURUS I PRIN T I

CON 200 Business Decisions for Contracting 5.2 to 9 Master.pdf

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Unformatted text preview: CON200 Business Decisions for Contracting Lesson 5. 3 - Subcontra cting RHOURUS I PRIN T I HELP Introduction He llo [ FIRST NAM E], and we lcome to the Subcontracting lesson . Subcontrac ting is critic a lty import ant for sma ll businesses to rema in viable and frequently the most critica l component of ensuolng that sma ll businesses receive federa l contract dollars . In this lesson, you w~1 again accompany Contract Specialist daudia Smith as she meets with Shelty Nichols , our agenc y's Sma ll Business Professiona l. CON200 Business Decisions for Contracting RHOURUS I PRIN T I HELP Lesson 5. 3 - Subcontra cting Lea rninll Objectives Here a re your leam"'g objectives for this lessOfl . Learning Objectives • Determine the requirements for a subcontracting plan. • Compare and contrast subcontracting plans and small bus",ess participation plans and the elements of each'" the source selection evaluation process. • Recognize when monetary incentives may be appropriate", the sokitation and contract. • Determine the need for subcontract COflsent. • Identify subcontract management requirements. CON200 Business Decisions for Contracting RHOURUS I PRIN T I HELP Lesson 5. 3 - Subcontra cting Meetinll with Smilil Busine ss Professional Hi, daudia . Subcontracting is one of the primary avenues by which sma ll businesses receive federal contract dollars so it is ""perative that contracting officers and specialists grasp it s importance . Because of it s ""pac t , there are various rules and regulations to guide the subcontracting process . • \ --l / Thanks, She lty. I would li ke to focus on what subcontracting enta ils and obviousty any re lated ru les and regulations that you think I need to know. Great! Let's do just that - we can start by defining subcontracting, discuss ing the various e lements of the Subcontracting Plans, then trans ition to the contracting officer's I spec ialist's roles and responsibil ities related to subcontracting . I a lso want to touch on Sma ll Bus iness Participation Plans, but pe rhaps we should start with the Subcontracting Plan prior to moving onto similar, somewhat re lated topics ! CON200 8uslnC5S Ilcdsions for Contracting Lesson S. ] Sub<:ontr",;ting REiOUR(H I PRINT I MHP What is a Stlbcontractin\j Plan? A subcontracting plan IS a written plan, submi t ted by a pnme contractor and approved by a contracting officer, that describes goals and actions the contractor plans to take to use smal and disadvantaged businesses to the malOlTlUm practicable extent in perfOlTlW19 the contrac t . SeJe.cr: each of the four types of subconuilCOllg plans. The Next button wiI remiJJn ~bJed until you ""Je.cr: ea<:h type. lndivoOual Master CommerCial Dep~rtment o f Defense (000) Comprehensrve Seie<:t the Eie<:tronic Subcontracting ReporTing System (eSRS) graphic for more information, including the website address: CON200 8uslnC5S Ilcdsions for Contracting Lesson S. ] Sub<:ontr",;ting REiOUR(H I PRINT I MHP What is a Stlbcontractin\j Plan? A subcontracting plan IS a written pla n, submi t ted by a pnme con tra ctor a nd approved by a contracting officer, that describes goals a nd actions the contractor plans to take to use sma l and disadvantaged businesses to the malOlTlUm pra ctica ble e xtent in perfOlTlW19 the contra c t . SeJe.cr: each of the four types of subconuilCOllg plans. The Next button wiI remiJJn ~bJed until you ""Je.cr: ea<:h type. Individual An individ u ,,1 s u bcontracting pi ll n has the following characteristics: Master CommerCia l • One plan for one cO<1trac t Dep~rtment • Goals (Percen t ages and doIa, alllOU"l ts based Of1 plarv>ed subcOf1 tracting) of Defense (000) Comprehensrve • Cove rs e ntir"e contract period • Requir"e s In<jvjdual Subcontracting Reports (ISRs ) a nd S\.nmary SubcOf1tra cting ReportS (SSRs) s e mia nnua ly Seie<:t the Eie<:tronic Subcontracting ReporTing System (eSRS) graphic for more information, including the website address: CON200 Business Decisions for Contracting Lesson 5. 3 - Subcontra cting RHOURUS I PRIN T I HELP What is a Subcontracting Plan ? A subcontrac ting plan is a written plan, s ubmitted by a p,.;me contractor and approved by a contrac ting office r, that desc ribes goa ls and ac tions the contractor plans to take to use sma ll and disadvantaged bus inesses to the maximum prac ticable extent in performing the contract . Select each of the four types of s ubcontracting plans . The Ne xt button wiD rem ain disa bled until you select each type. Individua l A master subcontractin!! plan has the fo llow ing characteris tics: Master Commerc ia l • Can be de ve loped on plant/divis ion bas is Department of Defe nse (000) Compre he ns ive • Effective 3 years after administrative contracting officer approva l (in accordance with Defense Federa l Acquis ition Regulation Supplement (DFARS ) 21g .706) • Conta ins all e lements of s ubcontrac ting plan (except goals ) • Goa ls nego tiated for each app licable contract • Approved master plan with goa ls becomes individual subcontracting plan upon contract a ward Select the Electronic Subcontracting Re porting S ystem (e SRS) graphic for more information, including the website address: W .eSRS ..~~----- CON200 Business Decisions for Contracting Lesson 5. 3 - Subcontra cting RHOURUS I PRIN T I HELP What is a Subcontracting Plan? A subcontracting plan is a written plan, submitted by a p,.;me contractor and approved by a contracting officer, that describes goa ls and actions the contractor plans to take to use sma ll and disa dvantaged businesses to the maximum practicable extent in performing the contract . Select each of the four types of s ubcontracting plans . The Ne xt button wiD rem ain disa bled until you select each type. Individua l A commercial subcontractin!! plan has the fo ll owing characteristics: Master Commerc ia l • Preferred for contractors fumishing commercia l items Department of Defe nse (DoD) Compre he ns ive • App lies to entire production of commercial items sold by e ither e ntire company or a portion thereof (divis",,,,, pla nt , or product line) • Based on contractor's fisca l year • Annua l plan (app li es to a ll govemment contracts in effect) • Contains mandatory e lements • Requires Summary Subcontract Report (SSR) an""a lly Select the Electronic Subcontracting Re porting S ystem (eSRS) graphic for more information, including the website address: W .eSRS ..~~----- CON200 Business Decisions for Contracting Lesson 5. 3 - Subcontra cting RHOURUS I PRIN T I HELP What is a Subcontracting Plan ? A s ubcontrac ting pla n is a writte n pla n, s ubmitted by a p,.;me contrac tor a nd approved by a contrac ting office r, that desc ribes goa ls a nd ac tions the contrac tor pla ns t o t ake to use sma ll a nd disadvantaged bus inesses t o the maximum prac ticable extent in performing the contrac t . Select each of the four types of s ubcontracting plans . The Ne xt button wiD rem ain disa bled until you select each type. Individua l Master Commerc ia l Department of Defe nse (DoD) Compre he ns ive The OoD Co mprehensive Subco ntractin!! Plan Test Program has the fo llowing c haracte ris tics : • Test program for ne gotia tion of comprehens ive s ubcontrac ting plan • Ma y be for a divis ion, pla nt , or corpora tion • Annua l pla n (applies to a ll DoD contracts in effect dunng fisca l year (FY) • Onty Defense Contract Management Age nc y ( DeMA) is de legated authority to ne gotiate plan a nd perform s urve illar.ce re vie w func tions (with input from departments/ age nc ies ) • Requires SSR semia nnua lty See DFARS Proce dures , Guida nce , and Informa tion (PG I) 219 .7 0 2 for deta iled re quirements of this test program . Select the Electronic Subcontracting Re porting S ystem (e SRS) graphic for more information, including the website address: W .eSRS ..~~----- CON200 Business Decisions for Contracting RHOURCH I PRINT I HELP Lesson 5. 3 - Subcontra cting What is " Subcontracting Plan? A subcontracting plan is a written plan, submitted by a pnme contractor and approved by a contracting officer, that describes goa ls and actions the contractor plans to take to use sma ll and disadvantaged businesses to the maximum practicable extent in performing the contract . Select each of the four types of s ubcont r acting plans . The Nex t button wiD rem ain disa bled until you select each type. Individua l Master Commerc ia l Department of Defe nse (DoD) Compre he ns ive As part of the President's Management Agenda for Electronic Govemment, the Sma ll 8us iness Administration (S8A), the Integrated Acquis ition Environment (IAE), and a number of Agency partners collaborated to develop the next generation of tools to collect subcontracting accomp lishments . This government- wide tool is known as the eSRS . This Intemet- based tool will streamline the process of reporting on subcontracting plans and provide agencies with access to analytica l data on subcontracting performance . Spec ifica lly, the eSRS e liminates the need for paper submissions and process ing of the SF 294 's, Individua l Subcontracting Reports , and SF 295 's, Summary Subcontracting Reports, and replaces the paper with an easy- to­ use e lectronic process to collect the data . eSRS Webs ite: http: Il www .esrs .govl Select t he Electronic Subcont r acting Reporting System (eSRS) graphic for more informa tion, including t he website address: w .eSRS ..~~----- CON 200 lIu 5ill e5 5 Decisi o n s f o r Co ntractillg l ..,; .....n'> I Suocont ract ing RUOURUS I PR tNT I HHP EleRM!nts of Subcontracting Plan Ea ch subcontra c lillg pla n ha s II elements ( EAR 19.701 a nd EAR 52.219-9). Select each elemen t listed on the cipbod rd for further deta ils. The Next button will remain disabled until you select each element. Subcon tracting Plan Elemen ts T0tel DoIar:; Types of Supplies Goa l Development Soyrces Indirect Costs Plan Adminis tra t or [)escOOtioo o f Effort Studies. Surveys. and Reports Maintenance of Records CON200 Business Decisions for Contracting Lesson 5. 3 - Subcontra cting RHOURUS I PRIN T I HELP Elements of Subcontractinll Plan Go al s Separate Percentage Goals: • Sma ll 8usOrtess (S8) • Veteran-Owned Sma ll 8us iness (VOS8) • Service - Disabled Veteran-Owned Sma ll 8usOrtess (SDVOS8) • Historica lty Underutilized 8usiness Zone (HU8Zone) S8 • Sma ll Disadvantaged 8usiness (SD8) (including Alaska Native Corporations (ANes) and Indian tribes) • Women-Owned Sma ll 8us iness ( WOS8) concems . These are separatety addressed for the base contract and each option ( if any) . Subcontracts awarded to Nationa l Industries for the Severety Handicapped ( NISH) count toward S8 goals . Source: Federa l Acquis ition Regulation ( FAR) 19.7D4 (a) ( 1), DFARS 2lg.703 CON 200 lIu 5ill e5 5 Decisi o n s f o r Co ntractillg l ..,; .....n'> I Suocont ract ing RUOURUS I PR t NT EleRM!nts of Subcontracting Plan Each subcontraclillg pla n ha s II elements (EAR 19.701 and EAR 52.219-9). Subcon tracting Plan Elem<!n ts A s t a temen t o f total dollars planned to be subcontrac ted and a stat<!ment o f the to tal dollars planned to b<! s ubcontracted to SB, VOSB, SOVOSB, HUIlZ""" SB, SOB, and WOSB concerns. T0tel DoIar:; SOI$ce: FAR 19.Z04( a }(2) Goa l D<!v<!lopmeot Types of Supplies Soyrces Indirect Costs Plan Adminis tra t or [)escrjptioo o f Effort Flow-Down I'roYlS/Q05 Studj<!s. Sury<!ys. and Reports Ma.ntenance of Records I HHP CON 200 lIu 5ill e5 5 Decisi o n s f o r Co ntractillg l ..,;",n'> I Suocont ract ing RUOURUS I PAIN ' I HELP EleRM!nts of Subcontracting Pla n Ea ch subcontractiog pla n ha s II elements ( EAR 19,701 and EAR 52,219-9), Tvpes o f Supplies Subcontracting Pl a n Ele ments A descrip tion o f the pfiocip al types o f supplies and servi<:e s to be subcontrac ted a nd identificatIOn o f types to be subcontracted to SB, VOSB, SOVOS8, HU8Zone, SOB, a nd WOSB, Types of Supplies SOI$ce: FAR 19,Z04( a }(3) Gpa l Develppment T0tel DoIar:; Soyrces Indirect Costs Plan Adminis tra t or [)escrjption o f Effort Flpw-Down I'roYlSK!Os Studies, Surveys, and Reoorts Ma.ntenance of Recprds CON 200 !iu5ill ,,5 5 Decisi o n s fo r Co ntractillg l ..,; .....n'> I RUOURUS I PR tNT I HHP Suocont ract ing EleRM!nts of Subcontracting Plan Ea ch subcontraclillg pla n has II elements ( EAR 19.701 and EAR 52.219-9). Go,,1 DevelOpmen t Subcon tr"cting PI "n Ele men ts A description o f the method used to develop subcontractng goals . 5ou"ce: FAR 19.704( a )(4 ) T0tel DoIar:; Types of Supplies Goa l Pevelopment Soyrces Indirect Costs Plan Adminis tra t or [)escOOtion o f Effort Studies. Surveys. and Reports Ma'ptenance of Records CON 200 lIu 5ill e5 5 Decisi o n s f o r Co ntractillg l ..,; .....n'> I Suocont ract ing RUOURUS I PR tNT I HHP EleRM!nts of Subcontracting Plan Each subcontraclillg pla n has II elements ( EAR 19.701 and EAR 52.219-9). Sou r c es Su bcon tracting Plan Elements A description o f the method used to identify potential SOU:Ce. for soli<:it<otion pu:poses. Sou:ce: FAR 19.704(a )( 5) T0tel DoIar:; Typ... of Supplies Goa l Development Soyrces Indirect Costs Plan Adminis tra t or [)escOOtion o f Effort Studies. Surveys. and Reports Ma.ntenance of Records CON 200 lIu 5ill e5 5 Decisi o n s f o r Co ntractillg l ..,; .....n'> I Suocont ract ing RUOURUS I PR t NT EleRM!nts of Subcontracting Plan Each subcontraclillg pla n ha s II elements ( EAR 19,701 and EAR 52,219-9), Indirect Cos t s Subcon tracting Plan Elemen ts the offeror included indio:ec t costs in establWwlg subcontractJ:lg goals, and the method used to deter!\'WIe the proportionate share o f indio:ect costs to be inc..,.ed WIth S8, vase, SOVOS8, HUSZone, SOB, a nd WOS8 , T0tel DoIar:; SOU'ce: FAR 19,704( a )(6) Soyrces A s t a tement o f whether or not Types of Supplies Goa l Development Indirect Costs Plan Adminis tra t or [)escrjptioo o f Effort Flow-Down I'roYlS/Q05 Studies, Surveys, and Reports Maintenance of Records I HHP CON 200 lIu 5ill e5 5 Decisi o n s f o r Co ntractillg l ..,; .....n'> I Suocont ract ing RUOURUS I PR tNT I HHP EleRM!nts of Subcontracting Plan Ea ch subcontra c lillg pla n ha s II elements ( EAR 19.701 a nd EAR 52.219-9). Plan Administrator Subcontracting Plan Elements The name o f an iodividual e mploved by the o fferor who wil adminis ter the o fferor's subcontractJ:lg program, a nd a descnption o f the duDeS o f the individual. T0tel DoIar:; Types of Supplies Sou'ce: FAR 19.Z04( a )( Z) Goa l Development Soyrees Indirect Costs Plan Adminis tra t or [)escrjption o f Effort Flow-Down I'roYlS/Q05 Studies. Surveys. and Reports Ma.ntenance of Records CON 200 lIu 5ill e5 5 Decisi o n s f o r Co ntractillg l ..,; .....n'> I Suocont ract ing RUOURUS I PR tNT I HHP EleRM!nts of Subcontracting Plan Each subcontraclillg pla n has II elements ( EAR 19.701 and EAR 52.219-9). Des c ription of Effort Subcon tracting Plan Elements A description o f the effort s the o fferor wiil make to ens...e tha t SB, VOSB, HUBZone SB, SOB, and WOSB conce rns have an equtable opportInty 10 c ompele for subcontracts. T0tel DoIar:; Types of Supplies Sou'ce: FAR 19.704(a )(8) Gpa l Develppment Soyrces Indirect Costs Plan Adminis tra t or [)escrjption o f Effort Studies. Surveys. and Reports Ma.ntenance of Recprds CON 200 lIu 5ill e5 5 Decisi o n s f o r Co ntractillg l ..,;",n"> I Subwnt ract ing RUOURU5 I PA INT EleRM!nts of Subcontracting Plan Each subcontraclillg pla n ha s II elements ( EAR 19.701 and EAR 52.219-9). Flo w - Down Provisions Subcontracting Pl a n El e ments Assurances th a t the o fferor wiil include subcontractng flow -down prOVISIOIlS b y including the FAR clause 52 .2 19 -8, utiliza tion o f Smal BusIness Conce rns in al subcontracts tha t offer further subcontrac!Jng opporturoities, and that the offeror w. require a l s ubcontractors (exc e pt S8 concems) to adopt a pla n that complies with the require ments of the FAR clause 52.2 19- '1, Small Business Sub<::on tfac lillg Man . Sourc e : FAR 19. Z04{a )(9 ) T0tel DoIar:; Types of Supplies Gpa l Development Soyrces Indirect Costs Plan Adminis tra t or [)escOOtion o f Effort Flpw-Down I'roYlS/OOs Studies. Surveys. and Reoorts Ma.ntenance of Recprds I HELP CON 200 lIu 5ill e5 5 Decisi o n s f o r Co ntractillg l ..,;",n'> I Suocont ract ing RUOURUS I PAIN ' I HELP EleRM!nts of Subcontracting Pla n Ea ch subcontractiog pla n has II elements ( EAR 19.701 and EAR 52.219-9). Studi es, Surveys, and Reports Subcontracting Pl a n Ele ments Assurances tha t the o fferor wiil coopera te in studies/surveys and provide requored re ports. T0tel DoIar:; Source: FAR 19.704( a )(10) Types of Supplies Goa l Development Soyrces Indirect Costs Plan Adminis tra t or [)escOOtioo o f Effort Flow-Down I'roYlS/OOs Studies. Surveys. and Reports Ma.ntenance of Records CON 200 lIu 5ill e5 5 Decisi o n s f o r Co ntractillg l ..,;",n"> I Subwnt ract ing RUOURU5 I PA INT EleRM!nts of Subcontracting Plan Each subcontraclillg pla n has II elements ( EAR 19,701 and EAR 52,219-9), "'"l nt enlln c e of Records the types of re<:ords maintaooed to demonstra te procedu-'es adopted to compty with the requrement ilnd goills WI the plan; description of the offeror's efforts to locate 58, VOS8, SDVOS8, HU8Zone 58, SOB, ilnd WOS8 concems and to ilward subcontrilcts to them, Subcontracting PI "n Ele ments A description o f SOI,.O'ce: FAR 19,704(a )(11) T0tel DoIilr:; Type. of Supplies Goa l Development Soyrces Jndirect Costs Plan Adminis tra t or [)escrjption o f Effort Flow-Down I'roYlS/Q05 Studies, Surveys, and Reports Ma.ntenilnce of Records I HELP CON200 8uslnC5S Ilcdsions for Contracting Lesson S.] Suocontr",;ting Relations/llp-s with Subcontradors There is no legal relatIOnShip between the goverrvnent and subcontractors, even if the con tract specifies tha t the goverrvnent has the right t o re view and a pprove subcontractors. The prWne contractor administers its own contra ct. This concept is known as I/:!i.Jd1ll of contra ct. Prime contractors must eOS....e time ly payments to all small business subcontractors. Also, if payment is ma de on a" accelerated basis to the prime, then the pr'rne mus t make an accelera t ed paymen t to it s sma l business subcontrac tors. (fAR 52.232 -4Q) Question fOl" You : Based on wha t you've just learned about prMty, how do you think the contracting officer (CO) harxles a performance problem WIth a subcontrac t or? Reflect on this, and then select answer. REiOUR(H I PRINT I MHP CON 200 lIu 5ill e5 5 Decisi o n s f o r Co ntractillg l ..,; .....n'> I Suocont ract ing RUOURUS I PR t NT I HHP I/eialionsilips w ith StlbcontractQf'S There IS flO legal re la tionship between the gove rrvnent a nd subcontractors, eve n if the contract specifies that the government ha s the right to review a nd a pprove subcontractors . The p<Yne cootrac t or a dminis t ers its own cOll trac t . This concept is known a s ~ o f coo trac t . PrWne contrac tQf'S rrlU'S t e ns..-e timely payments to a l smal buslness subcontra c tors. Also, if paymen t is made on an accelera te d ba sis to the pnme, then the prWne rrlU'St make a n a cc e lerated payment to its sma l business subcootra ctors. (EAR 52.232-4Q) Qu e stio n fo r You : 8ased on what you've just learned abou t privi ty, how do ~oo IhinI< the contracbng o ffice r (CO) han<:les a performance problem w,th a subcon trac tor? l1ellect on Chts, ,,00 then select answer. Privity Pnv,ty refers t o a direct cootractua l relationsh;p be twee" the parties. A prime coo trac t or has privity wil:t1 a" a!ilt! nt o f I.)r; t ed States and also wi th its subcoo trac tors tha t are IM"Ider con trac t to it. The goverrvne" t does flOt have privity with the pnme contra ctors subcootract ors by YJl"tue of its contra ct w,1:t1 the pnme cootractor. CON200 8uslne~s Le~""n S. 3 Iledsions for Contracting Subcontracting RIIOURU I I PRINT I MHP Relat ions/llp-s w it h Subcont radors There is no legal relatIOnShip betwe e n the goverrvnent and subcontractors, even if the con tract specifies tha t the gove...
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