General Policies:

1.10 - Small Business Subcontracting Plan Policy

PURPOSE

Define Rensselaer 's responsibilities as required by the policy of the United States Public Law 95-507 and the Federal Acquisition Regulations (FAR) - Subpart 19.7, Small Business Subcontracting Program. This policy is an expansion of and works in conjunction with the Purchasing Policy and Procedure 1.9, Small Business Policy.

POLICY

In accordance with applicable federal policies, when responding to solicitations (RFPs) and negotiating contracts that offer subcontracting opportunities that are expected to exceed $500,000, Rensselaer will develop and submit subcontracting plans to the sponsoring agency.

DEFINITION

The term "subcontract" regarding the Small Business Program means any agreement entered into that calls for supplies and/or services required during the performance of the contract.

REQUIREMENTS

The policy of the United States Public Law 95-507 and the Federal Acquisition Regulations (FAR)- Subpart 19.7, the Small Business Subcontracting Program, stipulates that when a federally funded contract exceeds $500,000 there are additional procurement requirements. At either the proposal stage or during the contract negotiation stage supplies and/or services to be purchased must be described and spending goals with small businesses must be identified. After award, reports indicating progress towards the goals are required.

RESPONSIBILITIES

Principal Investigator (PI)

• Complete mandatory training program to understand proposal preparation, small business program, subcontracting plan completion, setting of goals and monitoring progress
• Prepare proposals and, if necessary, Small Business Subcontracting Plans (Federal or Federal flow through contracts >$500,000)
• Work with the Small Business Liaison Officer and Research Administration and Finance (RA&F)to establish spending goals with small businesses
• Maintain fiscal management of the contract
• Designate an individual to administer procurement activities under the contract, if desired, and notify Purchasing in writing with that name
• Ensure goals are met and provide explanation if they are not

Department Business Managers

• Complete mandatory training program to understand Institute policy and procedures regarding purchasing
• Prepare appropriate forms that apply to procurement activity
• Maintain records
• Obtain appropriate authorizations (signatures) for expenditure of funds

Small Business Liaison Officer (SBLO)

• Ensure Small Business Program Policy is distributed and publicized
• Identify small businesses and maintain an on-line resource directory
• Train purchasing agents and Institute requisitioners on policy, procedures and resources available
• Collect records from purchasing agents on solicitations and awards made to small business vendors
• Work with PIs and Director, RA&F to prepare and submit subcontracting plans (Federal contracts >$500,000)
• Prepare reports to monitor progress against goals (periodically for internal use and as required to meet federal requirements)
• Issue progress reports regarding goals to PI, VP for Research and Director, RA&F
• Keep apprised of all Federal regulations and Small Business Administration requirements
• Develop potential new small businesses by attending trade shows and conferences
• Ensure new small businesses are aware of how to conduct business with the Institute
• Participate in compliance reviews by Federal agencies

Research Administration and Finance (RA&F)

• Provide SBLO with information regarding proposals and/or awards that are subject to this policy
• Review required subcontracting reports including progress toward goals
• Advise and assist PIs if progress is not being achieved
• Ensure that subcontracting plans and reports are obtained from subcontractors (entities that the Institute subcontracts with for a portion of the scope of work) if the subcontract exceeds $500,000
• Provide the SBLO with the subcontractor subcontracting plans and reports when applicable

PROCEDURES

In connection with a proposal submitted to or a resultant award from a Federal agency which exceeds $500,000, a subcontracting plan is required. This plan, which becomes a part of the resultant contract, must list the supplies and/or services to be purchased and specify spending goals with small businesses. The plan is a negotiable item and failure to submit it may make Rensselaer ineligible for award of the contract. The Institute has developed a standard format that is used for subcontracting plan preparation that is consistent with the requirements set forth in FAR 19.7. Following award, Rensselaer must comply, in good faith, with the plan.  

The Principal Investigator (PI) who is preparing the response to the agency's RFP, must work with the Small Business Liaison Officer (SBLO) and Director, RA&F to develop spending goals for each category of small business. The PI must share the non-personnel portion of the budget with the SBLO. Together the PI, Director, RA&F and SBLO will analyze the requirements to determine what goods and services are potential candidates for small business supplier bidding. The SBLO can provide source suggestions. The PI, Director, RA&F and SBLO must agree on the goals that are itemized in the plan.   Federal agencies look for compliance with subcontracting plans submitted on previous contracts when making decisions on future awards. In addition, failure to comply with subcontracting plans could result in liquidated damage payments.  

If a contract is awarded, Rensselaer is required to submit periodic reports regarding its progress towards meeting the goals as established in the subcontracting plan. There are two types of reports:  

1. Subcontracting Report for Individual Contracts (SF-294) - >$500,000 - This form requires that actual dollars spent and the percentage achieved in each small business category be reported. A narrative must be provided if progress toward the goals falls below that which would be expected based on the period of contract performance. The frequency for this report is defined in each contract. When submitting the final report, an explanation must be provided if any of the goals were not met. For every active SF-294, an agency wide SF-295 is required.  
   
2. Summary Subcontract Report (SF-295) - All Contracts - This form requires that actual dollars spent and the percentage achieved in each small business category be reported for all contract awards with that agency regardless of dollar amount (i.e. whether a subcontracting plan was required or not).

Collection of the spending data, preparation and issuance of the reports will be done by the SBLO. The PI(s) will provide explanations if the goals are not being met.  

The Vice President for Research and Director, Research Administration & Finance will review the reports and take action as necessary if subcontracting goals are not being met.

Rev 12/05