Comment: One respondent had no problem with the proposed changes and clarifications in the wording (FAR text) and agreed that the requirements should be consistent. However, the defendant disagreed with commercial subcontracting plans that allow large companies to “capture and obtain credits for small dollars spent” that have nothing to do with the specific federal contract awarded. The respondent recommended a proposed cap of 0.5% for the large business and that any remaining loans or subcontracting expenses could be made to the small business directly involved and awarded to the specially awarded federal contract. The respondent also reiterated that the original intent of the Contracting Out Act was to encourage large companies to work and subcontract with small businesses in support of the federal contract awarded, not to obtain credits for unrelated work. Another respondent acknowledged the importance of prime contractors making good faith efforts to comply with the SBA`s Small Business Subcontracting Plan. The defendant added that the country was in the midst of a deadly pandemic and made additional political comments unrelated to the FAR case. Comment: One respondent noted that the rule was intended to clarify that the “good faith” requirement does not apply to the subcontracting of commercial items and COTS under main contracts. The respondent noted that the proposed rule does not address paragraph 52.219-9(j) of the FAR, which states that subcontracting plans would not be required of subcontractors if the main contract contained the clause of Article 52.212-5, General Conditions for the Implementation of Articles or Executive Orders – Commercial Items, or if the subcontractor provided a commercial item in accordance with clause 52.244-6. Subcontracting of commercial goods under a main contract. In many cases, a revised plan will be required to include past and future supplier diversity targets. Important actions in good faith.

The rule contains examples of actions that indicate good faith efforts to comply with the outsourcing plan. Here are some of them: . Create a Small Business Subcontracting Plan (SBSP) if my contract requires it? (vi) pilot small businesses that need additional support for the SBA. Many tenders now require contractors to submit plans with their proposals. However, many bidders do not attach enough importance to their plans. As a result, they get a lower technical score. When the government says it will evaluate your subcontracting plan, you want to make sure that you attach as much importance to it as you do to any other bid evaluation requirement. GAO Reports: The Government Accounting Office (GAO) has submitted reports that specifically address this issue. In fact, it strongly recommended that at least two organizations implement enhanced monitoring in their target plan commitments for government subcontracts.

(c) Document efforts made in good faith. If, at the time of entering into the hospitality contract or an option, or in the case of a business plan, at the end of the financial year to which the plan applies, a contractor has failed to comply with the requirements of its subcontracting plan, including the achievement of its subcontracting objectives, the contractor shall review all available information to see if there are indications that it is not acting in good faith to comply. to the plan. If no reference is found, the contractor must document the file accordingly. (i) a breakdown of any work to be subcontracted into economically viable units in order to facilitate the participation of small enterprises. 1. whether the undertakings carrying out the nature of the supply of the goods to be acquired usually conclude contracts for the execution of part of the work or have sufficient internal capacity to carry out the works; The subcontracting plan program is based on Public Law 95-507, adopted in 1978 to ensure that large prime contractors promote the objective of increasing small business participation in federal procurement. (ii) failure to appoint and retain a representative of the Corporation to administer the subcontracting program and to monitor and enforce the plan. (vii) assist interested small businesses in obtaining necessary guarantees, lines of credit, insurance, equipment, supplies, materials or services.