Federal Small Business Subcontracting Plan Overview

19.507 Solicitation provisions and contract clauses

(a) [Reserved]

      (b) [Reserved]

      (c) The contracting officer shall insert the clause at 52.219-6, Notice of Total Small Business Set-Aside, in solicitations and contracts involving total small business set-asides. This includes multiple-award contracts when orders may be set aside for any of the small business concerns identified in 19.000(a)(3), as described in 8.405-5 and 16.505(b)(2)(i)(F). Use the clause at 52.219-6 with its Alternate I when including FPI in the competition in accordance with 19.502-7.

      (d) The contracting officer shall insert the clause at 52.219-7, Notice of Partial Small Business Set-Aside, in solicitations and contracts involving partial small business set-asides. This includes part or parts of multiple-award contracts, including those described in 38.101. Use the clause at 52.219-7 with its Alternate I when including FPI in the competition in accordance with 19.502-7.

      (e) The contracting officer shall insert the clause at 52.219-14, Limitations on Subcontracting, in solicitations and contracts for supplies, services, and construction, if any portion of the requirement is to be set aside for small business and the contract amount is expected to exceed the simplified acquisition threshold. This includes multiple-award contracts when orders may be set aside for small business concerns, as described in 8.405-5 and 16.505(b)(2)(i)(F), and when orders may be issued directly to a small business concern as described in 19.504(c)(1)(ii). For contracts that are set aside, the contracting officer shall indicate in paragraph (d) of the clause whether compliance with the limitations on subcontracting is required at the contract or order level.

      (f) 

(1) The contracting officer shall insert the clause at 52.219-13, Notice of Set-Aside of Orders, in all solicitations for multiple-award contracts under which orders may be set aside for any of the small business concerns identified in 19.000(a)(3), and all contracts awarded from such solicitations.

           (2) The contracting officer shall insert the clause at 52.219-13 with its Alternate I in all full and open solicitations and contracts for multiple-award contracts under which orders will be set aside for any of the small business concerns identified in 19.000(a)(3) if the conditions in 19.502-2 are met at the time of order set-aside, and the specific program eligibility requirements, as applicable, are also then met.

      (g) 

(1) The contracting officer shall insert the provision at 52.219-31, Notice of Small Business Reserve, in solicitations for multiple-award contracts that have reserves.

           (2) The contracting officer shall insert the clause at 52.219-32 Orders Issued Directly Under Small Business Reserves, in solicitations and the resulting multiple-award contracts that have reserves.

      (h) The contracting officer shall insert the clause at 52.219-33, Nonmanufacturer Rule, in solicitations and contracts when the item being acquired has been assigned a manufacturing or supply NAICS code, and any portion of the requirement is set-aside for any of the small business concerns identified in 19.000(a)(3) including multiple-award contracts that provide for the set-aside of orders to small business concerns or for orders issued directly to one small business concern in accordance with 19.504(c)(1)(ii), or is awarded on a sole source basis in accordance with subpart 19.819.1319.14, or 19.15. The clause shall not be used when the Small Business Administration has determined that there are no small business manufacturers of the product or end items and has waived the nonmanufacturer rule (see 19.505(c)(4)).

When the University is awarded more than the federal threshold (currently 700,000) in funding, it is required to submit a Small Business Subcontracting Plan to the funding organization. Situations requiring that a plan be developed:

  1. A federal agency directly awards a prime contract to the University. That agency requires a Small Business Subcontracting Plan be submitted to the agency, either as part of the initial proposal package, or after the award agreement has been initiated.
  2. Another institution or company is a prime contractor to a federal agency and awards a subcontract exceeding the threshold, $700,000, to the University.  UC Berkeley must submit and have a Small Business Subcontracting Plan approved by the funder, before an award agreement can be finalized between UC Berkeley and the prime contractor or subcontract institution.
  3. Another institution is a subcontractor to another prime contractor and initiates a subcontract with the University. The University must submit a plan to that subcontractor.

When the University is a contractor and is subcontracting to other institutions where the total is greater than $700,000, the University must also obtain and accept Small Business Subontracting Plans from any such institutions.

REFERENCE: FAR 19.7 The Small Business Subcontracting Program , FAR 52.219-9 Small Business Subcontracting Plan 

The Federal Acquisition Regulations require one of the following actions during the project duration:

In the event a federally funded project is not able to spend with a small business for which it included goals in a Small Business Subcontracting Plan, the Principal Investigator/project team must: proceed with one of the following actions.

  1. Explain in writing the reason spend could not occur during a federal reporting period and describe what efforts will be made to purchase from that business in the future. The Principal Investigator must notify the funder of these circumstances.This information also needs to be shared with the Supplier Diversity Program Manager, filing Individual Subcontracting Reports (ISR) in the Electronic Subcontracting Reporting System. See the Required Monitoring & Reporitng webpage to learn more about these reports.
  2. If spend will not occur at all with the business, explain the reason why in writing and document the name of an alternate small business to provide the goods or services.  If another small business cannot be used, document why, and the name of the large business from which the goods or services will be purchased. The PI/Project Team must then contact the Contracting Officer to explain the situation.