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Subcontracting FAQs

How are subcontracting goals established?

Goals are established based on historical achievements and recommendations from Congress, OSD and other federal agencies.

Why are Army Goals and Individual Subcontracting Plan goals different?

Army subcontracting goals are applicable on a total service wide basis. Individual Subcontracting Plan goals are applicable to a single contract action and should project the maximum practicable opportunity for small business categories to participate in the individual contract effort.

When awarding multiple award indefinite delivery/indefinite quantity contracts and multiple award task order contracts, can individual subcontracting plans be negotiated for each applicable delivery order or task order?

No. A contract may have no more than one plan, FAR 19.705-2 (e). Delivery/Task order subcontracting achievements must be measured against the goals established in the subcontracting plan approved at time of contract award.

What is the difference between Small Business Participation Plan goals and Small Business Subcontracting Plan goals?

Small Business Participation Plan goals are based on total contract value, DFARS 215.304. Small Business Subcontracting Plan goals are based on total subcontracted dollars, FAR 19.701. Acceptable goals are subject to negotiations between the Contracting Officer and the contractor.

If stated subcontracting goals are not achieved, can a company be penalized?

Yes. If it is determined that no good-faith attempt was made to achieve the goals, liquidated damages may be assessed and past performance ratings may be downgraded IAW FAR 19.705-7.

Are subcontracting goals under a Teaming/Partnering or Joint Venturing (JV) Agreement enforced differently?

Yes. Unless otherwise noted, a Teaming/Partnering agreement is essentially viewed as a prime/subcontractor relationship. Under this scenario, the prime contractor is responsible for ensuring that the subcontracting goals are met. A Joint Venture (JV) relationship exists when several firms merge for the purpose of pursuing a specific project. The JV entity is responsible for ensuring that the subcontracting goals are met.

How can a company find other firms with similar technology goals for teaming or subcontracting purposes?

Trade magazines, internet, Small Business Administration (SBA) Dynamic Database search tool, industry conferences and trade shows.