Common use of SMALL BUSINESS SUBCONTRACTING FEE REDUCTION Clause in Contracts

SMALL BUSINESS SUBCONTRACTING FEE REDUCTION. ‌ (a) For the purpose of implementing this Clause, the percentage goals established in the Section J Attachment entitled, Small Business Subcontracting Plan, will remain in effect for the duration of the Contract, except as modified in accordance with the Section B Clause entitled, Changes to Contract Cost and Contract Fee. The Contractor shall submit annual updates to the narrative elements of the Small Business Subcontracting Plan by December 31 of each year. (b) The Contractor’s performance in meeting small business performance percentage goals in accordance with the Section H Clause entitled, Self-Performed Work, providing meaningful involvement for small businesses, and entering into the required Mentor- Protégé Agreement(s) will be evaluated after the: (1) Three year period concluding at the end of the 3rd year of Contract performance; (2) Two year period concluding at the end of the 5th year of Contract performance; and, if the Option Period(s) is exercised; (3) If Option Period 1 is exercised -- -two year period concluding at the end of the 7th year of Contract performance; and (4) At the end of the Contract period of performance. (c) The Contracting Officer will consider the Contractor’s performance in meeting small business percentage goals and entering into the required Mentor-Protégé Agreement(s) when making a decision on the Option Period(s) authorization. (d) If the Contractor has not met any or all of the subcontracting goals, has failed to provide meaningful involvement for small business, and/or has failed to enter into the required Mentor-Protégé Agreement(s) during the above specified periods, the Contracting Officer may reduce the earned fee by an amount up to 10% of total earned fee in each period of the four (4) multi-year periods described above. (e) At Contract completion, the total amount of fee reduction for failure to meet its subcontracting goals shall be offset by any amount of liquidated damages assessed in accordance with the Section I Clause entitled, FAR 52.219-16,