Common use of Small Business Subcontracting Clause in Contracts

Small Business Subcontracting. (1) Small Business Utilization Plan (the Plan) Required by the FAR: (i) This solicitation contains FAR clause 52.219-9, “Small Business Utilization Plan with Alternate II”. The Plan described and required by the clause, including the associated subcontracting percentage goals and subcontracting dollars, shall be submitted with your proposal. (ii) The Contracting Officer’s assessment of appropriate subcontracting goals for this acquisition, expressed as a percent of TOTAL CONTRACT VALUE (basic and all options combined), is as follows: Small Businesses (SB) 25% Small Disadvantaged Business Concerns (SDB) 0.5% Women Owned Small Business Concerns (WOSB) 3% Historically Black Colleges and Universities (HBCU)/Minority Institutions(MI) 0.5% HUBZone Small Business Concerns (HBZ) 3% Veteran Owned Small Business Concerns (VOSB) 2.5% Service-Disabled Veteran-Owned Small Business Concerns (SDVOSB) 2% (iii) The numbers above reflect the Contracting Officer’s assessment of the appropriate subcontracting goals to be achieved at the completion of contract performance. If it is anticipated that the proposed small business goals will not be met by the submission of the first Individual Subcontracting Report (ISR) for this effort as required by 52.219-9 Small Business Utilization Plan, the Offeror should discuss their approach to include timeline for meeting these goals and the rationale for it. (iv) Offerors are encouraged to propose goals that are equivalent to or greater than those recommended by the Contracting Officer. However, Offerors must perform an independent assessment of the small business subcontracting opportunities. (v) The Plan submitted with the proposal shall be incorporated in Section J as Attachment J-N in the resulting contract. The requirements in the Plan must flow down to first tier large business subcontracts expected to exceed $650,000 or $1,500,000 for construction of a public facility. Although these first tier large business subcontractors are encouraged to meet or exceed the stated goals, it is recognized that the subcontracting opportunities available to these subcontractors may differ from those suggested in the solicitation based upon the nature of their respective performance requirements. (vi) Offerors are advised that a proposal will not be rejected solely because the submitted Plan does not meet the NASA recommended goals that are expressed in paragraph (a) (2) above in terms of percent of TOTAL CONTRACT VALUE (basic and all options combined). NASA will consider the amount of work being retained for performance by the prime contractor in-house when determining whether a subcontracting plan is acceptable. Offerors shall discuss the rationale for any goal proposed that is less than the Contracting Officer’s recommended goal in any category. In addition, the Offeror shall describe the efforts made to establish a goal for that category and what ongoing efforts, if any, the Offeror plans during performance to increase participation in that category. (vii) In addition to submitting a Small Business Utilization Plan in accordance with Section I, FAR clause 52.219-9, Alternate II, Offerors shall include with the Plan an Exhibit A, SMALL BUSINESS UTILIZATION PLAN GOALS, which provides a breakdown of the Offeror’s proposed goals, by small business category, expressed in terms of both a percent of TOTAL CONTRACT VALUE and a percent of TOTAL PLANNED SUBCONTRACTS. Offerors shall modify the exhibit to show the proposed subcontracting goals for the basic contract requirement and each option separately. Example of Subcontracting Goals, expressed in both contract value and subcontract value, for a contract proposed at $100M with estimated subcontracts of $50M:

Small Business Subcontracting. (1) Small Business Utilization Plan (the Plan) Required by the FAR: (i) This solicitation contains FAR clause 52.219-9, “Small Business Utilization Plan with Subcontracting Plan, Alternate II”II (Nov 2016). The Plan described and required by the clause, including the associated subcontracting percentage goals and subcontracting dollars, shall be submitted with your proposal. (ii) The Contracting Officer’s assessment of appropriate subcontracting goals for this acquisition, expressed as a percent of TOTAL CONTRACT VALUE (basic and all options combined), is as follows: Small Businesses (SB) 2512% Small Disadvantaged Business Concerns (SDB) 0.55.0% Women Owned Small Business Concerns (WOSB) 3% Historically Black Colleges and Universities (HBCU)/Minority Institutions(MI) 0.54.0% HUBZone Small Business Concerns (HBZ) 31.0% Veteran Owned Small Business Concerns (VOSB) 2.52.0% Service-Disabled Veteran-Owned Small Business Concerns (SDVOSB) 21.0% (iii) The numbers above reflect the Contracting Officer’s assessment of the appropriate subcontracting goals to be achieved at the completion of contract performance. If it is anticipated that the proposed small business goals will not be met by the submission of the first Individual Subcontracting Report (ISR) for this effort as required by FAR clause 52.219-9 9, “Small Business Utilization Subcontracting Plan, Alternate II (Nov 2016), the Offeror should discuss their approach to include timeline for meeting these goals and the rationale for it. (iv) Offerors are encouraged to propose goals that are equivalent to or greater than those recommended by the Contracting Officer. However, Offerors must perform an independent assessment of the small business subcontracting opportunities. (v) The Plan submitted with the proposal shall be incorporated in Section J as J, paragraph J.1(a) Attachment J-N 8 in the resulting contract. The requirements in the Plan must flow down to first tier large business subcontracts expected to exceed $650,000 700,000, or $1,500,000 for construction of a public facility. Although these first tier large business subcontractors are encouraged to meet or exceed the stated goals, it is recognized that the subcontracting opportunities available to these subcontractors may differ from those suggested in the solicitation based upon the nature of their respective performance requirements. (vi) Offerors are advised that a proposal will not be rejected solely because the submitted Plan does not meet the NASA recommended goals that are expressed in paragraph (a) (2ii) above in terms of percent of TOTAL CONTRACT VALUE Total Contract Value (basic and all options combined). NASA will consider the amount of work being retained for performance by the prime contractor in-house when determining whether a subcontracting plan is acceptable. Offerors shall discuss the rationale for any goal proposed that is less than the Contracting Officer’s recommended goal in any category. In addition, the Offeror shall describe the efforts made to establish a goal for that category and what ongoing efforts, if any, the Offeror plans during performance to increase participation in that category. (vii) In addition to submitting a Small Business Utilization Subcontracting Plan in accordance with Section I, FAR clause 52.219-9, “Small Business Subcontracting Plan, Alternate II, II (Nov 2016). Offerors shall include with the Plan an Exhibit Acomplete Table SB-1 in this section, SMALL BUSINESS UTILIZATION PLAN GOALSentitled Small Business Subcontracting Goals, which provides a breakdown of the Offeror’s proposed goals, by small business category, expressed in terms of both a percent of TOTAL CONTRACT VALUE and a percent of TOTAL PLANNED SUBCONTRACTS. Offerors shall modify the exhibit to show the proposed subcontracting goals for the basic contract requirement and each option separately. Example of Subcontracting Goals, expressed in both contract value and subcontract value, for a contract proposed at $100M with estimated subcontracts of $50M:50M. Column A Column B Column C Small Business Concerns 25 percent $25,000,000 50 percent Large Business Concerns n/a $25,000,000 50 percent Total Dollars to be Subcontracted n/a $50,000,000 100 percent Women Owned Small Business Concerns 9 percent $9,000,000 18 percent Small Disadvantaged Business Concerns 5.5 percent $5,500,000 11 percent Veteran Owned Small Business Concerns 2.5 percent $2,500,000 5 percent Service-Disabled Veteran-Owned Small Business Concerns 1.5 percent $1,500,000 3 percent HUBZone Small Business Concerns 1.5 percent $1,500,000 3 percent It is recommended that Offerors first complete Column B by entering the dollar amount the Offeror proposes to subcontract to each business category and subcategory. To complete Column A, divide the dollar amount in Column B by the total offered price of the proposal (that is, total contract value). In the example above, Column A for Veteran Owned Business Concerns = $2,500,000 divided by $100,000,000, or 2.5 percent. To complete Column C, divide the corresponding amount in Column B by the amount in the “Total Dollars to be Subcontracted” cell in Column B. In the example above, Column C for Women-Owned Small Businesses = $9,000,000 divided by $50,000,000, or 18 percent. Note: the “Total Dollars to be Subcontracted” amount in Column C will always be that category divided by itself (100 percent if any dollars are subcontracted).

Small Business Subcontracting. (1) A. Small Business Utilization Subcontracting Plan (the Plan) Required by the FAR: (i) 1. This solicitation contains FAR clause 52.219-9, “Small Business Utilization Subcontracting Plan with and its Alternate II”. The Plan described and required by the clause, including the associated subcontracting percentage goals and subcontracting dollars, shall be submitted with your proposal. For the purposes of estimating Small Business Goals only, the value of the RRSW “IDIQ MAXIMUM ORDERING VALUE” is $200 million. (ii) 2. The Contracting Officer’s assessment of appropriate subcontracting goals for this acquisition, expressed as a percent of TOTAL CONTRACT IDIQ MAXIMUM ORDERING VALUE (basic and all options combined), is as follows: Small Businesses (SB) 2512% Small Disadvantaged Business Concerns (SDB) 0.5(Includes SDB’s in represented and under-represented areas* 1% Women Owned Small Business Concerns (WOSB) 31% Historically Black Colleges and Universities (HBCU)/Minority Institutions(MIHBCU) 0.50% HUBZone Small Business Concerns (HBZ) 31% Veteran Owned Small Business Concerns (VOSB) 2.52% Service-Disabled Veteran-Owned Small Business Concerns (SDVOSB) 2%0.5% *Although 15 U.S.C. 637(d) requires subcontracting plans to contain information about SDB concerns, case law prevents the Government from giving evaluation credit to business types based on race or ethnicity unless those businesses are in under- represented industries. The Section M evaluation for SDB participation ensures that the Government only evaluates participation of SDBs in industries that are designated by the Department of Commerce as under represented. For purposes of the Small Business Subcontracting Plan, the proposed subcontracting goal for SDBs will be evaluated based upon the SDB’s status as a small business. (iii) B. The numbers above reflect the Contracting Officer’s assessment of the appropriate subcontracting goals to be achieved at the completion of contract performance. If it is anticipated that the proposed small business goals will not be met by the submission of the first Individual Subcontracting Report (ISR) for this effort as required by 52.219-9 Small Business Utilization Subcontracting Plan, the Offeror should discuss their approach to include timeline for meeting these goals and the rationale for it. (iv) C. Offerors are encouraged to propose goals that are equivalent to or greater than those recommended by the Contracting Officer. However, Offerors must perform an independent assessment of the small business subcontracting opportunities. (v) D. The Plan submitted with the proposal shall be incorporated in Section J as J.1(a) Attachment J-N 11 in the resulting contract. The requirements in the Plan must flow down to first tier large business subcontracts expected to exceed $650,000 550,000 or $1,500,000 1,000,000 for construction of a public facility. Although these first tier large business subcontractors are encouraged to meet or exceed the stated goals, it is recognized that the subcontracting opportunities available to these subcontractors may differ from those suggested in the solicitation based upon the nature of their respective performance requirements. (vi) E. Offerors are advised that a proposal will not be rejected solely because the submitted Plan does not meet the NASA recommended goals that are expressed in paragraph (a) (2) above in terms of percent of TOTAL CONTRACT IDIQ MAXIMUM ORDERING VALUE (basic and all options combined). NASA will consider the amount of work being retained for performance by the prime contractor in-house when determining whether a subcontracting plan is acceptable. Offerors shall discuss the rationale for any goal proposed that is less than the Contracting Officer’s recommended goal in any category. In addition, the Offeror shall describe the efforts made to establish a goal for that category and what ongoing efforts, if any, the Offeror plans during performance to increase participation in that category. (vii) F. In addition to submitting a Small Business Utilization Subcontracting Plan in accordance with Section I, FAR clause 52.219-9, Alternate II, Offerors shall include with the Plan an Exhibit Acomplete Section J.1(a) Attachment 12, SMALL BUSINESS UTILIZATION SUBCONTRACTING PLAN GOALS, which provides a breakdown of the Offeror’s proposed goals, by small business category, expressed in terms of both a percent of TOTAL CONTRACT IDIQ MAXIMUM ORDERING VALUE and a percent of TOTAL PLANNED SUBCONTRACTS. Offerors shall modify the exhibit to show the proposed subcontracting goals for the basic contract requirement and each option separately. . G. Example of Subcontracting Goals, expressed in both contract value and subcontract value, for a contract proposed at $100M with estimated subcontracts of $50M:: Column A Column B Column C Small Business Concerns 25 percent $25,000,000 50 percent Large Business Concerns n/a $25,000,000 50 percent Total Dollars to be Subcontracted n/a $50,000,000 100 percent Women Owned Small Business Concerns 9 percent $9,000,000 18 percent Small Disadvantaged Business Concerns 5.5 percent $5,500,000 11 percent Veteran Owned Small Business Concerns 2.5 percent $2,500,000 5 percent Service-Disabled Veteran-Owned Small Business Concerns 1.5 percent $1,500,000 3 percent HUBZone Small Business Concerns 1.5 percent $1,500,000 3 percent Historically Black Colleges and Universities 1.5 percent $1,500,000 3 percent It is recommended that Offerors first complete Column B by entering the dollar amount the Offeror proposes to subcontract to each business category and subcategory. To complete Column A, divide the dollar amount in Column B by the total offered price of the proposal (that is, total contract value). In the example above, Column A for Veteran Owned Business Concerns = $2,500,000 divided by $100,000,000, or 2.5%. To complete column C, divide the corresponding amount in Column B by the amount in the “Total Dollars to be Subcontracted” cell in Column B. In the example above, Column C for Women-Owned Small Businesses = $9,000,000 divided by $50,000,000, or 18%. Note: the “Total Dollars to be Subcontracted” amount in Column C will always be that category divided by itself (100% if any dollars are subcontracted).

Small Business Subcontracting. (1) Small Business Utilization Subcontracting Plan (the Plan) Required by the FAR: (ia) This solicitation contains FAR clause Clause 52.219-9, “Small Business Utilization Plan with Alternate IISubcontracting Plan”. The Plan described and required by the clauseClause, including the associated subcontracting percentage goals and subcontracting dollars, shall be submitted with your proposalproposal via the Small Business Subcontracting Plan, (DRD-TEST2-BP-02). (iib) The Contracting Officer’s assessment determination of the appropriate subcontracting goals for this acquisition, expressed as a percent of TOTAL CONTRACT VALUE (basic and all options combined), is acquisition are as follows: Small Businesses (SB) 2526.0% Small Disadvantaged Business Concerns (SDB) 0.5(Includes SDB’s in represented and under-represented areas* 5.0% Women Owned Small Business Concerns (WOSB) 38.0% Historically Black Colleges and Universities and Other Minority Institutions (HBCU)/Minority Institutions(MIHBCU/MI) 0.50.3% HUBZone Small Business Concerns (HBZ) 37.0% Veteran Owned Small Business Concerns (VOSB) 2.57.0% Service-Disabled Veteran-Owned Small Business Concerns (SDVOSB) 2%6.0% * Although 15 U.S.C. 637(d) requires subcontracting plans to contain information about SDB concerns, case law prevents the Government from giving evaluation credit to business types based on race or ethnicity unless those businesses are in under-represented industries. The Section M evaluation for SDB participation ensures that the Government only evaluates participation of SDBs in industries that are designated by the Department of Commerce as underrepresented. For purposes of the Small Business Subcontracting Plan, the proposed subcontracting goal for SDBs will be evaluated based upon the SDB’s status as a small business. (iiic) The numbers above reflect the Contracting Officer’s assessment of the appropriate subcontracting goals to be achieved at the completion of contract performance. If it is anticipated that the proposed small business goals will not be met by the submission of the first Individual Subcontracting Report (ISR) for this effort as required by FAR 52.219-9 9, the offeror shall discuss as part of their Small Business Utilization Plan, the Offeror should discuss Subcontracting Plan their approach to include timeline for meeting these the Small business goals and the rationale for itassociated rationale. (ivd) Offerors are encouraged to propose The stated goals that are equivalent to or greater represent the minimum for the TEST2 contract. If the offeror proposes goals higher than those recommended by the Contracting Officer. However’s recommendation, Offerors must perform an independent assessment the offeror shall document the methodology behind determining those goals, and their approach to successfully managing the subcontractor and consistently meeting the higher proposed goals in the face of the small business subcontracting opportunitiesuncertain environment facing JSC. Offerors shall also address their approach for managing the subcontractor for both positive and negative performance. The offeror shall also describe in detail their approach for managing and maintaining high goals with an uncertain and unpredictable workload and constant workload fluctuation. (ve) The Plan submitted with the proposal shall be incorporated in Section J as Attachment Jthe Small Business Subcontracting Plan, (DRD-N in TEST2-BP-02), of the resulting contract. The requirements in the Plan must flow down to first tier large business subcontracts expected to exceed $650,000 550,000 or $1,500,000 1,000,000 for construction of a public facility. Although these first tier large business subcontractors are encouraged to meet or exceed the stated goals, it is recognized that the subcontracting opportunities available to these subcontractors may differ from those suggested in the solicitation based upon the nature of their respective performance requirements. (vif) Offerors are advised that a proposal will not be rejected solely because the submitted Plan does not meet the NASA recommended goals that are expressed in paragraph (a) (2) above in terms of percent of TOTAL CONTRACT VALUE (basic and all options combined). NASA will consider the amount of work being retained for performance by the prime contractor in-house and the associated rationale when determining whether a subcontracting plan is acceptable. Offerors shall discuss the rationale for any goal proposed that is less than the Contracting Officer’s recommended goal in any category. In addition, the Offeror offeror shall describe the efforts made to establish a goal for that category and what ongoing efforts, if any, the Offeror offeror plans during performance to increase participation in that category. (viig) In addition to submitting a Small Business Utilization Plan in accordance with Section ISubcontracting Plan, FAR clause 52.219-9, Alternate II, Offerors offerors shall include with the Plan an Exhibit Acomplete Attachment L-5, SMALL BUSINESS UTILIZATION PLAN GOALSSUBCONTRACTING TABLES, which provides a breakdown of the Offerorofferor’s proposed goals, by small business category, expressed in terms of both a percent of TOTAL CONTRACT VALUE and a percent of TOTAL PLANNED SUBCONTRACTS. Offerors shall modify the exhibit to show the proposed subcontracting goals for the basic contract requirement and each option separately. Example of Subcontracting Goals, expressed in both contract value and subcontract value, for a contract proposed at $100M with estimated subcontracts of $50M:.