2-39 Subcontracting with SMWOBs

Suppliers are encouraged to use SMWOBs as subcontractors to the maximum extent consistent with effective contract performance.

Each supplier awarded a contract valued at $500,000 or more must submit calendar-quarter reports (purchase/SCM teams may require more frequent submittals) on its subcontracting activity for that contract. Three types of reporting methods may be used: (1) reports showing direct subcontract awards awarded under the Postal Service contract; (2) reports showing subcontracting activity that is allocable to the Postal Service contract using generally accepted accounting practices; or (3) reports that are a combination of the two. During discussions, the purchase/SCM team and the supplier must agree to which type of report will be used.