All suppliers, including small businesses, are encouraged to use SMWOBs as subcontractors to the maximum extent consistent with effective contract performance. Each supplier awarded a contract estimated or valued at $500,000 or more, or when a contract reaches or exceeds the $500,000 threshold during contract performance, must submit semi-annual 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 the dollar amount of payments made to subcontractors during the reporting period; (2) reports showing subcontracting activity that is allocable to the contract using generally accepted accounting principles; or (3) reports that are a combination of the methods listed above. At the time of award, the purchase/SCM team and the supplier must agree to which type of report will be used. Reporting for indefinite-delivery contracts and ordering agreements are based upon the estimated dollar value of the contract and are inclusive of the dollars spent on all orders issued within the reporting period.
