2-39.1 Subcontracting Plans

Plans which specifically address subcontracting with SMWOBs are required for all contracts, except with small businesses, that are either estimated or valued at $1 million or more, or when a contract reaches or exceeds the $1 million threshold during contract performance. Unless formally waived by the contracting officer for urgent and compelling business reasons, or for the reasons discussed in Section 2-21, Define Supplier Diversity Objectives, suppliers must submit the plans with their proposals, and plans must be agreed to before award of the contract (small businesses are exempt from this requirement). For indefinite-delivery contracts, the supplier must address these amounts as a total dollar range based upon the minimum and maximum as stated in the contract.

Provision 3-1: Notice of Small-, Minority-, and Woman-Owned Business Subcontracting Requirements, discusses the reporting requirements for all suppliers at the $500,000 threshold, and the plan requirement at the $1 million threshold and exempts small businesses from the plan requirement. The provision is incorporated by reference in Provision 4-1: Standard Solicitation Provisions, and must be checked-off by contracting officers for all solicitations for contracts. Contracting officers must include Clauses 3-1: Small-, Minority-, and Woman-Owned Business Subcontracting Requirements and Clause 3-2: Participation of Small-, Minority-, and Woman-Owned Businesses in all solicitations and contracts.