Clause 3-1 Small, Minority, and Woman-owned Business
Subcontracting Requirements (March 2006)
a. All suppliers except small businesses must submit a subcontracting
plan that is specific to this contract, and that separately addresses
subcontracting with small, minority, and woman-owned businesses. A
plan approved by the Postal Service must be included in and made a
part of the contract. Lack of an approved plan may make the supplier
ineligible for award. A subcontract is defined as any agreement (other
than one involving an employer-employee relationship) entered into by
a Postal Service supplier or subcontractor calling for supplies or
services required for performance of the contract or subcontract.
b. The supplier's subcontracting plan must include the following:
(1) Goals, in terms of percentages of the total amount of this contract
that the supplier will endeavor to subcontract to small, minority,
and woman-owned businesses. The supplier must include all
subcontracts that contribute to contract performance, and may
include a proportionate share of supplies and services that are
normally allocated as indirect costs.
(2) A statement of the:
(a) Total dollars planned to be subcontracted under this
(b) Total of that amount planned to be subcontracted to small,
minority, and woman-owned businesses.
(3) A description of the principal types of supplies and services to be
subcontracted under this contract, identifying the types planned
for subcontracting to small, minority, and woman-owned
(4) A description of the method used to develop the subcontracting
goals for this contract.
(5) A description of the method used to identify potential sources for
solicitation purposes and a description of efforts the supplier will
make to ensure that small, minority, and woman-owned
businesses have an equitable opportunity to compete for
(6) A statement as to whether the offer included indirect costs in
establishing subcontracting goals for this contract and a
description of the method used to determine the proportionate
share of indirect costs to be incurred with small, minority, and
(7) The name of the individual employed by the supplier who will
administer the subcontracting program and a description of the
(8) Assurances that the supplier will require all subcontractors
receiving subcontracts in excess of $1,000,000 to adopt a plan
similar to the plan agreed to by the supplier.
(9) A description of the types of records the supplier will maintain to
demonstrate compliance with the requirements and goals in the
plan for this contract. The records must include at least the
(a) Source lists, guides, and other data identifying small,
minority, and woman-owned businesses;
(b) Organizations contacted in an attempt to locate sources
that are small, minority, and woman-owned businesses;
(c) Records on each subcontract solicitation resulting in an
award of more than $100,000, indicating whether small,
minority, or woman-owned businesses were solicited and if
not, why not; and
(d) Records to support subcontract award data, including the
name, address, and business size of each subcontractor.
c. Reports. The supplier must provide reports on subcontracting activity
under this contract on a calendar-quarter basis. The report must be one
of the types described in Clause 3-2, Participation of Small, Minority,
and Woman-owned Businesses.
Clause 3-2 Participation of Small, Minority, and Woman-owned
Businesses (March 2006)
a. The policy of the Postal Service is to encourage the participation of
small, minority, and woman-owned business in its purchases of
supplies and services to the maximum extent practicable consistent
with efficient contract performance. The supplier agrees to follow the
same policy in performing this contract.
b. Subject to the agreement of the supplier and the Postal Service, the
supplier will report subcontracting activity on one of the following bases:
(1) Showing the amount of money paid to subcontractors during the
(2) Showing subcontracting activity that is allocable to this contract
using generally accepted accounting practices; or
(3) A combination of the methods listed above.
c. The supplier will submit a report to the contracting officer within 15
calendar days after the end of each calendar-year quarter, describing
all subcontract awards to small, minority, or woman-owned businesses.
The contracting officer may require more frequent reports.