Dec 7, 2017

By Colin Johnson

A Final Rule published in the Federal Register July 14, 2016, effective November 1, 2016, amended the Federal Acquisition Regulation (FAR) to implement regulatory changes made by the U.S. Small Business Administration (SBA) , which provide for a Governmentwide policy on small business subcontracting.  One of the changed requirements effects subcontracting reports submitted after November 30, 2017.

Specifically, the language at FAR 19.704(a)(10)(iii), 52.219-9(d)(10)(iii), and 52.219-9 Alternate IV (d)(10)(iii)—was revised to require order-level reporting on single-award, indefinite-delivery, indefinite-quantity contracts intended for use by multiple agencies in addition to multiple-award contracts in use by multiple agencies and to clarify that the order-level reporting would be required after November 30, 2017, which is when the Electronic Subcontracting Reporting System (eSRS) will be ready to accommodate this requirement.

This rule is implementing the regulatory changes made by the SBA and will allow for the facilitation of allocating subcontracting credits to funding agencies. This allocation will help ensure that funding agencies are recognized and incentivized to promote small business subcontracting on orders.  It is important to keep in mind that these reporting requirements apply to all orders on a single-award IDIQ contract intended for use by multiple agencies regardless of dollar value. These changes will apply to solicitations issued on or after the effective date or at the contracting officer’s discretion in accordance with FAR 1.108(d).

FAR Clause 52.219-9, Subcontracting Plan Requirements (JAN 2017), the most recent update of the clause, contains the revised language

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  • Alice Oberhausen says:

    I am particularly interested in whether this new SBA rule change extends to awards that federal agencies make against the GSA Areawide Agreements for Utility Energy Service Contracts. Many agencies use this contract vehicle to issue Task Orders for meeting federal energy conservation goals. Other federal agencies (DoD in particular) create Basic Ordering Agreements to establish basic language particular to the Agency with clauses that will apply to all orders (delivery or task orders) that will be issued against the BOA. The Prime is always a Utility and is almost always a Large Business concern. The ordering agency has not previously been able to take credit for subcontract awards that are made to small businesses by the Prime or a first tier subcontractor to the Prime. Can ordering agencies now obtain credit for subcontracting if the ordering agency requires and Individual Subcontracting Plan from the Prime?