52.219-9_Alternate IV | Acquisition.GOV

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title="FAR" typeof="foaf:Image" /> </div> <div class="agov-browse-fac-text"><h1>FAR</h1> <p class=""><b>FAC Number:</b> 2025-03 <br /><b>Effective Date:</b> 01/17/2025</p></div> </div> <div id="reg-form-navigation"><form class="far-page-navigation-block-form usa-form" data-drupal-selector="far-page-navigation-block-form" action="/far/52.219-94" method="post" id="far-page-navigation-block-form" accept-charset="UTF-8"> <div class="form-item usa-label js-form-item form-type-select js-form-type-select form-item-partname js-form-item-partname form-no-label"> <div class="select-wrapper"><select id="partname" title="FAR Part menu." aria-label="FAR Part menu." data-drupal-selector="edit-partname" name="partname" class="form-select usa-select"><option value="">Part</option><option value="60810">Part 1</option><option value="60875">Part 2</option><option value="60881">Part 3</option><option value="60991">Part 4</option><option value="61123">Part 5</option><option value="61165">Part 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<div class="select-wrapper"><select id="subpartname" title="FAR Sub Part menu." aria-label="FAR Sub Part menu." data-drupal-selector="edit-subpartname" name="subpartname" class="form-select usa-select"><option value="">Subpart</option><option value="31746">52.0</option><option value="31747">52.1</option><option value="31756" selected="selected">52.2</option><option value="32490">52.3</option></select></div> </div> <div class="form-item usa-label js-form-item form-type-select js-form-type-select form-item-subtopicname js-form-item-subtopicname form-no-label"> <div class="select-wrapper"><select id="subtopicname" title="FAR Sub Topic menu." aria-label="FAR Sub Topic menu." data-drupal-selector="edit-subtopicname" name="subtopicname" class="form-select usa-select"><option value="">Section</option><option value="31757">52.200</option><option value="31758">52.201</option><option value="31759">52.202</option><option value="31761">52.203</option><option value="31781">52.204</option><option value="31808">52.205</option><option value="31809">52.206</option><option value="31810">52.207</option><option value="31817">52.208</option><option value="31827">52.209</option><option value="31842">52.210</option><option value="31844">52.211</option><option value="31863">52.212</option><option value="31869">52.213</option><option value="31874">52.214</option><option value="31910">52.215</option><option value="31934">52.216</option><option value="31967">52.217</option><option value="31977">52.218</option><option value="31978" selected="selected">52.219</option><option value="32012">52.220</option><option value="32013">52.221</option><option value="32014">52.222</option><option value="32077">52.223</option><option value="32100">52.224</option><option value="32104">52.225</option><option value="32131">52.226</option><option value="32138">52.227</option><option value="32162">52.228</option><option value="32180">52.229</option><option value="32195">52.230</option><option value="32203">52.231</option><option value="32204">52.232</option><option value="32245">52.233</option><option value="32250">52.234</option><option value="32255">52.235</option><option value="32256">52.236</option><option value="32285">52.237</option><option value="32296">52.238</option><option value="32297">52.239</option><option value="32299">52.240</option><option value="32300">52.241</option><option value="32314">52.242</option><option value="32332">52.243</option><option value="32340">52.244</option><option value="32347">52.245</option><option value="32357">52.246</option><option value="32384">52.247</option><option value="32453">52.248</option><option value="32457">52.249</option><option value="32472">52.250</option><option value="32478">52.251</option><option value="32481">52.252</option><option value="32488">52.253</option></select></div> </div> <input data-drupal-selector="form-m96cgvg7i1qweklmrfb3unmwqi-vy9bka-kczsa7ek0" type="hidden" name="form_build_id" 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<span class="ph autonumber">52.219-9</span> Small Business Subcontracting Plan.</h1> <div class="body conbody clause"> <p class="p" id="FAR_52_219_9__d3281e8">As prescribed in <span class="ph ClauseProvisionXREF"> <a class="xref fm:ParaNumOnly" href="/far/19.708#FAR_19_708" title="19.708" aria-label="19.708. Link 0">19.708</a>(b)</span>, insert the following clause:</p> <p class="p FAC 2025-03 January 17, 2025 Ctr_SmCaps" id="FAR_52_219_9__d3281e15">Small Business Subcontracting Plan (Jan 2025)</p> <p class=" ListL1" id="FAR_52_219_9__d3281e19"> <span class="ph autonumber">(a)</span> This clause does not apply to small business concerns.</p> <p class=" ListL1" id="FAR_52_219_9__d3281e24"> <span class="ph autonumber">(b)</span> <em class="ph i">Definitions</em>. As used in this clause—</p> <p class=" ListL1" id="FAR_52_219_9__d3281e30"> <em class="ph i d3277e51_52.219-9 Term">Alaska Native Corporation (ANC)</em> means any Regional Corporation, Village Corporation, Urban Corporation, or Group Corporation organized under the laws of the State of Alaska in accordance with the Alaska Native Claims Settlement Act, as amended ( <a class="xref" href="http://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title43-section1601&num=0&edition=prelim" target="_blank" title="43 U.S.C. 1601" aria-label="43 U.S.C. 1601. Link 1">43 U.S.C. 1601</a>, <em class="ph i">et seq.</em>) and which is considered a minority and economically disadvantaged concern under the criteria at <a class="xref" href="http://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title43-section1626(e)(1)&num=0&edition=prelim" target="_blank" title="43 U.S.C. 1626(e)(1)" aria-label="43 U.S.C. 1626(e)(1). Link 2">43 U.S.C. 1626(e)(1)</a>. This definition also includes ANC direct and indirect subsidiary corporations, joint ventures, and partnerships that meet the requirements of <a class="xref" href="http://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title43-section1626(e)(2)&num=0&edition=prelim" target="_blank" title="43 U.S.C. 1626(e)(2)" aria-label="43 U.S.C. 1626(e)(2). Link 3">43 U.S.C. 1626(e)(2)</a>.</p> <p class=" ListL1" id="FAR_52_219_9__d3281e46"> <em class="ph i d3277e78_52.219-9 Term">Commercial plan</em> means a subcontracting plan (including goals) that covers the offeror’s fiscal year and that applies to the entire production of commercial products and commercial services sold by either the entire company or a portion thereof (<em class="ph i">e.g.,</em> division, plant, or product line).</p> <p class=" ListL1" id="FAR_52_219_9__d3281e53"> <em class="ph i d3277e69_52.219-9 Term">Commercial product</em> means a product that satisfies the definition of “commercial product” in Federal Acquisition Regulation (FAR) <a class="xref fm:ParaNumOnly" href="/far/2.101#FAR_2_101" title="2.101" aria-label="2.101. Link 4">2.101</a>. </p> <p class=" ListL1" id="FAR_52_219_9__d3281e60"> <em class="ph i d3277e69s45_52.219-9 Term">Commercial service</em> means a service that satisfies the definition of “commercial service” in FAR <a class="xref fm:ParaNumOnly" href="/far/2.101#FAR_2_101" title="2.101" aria-label="2.101. Link 4">2.101</a>. </p> <p class=" ListL1" id="FAR_52_219_9__d3281e67"> <em class="ph i d3277e87_52.219-9 Term">Electronic Subcontracting Reporting System (eSRS)</em> means the Governmentwide, electronic, web-based system for small business subcontracting program reporting. The eSRS is located at <a class="xref" href="http://www.esrs.gov" target="_blank" title="http://www.esrs.gov" aria-label="http://www.esrs.gov. Link 6">http://www.esrs.gov</a>.</p> <p class=" ListL1" id="FAR_52_219_9__d3281e74"> <em class="ph i d3277e97_52.219-9 Term">Indian tribe</em> means any Indian tribe, band, group, pueblo, or community, including native villages and native groups (including corporations organized by Kenai, Juneau, Sitka, and Kodiak) as defined in the Alaska Native Claims Settlement Act ( <a class="xref" href="http://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title43-section1601&num=0&edition=prelim" target="_blank" title="43 U.S.C. 1601" aria-label="43 U.S.C. 1601. Link 1">43 U.S.C. 1601</a> et seq.), that is recognized by the Federal Government as eligible for services from the Bureau of Indian Affairs in accordance with <a class="xref" href="http://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title25-section1452(c)&num=0&edition=prelim" target="_blank" title="25 U.S.C. 1452(c)" aria-label="25 U.S.C. 1452(c). Link 8">25 U.S.C. 1452(c)</a>. This definition also includes Indian-owned economic enterprises that meet the requirements of <a class="xref" href="http://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title25-section1452(e)&num=0&edition=prelim" target="_blank" title="25 U.S.C. 1452(e)" aria-label="25 U.S.C. 1452(e). Link 9">25 U.S.C. 1452(e)</a>.</p> <p class=" ListL1" id="FAR_52_219_9__d3281e87"> <em class="ph i d3277e112_52.219-9 Term">Individual subcontracting plan</em> means a subcontracting plan that covers the entire contract period (including option periods), applies to a specific contract, and has goals that are based on the offeror's planned subcontracting in support of the specific contract, except that indirect costs incurred for common or joint purposes may be allocated on a prorated basis to the contract.</p> <p class=" ListL1" id="FAR_52_219_9__d3281e91"> <em class="ph i d3277e118_52.219-9 Term">Master subcontracting plan</em> means a subcontracting plan that contains all the required elements of an individual subcontracting plan, except goals, and may be incorporated into individual subcontracting plans, provided the master subcontracting plan has been approved.</p> <p class=" ListL1" id="FAR_52_219_9__d3281e95"> <em class="ph i d3277e124_52.219-9 Term">Reduced payment</em> means a payment that is for less than the amount agreed upon in a subcontract in accordance with its terms and conditions, for supplies and services for which the Government has paid the prime contractor.</p> <p class=" ListL1" id="FAR_52_219_9__d3281e99"> <em class="ph i d3277e130_52.219-9 Term">Subcontract</em> means any agreement (other than one involving an employer-employee relationship) entered into by a Federal Government prime Contractor or subcontractor calling for supplies or services required for performance of the contract or subcontract.</p> <p class=" ListL1" id="FAR_52_219_9__d3281e104"> <em class="ph i d3277e136_52.219-9 Term">Total contract dollars</em> means the final anticipated dollar value, including the dollar value of all options.</p> <p class=" ListL1" id="FAR_52_219_9__d3281e108"> <em class="ph i d3277e143_52.219-9 Term">Untimely payment</em> means a payment to a subcontractor that is more than 90 days past due under the terms and conditions of a subcontract for supplies and services for which the Government has paid the prime contractor.</p> <p class="p"></p><p class="Runin RuninRestart ListL1" id="FAR_52_219_9__d3281e113"> <span class="ph autonumber">(c)</span> </p> <p class="RuninChild ListL2" id="FAR_52_219_9__d3281e118"> <span class="ph autonumber">(1)</span> The Offeror, upon request by the <dfn class="term">Contracting</dfn> Officer, shall submit and negotiate a subcontracting plan, where applicable, that separately addresses subcontracting with small business, veteran-owned small business, service-disabled veteran-owned small business, HUBZone small business, small disadvantaged business, and women-owned small business concerns. If the Offeror is submitting an individual subcontracting plan, the plan must separately address subcontracting with small business, veteran-owned small business, service-disabled veteran-owned small business, HUBZone small business, small disadvantaged business, and women-owned small business concerns, with a separate part for the basic contract and separate parts for each option (if any). The subcontracting plan shall be included in and made a part of the resultant contract. The subcontracting plan shall be negotiated within the time specified by the Contracting Officer. Failure to submit and negotiate the subcontracting plan shall make the Offeror ineligible for award of a contract.</p> <p class="p"></p><p class="Runin RuninRestart ListL2" id="FAR_52_219_9__d3281e126"> <span class="ph autonumber">(2)</span> </p> <p class="RuninChild ListL3" id="FAR_52_219_9__d3281e131"> <span class="ph autonumber">(i)</span> <span class="ph FAC 2025-03 January 17, 2025">Unless the Contractor has reason to question the representations, it may accept a subcontractor's written representations of its size and socioeconomic status as a small business, small disadvantaged business, veteran-owned small business, service-disabled veteran-owned small business, or a women-owned small business if the subcontractor represents that the size and socioeconomic status representations with its offer are current, accurate, and complete as of the date of the offer for the subcontract.</span> </p> <p class=" ListL3" id="FAR_52_219_9__d3281e136"> <span class="ph autonumber">(ii)</span> <span class="ph FAC 2025-03 January 17, 2025">Unless the Contractor has reason to question the representations, it may accept a subcontractor's representations of its size and socioeconomic status as a small business, small disadvantaged business, veteran-owned small business, service-disabled veteran-owned small business, or a women-owned small business in the System for Award Management (SAM) if—</span> </p> <p class=" ListL4" id="FAR_52_219_9__d3281e142"> <span class="ph autonumber">(A)</span> The subcontractor is registered in SAM; and</p> <p class=" ListL4" id="FAR_52_219_9__d3281e147"> <span class="ph autonumber">(B)</span> The subcontractor represents that the size and socioeconomic status representations made in SAM are current, accurate and complete as of the date of the offer for the subcontract.</p> <p class=" ListL3" id="FAR_52_219_9__d3281e152"> <span class="ph autonumber">(iii)</span> The Contractor may not require the use of SAM for the purposes of representing size or socioeconomic status in connection with a subcontract.</p> <p class=" ListL3" id="FAR_52_219_9__d3281e157"> <span class="ph autonumber">(iv)</span> In accordance with 13 CFR 121.411, 126.900, 127.700, and 128.600, a contractor acting in good faith is not liable for misrepresentations made by its subcontractors regarding the subcontractor's size or socioeconomic status.</p> <p class=" ListL1" id="FAR_52_219_9__d3281e165"> <span class="ph autonumber">(d)</span> The Offeror’s subcontracting plan shall include the following:</p> <p class=" ListL2" id="FAR_52_219_9__d3281e171"> <span class="ph autonumber">(1)</span> <span class="ph FAC 2025-03 January 17, 2025">Separate goals, expressed in terms of total dollars subcontracted, and as a percentage of total planned subcontracting dollars, for the use of small business, veteran-owned small business, service-disabled veteran-owned small business, HUBZone small business, small disadvantaged business, and women-owned small business concerns as subcontractors. For individual subcontracting plans, and if required by the Contracting Officer, goals shall also be expressed in terms of percentage of total contract dollars, in addition to the goals expressed as a percentage of total subcontract dollars. The Offeror shall include all subcontracts that contribute to contract performance, and may include a proportionate share of products and services that are normally allocated as indirect costs. In accordance with <a class="xref" href="https://www.govinfo.gov/link/uscode/15/657r" target="_blank" title="15 U.S.C. 657r(a)" aria-label="15 U.S.C. 657r(a). Link 10">15 U.S.C. 657r(a)</a>, an Offeror that is a mentor with an SBA-approved mentor-protégé agreement (see <a class="xref" href="https://www.ecfr.gov/current/title-13/section-125.9" target="_blank" title="13 CFR 125.9" aria-label="13 CFR 125.9. Link 11">13 CFR 125.9</a>) that provides a subcontract to its protégé may apply the costs incurred for training it provides to its protégé toward its subcontracting plan goals, provided that protégé is a covered territory business or that protégé has its principal office located in the Commonwealth of Puerto Rico. In accordance with <a class="xref" href="https://www.govinfo.gov/link/uscode/43/1626" target="_blank" title="43 U.S.C. 1626" aria-label="43 U.S.C. 1626. Link 12">43 U.S.C. 1626</a>—</span> </p> <p class=" ListL3" id="FAR_52_219_9__d3281e180"> <span class="ph autonumber">(i)</span> Subcontracts awarded to an ANC or Indian tribe shall be counted towards the subcontracting goals for small business and small disadvantaged business concerns, regardless of the size or Small Business Administration certification status of the ANC or Indian tribe; and</p> <p class=" ListL3" id="FAR_52_219_9__d3281e185"> <span class="ph autonumber">(ii)</span> Where one or more subcontractors are in the subcontract tier between the prime Contractor and the ANC or Indian tribe, the ANC or Indian tribe shall designate the appropriate Contractor(s) to count the subcontract towards its small business and small disadvantaged business subcontracting goals.</p> <p class=" ListL4" id="FAR_52_219_9__d3281e191"> <span class="ph autonumber">(A)</span> In most cases, the appropriate Contractor is the Contractor that awarded the subcontract to the ANC or Indian tribe.</p> <p class=" ListL4" id="FAR_52_219_9__d3281e196"> <span class="ph autonumber">(B)</span> If the ANC or Indian tribe designates more than one Contractor to count the subcontract toward its goals, the ANC or Indian tribe shall designate only a portion of the total subcontract award to each Contractor. The sum of the amounts designated to various Contractors cannot exceed the total value of the subcontract.</p> <p class=" ListL4" id="FAR_52_219_9__d3281e201"> <span class="ph autonumber">(C)</span> The ANC or Indian tribe shall give a copy of the written designation to the Contracting Officer, the prime Contractor, and the subcontractors in between the prime Contractor and the ANC or Indian tribe within 30 days of the date of the subcontract award.</p> <p class=" ListL4" id="FAR_52_219_9__d3281e206"> <span class="ph autonumber">(D)</span> If the Contracting Officer does not receive a copy of the ANC’s or the Indian tribe’s written designation within 30 days of the subcontract award, the Contractor that awarded the subcontract to the ANC or Indian tribe will be considered the designated Contractor.</p> <p class=" ListL2" id="FAR_52_219_9__d3281e211"> <span class="ph autonumber">(2)</span> A statement of–</p> <p class=" ListL3" id="FAR_52_219_9__d3281e217"> <span class="ph autonumber">(i)</span> Total dollars planned to be subcontracted for an individual subcontracting plan; or the Offeror's total projected sales, expressed in dollars, and the total value of projected subcontracts, including all indirect costs except as described in paragraph (g) of this clause, to support the sales for a commercial plan;</p> <p class=" ListL3" id="FAR_52_219_9__d3281e222"> <span class="ph autonumber">(ii)</span> Total dollars planned to be subcontracted to small business concerns (including ANC and Indian tribes);</p> <p class=" ListL3" id="FAR_52_219_9__d3281e227"> <span class="ph autonumber">(iii)</span> Total dollars planned to be subcontracted to veteran-owned small business concerns;</p> <p class=" ListL3" id="FAR_52_219_9__d3281e232"> <span class="ph autonumber">(iv)</span> Total dollars planned to be subcontracted to service-disabled veteran-owned small business;</p> <p class=" ListL3" id="FAR_52_219_9__d3281e237"> <span class="ph autonumber">(v)</span> Total dollars planned to be subcontracted to HUBZone small business concerns;</p> <p class=" ListL3" id="FAR_52_219_9__d3281e242"> <span class="ph autonumber">(vi)</span> Total dollars planned to be subcontracted to small disadvantaged business concerns (including ANCs and Indian tribes); and</p> <p class=" ListL3" id="FAR_52_219_9__d3281e247"> <span class="ph autonumber">(vii)</span> Total dollars planned to be subcontracted to women-owned small business concerns.</p> <p class=" ListL2" id="FAR_52_219_9__d3281e252"> <span class="ph autonumber">(3)</span> A description of the principal types of supplies and services to be subcontracted, and an identification of the types planned for subcontracting to-</p> <p class=" ListL3" id="FAR_52_219_9__d3281e258"> <span class="ph autonumber">(i)</span> Small business concerns;</p> <p class=" ListL3" id="FAR_52_219_9__d3281e263"> <span class="ph autonumber">(ii)</span> Veteran-owned small business concerns;</p> <p class=" ListL3" id="FAR_52_219_9__d3281e268"> <span class="ph autonumber">(iii)</span> Service-disabled veteran-owned small business concerns;</p> <p class=" ListL3" id="FAR_52_219_9__d3281e273"> <span class="ph autonumber">(iv)</span> HUBZone small business concerns;</p> <p class=" ListL3" id="FAR_52_219_9__d3281e278"> <span class="ph autonumber">(v)</span> Small disadvantaged business concerns; and</p> <p class=" ListL3" id="FAR_52_219_9__d3281e283"> <span class="ph autonumber">(vi)</span> Women-owned small business concerns.</p> <p class=" ListL2" id="FAR_52_219_9__d3281e288"> <span class="ph autonumber">(4)</span> A description of the method used to develop the subcontracting goals in paragraph (d)(1) of this clause.</p> <p class=" ListL2" id="FAR_52_219_9__d3281e293"> <span class="ph autonumber">(5)</span> A description of the method used to identify potential sources for solicitation purposes (<em class="ph i">e.g.</em>, existing company source lists, SAM, veterans service organizations, the National Minority Purchasing Council Vendor Information Service, the Research and Information Division of the Minority Business Development Agency in the Department of Commerce, or small, HUBZone, small disadvantaged, and women-owned small business trade associations). A firm may rely on the information contained in SAM as an accurate representation of a concern's size and ownership characteristics for the purposes of maintaining a small, veteran-owned small, service-disabled veteran-owned small, HUBZone small, small disadvantaged, and women-owned small business source list. Use of SAM as its source list does not relieve a firm of its responsibilities (<em class="ph i">e.g.</em>, outreach, assistance, counseling, or publicizing subcontracting opportunities) in this clause.</p> <p class=" ListL2" id="FAR_52_219_9__d3281e304"> <span class="ph autonumber">(6)</span> A statement as to whether or not the Offeror included indirect costs in establishing subcontracting goals, and a description of the method used to determine the proportionate share of indirect costs to be incurred with–</p> <p class=" ListL3" id="FAR_52_219_9__d3281e310"> <span class="ph autonumber">(i)</span> Small business concerns (including ANC and Indian tribes);</p> <p class=" ListL3" id="FAR_52_219_9__d3281e315"> <span class="ph autonumber">(ii)</span> Veteran-owned small business concerns;</p> <p class=" ListL3" id="FAR_52_219_9__d3281e320"> <span class="ph autonumber">(iii)</span> Service-disabled veteran-owned small business concerns;</p> <p class=" ListL3" id="FAR_52_219_9__d3281e325"> <span class="ph autonumber">(iv)</span> HUBZone small business concerns;</p> <p class=" ListL3" id="FAR_52_219_9__d3281e330"> <span class="ph autonumber">(v)</span> Small disadvantaged business concerns (including ANC and Indian tribes); and</p> <p class=" ListL3" id="FAR_52_219_9__d3281e335"> <span class="ph autonumber">(vi)</span> Women-owned small business concerns.</p> <p class=" ListL2" id="FAR_52_219_9__d3281e340"> <span class="ph autonumber">(7)</span> The name of the individual employed by the Offeror who will administer the Offeror's subcontracting program, and a description of the duties of the individual.</p> <p class=" ListL2" id="FAR_52_219_9__d3281e345"> <span class="ph autonumber">(8)</span> A description of the efforts the Offeror will make to assure that small business, veteran-owned small business, service-disabled veteran-owned small business, HUBZone small business, small disadvantaged business, and women-owned small business concerns have an equitable opportunity to compete for subcontracts.</p> <p class=" ListL2" id="FAR_52_219_9__d3281e350"> <span class="ph autonumber">(9)</span> <span class="ph FAC 2025-03 January 17, 2025">Assurances that the Offeror will include the clause of this contract entitled “Utilization of Small Business Concerns” in all subcontracts that offer further subcontracting opportunities, and that the Offeror will require all subcontractors (except small business concerns, including entities that are treated as small business concerns by statute for certain purposes ( <em class="ph i">e.g.,</em> ANCs, see <a class="xref" href="https://www.ecfr.gov/current/title-13/section-125.3#p-125.3(b)(2)" target="_blank" title="13 CFR 125.3(b)(2)" aria-label="13 CFR 125.3(b)(2). Link 13">13 CFR 125.3(b)(2)</a>)) that receive subcontracts in excess of the applicable threshold specified in FAR <a class="xref fm:ParaNumOnly" href="/far/19.702#FAR_19_702" title="19.702" aria-label="19.702. Link 14">19.702</a>(a) on the date of subcontract award, with further subcontracting possibilities to adopt a subcontracting plan that complies with the requirements of this clause.</span> </p> <p class=" ListL2" id="FAR_52_219_9__d3281e358"> <span class="ph autonumber">(10)</span> Assurances that the Offeror will–</p> <p class=" ListL3" id="FAR_52_219_9__d3281e364"> <span class="ph autonumber">(i)</span> Cooperate in any studies or surveys as may be required;</p> <p class=" ListL3" id="FAR_52_219_9__d3281e369"> <span class="ph autonumber">(ii)</span> Submit periodic reports so that the Government can determine the extent of compliance by the <span class="ph FAC 2025-03 January 17, 2025">Contractor</span> with the subcontracting plan;</p> <p class=" ListL3" id="FAR_52_219_9__d3281e374"> <span class="ph autonumber">(iii)</span> After November 30, 2017, include subcontracting data for each order when reporting subcontracting achievements for indefinite-delivery, indefinite-quantity contracts with individual subcontracting plans where the contract is intended for use by multiple agencies;</p> <p class=" ListL3" id="FAR_52_219_9__d3281e382"> <span class="ph autonumber">(iv)</span> Submit the Individual Subcontract Report (ISR) and/or the Summary Subcontract Report (SSR), in accordance with paragraph (l) of this clause using the Electronic Subcontracting Reporting System (eSRS) at <a class="xref" href="http://www.esrs.gov" target="_blank" title="http://www.esrs.gov" aria-label="http://www.esrs.gov. Link 6">http://www.esrs.gov</a>. The reports shall provide information on subcontract awards to small business concerns (including ANCs and Indian tribes that are not small businesses), veteran-owned small business concerns, service-disabled veteran-owned small business concerns, HUBZone small business concerns, small disadvantaged business concerns (including ANCs and Indian tribes that have not been certified by the Small Business Administration as small disadvantaged businesses), women-owned small business concerns, and for NASA only, Historically Black Colleges and Universities and Minority Institutions. Reporting shall be in accordance with this clause, or as provided in agency regulations;</p> <p class=" ListL3" id="FAR_52_219_9__d3281e390"> <span class="ph autonumber">(v)</span> Ensure that its subcontractors with subcontracting plans agree to submit the ISR and/or the SSR using eSRS;</p> <p class=" ListL3" id="FAR_52_219_9__d3281e395"> <span class="ph autonumber">(vi)</span> Provide its prime contract number, its unique entity identifier, and the e-mail address of the Offeror’s official responsible for acknowledging receipt of or rejecting the ISRs, to all first-tier subcontractors with subcontracting plans so they can enter this information into the eSRS when submitting their ISRs; and</p> <p class=" ListL3" id="FAR_52_219_9__d3281e403"> <span class="ph autonumber">(vii)</span> Require that each subcontractor with a subcontracting plan provide the prime contract number, its own unique entity identifier, and the e-mail address of the subcontractor’s official responsible for acknowledging receipt of or rejecting the ISRs, to its subcontractors with subcontracting plans.</p> <p class=" ListL2" id="FAR_52_219_9__d3281e411"> <span class="ph autonumber">(11)</span> A description of the types of records that will be maintained concerning procedures that have been adopted to comply with the requirements and goals in the plan, including establishing source lists; and a description of the offeror’s efforts to locate small business, veteran-owned small business, service-disabled veteran-owned small business, HUBZone small business, small disadvantaged business, and women-owned small business concerns and award subcontracts to them. The records shall include at least the following (on a plant-wide or company-wide basis, unless otherwise indicated):</p> <p class=" ListL3" id="FAR_52_219_9__d3281e417"> <span class="ph autonumber">(i)</span> Source lists (<em class="ph i">e.g.,</em> SAM), guides, and other data that identify small business, veteran-owned small business, service-disabled veteran-owned small business, HUBZone small business, small disadvantaged business, and women-owned small business concerns.</p> <p class=" ListL3" id="FAR_52_219_9__d3281e425"> <span class="ph autonumber">(ii)</span> Organizations contacted in an attempt to locate sources that are small business, veteran-owned small business, service-disabled veteran-owned small business, HUBZone small business, small disadvantaged business, or women-owned small business concerns.</p> <p class=" ListL3" id="FAR_52_219_9__d3281e430"> <span class="ph autonumber">(iii)</span> Records on each subcontract solicitation resulting in an award of more than the simplified acquisition threshold, as defined in FAR <a class="xref fm:ParaNumOnly" href="/far/2.101#FAR_2_101" title="2.101" aria-label="2.101. Link 4">2.101</a> on the date of subcontract award, indicating-</p> <p class=" ListL4" id="FAR_52_219_9__d3281e439"> <span class="ph autonumber">(A)</span> Whether small business concerns were solicited and, if not, why not;</p> <p class=" ListL4" id="FAR_52_219_9__d3281e444"> <span class="ph autonumber">(B)</span> Whether veteran-owned small business concerns were solicited and, if not, why not;</p> <p class=" ListL4" id="FAR_52_219_9__d3281e449"> <span class="ph autonumber">(C)</span> Whether service-disabled veteran-owned small business concerns were solicited and, if not, why not;</p> <p class=" ListL4" id="FAR_52_219_9__d3281e454"> <span class="ph autonumber">(D)</span> Whether HUBZone small business concerns were solicited and, if not, why not;</p> <p class=" ListL4" id="FAR_52_219_9__d3281e459"> <span class="ph autonumber">(E)</span> Whether small disadvantaged business concerns were solicited and, if not, why not;</p> <p class=" ListL4" id="FAR_52_219_9__d3281e464"> <span class="ph autonumber">(F)</span> Whether women-owned small business concerns were solicited and, if not, why not; and</p> <p class=" ListL4" id="FAR_52_219_9__d3281e469"> <span class="ph autonumber">(G)</span> If applicable, the reason award was not made to a small business concern.</p> <p class=" ListL3" id="FAR_52_219_9__d3281e474"> <span class="ph autonumber">(iv)</span> Records of any outreach efforts to contact-</p> <p class=" ListL4" id="FAR_52_219_9__d3281e480"> <span class="ph autonumber">(A)</span> Trade associations;</p> <p class=" ListL4" id="FAR_52_219_9__d3281e485"> <span class="ph autonumber">(B)</span> Business development organizations;</p> <p class=" ListL4" id="FAR_52_219_9__d3281e490"> <span class="ph autonumber">(C)</span> Conferences and trade fairs to locate small, HUBZone small, small disadvantaged, service-disabled veteran-owned, and women-owned small business sources; and</p> <p class=" ListL4" id="FAR_52_219_9__d3281e495"> <span class="ph autonumber">(D)</span> Veterans service organizations.</p> <p class=" ListL3" id="FAR_52_219_9__d3281e500"> <span class="ph autonumber">(v)</span> Records of internal guidance and encouragement provided to buyers through-</p> <p class=" ListL4" id="FAR_52_219_9__d3281e506"> <span class="ph autonumber">(A)</span> Workshops, seminars, training, etc.; and</p> <p class=" ListL4" id="FAR_52_219_9__d3281e511"> <span class="ph autonumber">(B)</span> Monitoring performance to evaluate compliance with the program’s requirements.</p> <p class=" ListL3" id="FAR_52_219_9__d3281e516"> <span class="ph autonumber">(vi)</span> On a contract-by-contract basis, records to support award data submitted by the offeror to the Government, including the name, address, and business size of each subcontractor. Contractors having commercial plans need not comply with this requirement.</p> <p class=" ListL2" id="FAR_52_219_9__d3281e522"> <span class="ph autonumber">(12)</span> Assurances that the Offeror will make a good faith effort to acquire articles, equipment, supplies, services, or materials, or obtain the performance of construction work from the small business concerns that it used in preparing the bid or proposal, in the same or greater scope, amount, and quality used in preparing and submitting the bid or proposal. Responding to a request for a quote does not constitute use in preparing a bid or proposal. The Offeror used a small business concern in preparing the bid or proposal if–</p> <p class=" ListL3" id="FAR_52_219_9__d3281e528"> <span class="ph autonumber">(i)</span> The Offeror identifies the small business concern as a subcontractor in the bid or proposal or associated small business subcontracting plan, to furnish certain supplies or perform a portion of the subcontract; or</p> <p class=" ListL3" id="FAR_52_219_9__d3281e533"> <span class="ph autonumber">(ii)</span> The Offeror used the small business concern's pricing or cost information or technical expertise in preparing the bid or proposal, where there is written evidence of an intent or understanding that the small business concern will be awarded a subcontract for the related work if the Offeror is awarded the contract.</p> <p class=" ListL2" id="FAR_52_219_9__d3281e538"> <span class="ph autonumber">(13)</span> Assurances that the Contractor will provide the Contracting Officer with a written explanation if the Contractor fails to acquire articles, equipment, supplies, services or materials or obtain the performance of construction work as described in (d)(12) of this clause. This written explanation must be submitted to the Contracting Officer within 30 days of contract completion.</p> <p class=" ListL2" id="FAR_52_219_9__d3281e543"> <span class="ph autonumber">(14)</span> Assurances that the Contractor will not prohibit a subcontractor from discussing with the Contracting Officer any material matter pertaining to payment to or utilization of a subcontractor.</p> <p class=" ListL2" id="FAR_52_219_9__d3281e548"> <span class="ph autonumber">(15)</span> Assurances that the <span class="ph FAC 2025-03 January 17, 2025">Contractor</span> will pay its small business subcontractors on time and in accordance with the terms and conditions of the underlying subcontract, and notify the contracting officer when the prime contractor makes either a reduced or an untimely payment to a small business subcontractor (see <a class="xref fm:ParaNumOnly" href="/far/52.242-5#FAR_52_242_5" title="52.242-5" aria-label="52.242-5. Link 17">52.242-5</a>).</p> <p class=" ListL1" id="FAR_52_219_9__d3281e556"> <span class="ph autonumber">(e)</span> In order to effectively implement this plan to the extent consistent with efficient contract performance, the Contractor shall perform the following functions:</p> <p class=" ListL2" id="FAR_52_219_9__d3281e562"> <span class="ph autonumber">(1)</span> Assist small business, veteran-owned small business, service-disabled veteran-owned small business, HUBZone small business, small disadvantaged business, and women-owned small business concerns by arranging solicitations, time for the preparation of bids, quantities, specifications, and delivery schedules so as to facilitate the participation by such concerns. Where the Contractor’s lists of potential small business, veteran-owned small business, service-disabled veteran-owned small business, HUBZone small business, small disadvantaged business, and women-owned small business subcontractors are excessively long, reasonable effort shall be made to give all such small business concerns an opportunity to compete over a period of time.</p> <p class=" ListL2" id="FAR_52_219_9__d3281e567"> <span class="ph autonumber">(2)</span> Provide adequate and timely consideration of the potentialities of small business, veteran-owned small business, service-disabled veteran-owned small business, HUBZone small business, small disadvantaged business, and women-owned small business concerns in all "make-or-buy" decisions.</p> <p class=" ListL2" id="FAR_52_219_9__d3281e572"> <span class="ph autonumber">(3)</span> Counsel and discuss subcontracting opportunities with representatives of small business, veteran-owned small business, service-disabled veteran-owned small business, HUBZone small business, small disadvantaged business, and women-owned small business firms.</p> <p class=" ListL2" id="FAR_52_219_9__d3281e577"> <span class="ph autonumber">(4)</span> Confirm that a subcontractor representing itself as a HUBZone small business concern is certified by SBA as a HUBZone small business concern by accessing SAM or by accessing the Dynamic Small Business Search (DSBS) at <em class="ph i"> <a class="xref" href="https://web.sba.gov/pro-net/search/dsp_dsbs.cfm" target="_blank" title="https://web.sba.gov/pro-net/search/dsp_dsbs.cfm" aria-label="https://web.sba.gov/鈥媝ro-net/鈥媠earch/鈥媎sp_鈥媎sbs.cfm. Link 18">https://web.sba.gov/pro-net/search/dsp_dsbs.cfm</a>.</em> </p> <p class=" ListL2" id="FAR_52_219_9__d3281e585"> <span class="ph autonumber">(5)</span> Provide notice to subcontractors concerning penalties and remedies for misrepresentations of business status as small, veteran-owned small business, HUBZone small, small disadvantaged, or women-owned small business for the purpose of obtaining a subcontract that is to be included as part or all of a goal contained in the Contractor’s subcontracting plan.</p> <p class=" ListL2" id="FAR_52_219_9__d3281e590"> <span class="ph autonumber">(6)</span> For all competitive subcontracts over the simplified acquisition threshold, as defined in FAR <a class="xref fm:ParaNumOnly" href="/far/2.101#FAR_2_101" title="2.101" aria-label="2.101. Link 4">2.101</a> on the date of subcontract award, in which a small business concern received a small business preference, upon determination of the successful subcontract offeror, prior to award of the subcontract the Contractor must inform each unsuccessful small business subcontract offeror in writing of the name and location of the apparent successful offeror and if the successful subcontract offeror is a small business, veteran-owned small business, service-disabled veteran-owned small business, HUBZone small business, small disadvantaged business, or women-owned small business concern.</p> <p class=" ListL2" id="FAR_52_219_9__d3281e598"> <span class="ph autonumber">(7)</span> Assign each subcontract the NAICS code and corresponding size standard that best describes the principal purpose of the subcontract.</p> <p class=" ListL1" id="FAR_52_219_9__d3281e603"> <span class="ph autonumber">(f)</span> A master subcontracting plan on a plant or division-wide basis that contains all the elements required by paragraph (d) of this clause, except goals, may be incorporated by reference as a part of the subcontracting plan required of the Offeror by this clause; provided-</p> <p class=" ListL2" id="FAR_52_219_9__d3281e609"> <span class="ph autonumber">(1)</span> The master subcontracting plan has been approved;</p> <p class=" ListL2" id="FAR_52_219_9__d3281e614"> <span class="ph autonumber">(2)</span> The Offeror ensures that the master subcontracting plan is updated as necessary and provides copies of the approved master subcontracting plan, including evidence of its approval, to the Contracting Officer; and</p> <p class=" ListL2" id="FAR_52_219_9__d3281e619"> <span class="ph autonumber">(3)</span> Goals and any deviations from the master subcontracting plan deemed necessary by the Contracting Officer to satisfy the requirements of this contract are set forth in the individual subcontracting plan.</p> <p class=" ListL1" id="FAR_52_219_9__d3281e624"> <span class="ph autonumber">(g)</span> A commercial plan is the preferred type of subcontracting plan for contractors furnishing commercial products and commercial services. The commercial plan shall relate to the offeror’s planned subcontracting generally, for both commercial and Government business, rather than solely to the Government contract. Once the Contractor’s commercial plan has been approved, the Government will not require another subcontracting plan from the same Contractor while the plan remains in effect, as long as the product or service being provided by the Contractor continues to meet the definition of a commercial product or commercial service. A Contractor with a commercial plan shall comply with the reporting requirements stated in paragraph (d)(10) of this clause by submitting one SSR in eSRS for all contracts covered by its commercial plan. A Contractor authorized to use a commercial subcontracting plan shall include in its subcontracting goals and in its SSR all indirect costs, with the exception of those such as the following: Employee salaries and benefits; payments for petty cash; depreciation; interest; income taxes; property taxes; lease payments; bank fees; fines, claims, and dues; original equipment manufacturer relationships during warranty periods (negotiated up front with the product); utilities and other services purchased from a municipality or an entity solely authorized by the municipality to provide those services in a particular geographical region; and philanthropic contributions. This report shall be acknowledged or rejected in eSRS by the Contracting Officer who approved the plan. This report shall be submitted within 30 days after the end of the Government’s fiscal year.</p> <p class=" ListL1" id="FAR_52_219_9__d3281e629"> <span class="ph autonumber">(h)</span> Prior compliance of the offeror with other such subcontracting plans under previous contracts will be considered by the Contracting Officer in determining the responsibility of the offeror for award of the contract.</p> <p class=" ListL1" id="FAR_52_219_9__d3281e634"> <span class="ph autonumber">(i)</span> A contract may have no more than one subcontracting plan. When a contract modification exceeds the subcontracting plan threshold in FAR <a class="xref fm:ParaNumOnly" href="/far/19.702#FAR_19_702" title="19.702" aria-label="19.702. Link 14">19.702</a>(a), or an option is exercised, the goals of the existing subcontracting plan shall be amended to reflect any new subcontracting opportunities. When the goals in a subcontracting plan are amended, these goal changes do not apply retroactively.</p> <p class=" ListL1" id="FAR_52_219_9__d3281e642"> <span class="ph autonumber">(j)</span> Subcontracting plans are not required from subcontractors when the prime contract contains the clause at FAR <a class="xref fm:ParaNumOnly" href="/far/52.212-5#FAR_52_212_5" title="52.212-5" aria-label="52.212-5. Link 21">52.212-5</a>, Contract Terms and Conditions Required to Implement Statutes or Executive Orders-Commercial Products and Commercial Services, or when the subcontractor provides a commercial product or commercial service subject to the clause at FAR <a class="xref fm:ParaNumOnly" href="/far/52.244-6#FAR_52_244_6" title="52.244-6" aria-label="52.244-6. Link 22">52.244-6</a>, Subcontracts for Commercial Products and Commercial Services, under a prime contract.</p> <p class=" ListL1" id="FAR_52_219_9__d3281e653"> <span class="ph autonumber">(k)</span> The failure of the Contractor or subcontractor to comply in good faith with (1) the clause of this contract entitled "Utilization Of Small Business Concerns;" or (2) an approved plan required by this clause, shall be a material breach of the contract and may be considered in any past performance evaluation of the Contractor.</p> <p class=" ListL1" id="FAR_52_219_9__d3281e659"> <span class="ph autonumber">(l)</span> The Contractor shall submit ISRs and SSRs using the web-based eSRS at <a class="xref" href="http://www.esrs.gov" target="_blank" title="http://www.esrs.gov" aria-label="http://www.esrs.gov. Link 6">http://www.esrs.gov</a>. Purchases from a corporation, company, or subdivision that is an affiliate of the Contractor or subcontractor are not included in these reports. Subcontract awards by affiliates shall be treated as subcontract awards by the Contractor. Subcontract award data reported by the Contractor and subcontractors shall be limited to awards made to their immediate next-tier subcontractors. Credit cannot be taken for awards made to lower tier subcontractors, unless the Contractor or subcontractor has been designated to receive a small business or small disadvantaged business credit from an ANC or Indian tribe. Only subcontracts involving performance in the United States or its outlying areas should be included in these reports with the exception of subcontracts under a contract awarded by the State Department or any other agency that has statutory or regulatory authority to require subcontracting plans for subcontracts performed outside the United States and its outlying areas.</p> <p class=" ListL2" id="FAR_52_219_9__d3281e668"> <span class="ph autonumber">(1)</span> <em class="ph i">ISR</em>. This report is not required for commercial plans. The report is required for each contract containing an individual subcontracting plan.</p> <p class=" ListL3" id="FAR_52_219_9__d3281e676"> <span class="ph autonumber">(i)</span> The report shall be submitted semi-annually during contract performance for the periods ending March 31 and September 30. A report is also required for each contract within 30 days of contract completion. Reports are due 30 days after the close of each reporting period, unless otherwise directed by the Contracting Officer. Reports are required when due, regardless of whether there has been any subcontracting activity since the inception of the contract or the previous reporting period. When the Contracting Officer rejects an ISR, the Contractor shall submit a corrected report within 30 days of receiving the notice of ISR rejection.</p> <p class="p"></p><p class="Runin RuninRestart ListL3" id="FAR_52_219_9__d3281e681"> <span class="ph autonumber">(ii)</span> </p> <p class="RuninChild ListL4" id="FAR_52_219_9__d3281e686"> <span class="ph autonumber">(A)</span> When a subcontracting plan contains separate goals for the basic contract and each option, as prescribed by FAR <a class="xref fm:ParaNumOnly" href="/far/19.704#FAR_19_704" title="19.704" aria-label="19.704. Link 24">19.704</a>(c), the dollar goal inserted on this report shall be the sum of the base period through the current option; for example, for a report submitted after the second option is exercised, the dollar goal would be the sum of the goals for the basic contract, the first option, and the second option.</p> <p class=" ListL4" id="FAR_52_219_9__d3281e694"> <span class="ph autonumber">(B)</span> If a subcontracting plan has been added to the contract pursuant to <a class="xref fm:ParaNumOnly" href="/far/19.702#FAR_19_702" title="19.702" aria-label="19.702. Link 14">19.702</a> a)(1)(iii) or <a class="xref fm:ParaNumOnly" href="/far/19.301-2#FAR_19_301_2" title="19.301-2" aria-label="19.301-2. Link 26">19.301-2</a>(e), the Contractor's achievements must be reported in the ISR on a cumulative basis from the date of incorporation of the subcontracting plan into the contract.</p> <p class=" ListL3" id="FAR_52_219_9__d3281e705"> <span class="ph autonumber">(iii)</span> When a subcontracting plan includes indirect costs in the goals, these costs must be included in this report.</p> <p class=" ListL3" id="FAR_52_219_9__d3281e710"> <span class="ph autonumber">(iv)</span> The authority to acknowledge receipt or reject the ISR resides–</p> <p class=" ListL4" id="FAR_52_219_9__d3281e716"> <span class="ph autonumber">(A)</span> In the case of the prime Contractor, with the Contracting Officer; and</p> <p class=" ListL4" id="FAR_52_219_9__d3281e721"> <span class="ph autonumber">(B)</span> In the case of a subcontract with a subcontracting plan, with the entity that awarded the subcontract.</p> <p class="p"></p><p class="Runin RuninRestart ListL2" id="FAR_52_219_9__d3281e726"> <span class="ph autonumber">(2)</span> <em class="ph i">SSR</em>.</p> <p class="RuninChild ListL3" id="FAR_52_219_9__d3281e734"> <span class="ph autonumber">(i)</span> Reports submitted under individual contract plans–</p> <p class=" ListL4" id="FAR_52_219_9__d3281e740"> <span class="ph autonumber">(A)</span> This report encompasses all subcontracting under prime contracts and subcontracts with an executive agency, regardless of the dollar value of the subcontracts. This report also includes indirect costs on a prorated basis when the indirect costs are excluded from the subcontracting goals.</p> <p class=" ListL4" id="FAR_52_219_9__d3281e745"> <span class="ph autonumber">(B)</span> The report may be submitted on a corporate, company or subdivision (<em class="ph i">e.g.</em> plant or division operating as a separate profit center) basis, unless otherwise directed by the agency.</p> <p class=" ListL4" id="FAR_52_219_9__d3281e753"> <span class="ph autonumber">(C)</span> If the Contractor or a subcontractor is performing work for more than one executive agency, a separate report shall be submitted to each executive agency covering only that agency's contracts, provided at least one of that agency's contracts is over the applicable threshold specified in FAR <a class="xref fm:ParaNumOnly" href="/far/19.702#FAR_19_702" title="19.702" aria-label="19.702. Link 14">19.702</a>(a), and the contractand contains a subcontracting plan. For DoD, a consolidated report shall be submitted for all contracts awarded by military departments/agencies and/or subcontracts awarded by DoD prime contractors.</p> <p class=" ListL4" id="FAR_52_219_9__d3281e761"> <span class="ph autonumber">(D)</span> The report shall be submitted annually by October 30 for the twelve month period ending September 30. When a Contracting Officer rejects an SSR, the Contractor shall submit a revised report within 30 days of receiving the notice of SSR rejection.</p> <p class=" ListL4" id="FAR_52_219_9__d3281e766"> <span class="ph autonumber">(E)</span> Subcontract awards that are related to work for more than one executive agency shall be appropriately allocated.</p> <p class=" ListL4" id="FAR_52_219_9__d3281e771"> <span class="ph autonumber">(F)</span> The authority to acknowledge or reject SSRs in eSRS, including SSRs submitted by subcontractors with subcontracting plans, resides with the Government agency awarding the prime contracts unless stated otherwise in the contract.</p> <p class=" ListL3" id="FAR_52_219_9__d3281e776"> <span class="ph autonumber">(ii)</span> <em class="ph i">Reports submitted under a commercial plan</em>-</p> <p class=" ListL4" id="FAR_52_219_9__d3281e784"> <span class="ph autonumber">(A)</span> The report shall include all subcontract awards under the commercial plan in effect during the Government's fiscal year and all indirect costs.</p> <p class=" ListL4" id="FAR_52_219_9__d3281e789"> <span class="ph autonumber">(B)</span> The report shall be submitted annually, within thirty days after the end of the Government's fiscal year.</p> <p class=" ListL4" id="FAR_52_219_9__d3281e794"> <span class="ph autonumber">(C)</span> If a Contractor has a commercial plan and is performing work for more than one executive agency, the Contractor shall specify the percentage of dollars attributable to each agency.</p> <p class=" ListL4" id="FAR_52_219_9__d3281e799"> <span class="ph autonumber">(D)</span> The authority to acknowledge or reject SSRs for commercial plans resides with the Contracting Officer who approved the commercial plan.</p> <p class="p Endofclause">(End of clause)</p> <section class="section Alternate"> <p class="p" id="FAR_52_219_9__d3281e807"> <em class="ph i">Alternate I</em> <span class="ph SmCaps">(Nov 2016)</span>. As prescribed in <span class="ph ClauseProvisionXREF"> <a class="xref fm:ParaNumOnly" href="/far/19.708#FAR_19_708" title="19.708" aria-label="19.708. Link 0">19.708</a> </span>(b)(1)(i), substitute the following paragraph (c)(1) for paragraph (c)(1) of the basic clause:</p> <p class="p">(c)(1) The apparent low bidder, upon request by the Contracting Officer, shall submit a subcontracting plan, where applicable, that separately addresses subcontracting with small business, veteran-owned small business, service-disabled veteran-owned small business, HUBZone small business, small disadvantaged business, and women-owned small business concerns. If the bidder is submitting an individual subcontracting plan, the plan must separately address subcontracting with small business, veteran-owned small business, service-disabled veteran-owned small business, HUBZone small business, small disadvantaged business, and women-owned small business concerns, with a separate part for the basic contract and separate parts for each option (if any). The plan shall be included in and made a part of the resultant contract. The subcontracting plan shall be submitted within the time specified by the Contracting Officer. Failure to submit the subcontracting plan shall make the bidder ineligible for the award of a contract</p> <p class="p" id="FAR_52_219_9__d3281e820"> <em class="ph i">Alternate II</em> <span class="ph SmCaps">(Nov 2016).</span> As prescribed in <span class="ph ClauseProvisionXREF"> <a class="xref fm:ParaNumOnly" href="/far/19.708#FAR_19_708" title="19.708" aria-label="19.708. Link 0">19.708</a> </span>(b)(1)(ii), substitute the following paragraph (c)(1) for paragraph (c)(1) of the basic clause:</p> <p class="p">(c)(1) Proposals submitted in response to this solicitation shall include a subcontracting plan that separately addresses subcontracting with small business, veteran-owned small business, service-disabled veteran-owned small business, HUBZone small business, small disadvantaged business, and women-owned small business concerns. If the Offeror is submitting an individual subcontracting plan, the plan must separately address subcontracting with small business, veteran-owned small business, service-disabled veteran-owned small business, HUBZone small business, small disadvantaged business, and women-owned small business concerns, with a separate part for the basic contract and separate parts for each option (if any). The plan shall be included in and made a part of the resultant contract. The subcontracting plan shall be negotiated within the time specified by the Contracting Officer. Failure to submit and negotiate a subcontracting plan shall make the Offeror ineligible for award of a contract.</p> <p class="p" id="FAR_52_219_9__d3281e833"> <span class="ph FAC 2025-03 January 17, 2025"> <em class="ph i">Alternate III</em> <span class="ph SmCaps">(Jan 2025)</span>.</span> As prescribed in <span class="ph ClauseProvisionXREF"> <a class="xref fm:ParaNumOnly" href="/far/19.708#FAR_19_708" title="19.708" aria-label="19.708. Link 0">19.708</a> </span>(b)(1)(iii), substitute the following paragraphs (d)(10) and (l) for paragraphs (d)(10) and (l) in the basic clause:</p> <p class="p List1">(d)(10) Assurances that the offeror will—</p> <p class="p List3">(i) Cooperate in any studies or surveys as may be required;</p> <p class="p List3" id="FAR_52_219_9__d3300e879">(ii) Submit periodic reports so that the Government can determine the extent of compliance by the <span class="ph FAC 2025-03 January 17, 2025">Contractor</span> with the subcontracting plan;</p> <p class="p List3">(iii) Submit Standard Form (SF) 294 Subcontracting Report for Individual Contract in accordance with paragraph (l) of this clause. Submit the Summary Subcontract Report (SSR), in accordance with paragraph (l) of this clause using the Electronic Subcontracting Reporting System (eSRS) at <a class="xref" href="http://www.esrs.gov" target="_blank" title="http://www.esrs.gov" aria-label="http://www.esrs.gov. Link 6">http://www.esrs.gov</a>. The reports shall provide information on subcontract awards to small business concerns (including ANCs and Indian tribes that are not small businesses), veteran-owned small business concerns, service-disabled veteran-owned small business concerns, HUBZone small business concerns, small disadvantaged business concerns (including ANCs and Indian tribes that have not been certified by the Small Business Administration as small disadvantaged businesses), women-owned small business concerns, and for NASA only, Historically Black Colleges and Universities and Minority Institutions. Reporting shall be in accordance with this clause, or as provided in agency regulations; and</p> <p class="p List3">(iv) Ensure that its subcontractors with subcontracting plans agree to submit the SF 294 in accordance with paragraph (l) of this clause. Ensure that its subcontractors with subcontracting plans agree to submit the SSR in accordance with paragraph (l) of this clause using the eSRS.</p> <p class="p List1">(l) The Contractor shall submit a SF 294. The Contractor shall submit SSRs using the web-based eSRS at <a class="xref" href="http://www.esrs.gov" target="_blank" title="http://www.esrs.gov" aria-label="http://www.esrs.gov. Link 6">http://www.esrs.gov</a>. Purchases from a corporation, company, or subdivision that is an affiliate of the Contractor or subcontractor are not included in these reports. Subcontract awards by affiliates shall be treated as subcontract awards by the Contractor. Subcontract award data reported by the Contractor and subcontractors shall be limited to awards made to their immediate next-tier subcontractors. Credit cannot be taken for awards made to lower tier subcontractors, unless the Contractor or subcontractor has been designated to receive a small business or small disadvantaged business credit from an ANC or Indian tribe. Only subcontracts involving performance in the U.S. or its outlying areas should be included in these reports with the exception of subcontracts under a contract awarded by the State Department or any other agency that has statutory or regulatory authority to require subcontracting plans for subcontracts performed outside the United States and its outlying areas.</p> <p class="p List2">(1) <em class="ph i">SF 294</em>. This report is not required for commercial plans. The report is required for each contract containing an individual subcontracting plan. For Contractors the report shall be submitted to the Contracting Officer, or as specified elsewhere in this contract. In the case of a subcontract with a subcontracting plan, the report shall be submitted to the entity that awarded the subcontract.</p> <p class="p List3">(i) The report shall be submitted semi-annually during contract performance for the periods ending March 31 and September 30. A report is also required for each contract within 30 days of contract completion. Reports are due 30 days after the close of each reporting period, unless otherwise directed by the Contracting Officer. Reports are required when due, regardless of whether there has been any subcontracting activity since the inception of the contract or the previous reporting period. When a Contracting Officer rejects a report, the Contractor shall submit a revised report within 30 days of receiving the notice of report rejection.</p> <p class="p List3">(ii)(A) When a subcontracting plan contains separate goals for the basic contract and each option, as prescribed by FAR <a class="xref fm:ParaNumOnly" href="/far/19.704#FAR_19_704" title="19.704" aria-label="19.704. Link 24">19.704</a>(c), the dollar goal inserted on this report shall be the sum of the base period through the current option; for example, for a report submitted after the second option is exercised, the dollar goal would be the sum of the goals for the basic contract, the first option, and the second option.</p> <p class="p List4" id="FAR_52_219_9__d3284e852">(B) If a subcontracting plan has been added to the contract pursuant to <a class="xref fm:ParaNumOnly" href="/far/19.702#FAR_19_702" title="19.702" aria-label="19.702. Link 14">19.702</a>(a)(1)(iii) or 19.301-2(e), the Contractor's achievements must be reported in the report on a cumulative basis from the date of incorporation of the subcontracting plan into the contract.</p> <p class="p List3">(iii) When a subcontracting plan includes indirect costs in the goals, these costs must be included in this report.</p> <p class="p List2">(2)<em class="ph i">SSR</em>. (i)<em class="ph i">Reports submitted under individual contract plans</em>-</p> <p class="p List4">(A) This report encompasses all subcontracting under prime contracts and subcontracts with an executive agency, regardless of the dollar value of the subcontracts. This report also includes indirect costs on a prorated basis when the indirect costs are excluded from the subcontracting goals.</p> <p class="p List4">(B) The report may be submitted on a corporate, company or subdivision (<em class="ph i">e.g.</em>, plant or division operating as a separate profit center) basis, unless otherwise directed by the agency.</p> <p class="p List4" id="FAR_52_219_9__d3273e920">(C) If the Contractor and/or a subcontractor is performing work for more than one executive agency, a separate report shall be submitted to each executive agency covering only that agency's contracts, provided at least one of that agency's contracts is over the applicable threshold specified in FAR <a class="xref fm:ParaNumOnly" href="/far/19.702#FAR_19_702" title="19.702" aria-label="19.702. Link 14">19.702</a>(a), and the contract contains a subcontracting plan. For DoD, a consolidated report shall be submitted for all contracts awarded by military departments/agencies and/or subcontracts awarded by DoD prime contractors.</p> <p class="p List4">(D) The report shall be submitted annually by October 30, for the twelve month period ending September 30. When a Contracting Officer rejects an SSR, the Contractor is required to submit a revised SSR within 30 days of receiving the notice of report rejection.</p> <p class="p List4">(E) Subcontract awards that are related to work for more than one executive agency shall be appropriately allocated.</p> <p class="p List4">(F) The authority to acknowledge or reject SSRs in the eSRS, including SSRs submitted by subcontractors with subcontracting plans, resides with the Government agency awarding the prime contracts unless stated otherwise in the contract.</p> <p class="p List3">(ii) <em class="ph i">Reports submitted under a commercial plan</em>-</p> <p class="p List4">(A) The report shall include all subcontract awards under the commercial plan in effect during the Government's fiscal year and all indirect costs.</p> <p class="p List4">(B) The report shall be submitted annually, within 30 days after the end of the Government's fiscal year.</p> <p class="p List4">(C) If a Contractor has a commercial plan and is performing work for more than one executive agency, the Contractor shall specify the percentage of dollars attributable to each agency.</p> <p class="p List4">(D) The authority to acknowledge or reject SSRs for commercial plans resides with the Contracting Officer who approved the commercial plan.</p> <p class="p" id="FAR_52_219_9__d3281e923"> <span class="ph FAC 2025-03 January 17, 2025"> <em class="ph i">Alternate IV</em> <span class="ph SmCaps">(Jan 2025)</span>.</span> As prescribed in <span class="ph ClauseProvisionXREF"> <a class="xref fm:ParaNumOnly" href="/far/19.708#FAR_19_708" title="19.708" aria-label="19.708. Link 0">19.708</a> </span>(b)(1)(iv), substitute the following paragraphs (c) and (d) for paragraphs (c) and (d) of the basic clause:</p> <p class="p List1">(c)(1) The Contractor, upon request by the Contracting Officer, shall submit and negotiate a subcontracting plan, where applicable, that separately addresses subcontracting with small business, veteran-owned small business, service-disabled veteran-owned small business, HUBZone small business, small disadvantaged business, and women-owned small business concerns. If the Contractor is submitting an individual subcontracting plan, the plan shall separately address subcontracting with small business, veteran-owned small business, service-disabled veteran-owned small business, HUBZone small business, small disadvantaged business, and women-owned small business concerns, with a separate part for the basic contract and separate parts for each option (if any). The subcontracting plan shall be incorporated into the contract. The subcontracting plan shall be negotiated within the time specified by the Contracting Officer. The subcontracting plan does not apply retroactively.</p> <p class="p List2" id="FAR_52_219_9__d3300e976">(2)(i) <span class="ph FAC 2025-03 January 17, 2025">Unless the Contractor has reason to question the representations, it may accept a subcontractor's written representations of its size and socioeconomic status as a small business, small disadvantaged business, veteran-owned small business, service-disabled veteran-owned small business, or a women-owned small business if the subcontractor represents that the size and socioeconomic status representations with its offer are current, accurate, and complete as of the date of the offer for the subcontract.</span> </p> <p class="p List3" id="FAR_52_219_9__d3300e980">(ii) <span class="ph FAC 2025-03 January 17, 2025">Unless the Contractor has reason to question the representations, it may accept a subcontractor's representations of its size and socioeconomic status as a small business, small disadvantaged business, veteran-owned small business, service-disabled veteran-owned small business, or a women-owned small business in the System for Award Management (SAM) if—</span> </p> <p class="p List4">(A) The subcontractor is registered in SAM; and</p> <p class="p List4">(B) The subcontractor represents that the size and socioeconomic status representations made in SAM are current, accurate and complete as of the date of the offer for the subcontract.</p> <p class="p List3">(iii) The Contractor may not require the use of SAM for the purposes of representing size or socioeconomic status in connection with a subcontract.</p> <p class="p List3" id="FAR_52_219_9__d3281e944">(iv) In accordance with 13 CFR 121.411, 126.900, 127.700, and 128.600, a contractor acting in good faith is not liable for misrepresentations made by its subcontractors regarding the subcontractor's size or socioeconomic status.</p> <p class="p List1">(d) The Contractor's subcontracting plan shall include the following:</p> <p class="p List2" id="FAR_52_219_9__d3300e994">(1) <span class="ph FAC 2025-03 January 17, 2025">Separate goals, expressed in terms of total dollars subcontracted and as a percentage of total planned subcontracting dollars, for the use of small business, veteran-owned small business, service-disabled veteran-owned small business, HUBZone small business, small disadvantaged business, and women-owned small business concerns as subcontractors. For individual subcontracting plans, and if required by the Contracting Officer, goals shall also be expressed in terms of percentage of total contract dollars, in addition to the goals expressed as a percentage of total subcontract dollars. The Contractor shall include all subcontracts that contribute to contract performance, and may include a proportionate share of products and services that are normally allocated as indirect costs. In accordance with <a class="xref" href="https://www.govinfo.gov/link/uscode/15/657r" target="_blank" title="15 U.S.C. 657r(a)" aria-label="15 U.S.C. 657r(a). Link 10">15 U.S.C. 657r(a)</a>, a Contractor that is a mentor with an SBA-approved mentor-protégé agreement (see <a class="xref" href="https://www.ecfr.gov/current/title-13/section-125.9" target="_blank" title="13 CFR 125.9" aria-label="13 CFR 125.9. Link 11">13 CFR 125.9</a>) that provides a subcontract to its protégé may apply the costs incurred for training it provides to its protégé toward its subcontracting plan goals, provided that protégé is a covered territory business or that protégé has its principal office located in the Commonwealth of Puerto Rico. In accordance with <a class="xref" href="http://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title43-section1626&num=0&edition=prelim" target="_blank" title="43 U.S.C. 1626" aria-label="43 U.S.C. 1626. Link 39">43 U.S.C. 1626</a>—</span> </p> <p class="p List3" id="FAR_52_219_9__id218VK09E05Z">(i) Subcontracts awarded to an ANC or Indian tribe shall be counted towards the subcontracting goals for small business and small disadvantaged business concerns, regardless of the size or Small Business Administration certification status of the ANC or Indian tribe; and</p> <p class="p List3">(ii) Where one or more subcontractors are in the subcontract tier between the prime Contractor and the ANC or Indian tribe, the ANC or Indian tribe shall designate the appropriate Contractor(s) to count the subcontract towards its small business and small disadvantaged business subcontracting goals.</p> <p class="p List4">(A) In most cases, the appropriate Contractor is the Contractor that awarded the subcontract to the ANC or Indian tribe.</p> <p class="p List4">(B) If the ANC or Indian tribe designates more than one Contractor to count the subcontract toward its goals, the ANC or Indian tribe shall designate only a portion of the total subcontract award to each Contractor. The sum of the amounts designated to various Contractors cannot exceed the total value of the subcontract.</p> <p class="p List4">(C) The ANC or Indian tribe shall give a copy of the written designation to the Contracting Officer, the Contractor, and the subcontractors in between the prime Contractor and the ANC or Indian tribe within 30 days of the date of the subcontract award.</p> <p class="p List4">(D) If the Contracting Officer does not receive a copy of the ANC's or the Indian tribe's written designation within 30 days of the subcontract award, the Contractor that awarded the subcontract to the ANC or Indian tribe will be considered the designated Contractor.</p> <p class="p List2">(2) A statement of–</p> <p class="p List3" id="FAR_52_219_9__id2197B010F5Z">(i) Total dollars planned to be subcontracted for an individual subcontracting plan; or the Contractor's total projected sales, expressed in dollars, and the total value of projected subcontracts to support the sales for a commercial plan, including all indirect costs, with the exception of those such as the following: Employee salaries and benefits; payments for petty cash; depreciation; interest; income taxes; property taxes; lease payments; bank fees; fines, claims, and dues; original equipment manufacturer relationships during warranty periods (negotiated up front with the product); utilities and other services purchased from a municipality or an entity solely authorized by the municipality to provide those services in a particular geographical region; and philanthropic contributions;</p> <p class="p List3">(iii) Total dollars planned to be subcontracted to veteran-owned small business concerns; (iv) Total dollars planned to be subcontracted to service-disabled veteran-owned small business; (v) Total dollars planned to be subcontracted to HUBZone small business concerns; (vi) Total dollars planned to be subcontracted to small disadvantaged business concerns (including ANCs and Indian tribes); and (vii) Total dollars planned to be subcontracted to women-owned small business concerns.</p> <p class="p List2">(3) A description of the principal types of supplies and services to be subcontracted, and an identification of the types planned for subcontracting to</p> <p class="p List3">(i) Small business concerns;</p> <p class="p List3">(ii) Veteran-owned small business concerns;</p> <p class="p List3">(iii) Service-disabled veteran-owned small business concerns;</p> <p class="p List3">(iv) HUBZone small business concerns;</p> <p class="p List3">(v) Small disadvantaged business concerns; and</p> <p class="p List3">(vi) Women-owned small business concerns.</p> <p class="p List2">(4) A description of the method used to develop the subcontracting goals in paragraph (d)(1) of this clause.</p> <p class="p List2">(5) A description of the method used to identify potential sources for solicitation purposes (e.g., existing company source lists, SAM, veterans service organizations, the National Minority Purchasing Council Vendor Information Service, the Research and Information Division of the Minority Business Development Agency in the Department of Commerce, or small, HUBZone, small disadvantaged, and women-owned small business trade associations). The Contractor may rely on the information contained in SAM as an accurate representation of a concern's size and ownership characteristics for the purposes of maintaining a small, veteran-owned small, service-disabled veteran-owned small, HUBZone small, small disadvantaged, and women-owned small business source list. Use of SAM as its source list does not relieve a firm of its responsibilities (e.g., outreach, assistance, counseling, or publicizing subcontracting opportunities) in this clause.</p> <p class="p List2">(6) A statement as to whether or not the Contractor included indirect costs in establishing subcontracting goals, and a description of the method used to determine the proportionate share of indirect costs to be incurred with–</p> <p class="p List3">(i) Small business concerns (including ANC and Indian tribes);</p> <p class="p List3">(ii) Veteran-owned small business concerns;</p> <p class="p List3">(iii) Service-disabled veteran-owned small business concerns;</p> <p class="p List3">(iv) HUBZone small business concerns;</p> <p class="p List3">(v) Small disadvantaged business concerns (including ANC and Indian tribes); and</p> <p class="p List3">(vi) Women-owned small business concerns.</p> <p class="p List2">(7) The name of the individual employed by the Contractor who will administer the Contractor's subcontracting program, and a description of the duties of the individual.</p> <p class="p List2">(8) A description of the efforts the Contractor will make to assure that small business, veteran-owned small business, service-disabled veteran-owned small business, HUBZone small business, small disadvantaged business, and women-owned small business concerns have an equitable opportunity to compete for subcontracts.</p> <p class="p List2" id="FAR_52_219_9__d3273e1041">(9) <span class="ph FAC 2025-03 January 17, 2025">Assurances that the Contractor will include the clause of this contract entitled “Utilization of Small Business Concerns” in all subcontracts that offer further subcontracting opportunities, and that the Contractor will require all subcontractors (except small business concerns, including entities that are treated as small business concerns by statute for certain purposes ( <em class="ph i">e.g.,</em> ANCs, see <a class="xref" href="https://www.ecfr.gov/current/title-13/section-125.3#p-125.3(b)(2)" target="_blank" title="13 CFR 125.3(b)(2)" aria-label="13 CFR 125.3(b)(2). Link 13">13 CFR 125.3(b)(2)</a>)) that receive subcontracts in excess of the applicable threshold specified in FAR <a class="xref fm:ParaNumOnly" href="/far/19.702#FAR_19_702" title="19.702" aria-label="19.702. Link 14">19.702</a>(a) on the date of subcontract award, with further subcontracting possibilities to adopt a subcontracting plan that complies with the requirements of this clause.</span> </p> <p class="p List2">(10) Assurances that the Contractor will–</p> <p class="p List3">(i) Cooperate in any studies or surveys as may be required;</p> <p class="p List3">(ii) Submit periodic reports so that the Government can determine the extent of compliance by the Contractor with the subcontracting plan;</p> <p class="p List3" id="FAR_52_219_9__d3263e1620">(iii) After November 30, 2017, include subcontracting data for each order when reporting subcontracting achievements for an indefinite-delivery, indefinite-quantity contracts with individual subcontracting plans where the contract is intended for use by multiple agencies;</p> <p class="p List3">(iv) Submit the Individual Subcontract Report (ISR) and/or the Summary Subcontract Report (SSR), in accordance with paragraph (l) of this clause using the Electronic Subcontracting Reporting System (eSRS) at http://www.esrs.gov. The reports shall provide information on subcontract awards to small business concerns (including ANCs and Indian tribes that are not small businesses), veteran-owned small business concerns, service-disabled veteran-owned small business concerns, HUBZone small business concerns, small disadvantaged business concerns (including ANCs and Indian tribes that have not been certified by SBA as small disadvantaged businesses), women-owned small business concerns, and for NASA only, Historically Black Colleges and Universities and Minority Institutions. Reporting shall be in accordance with this clause, or as provided in agency regulations;</p> <p class="p List3">(v) Ensure that its subcontractors with subcontracting plans agree to submit the ISR and/or the SSR using eSRS;</p> <p class="p List3" id="FAR_52_219_9__d3263e1633">(vi) Provide its prime contract number, its unique entity identifier, and the e-mail address of the Contractor's official responsible for acknowledging receipt of or rejecting the ISRs, to all first-tier subcontractors with subcontracting plans so they can enter this information into the eSRS when submitting their ISRs; and</p> <p class="p List3" id="FAR_52_219_9__d3263e1639">(vii) Require that each subcontractor with a subcontracting plan provide the prime contract number, its own unique entity identifier, and the e-mail address of the subcontractor's official responsible for acknowledging receipt of or rejecting the ISRs, to its subcontractors with subcontracting plans.</p> <p class="p List2">(11) A description of the types of records that will be maintained concerning procedures that have been adopted to comply with the requirements and goals in the plan, including establishing source lists; and a description of the Contractor's efforts to locate small business, veteran-owned small business, service-disabled veteran-owned small business, HUBZone small business, small disadvantaged business, and women-owned small business concerns and award subcontracts to them. The records shall include at least the following (on a plant-wide or company-wide basis, unless otherwise indicated):</p> <p class="p List3">(i) Source lists (e.g., SAM), guides, and other data that identify small business, veteran-owned small business, service-disabled veteran-owned small business, HUBZone small business, small disadvantaged business, and women-owned small business concerns.</p> <p class="p List3">(ii) Organizations contacted in an attempt to locate sources that are small business, veteran-owned small business, service-disabled veteran-owned small business, HUBZone small business, small disadvantaged business, or women-owned small business concerns.</p> <p class="p List3" id="FAR_52_219_9__d3273e1083">(iii) Records on each subcontract solicitation resulting in an award of more than the simplified acquisition threshold, as defined in FAR <a class="xref fm:ParaNumOnly" href="/far/2.101#FAR_2_101" title="2.101" aria-label="2.101. Link 4">2.101</a> on the date of subcontract award, indicating–</p> <p class="p List4">(A) Whether small business concerns were solicited and, if not, why not;</p> <p class="p List4">(B) Whether veteran-owned small business concerns were solicited and, if not, why not;</p> <p class="p List4">(C) Whether service-disabled veteran-owned small business concerns were solicited and, if not, why not;</p> <p class="p List4">(D) Whether HUBZone small business concerns were solicited and, if not, why not;</p> <p class="p List4">(E) Whether small disadvantaged business concerns were solicited and, if not, why not;</p> <p class="p List4">(F) Whether women-owned small business concerns were solicited and, if not, why not; and</p> <p class="p List4">(G) If applicable, the reason award was not made to a small business concern.</p> <p class="p List3">(iv) Records of any outreach efforts to contact–</p> <p class="p List4">(A) Trade associations;</p> <p class="p List4">(B) Business development organizations;</p> <p class="p List4">(C) Conferences and trade fairs to locate small, HUBZone small, small disadvantaged, service-disabled veteran-owned, and women-owned small business sources; and</p> <p class="p List4">(D) Veterans service organizations.</p> <p class="p List3">(v) Records of internal guidance and encouragement provided to buyers through–</p> <p class="p List4">(A) Workshops, seminars, training, etc.; and</p> <p class="p List4">(B) Monitoring performance to evaluate compliance with the program's requirements.</p> <p class="p List3">(vi) On a contract-by-contract basis, records to support award data submitted by the Contractor to the Government, including the name, address, and business size of each subcontractor. Contractors having commercial plans need not comply with this requirement.</p> <p class="p List2">(12) Assurances that the Contractor will make a good faith effort to acquire articles, equipment, supplies, services, or materials, or obtain the performance of construction work from the small business concerns that it used in preparing the proposal for the modification, in the same or greater scope, amount, and quality used in preparing and submitting the modification proposal. Responding to a request for a quote does not constitute use in preparing a proposal. The Contractor used a small business concern in preparing the proposal for a modification if–</p> <p class="p List3">(i) The Contractor identifies the small business concern as a subcontractor in the proposal or associated small business subcontracting plan, to furnish certain supplies or perform a portion of the subcontract; or(ii) The Contractor used the small business concern's pricing or cost information or technical expertise in preparing the proposal, where there is written evidence of an intent or understanding that the small business concern will be awarded a subcontract for the related work when the modification is executed.</p> <p class="p List2">(13) Assurances that the Contractor will provide the Contracting Officer with a written explanation if the Contractor fails to acquire articles, equipment, supplies, services or materials or obtain the performance of construction work as described in (d)(12) of this clause. This written explanation must be submitted to the Contracting Officer within 30 days of contract completion.</p> <p class="p List2">(14) Assurances that the Contractor will not prohibit a subcontractor from discussing with the contracting officer any material matter pertaining to the payment to or utilization of a subcontractor.</p> <p class="p List2" id="FAR_52_219_9__d3300e1147">(15) Assurances that the <span class="ph FAC 2025-03 January 17, 2025">Contractor</span> will pay its small business subcontractors on time and in accordance with the terms and conditions of the underlying subcontract, and notify the contracting officer when the prime contractor makes either a reduced or an untimely payment to a small business subcontractor (see <a class="xref fm:ParaNumOnly" href="/far/52.242-5#FAR_52_242_5" title="52.242-5" aria-label="52.242-5. 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