FAQs about Subcontracting and Evaluation of Small Business Participation
Q1 - How is a requirement for small business participation established in a DoD acquisition?
A- The most effective and comprehensive way is as follows:
- Include language in the Special Contract Requirements (section H) that states the subcontracting requirements.
- Include language in the Instructions (section L) giving offerors specific guidance on what to submit and how to submit it. At a minimum offerors should be required to submit a Small Business Participation Commitment Document (SBPCD) in its proposal.
- Include language in the Evaluation Factors for Award (section M) that specifies the criteria (factors and subfactors) that will be used to evaluate an offerors proposed small business participation.
- Determine how an offerors proposed small business participation requirements will be captured contractually.
o Incorporate the redacted/sanitized Small Business Participation Commitment Document (SBPCD) into the contract or
o Include the final small business participation requirements (contractor commitments) in a special contract requirements clause (section H)
o Include the small business participation requirements as a Statement of Work (SOW)/Performance Work Statement (PWS) requirement
- Establish how small business performance will be reported.
o Use a Contract Data Requirements List (CDRL)
o Specify a separate reporting requirement when a SBPCD is incorporated into the contract
o Delineate reporting requirements in a special contract requirements (section H) clause.
Q2 - Is the requirement to include small business participation in the SOW or PWS a new requirement?
A- There is no requirement to include small business participation in the SOW or PWS, but there is a requirement to maximize small business utilization in DOD acquisitions. Including small business participation requirements language in the SOW or PWS is one way to ensure that acquisition processes, with respect to small business, are consistent with the provisions in the FAR, DFARS, and OUSD A&S's expectation that maximum practicable subcontracting opportunities are provided for small business entities to participate in DoD procurements. Including small business participation requirements language in the SOW or PWS is one way to make it clear that small business participation is a performance requirement like any other contract performance requirement. However, incorporating an offerors SBPCD into the contract or including a special contract requirements clause accomplishes this too.
Q3 - Is the incorporation into the contract an additional reporting requirement a duplication of what is already being reported in the eSRS system?
A- A properly implemented small business participation and commitment approach captures small business utilization information in areas not reported in eSRS; such as results of the contractor's efforts to expand the pool of qualified small businesses. The small business utilization information reported in eSRS, along with information reported via a Contract Data Requirements List (CDRL), SBPCD reporting requirement, or special contract requirement clause, will be used to provide the contracting officer with a comprehensive assessment of the contractor's small business utilization performance for CPARS, award fee, or incentive fee assessments. Additionally, there is no eSRS reporting requirement for small businesses since subcontracting plans do not apply to them.
Q4 - If the contractor has a Comprehensive Subcontracting Plan (CSP) in place, which addresses their small business goals, is additional reporting still required?
A- Requiring small business performance reporting that is implemented as part of a small business participation and commitment approach is required from DoD Comprehensive Subcontracting Program (CSP) participants and non-CSP participants. CSP and non-CSP participants are required to report via eSRS their small business goal performance, however; eSRS reports only tell us the contractors’ actual or results of efforts to attain small business goals in their subcontracting plans. eSRS reports do not fully capture the extent of small businesses participation in, and contributions to, DoD acquisitions.
Q5 – Where is it required that small business requirements be incorporated into the contract?
A – IAW the source selection procedures section 3.12 Integrating Proposal into the Contract, the contracting officer shall incorporate beneficial aspects of the awardee’s proposal into the contract...; small business participation requirements that are evaluated should be made contractual like any other aspect of an offeror’s proposal deemed to be beneficial to the government.
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