DFARS Case 2011-D038
Deletion of Text Implementing 10 U.S.C. 2323
Final Rule (Interim to final with no changes)
PART 205–PUBLICIZING CONTRACT ACTIONS
subpart 205.2–synopses of proposed contract actions
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205.207 Preparation and transmittal of synopses.
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(d) For special notices for small business events, follow the procedures at PGI 205.207(d).
PART 206 – COMPETITION REQUIREMENTS
subpart 206.2--full and open competition after exclusion of sources
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[Deleted: 206.203 Set-asides for small business concerns.]
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PART 215 – CONTRACTING BY NEGOTIATION
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SUBPART 215.3 – SOURCE SELECTION
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215.304 Evaluation factors and significant subfactors.
(c)(i) In acquisitions that require use of the clause at FAR 52.219-9, Small Business Subcontracting Plan, other than those based on the lowest price technically acceptable source selection process (see FAR 15.101-2), the extent of participation of small businesses (to include service-disabled veteran-owned small business concerns, HUBZone small business concerns, small disadvantaged business concerns, and women-owned small business concerns) in performance of the contract shall be addressed in source selection. The contracting officer shall evaluate the extent to which offerors identify and commit to small business performance of the contract, whether as a joint venture, teaming arrangement, or subcontractor.
(A) * * *
(B) Proposals addressing the extent of small business performance shall be separate from subcontracting plans submitted pursuant to the clause at FAR 52.219-9 and shall be structured to allow for consideration of offers from small businesses.
(C) When an evaluation assesses the extent that small businesses are specifically identified in proposals, the small businesses considered in the evaluation shall be listed in any subcontracting plan submitted pursuant to FAR 52.219-9 to facilitate compliance with 252.219-7003(e).
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PART 219 – SMALL BUSINESS PROGRAMS
[Deleted: 219.000 Scope of part.]
SUBPART 219.2—POLICIES
[Deleted: 219.201 General policy, paragraph (f).]
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219.202 Specific policies.
219.202-1 Encouraging small business participation in acquisitions.
See PGI 205.207(d) for information on how to advertise a small business event on the Government point of entry.
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[Deleted: 219.202-5 Data collection and reporting requirements.]
SUBPART 219.5--SET-ASIDES FOR SMALL BUSINESS
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[Deleted: 219.502-3, Partial set-asides.]
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SUBPART 219.7—THE SMALL BUSINESS SUBCONTRACTING PROGRAM
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[Deleted: 219.703 Eligibility requirements for participating in the program, paragraphs (a)(2)(A) and (B).]
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219.704 Subcontracting plan requirements.
(1) In those subcontracting plans which specifically identify small businesses, prime contractors shall notify the administrative contracting officer of any substitutions of firms that are not small business firms, for the small business firms specifically identified in the subcontracting plan. Notifications shall be in writing and shall occur within a reasonable period of time after award of the subcontract. Contractor-specified formats shall be acceptable.
(2) See 215.304 for evaluation of offers in acquisitions that require a subcontracting plan.
219.705 Responsibilities of the contracting officer under the subcontracting assistance program.
219.705-4 Reviewing the subcontracting plan.
(d) Challenge any subcontracting plan that does not contain positive goals. A small disadvantaged business goal of less than five percent must be approved one level above the contracting officer.
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[Deleted: SUBPART 219.11—PRICE EVALUATION ADJUSTMENT FOR SMALL DISADVANTAGED BUSINESS CONCERNS]
[Deleted: SUBPART 219.12—SMALL DISADVANTAGED BUSINESS PARTICIPATION PROGRAM]
PART 226—OTHER SOCIOECONOMIC PROGRAMS
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[deleted: Subpart 226.3—historically black colleges and universities and minority institutions]
PART 232―CONTRACT FINANCING
SUBPART 232.5―PROGRESS PAYMENTS BASED ON COSTS
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232.501-1 Customary progress payment rates.
(a) The customary progress payment rates for DoD contracts, including contracts that contain foreign military sales (FMS) requirements, are 80 percent for large business concerns and 90 percent for small business concerns.
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[Deleted: 232.502-1 Use of customary progress payments.]
232.502-4-70 Additional clauses.
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(b) Use the clause at 252.232-7004, DoD Progress Payment Rates, instead of Alternate I of the clause at FAR 52.232-16, if the contractor is a small business concern.
PART 235—RESEARCH AND DEVELOPMENT CONTRACTING
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[Deleted: 235.016 Broad agency announcement.]
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PART 252—SOLICITATION PROVISIONS AND CONTRACT CLAUSES
SUBPART 252.2--TEXT OF PROVISIONS AND CLAUSES
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252.219-7003 Small Business Subcontracting Plan (DoD Contracts).
As prescribed in 219.708(b)(1)(A)(1), use the following clause:
SMALL BUSINESS SUBCONTRACTING PLAN (DOD CONTRACTS) (OCT 2014)
This clause supplements the Federal Acquisition Regulation 52.219-9, Small Business Subcontracting Plan, clause of this contract.
(a) Definition. “Summary Subcontract Report (SSR) Coordinator,” as used in this clause, means the individual at the department or agency level who is registered in eSRS and is responsible for acknowledging receipt or rejecting SSRs in eSRS for the department or agency.
(b) Subcontracts awarded to workshops approved by the Committee for Purchase from People Who are Blind or Severely Disabled (41 U.S.C. 8502-8504), may be counted toward the Contractor’s small business subcontracting goal.
(c) A mentor firm, under the Pilot Mentor-Protege Program established under section 831 of Public Law 101-510, as amended, may count toward its small disadvantaged business goal, subcontracts awarded to—
(1) Protege firms which are qualified organizations employing the severely disabled; and
(2) Former protege firms that meet the criteria in Section 831(g)(4) of Public Law 101-510.
(d) The master plan is approved by the Contractor's cognizant contract administration activity.
(e) In those subcontracting plans which specifically identify small businesses, the Contractor shall notify the Administrative Contracting Officer of any substitutions of firms that are not small business firms, for the small business firms specifically identified in the subcontracting plan. Notifications shall be in writing and shall occur within a reasonable period of time after award of the subcontract. Contractor-specified formats shall be acceptable.
(f)(1) For DoD, the Contractor shall submit reports in eSRS as follows:
(i) The Individual Subcontract Report (ISR) shall be submitted to the contracting officer at the procuring contracting office, even when contract administration has been delegated to the Defense Contract Management Agency.
(ii) An SSR for other than a commercial subcontracting plan, or construction and related maintenance repair contracts, shall be submitted in eSRS to the department or agency within DoD that administers the majority of the Contractor’s individual subcontracting plans. An example would be Defense Finance and Accounting Service or Missile Defense Agency.
(2) For DoD, the authority to acknowledge receipt or reject reports in eSRS is as follows:
(i) The authority to acknowledge receipt or reject the ISR resides with the contracting officer who receives it, as described in paragraph (f)(1)(i) of this clause.
(ii) Except as provided in (f)(2)(iii), the authority to acknowledge receipt or reject SSRs in eSRS resides with the SSR Coordinator at the department or agency that administers the majority of the Contractor’s individual subcontracting plans.
(iii) The authority to acknowledge receipt or reject SSRs for construction and related maintenance and repair contracts resides with the SSR Coordinator for each department or agency.
(End of clause)
Alternate I (OCT 2014)
As prescribed in 219.708(b)(1)(A)(2), substitute the following paragraph (f)(1)(i) for (f)(1)(i) in the basic clause:
(f)(1)(i) The Standard Form 294 Subcontracting Report for Individual Contracts shall be submitted in accordance with the instructions on that form; paragraph (f)(2)(i) is inapplicable.
252.219-7004 Small Business Subcontracting Plan (Test Program).
As prescribed in 219.708(b)(1)(B), use the following clause:
SMALL BUSINESS SUBCONTRACTING PLAN (TEST PROGRAM) (OCT 2014)
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(d) The Contractor shall submit SSRs using eSRS at http://www.esrs.gov. The reports shall provide information on subcontract awards to small business concerns, veteran-owned small business concerns, service-disabled veteran-owned small business concerns, HUBZone small business concerns, small disadvantaged business concerns, and women-owned small business concerns. Purchases from a corporation, company, or subdivision that is an affiliate of the prime Contractor or subcontractor are not included in these reports. Subcontract award data reported by prime contractors 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 a member firm of the Alaska Native - Corporations or an Indian tribe. Only subcontracts involving performance in the U.S. or its outlying areas should be included in these reports.
(1) This report may be submitted on a corporate, company, or subdivision (e.g., plant or division operating as a separate profit center) basis, as negotiated in the comprehensive subcontracting plan with the Defense Contract Management Agency.
(2) This report encompasses all subcontracting under prime contracts and subcontracts with the Department of Defense, regardless of the dollar value of the subcontracts, and is based on the negotiated comprehensive subcontracting plan.
(3) The report shall be submitted semi-annually for the six months ending March 31 and the twelve months ending September 30. Reports are due 30 days after the close of each reporting period.
(4) The authority to receipt or reject the SSR resides with the Comprehensive Subcontracting Program Division, the Defense Contract Management Agency Small Business Center.
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(f) * * *
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252.232-7004 DoD Progress Payment Rates.
As prescribed in 232.502-4-70(b), use the following clause:
DOD PROGRESS PAYMENT RATES (OCT 2014)
If the Contractor is a small business concern, the Progress Payments clause of this contract is modified to change each mention of the progress payment rate and liquidations rate (excepting paragraph (k), Limitations on Undefinitized Contract Actions) to 90 percent.
(End of clause)
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APPENDIX I ─ POLICY AND PROCEDURES FOR THE DOD PILOT MENTOR-PROTEGE PROGRAM
POLICY AND PROCEDURES FOR THE DOD PILOT MENTOR―PROTEGE PROGRAM
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I-101.5 Small disadvantaged business (SDB).
A small business concern that is—
(a) An SDB concern as defined in 13 CFR 124.1002;
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I-112 Reporting requirements.
I-112.1 Reporting requirements applicable to Individual Subcontract Reports (ISR), Summary Subcontract Reports (SSR) and SF 294s.
(a)* * *
(b)* * *
[Deleted: I-112.1, paragraph (c).]
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