In practice, your responsibility for taking over and managing your subcontractors begins at the tendering phase. Allegations in advance may cause the SBA or the agency to penetrate deeper into the original agreements and draw adverse legal conclusions. The management of subcontracting in public procurement is a first matter. However, it also continues throughout the execution phases of the contract. (1) SRI. This report is not required for business plans. The report is required for each order that contains an individual planning agreement. What does that mean? Essentially, a trade plan covers all federal contracts for this year. You don`t need to create a separate plan for each of your contracts if you have more than one. It`s also based on actual expenses, so if you plan the value of your outsourcing, you`ll base it on what your outsourcing expenses were the year before. (i) the total amount of dollars to be subcontracted to subcontractors for a single subcontracting plan; or the total of the Bidder`s projected revenues, expressed in dollars, and the total value of the proposed subcontracts, including indirect costs, except as described in paragraph (g) of this clause, to support sales of a business plan; (7) the name of a person employed by the tenderer who manages the tenderer`s subcontracting program and a description of his duties; Commercial is the preferred plan for product manufacturers, as this type of plan automatically involves indirect expenses, including all of your company`s costs (more details on indirect versus indirect costs. the indirect expenses below).

It is more difficult for product manufacturers to link direct contract expenses to the objectives of subcontracting. The Electronic Subcontracting Reporting System (eSRS) refers to the government-wide online electronic system for reporting subcontracting programs for small businesses. The eSRS is located in www.esrs.gov. In the SRG, you report the number of your subcontractors by type of business, whether large or small (including categories for small businesses), and compare these numbers to the objectives set out in your plan. After you have established your plan, you need to report on progress to the government on a fairly regular basis. For commercial and individual plans, you must complete a Subcontracting Summary Report (SSR) in the Electronic Subcontracting Reporting System (ESRS). (3) A description of the main types of supplies and services to be subcontracted and an identification of the types used for subcontracting to – As specified in 15 USC 637 (d) (8), any contractor or subcontractor who does not meet in good faith the requirements of the subcontracting plan will materially violate its contract. In addition, Section 15 OF THE CODE 637(d)(4)(F) states that a contractor`s failure to comply in good faith with the requirements of the subcontracting plan will result in the imposition of lump sum damages. It is clear that prime contractors have an affirmative responsibility to comply with the laws. If you constantly miss your goals and can`t prove to the government that you`re working in ”good faith” to improve yourself, you risk rejecting or terminating your contract. You may also be liable for lump sum damages.

Therefore, it`s important to keep track of your goals and plan realistically. In other words, the federal government wants to ensure that you outsource to the extent possible. (C) Where the contractor or a subcontractor carries out work for more than one executive agency, a separate report covering only the contracts of that agency shall be submitted to each executive agency, provided that at least one of that agency`s contracts exceeds the applicable threshold set out in FAR 19.702(a) and that the contract and includes a subcontracting plan. For the Ministry of Defence, a consolidated report is submitted for all contracts awarded by military departments/agencies and/or for subcontracts awarded by the prime contractors of the Ministry of Defence. The main annex refers to a scheduling agreement that contains all the necessary elements of a single scheduling agreement, with the exception of targets, and that can be included in individual scheduling agreements if the framework planning agreement has been approved. (8) A description of the supplier`s efforts to ensure that small businesses, small businesses owned by veterans, small businesses owned by veterans, small businesses hubzone, disadvantaged small businesses and small businesses run by women have a fair opportunity to compete for subcontracting; Once you`ve determined what you want to spend in your contract and what your spending goals are, you should know what`s appropriate to account for your outsourcing plan. .