Understanding the Basics of FAR Clause 52.219-9 Small Business Subcontracting Plan
Small businesses are the backbone of the economy across diversified sectors with a strong need to integrate with large organizations or the government. However, due to their limited resources, small businesses often struggle to secure contracts from government agencies or larger organizations. To support the growth of small businesses, the Federal Acquisition Regulation (FAR) clause 52.219-9 Small Business Subcontracting Plan was established. In this article, we will explore the basics of FAR Clause 52.219-9 Small Business Subcontracting Plan and how it impacts small businesses.
What is FAR Clause 52.219-9 Small Business Subcontracting Plan?
The FAR clause 52.219-9 Small Business Subcontracting Plan is a requirement by the Government ensuring that a contractor includes a plan detailing how to award subcontracts to small businesses, including Veteran-Owned Small Businesses (VOSBs), Service-Disabled Veteran-Owned Small Businesses (SDVOSBs), Women-Owned Small Businesses (WOSBs), HUBZone Small Businesses (HUBZone SBs), Small Disadvantaged Businesses (SDBs), and Historically Black Colleges and Universities and Minority Institutions (HBCUs/MIs). The clause is mandatory in government contracts having a value of more than $750,000, except when the contracting officer excludes it.
Subcontracting Goals and Requirements
FAR Clause 52.219-9 Small Business Subcontracting Plan establishes small business subcontracting goals and a requirement for reporting the achievements to the Government. Usually, the contracting officer determines the small business subcontracting goal percentage and scope of the requirement after consultation with the small business specialist. The contractor has to submit the subcontracting plan within an agreed time and provide annual reports capturing the total dollars subcontracted, including subcontracts awarded to small businesses.
Responsibilities of a Contractor and Subcontractor
The FAR clause 52.219-9 Small Business Subcontracting Plan clearly outlines the responsibilities of a contractor to ensure they achieve the subcontracting goals established by the contracting officer. The contractor shall set a subcontracting goal for each sub-category for planned subcontracting and should document efforts taken to identify potential subcontractors. The contractor should also provide proper training and support to the subcontractors regarding FAR requirements and regulations.
The subcontractor’s responsibility includes the reporting of its respective subcontracting performance to the contractor against the established goals. The subcontractor should also set a subcontracting goal for each sub-category for planned subcontracting and document efforts to identify potential subcontractors. The subcontractor should also adhere to the FAR clause requirement for subcontracting.
Benefits of FAR Clause 52.219-9 Small Business Subcontracting Plan
FAR Clause 52.219-9 Small Business Subcontracting Plan presents several benefits to small businesses, including:
1. Increases Opportunities – FAR clause requirement assures that small businesses gain a fair share of contracts awarded by preventing prime contractors from shutting small businesses out of both prime and subcontracts.
2. Connects with large organizations – Through subcontracts, small businesses can integrate themselves into large organizations, gaining partnerships and potential future collaborations with them.
3. Encourages Growth – The FAR clause requirement pushes small businesses to improve their overall operations and competitive advantage. The clause encourages small businesses to develop strong and effective business management practices, ultimately driving growth.
Conclusion
FAR Clause 52.219-9 Small Business Subcontracting Plan plays a vital role in supporting small businesses by providing opportunities, connecting them with larger organizations, and encouraging their growth. The clause establishes subcontracting goals, which come with reporting obligations. Contractors and subcontractors must adhere to the FAR clause requirements to ensure they achieve the specified subcontracting goals. The clause’s benefits ultimately foster a competitive market and drive innovation in small businesses, contributing significantly to the economy.
