d. All subcontract plans previously found to be in interim
non-compliance will be reevaluated during the next review.
Subcontract plans found in interim compliance will not
normally be reevaluated during the next review. This
method of evaluation shall be used for all reviews.
(See para 9 (c) ).

e.

Reviews of multi-contract or subcontract companies may be
performed by a team of Subcontract Specialists. Determinations

to use this approach must be approved by the Assistant Regional
Administrator for Programs.

10. SUBCONTRACT PLAN ELEMENTS

The Small Business Act, as amended, the Federal Acquisition Regulation,
subparts 1-1.13 and 1-1.7 and the Defense Acquisition Regulation
section 1-332 and section 1, part 7, delineate the requirements of
a subcontracting plan. These requirements include:

a. Stated separate percentage goals for the utilization of Small
Business Concerns and Small Business Concerns Owned and
Controlled by Socially and Economically Disadvantaged

Individuals. The goals to be expressed in terms of percentage
of total planned subcontracting dollars. The Subcontract Specialist
must acquire any modifications or amendments to existing plan goals.
The stated goals are not to be considered as quotas but as objectives.
(1) The Subcontract Specialist must determine, as part of the
evaluation, if the subcontracting plan, found acceptable by
the procuring agency, contains the maximum practicable
opportunities for Small Business Concerns and Small Business
Concerns Owned and Controlled by Socially and Economically
Disadvantaged Individuals. The determinations will be made
a material part of the individual subcontract plan report.
For purposes of evaluation, the contract may be compared
to past or present similar contracts. Information may also
be obtained from the cognizant Procurement Center Representative
or Administrative Contracting Officer. It is imperative
that this evaluation be fully supported and justified in all
respects and submitted to the Central Office with the Individual
Subcontracting Plan Evaluation report. The Central Office
must report annually to the Congress data concerning such
subcontracting plans. The regional MSB/COD shall be notified
prior to submitting to the Central Office.

SBA FORM 989A (3.75) REF 00232 REPLACES PREVIOUS EDI IONS AND SBA FORM 989 B

b.

C.

d.

e.

The name of the individual who will administer the subcontracting
program for the contractor or subcontractor and a description
of duties. The individual named does not necessarily have to

be the individual who may be administering an individual subcontract
plan. It is important that the individual so named has the
responsibility and authority to be able to effectively administer
the program.

A written description of the efforts the company will take
to assure that Small Business Concerns and Small Business
Concerns Owned and Controlled by Socially and Economically
Disadvantaged Individuals will have an equitable opportunity
to compete for subcontracts. The written description of the
efforts and the contractor's implemention thereof will be a
major consideration for evaluation of compliance or non-
compliance. The description could be either general and/or
specific as to the efforts to be taken. The contractor's
good faith actions in effecting the described efforts will be
carefully considered in compliance evaluations. It will also
be important to consider significant actions taken to meet. or
better the subcontracting goals.

Assurances that the contractor will include the clause entitled
"Utilization of Small Business Concerns and Small Business Concerns
Owned and Controlled by Socially and Economically Disadvantaged
Individuals" in all subcontracts which offer further subcontracting
opportunities. The contractor also assures that all subcontracts
(except small business) who receive subcontracts in excess of
$1,000,000 for construction of any public facility, or in excess
of $500,000 for all others, adopt a plan similar to that of the
prime contractor.

This requirement also pertains to sole source subcontracts.
Subcontracting Specialists must acquire copies of first tier
subcontracting plans.

Assurances that the contractor or subcontractor will submit
such periodic reports and cooperate in any studies or surveys
as may be required by the Federal Agency or the Small Business
Administration. Although compliance reviews, in most cases,
will only be made down to the first tier subcontractor, cases
may arise where reports or surveys may be required below the
first tier subcontracts. All such cases shall be referred to
the Central Office, Procurement Assistance, Subcontracting
Assistance Division, for concurrence and program coordination.

SBA FORM 989A (3-75) REF 00232 REPLACES PREVIOUS EDITIONS AND SBA FORM 9898

f.

g.

Detailed statement of the types of records the successful offeror
or bidder will maintain to demonstrate procedures which have been
adopted to comply with the requirements and goals set forth in the
contract subcontract plan. This statement shall include the
utilization of source lists which include both Small Business
Concerns and Small Business Concerns Owned and Controlled by
Socially and Economically Disadvantaged Individuals; and efforts
to identify and award subcontracts to such small business concerns.
The Subcontract Specialist shall review these source lists to
determine adequacy, completeness and timeliness. Potential
additional sources may be recommended from SBA's Procurement
Automated Source System (PASS). Bidders for potential sub-
contracts should be clearly identified or coded for review and
analysis purposes.

The records must be up-to-date and complete in order to
demonstrate the good faith efforts to comply with the contract
subcontracting plan goals.

The aforestated items, a through f, comprise the contract subcontracting plan. All items must be reviewed and any deviations and contractual changes thereto must be noted in the review report.

11. SMALL BUSINESS CONCERNS EXEMPTION

a. The Small Business Act excludes small business concerns, as
defined under 13 CFR, part 121, from the provisions concerning
submission of Subcontracting Plans.

12. EVALUATION REPORTS

a.

b.

The Subcontract Specialist shall perform the evaluation of
the subcontract plan utilizing SBA Form 745B entitled,
"Individual Subcontract Plan Evaluation." A form will be
completed for each subcontract plan evaluated. If additional
background information is required, such information may be
requested from the SBA Procurement Center Representative,
Administrative Contracting Officer, Procurement Center
Officer, or other SBA Subcontracting Specialists.

Upon completion of the "Individual Subcontract Plan Evaluation"
forms, the Subcontract Specialist will complete the SBA Form
745C entitled, "Summary of Contract Plans Evaluated."

SBA FORM 989A (3-75) REF 002 32 REPLACES PREVIOUS EDITIONS AND SBA FORM 9898

a.

The Subcontract Specialist, upon completion of each Review
and Evaluation of the Contractor's or Subcontractor's Subcontract
Plan, may conduct discussions in an Exit Interview with the higher
level officials of the organization being reviewed. These
discussions will concern recommended improvements or assistance
to the individual subcontract plans. Overall descriptive evaluation
conclusions will not be used in the Exit Interview. The plant
official will be advised that the findings, after evaluation by SBA,
will be furnished in writing.

14. FURNISHING THE WRITTEN REPORT

a.

b.

If the contractor is in compliance with the subcontracting
plan, the written result of the SBA Subcontract Specialist's
review and the region's evaluation, including the ARA/P's approval,
will be completed within 10 working days. Copies of the review

will then promptly be furnished to the Contractor, appropriate
executive level official, the Administrative Contracting Officer,
the Regional Administrator and the SBA Central Office, Subcontracting
Assistance Division.

If the contractor is not in compliance with the subcontract plan,
the SBA Subcontract Specialist making the compliance review will
succintly explain in writing why the contractor is not in compliance.
The official written non-compliance notification will be coordinated,
and concurred in by the Regional ARA/P and Regional Administrator
within 10 working days after review completion. The Central Office
will be mailed a copy of the report within 5 days of region action.

EFFECTIVE DATE 10-25-79

PAGE

26

SBA FORM 989A (3-75) REF 002 32

REPLACES PREVIOUS EDITIONS AND SBA FORM 989 B

1. What has the contractor achieved in actual subcontract placements toward meeting the contracted goals?

a. What amount remains to be subcontracted to meet goals for small business concerns and small disadvantaged business concerns?

b. What dollar amount of indirect or overhead cost has been apportioned to the contract goals?

SBA Form 7458 (8-79) REF: SOP 60 03

10-25-79

49