Code of Federal Regulations: Containing a Codification of Documents of ...

(B) Whether less than three or more than two small business firms were solicited.

(D) The reason for small business failure to receive the award if such was the case when small business was solicited.

The records maintained in accordance with (iii) above may be in such form as the Contractor may determine, and the information shall be summarized quarterly and submitted by the purchasing department of each individual plant or division to the Contractor's cognizant small business liaison officer. Such quarterly summaries will be considered to be management records only and need not be submitted routinely to the Government; however, records maintained pursuant to this clause will be kept available for review by the Government until the expiration of 1 year after the award of this contract, or for such longer period as may be required by any other clause of this contract or by applicable law or regulation.

(5) Notify the Contracting Officer before soliciting bids or quotations on any subcontract (including purchase orders) in excess of $10,000 if (1) no small business concern is to be solicited, and (11) the Contracting Officer's consent to the subcontract (or ratification) is required by a "Subcontracts" clause in this contract. Such notice will state the Contractor's reasons for nonsolicitation of small business concerns, and will be given as early in the procurement cycle as possible so that the Contracting Officer may give SBA timely notice to permit SBA a reasonable period to suggest potentially qualified small business concerns through the Contracting Officer. In no case will the procurement action be held up when to do so would, in the Contractor's judgment, delay performance under the contract.

(6) Include the Utilization of Small Business Concerns clause in subcontracts which offer substantial small business subcontracting opportunities.

(7) Cooperate with the Contracting Officer in any studies and surveys of the Contractor's subcontracting procedures and practices that the Contracting Officer may from time to time conduct.

(8) Submit quarterly reports of subcontracting to small business concerns on either Optional Form 61, Small Business Subcontracting Program Quarterly Report of Participating Large Company on Subcontract Commitments to Small Business Concerns, or such other form as may be specified in the contract. Except as otherwise provided in this contract, the reporting requirements of this subparagraph (8) do not apply to small business contractors, small business subcontractors, educational and nonprofit institutions, and contractors or subcontractors for standard commercial items.

(b) A "small business concern" is a concern that meets the pertinent criteria established by the Small Business Administration

and set forth in § 1-1.701 of the Federal Procurement Regulations.

(c) The Contractor agrees that, in the event he fails to comply with his contractual obligations concerning the small business subcontracting program, this contract may be terminated, in whole or in part, for default.

(d) The Contractor further agrees to insert, in any subcontract hereunder which may exceed $500,000 and which contains the Utilization of Small Business Concerns clause, provisions which shall conform substantially to the language of this clause, including this paragraph (d), and to notify the Contracting Officer of the names of such subcontractors.

[End of Clause]

[29 FR. 10104, July 24, 1964, as amended at 33 F.R. 17293, Nov. 22, 1968; 34 F.R. 17953, Nov. 6, 1969]

§ 1-1.710-4 Review of subcontracting

program.

(a) Contractor's program. The procuring agency concerned shall be responsible for conducting periodic reviews to determine the adequacy of the contractor's "Small Business Subcontracting Program." The reviews shall be made in accordance with paragraph (c) of this section, and the procuring agency should make arrangements concerning participation by representatives of SBA, as appropriate.

(b) Subcontractor's program. Promptly upon notification by the contractor of the placement of a subcontract requiring the subcontractor to establish such a program in accordance with § 1-1.7103(b), the contracting officer shall either assume responsibility for review of the subcontractor's program or request that the review be made by an appropriate official or organization, in accordance with whatever policy may be adopted by the procuring agency.

(c) Procedure for conducting review. The following factors shall be considered in the periodic review to determine the adequacy of the contractor's (including subcontractor's) "Small Business Subcontracting Program":

(1) The extent to which the contractor pursues an energetic program to locate additional small business subcontract sources, including utilization of the services of the contract administration office, SBA, and appropriate media such as the Commerce Business Daily;

(2) The contractor's efforts to place with small business concerns development type work likely to result in later production opportunities;

(3) The contractor's policy and practices in providing financial, engineering, technical, or managerial assistance to small business subcontractors;

(4) The contractor's efforts to break out components of large systems in order to promote broader competition and greater opportunities for small business subcontractors;

(5) The extent to which top management supports the program by issuing oral and written policy statements and holding periodic training and discussion meetings for personnel;

(6) The extent of contractor's participation in procurement conferences, vendor open house days, and similar meetings designed to provide an "open door" to small companies seeking subcontract work;

(7) The adequacy of justification included in procurement files for decisions not to solicit small business on individual procurements;

(8) The extent to which the contractor considers small business interests in make-or-buy decisions;

(9) The extent to which the contractor has taken corrective action to remedy deficiencies in his program which were previously called to his attention;

(10) The accuracy of the contractor's records indicating the size status of subcontractors; and

(11) Any unusual efforts to promote the program whether or not they exceed contractual requirements.

(d) Report of review. A written report of each review shall be prepared indicating the extent of compliance with all contractual provisions pertaining to the assistance of small business. The specific areas of deficiency or superior performance of the contractor (or subcontractor), as appropriate, shall be documented. A summary of the findings and recommendations normally should be sent to the contractor's corporate office (or to the contractor's plant, if a plant was involved). Any deficiencies of the contractor's (or subcontractor's) program shall be brought to the attention of the contractor's designated liaison officer with a request for corrective action. In addition to the distribution outlined above, written reports of reviews shall be maintained in the contract administration office. These reports shall be made available to SBA, small business specialists, other contracting officers, and to other procuring agencies, upon request.

(e) Subcontracting records. Subcontracting records maintained by Government offices shall be made available for review by SBA upon request.

(f) SBA recommendations. On the basis of the foregoing records and the periodic reviews of the adequacy of the contractor's "Small Business Subcontracting Program," SBA may make recommendations to the procuring agency regarding methods for increasing small business participation in the contractor's subcontract awards. SBA and the procuring agency will freely interchange, at the operating level, information resulting from the reviews.

(g) Use of periodic reviews by other procuring agencies. Where a procuring agency has made a periodic review of a contractor's "Small Business Subcontracting Program" within the preceding 12 months, that review may be used by another procuring agency in lieu of making a new and separate review of the same contractor's program.

[36 F.R. 3118, Feb. 18, 1971]

§ 1-1.711 Federal Supply Schedule con

tracts.

Where orders are placed under Federal Supply Schedule contracts and one or more of the contractors for an item on a given schedule are small business concerns, the orders shall be placed in accordance with the policies and procedures set forth in § 101-26.408-4(b) of the Federal Property Management Regulations.

[32 F.R. 6568, Apr. 28, 1967]

§ 1-1.712 Small business participation in research and development procurement actions.

[35 F.R. 4260, Mar. 7, 1970]

§ 1-1.712-1 Publicizing research and development procurement actions to attract small business.

To the fullest extent practicable, agencies shall publicize proposed research and development procurement contracts through use of the Commerce Business Daily (see § 1-1.1003) sufficiently in advance to allow participation of appropriate small business concerns in such procurements. Agencies shall also consider use of other suitable methods of publicizing research and development requirements to attract small business participation in addition to the use of the Commerce Business Daily. [35 F.R. 4260, Mar. 7, 19701

(B) Whether less than three or more than two small business firms were solicited.

(D) The reason for small business failure to receive the award if such was the case when small business was solicited.

(5) Notify the Contracting Officer before soliciting bids or quotations on any subcontract (including purchase orders) in excess of $10,000 if (1) no small business concern is to be solicited, and (ii) the Contracting Officer's consent to the subcontract (or ratification) is required by a "Subcontracts" clause in this contract. Such notice will state the Contractor's reasons for nonsolicitation of small business concerns, and will be given as early in the procurement cycle as possible so that the Contracting Officer may give SBA timely notice to permit SBA a reasonable period to suggest potentially qualified small business concerns through the Contracting Officer. In no case will the procurement action be held up when to do so would, in the Contractor's judgment, delay performance under the contract.

(6) Include the Utilization of Small Business Concerns clause in subcontracts which offer substantial small business subcontracting opportunities.

(7) Cooperate with the Contracting Officer in any studies and surveys of the Contractor's subcontracting procedures and practices that the Contracting Officer may from time to time conduct.

(b) A "small business concern" is a concern that meets the pertinent criteria established by the Small Business Administration

and set forth in § 1-1.701 of the Federal Procurement Regulations.