Post-Award Compliance HHS SUBCONTRACTING PROGRAM Post-Award Compliance

PRESENTED BY Wallace Sermons II, Subk PM/TL Office of Small & Disadvantaged Business Utilization U.S. Department of Health and Human Services

AGENDA Discussions will include: Overview Post-Award Compliance Notify Monitor Evaluate Document

WHEN IS A SUBCONTRACTING PLAN REQUIRED? Any Contract or Modification > $700K ($1.5M Construction); Subcontracting Opportunities Exists. (FAR 19.702(a))

WHEN IS A SUBCONTRACTING PLAN NOT REQUIRED? Small Business Concerns; Personal Services Contracts; Contracts or Modifications performed entirely outside the US. (FAR 19.702(b))

TYPES OF SUBCONTRACTING PLANS INDIVIDUAL Covers entire period Contract specific Has goals based on specific contract COMMERCIAL Covers Offerors fiscal year Applies to entire commercial line Includes goals MASTER Contains required elements of individual Applies to All contracts May be incorporated into individual subcontracting plan (FAR 19.701/19.704)

SUBCONTRACTING PLANS MATRIX Plan Type Applies To Period Covered Includes Exceptions Individual Specific Contract Entire Contract Period Goals (Specific to Contract) Common Indirect Costs Master All Contracts Up to 3 yrs after 1st CO Approval Required elements of Individual Plan Does not include goals Commercial (Most Preferred) Entire Commercial Line Offerors Fiscal Year Goals (For Entire Commercial Line) May be a portion of the company (FAR 19.701/19.704)

Pre-Award Contract Awarded Subk Plan Negotiated & Approved Subk Plan Requirement Identified and included in Solicitation. Subk Plan Negotiated & Approved Contract Awarded

Congratulations, It’s Over !!!

Post-Award Compliance NOTIFY MONITOR EVALUATE DOCUMENT (FAR 19.705-6/19.706)

Post-Award Responsibilities NOTIFY (FAR 19.705-6/19.706)

NOTIFY What goes to SBA PCR (FAR 19.705-6) Copy of- The award; Each commercial plan and any associated approvals; Any Subk plan submitted in response to a sealed bid solicitation; The final negotiated Subk plan; and Notification of the opportunity to review Subk plan modifications. (FAR 19.705-6)

Post-Award Responsibilities MONITOR (FAR 19.705-6/19.706)

MONITOR What must be monitored (FAR 19.705-6) The prime contractor's compliance with the following: Ensure timely Subk reports submissions into the eSRS; Review ISRs, and where applicable SSRs in eSRS. Review SubK awards > $30K in FSRS Review Limitations on Subcontracting Compliance (FAR 19.705-6)

Ensuring timely reports submissions MONITOR Ensuring timely reports submissions Types of Reports Applies to Includes Reports Due Individual Subcontracting Report (ISR) Single Individual Plans Subk dollars from inception of K to report date 30 days after ea reporting pd., Mar 31/Sep30 (Apr 30/Oct 30) & K completion Summary Subcontracting Report (SSR) (Individual) Summary of ALL Individual Plans ALL Subk dollars prime/sub for FY Annually, within 30 days after end of Govt’s FY, Sept 30 (Oct 30) Summary Subcontracting Report (SSR) (Commercial) Commercial Plan Subk dollars for both commercial & govt business (FAR 19.704)

MONITOR New Policy Alert !!! (FAR 19.704(a)(10)(iii)) After November 30, 2017, Contractors will have to include Subk data for ea order when reporting subcontracting achievements for IDIQ contracts intended for use by multiple agencies. (FAR 19.704(a)(10)(iii))

MONITOR How to Review ISRs

Subcontracting Plan (Template) MONITOR Subcontracting Plan (Template)

FAR 19.704(a)(2)

Electronic Subcontracting Reporting System (eSRS) MONITOR Electronic Subcontracting Reporting System (eSRS)

MONITOR Step 1- Log into eSRS.gov

Step 2- Click on “Individual Reports” MONITOR Step 2- Click on “Individual Reports” Click on Individual

Step 3- Click on “Search Filters”, then "Magnifier” MONITOR Step 3- Click on “Search Filters”, then "Magnifier” Click Search Filters Then Click Magnifier

Information flows from FPDS-NG, therefore if incorrect the CO will have to do a mod or make a correction if they have access to do so.

CO’s only review reports submitted from Prime Contractor’s FPDS Fed CO’s only review reports submitted from Prime Contractor’s

Verify Amounts w/ Subk Plan Column has to be requested by CO Column has to be requested by CO

The information included here is not detailed enough, and does not include a mitigation plan

MONITOR Approve or Reject IAW FAR 19.705-6(f), CO has 60 days of the report ending date to review ISRs.

How to Approve/Reject in eSRS MONITOR How to Approve/Reject in eSRS Note: If a report is rejected, the contractor must be provided with an explanation in the text box that appears. (FAR 19.705-6(f)(3)(ii))

MONITOR SSR’s

Limitations on Subcontracting Compliance FAR 52.219-14 MONITOR Limitations on Subcontracting Compliance FAR 52.219-14 FY13 NDAA- For total or partial set-aside contracts-Base term and then each subsequent option pd. CO may require for each order. For TO’s set aside for SB’s under F/O K’s, POP for Order. (15 U.S. Code § 657s)

MONITOR Federal Funding Accountability and Transparency Act (FFATA) Subaward Reporting System (FSRS)

MONITOR FSRS What does FSRS have to do with Subcontracting- The CO shall insert the clause at FAR Clause 52.204-10, “Reporting Executive Compensation and First-Tier Subcontract Awards” in all solicitations and contracts of $30K or more. Not prescribed for K’s not required to be reported in the Federal Procurement Data System (FPDS) (FAR 4.1403)

MONITOR Step 1- Log into eSRS.gov

Step 2- Click “Log-in to FSRS” MONITOR Step 2- Click “Log-in to FSRS” Click “Log-in to FSRS”

Step 3- Review T&C and Click “OK” MONITOR Step 3- Review T&C and Click “OK” Click “OK”

Step 4- Click “Contracts” MONITOR Step 4- Click “Contracts” Click “Contracts”

1-Click “Search Filters” MONITOR Step 5- Click “Search Filters”, Input “Contract #” and Click “Apply Search” 1-Click “Search Filters” 2-Input “Contract #” 3-Click “Apply Search”

Step 6- Click “Magnifier” MONITOR Step 6- Click “Magnifier” Click “Magnifier”

Step 6- Click “Magnifier” Verify that amount matches invoice MONITOR Ask yourself if a SB could have completed the work. Step 6- Click “Magnifier”

Post-Award Responsibilities EVALUATE (FAR 19.705-6/19.706)

EVALUATE What must be evaluated (FAR 19.705-6) The prime contractor's compliance with its subcontracting plan, to include the following: Assess whether prime made a good faith effort; Assess prime’s written explanation concerning Failure to use a small business concern; Failure, reduced, or late payment. (FAR 19.705-6)

EVALUATE Good Faith Effort (13 CFR 125.3(d)(3)) Evidence includes supporting documentation that contractor: Fulfilled all requirements of Subk plan. Failed to achieve goal in one category, over-achieved its goal by equal or greater amount in another; or (Cont…) (13 CFR 125.3(d)(3))

Evidence of Good Faith Effort Cont… Performed one or more of the following actions- Breaking out contract work items; Conducting market research to identify SB’s subcontractors; Soliciting SB’s as early in the acquisition process as practicable; Providing SB’s with adequate and timely information; Negotiating in good faith with interested SB’s; Directing SB’s that need additional assistance to SBA; (Cont…) (13 CFR 125.3(b))

Evidence of Good Faith Effort Cont… Assisting SB’sin obtaining bonding, lines of credit, required; insurance, necessary equipment, supplies, materials, or services; Utilizing available services of SB associations; local, state, and Federal small business assistance offices; and other organizations; and; Participating in a formal mentor-protégé program with one or more small-business protégés that results in developmental assistance to the protégés. (13 CFR 125.3(b))

Failure to use a small business concern EVALUATE Failure to use a small business concern SB Subk plan now requires assurances that- Offeror will make a good faith effort to acquire articles, equipment, supplies, services (construction), or materials from SB’s used in preparing the bid/proposal; Use will be same or greater scope, amount, and quality used in preparing and submitting the bid or proposal. (FAR 19.704(a)(12))

Failure to pay a small business concern EVALUATE Failure to pay a small business concern SB Subk plan now requires assurances that- Offeror will pay its small business subs on time and in accordance with the T&C of the subcontract; Prime notify the contracting officer Prime fails to pay, or pays a reduced or an untimely payment to a small business subcontractor . (FAR 19.704(a)(15))

Post-Award Responsibilities DOCUMENT (FAR 19.705-6/19.706)

What must be documented Contractor’s performance & compliance with Subk plans under previous contracts; Extent contractor is meeting goals IAW Subk plan; (Cont…) (FAR 19.706)

Documentation Continued… Failure to meet its commitments under Subk plan; Failure to comply in good faith with Subk plan; After K completion, whether or not goals were met. (FAR 19.706)

Documentation Tool Box eSRS – 5 Year Trend Report

DOCUMENT Step 1- Log into eSRS.gov

Step 2- Click on “Reporting” DOCUMENT Step 2- Click on “Reporting” Click on “Reporting”

DOCUMENT Step 3- Click “Add New” Click “Add New”

2-Highlight “5 Year Trend Report” DOCUMENT Step 4- Click “or” drop-down, Highlight “5 Year Trend Report”, and then Click “continue” 2-Highlight “5 Year Trend Report” 1-Click “or” 3-Click “continue”

Step 6- Input “DUNS”, and Click “Submit” DOCUMENT Step 6- Input “DUNS”, and Click “Submit” 1-Input “DUNS” 2-Click “Submit”

Step 6- Once the report has processed, Click “view report” DOCUMENT Step 6- Once the report has processed, Click “view report” 1-Click “view report”

Post-Award Responsibilities (FAR 19.705-6/19.706)

QUESTIONS

Wallace D. Sermons II Small Business Subcontracting Program & Team Lead for Compliance, Reporting, and Quality Assurance Office of Small & Disadvantaged Business Utilization U.S. Department of Health and Human Services wallace.sermons@hhs.gov (202) 430-1710