Electronic Subcontracting Reporting System (eSRS) January 25, 2006

2 Electronic Subcontracting Reporting System (eSRS) The eSRS is an electronic, web-based system for subcontract reporting that will replace the SF-294 & SF-295 paper forms. When DoD comes on board in FY 2006, it will be a Government-wide system and the only automated system authorized for subcontract reporting.

3 Organizational Structure Systems Steward –U.S. Small Business Administration (SBA) Contractor –Symplicity Corporation, Inc. 8(a) firm based in Arlington, Virginia

4 System Features (cont.) Critical Systemic Linkages –Central Contractor Registration (CCR) –Federal Procurement Data System (FPDS-NG) Government-wide agency hierarchy –DUNS numbers for prime contractors and subcontractors

5 IAE Architecture

6 Electronic Subcontract Reporting System (eSRS) The eSRS is a downstream FPDS/NG application – –On the Positive Side: If a contract contains a subcontracting plan and has been entered correctly in FPDS/NG, the eSRS automatically receives a record of it; –The Downside: If a contract is not in in FPDS/NG or has not been entered correctly, the contractor won’t be able to enter his ISR (formerly the SF-294) report at all

7 System Features Business Processes –Identifies contracts in FPDS-NG having subcontracting requirements –Automates completion and submission of SF-294 and SF-295 Will include the Annual SDB Breakout Report (3-digit NAICS subsector) –When fully operational, it will also automate the Optional Form 312

8 Goal Computation on the ISR The system calculates the achievements by two methods: % of contract value % of subcontracting ___________________________________ Note: the eSRS will only calculate the percentage on the achievement side, not the goal columns. This is by intent, because we want the contractor to copy the goals from the subcontracting plan exactly as they appear in the plan.

9 System Features (cont.) Provides breakout of subcontracting data down to the buying activity level. Generates standard and ad hoc reports –Analysis of Subcontracting Plan Goal Attainment –Five-Year Trend Table –SBA Goaling Report for Congress & the President –Several other standard reports Generates automatic reminder notices and delinquent notices.

10 Critical Milestones Beta Testing and Acceptance –September 2005 Initial Operating Capability (IOC) –October 28, 2005 Full Operating Capability (FOC) –Target: 8 weeks after IOC

11 What Should Contractors Enter? (continued) All contractors must use the eSRS for both their Individual Contract Reports (ISRs) for the period ending September 30, 2005 and Summary Subcontract Reports (SSRs) for the periods ended September 30, 2004, and September 30, –Contractors may not use the NASA, GSA, DoE, or any other electronic system for the reports!

12 Do Contractors Have an Extension for Filing? OFPP memo dated Nov. 3, 2005, authorizes agencies to grant their contractors a 60-day extension for filing the reports (60 days from IOC) –Oct. 28 th + 60 days + 3 Holidays = December 31st

13 What will FOC give us that IOC doesn’t? FOC will provide an application interface so that contractors with electronic systems of their own can simply upload their data into the eSRS (as opposed to keypunching it into the eSRS one report at a time)

14 Is the FAR being changed? SBA finalized a FAR case that includes changes to subpart 19.7 and the related clauses, especially In the meantime, SBA’s Office of General Counsel has ruled that the eSRS is the electronic equivalent of the SF-294 & SF-295

15 FAR Case Revises subpart 19.7 and clauses at & to replace all references to SF-294, SF- 295, and Optional Form 312 with eSRS. Revises the flow-down provision at (a)(9) and (d)(9) to require the prime contractor to flow the prime contract number down to the subcontractors at lower tiers –prime contract number now becomes a mandatory field in the eSRS, even for subcontractors, in order to facilitate lower-tier reporting.

16 FAR Case (cont.) Moves “General Instructions” from the paper forms to the clause at Requires contractors to print a hard copy of the Summary Report(s) and have them signed by the CEO. Contractor will be required to keep hard copy with CEO’s signature on file for 4 years. SF-294, SF-295, & Optional Form 312 will all be deleted from Part 53 – i.e., abolished!

17 FAR Case The Small Business Committee of the FAR Council will review and discuss the specific provisions in the proposal The regulation will be issued as a Proposed Rule or Interim Final Rule –60-day public comment period Final Rule will reflect changes resulting from public comments, as appropriate

18 Lower Tier Reporting Full operating capability will include a report showing subcontracting activity at lower tiers This feature will be available only for contractors that submit the Individual Contract Report The eSRS FAR case does not propose to change the current rule that prime contractors may not take credit for subcontracts at lower tiers eSRS Feature

19 LOWER TIER REPORTING Individual Subcontracting Reports (ISR) Former SF 294 Prime Contract Number Higher Tier DUNS Product and Service Lines NAICS Address of the Govt Official to Review the Report No Inclusion of Lower Tier Dollars

20 LOWER TIER REPORTING Government contracts with Company X Contract Number DE-AC01-05EE12345 Company X will include on their Individual Subcontracting Report: Their Duns is Prime Contract Number- DE-AC01-05EE12345 Company X subcontracts with Company Y Contract Number XX-05TP00023 Company Y will include on their Individual Subcontracting Report: Company X’s DUNS Prime Contract Number- DE-AC01-05EE12345 Their DUNS Contract Number with Company X-XX-05TP00023

21 LOWER TIER REPORTING (cont.) Company Y subcontracts with Company Z Contract Number YY-05DD99963 Company Z will include on their Individual Subcontracting Report: Company Y’s DUNS Prime Contract Number- DE-AC01-05EE12345 Their DUNS Contract Number with Company Y- YY-05DD99963

22 Summary Subcontracting Reports Summary Subcontracting Reports (SSR) Former SF 295 Product and Service Lines NAICS Address of the Govt Official to Review the Report No Inclusion of Lower Tier Dollars

23 REVIEW OF REPORTS Government will review: –Prime Individual Subcontracting Report –All Summary Subcontracting Reports Higher-Tier Subcontractors will review: –Lower-Tier Individual Subcontracting Reports

24 Accounting Methods “Commitment Basis”- means that you capture the transaction when you execute the subcontract award document. “Payment Basis”- means that you capture it when you pay the invoice. If you use some other method, or hybrid of the two, the system allows you to select “other.” Once you select the method, it can not change for the life of the contract.

25 Acceptance of Reports “Acceptance" does not mean approval, per se, but it does mean that the Government has reviewed the report and that it appears to be complete. Since an on-site compliance review later on could identify flaws in the preparation of the report, the Government always has the right to reject a report that has previously been accepted.

26 How will the eSRS Help Desk work? The Help Desk will handle all technical questions regarding the use of the eSRS – address is Questions regarding subcontracting policy will be referred to SBA Other problems/issues will be forwarded to the Agency Coordinator of the agency that awarded the contract

27 TROUBLESHOOTING CCR ISSUES- CCR Assistance Center FPDS-NG ISSUES Call the Contracting Officer eSRS ISSUES Contact the eSRS Helpdesk

28 Registration Agency: Fullname: Address: Supervisor Name: Supervisor User Level: Contracting Office: Permission Level/Role:

29 Registration(cont) ID= Address Password= Characters that must include: 2 lower case letters, 2 upper case letters, 2 numbers and 2 special characters, in any order. Example:

30 Permission Levels for Registration Agency Coordinator (AC) can only be an individual at the Parent Department or Agency level (not a sub-agency, bureau or division). The AC is responsible for the use and oversight of eSRS for their parent department/agency and is the liaison to the IAE. This individual can participate in the eSRS User Group and CCB. The AC has full access to eSRS for the agency chosen at sign-up and below. The AC can manage all their agency contacts, approve/reject new agency contact registrations, view/accept/reject contractor reports and run consolidated reports on data pertinent for their agency (and all sub/child agencies, bureaus, etc).

31 Permission Levels for Registration (cont) Point of Contact (POC) users manage the Parent Department/Agency’s sub-agency, bureau or divisions contact registrations, view/accept/reject contractor reports and run consolidated reports on data pertinent to their own level within the Parent Department/Agency. POCs are in the position to help ACs with registration functions, but are not Agency Coordinators.

32 Permission Levels for Registration (cont) Contracting Official is the Contracting Officer or Specialist that will view/accept/reject contractor reports and run consolidated reports on data pertinent to their own level within the Parent Department/Agency.

33 Permission Levels for Registration (cont) Designated Government User (DGU) Individuals that need to run consolidated subcontracting reports for statistical or investigative use. They have access to Standard or Ad Hoc reporting functions and Individual or Summary reports that have been accepted into eSRS.