1. Post-Award Compliance
HHS SUBCONTRACTING PROGRAM
Post-Award Compliance

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

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

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

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

6. 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 /19.704)

7. 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 /19.704)

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

9. Congratulations, It’s Over !!!

10. Post-Award Compliance
NOTIFY
MONITOR
EVALUATE
DOCUMENT
(FAR /19.706)

11. Post-Award Responsibilities
NOTIFY
(FAR /19.706)

12. 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 )

13. Post-Award Responsibilities
MONITOR
(FAR /19.706)

14. 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 )

15. 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 )

16. 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 (a)(10)(iii))

17. MONITOR
How to Review ISRs

18. Subcontracting Plan (Template)
MONITOR
Subcontracting Plan (Template)

19. FAR (a)(2)

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

21. MONITOR
Step 1- Log into eSRS.gov

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

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

24. 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.

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

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

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

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

29. 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 (f)(3)(ii))

30. MONITOR
SSR’s

31. Limitations on Subcontracting Compliance FAR 52.219-14
MONITOR
Limitations on Subcontracting Compliance FAR
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)

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

33. MONITOR FSRS What does FSRS have to do with Subcontracting-
The CO shall insert the clause at FAR Clause , “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 )

34. MONITOR
Step 1- Log into eSRS.gov

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

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

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

38. 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”

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

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

41. Post-Award Responsibilities
EVALUATE
(FAR /19.706)

42. 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 )

43. 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))

44. 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))

45. 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))

46. 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 (a)(12))

47. 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 (a)(15))

48. Post-Award Responsibilities
DOCUMENT
(FAR /19.706)

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

50. 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 )

51. Documentation Tool Box
eSRS – 5 Year Trend Report

52. DOCUMENT
Step 1- Log into eSRS.gov

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

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

55. 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”

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

57. 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”

59. Post-Award Responsibilities
(FAR /19.706)

60. QUESTIONS

61. 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
(202)