Subcontracting Plans And Its Impact On The United States

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Subcontracting Plans Small businesses in the United States (U.S.) have a major impact on the economy, affecting employment, sales and patents. The Small Business Association estimated that small businesses account for 54% of all U.S. sales, 55% of existing jobs and 66% of all new jobs. They account for 40% of retail sales, providing employment for 8 million people. Small businesses are responsible for producing 13 times more patents than larger firms, and constitute 40% of business receipts in the United States (Bagley, 2012). Given that small businesses are vital to a thriving economy, government subcontracting plans are essential to support this key component of America’s financial system. The purpose of this paper is to discuss …show more content…

and outlying areas and contract modifications that do not contain FAR 52.219-8 or prior clauses that are comparable. A subcontracting plan is also not required if no subcontract opportunity exists. However, this does require approval above the Contracting Officer level (CO). The second area (Types of subcontracting plans) describes the four types of subcontracting plans, which include: Individual, Commercial, Comprehensive and Master plans. The Individual plan applies only to one contract and covers the entire contract period including options. The Commercial plan is based on the contractor’s fiscal year and all of the commercial products sold. The Comprehensive plan is similar to the commercial plan and can only be negotiated by Defense Contract Management Agency (DCMA). The Master plan is negotiated by the CO for each applicable contract and has all the mandatory elements consistent with the individual plan with the exception of the goals. The third area (Mandatory elements) lists the required elements that must be included in the subcontracting plans. Those elements include (a) goals, (b) total subcontracted funds, (c) subcontracted supplies and services, (d) methodology of goal development, (e) methodology of small business sources, (f) indirect costs, (g) administrating officer, (h) efforts to ensure equitable opportunity for subcontracts, (i) compliance with all required reports, (j) record keeping, and (k) compliance

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