SUBCONTRACTING PROGRAM

The DoD Subcontracting Program authorizes the negotiation, administration, and reporting of subcontracting plans on a plant, division, or company-wide basis as appropriate. The purpose of the program is to determine whether comprehensive subcontracting plans will result in increased subcontracting opportunities for small business while reducing the administrative burden on contractors.

An important aspect of the test program is that it offers significant opportunity to create a dialogue between DoD and program participants on major small business issues facing us all.

Legislative Background on the DoD Comprehensive Subcontracting Plan Test Program

Section 834, P.L. 101-189

Section 834, P.L. 101-189: Established the test program to determine if comprehensive subcontracting plans on a corporate, division or plant-wide basis would lead to increased opportunities for small businesses (SB).

Section 811, P.L. 104-106: (a) Expanded the test program to determine if comprehensive subcontracting plans will reduce administrative burden on contactors while enhancing subcontracting opportunities for SBs and SDBs; (b) Revised contractor eligibility criteria (three DoD contracts with aggregate value of at least $5 million in the preceding fiscal year) and (c) Authorized service acquisition executives (SAE) to designate at least three but not more than five contracting activities to participate in the test covering a broad range of supplies, and to negotiate five comprehensive subcontracting plans.

Section 822, P.L. 105-85: Extended the program to September 30, 2000, and provide for subcontracts under DoD contracts of participating contractors to be included in comprehensive small business subcontracting plans.

Section 817, P.L. 106-65: Extended the program to September 30, 2005
Section 843, P.L. 108-375: Extended the program to September 30, 2010 
Section 863, P.L. 111-383: Extended the program to December 31, 2011 
Section 866, P.L. 112-81: Extended the program to December 31, 2014 
Section 821, P.L. 113-291: Extended the program to December 31, 2017 

Contact Us

For Questions or Assistance please contact us at osd.pentagon.ousd-a-s.mbx.osbp-policy-legislative-affairs@mail.mil

Requirements

Requirements for the Comprehensive Subcontracting Plan Test Program Test period:

October 1, 1990 through September 30, 2010

Eligible contractors:

A business concern that during the preceding fiscal year:

• Performed under at least three DoD contracts (supplies and services) aggregating $5 million or more,
• Achieved a SDB subcontracting rate of 5% or more (not applicable to eight original participants).

Participants must:

• Establish comprehensive subcontracting plans on the same corporate, division or plant-wide basis under which a SF 295 (Summary Subcontract Report) was submitted the previous fiscal year
• Have reported on SF 295 during the past fiscal year (except for "lower level" participants)
• Accept a SDB goal for each fiscal year of not less than 5% or not less than established under detail plan to achieve 5%
• Comply with DFARS Subpart 215 for source selection purposes
• Offer a broad range of subcontracting opportunities
• Voluntarily agree to participate
• Have at least one active contract that requires a subcontracting plan at the designated DoD contracting activity.

Note: Policy implementing the test is being rewritten. It will be posted after publication in the Federal Register.

Frequently Asked Questions (FAQs)

Q: What is the purpose of the Comprehensive Subcontracting Plan Test Program?

A: The purpose of the test is to determine whether the negotiation and administration of comprehensive small business (SB) subcontracting plans, rather than individual SB subcontracting plans, will reduce administrative burdens on contractors while enhancing subcontracting opportunities for SB concerns, and SB concerns owned and controlled by socially and economically disadvantaged individuals under DoD contracts.

Q: What are the eligibility requirements to participate in the test?

A: Contractors eligible to participate in the test are "large" business concerns that, during the preceding fiscal year were (a) performing under at least three DoD prime contracts, (b) furnished supplies or services (including professional services) to DoD, (c) were paid $5 million or more for such contract activities, and (d) achieved a small disadvantaged business (SDB) subcontracting participation rate of 5 percent or more during the preceding fiscal year. A "large" business concern with an SDB subcontracting participation rate of less than 5 percent during the preceding fiscal year may be permitted to participate in the test if the firm submits an acceptable, detailed plan with milestones leading to attainment of at least a 5 percent SDB subcontracting participation rate.

Participants

The following is a listing of participants under the Comprehensive Subcontracting Test Program.