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    Is the foreign supplier required to generate a plan and report on their performance?


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    DAU SMALL BUSINESS PROFESSOR RESPONSE:  Your original question asked about a requirement of a small business plan on a foreign supplier with United States suppliers. We must first identify what type of small business plan are you referring to and who is required to submit these plans.  There is no such thing IAW with the Federal Acquisition regulation a small business plan.  In subcontracting there are two documents that may be required depending on the acquisition.  For full and open competition acquisitions greater than $700,000.00, large businesses are responsible for generating a subcontracting plan prior to contract award IAW 52.219 (c)(1) The Offeror, upon request by the Contracting Officer, shall submit and negotiate a subcontracting plan, where applicable, that separately addresses subcontracting with small business, veteran-owned small business, service-disabled veteran-owned small business, HUBZone small business, small disadvantaged business, and women-owned small business concerns. If the Offeror is submitting an individual subcontracting plan, the plan must separately address subcontracting with small business, veteran-owned small business, service-disabled veteran-owned small business, HUBZone small business, small disadvantaged business, and women-owned small business concerns, with a separate part for the basic contract and separate parts for each option (if any). The subcontracting plan shall be included in and made a part of the resultant contract. The subcontracting plan shall be negotiated within the time specified by the Contracting Officer.  The other document is a small business participation commitment document.  However, in accordance with 52.219-9, this addresses a subcontracting plan and not a Small Business Participation Document.  Also what type of subcontracting plan is this?  Is it a Master, Individual, Commercial or Comprehensive? The mandatory elements as set forth in the 52.219-9 (11 elements prior to 2017 and 15 elements thereafter) must be answered when a subcontracting plan is submitted prior to contract award.  Depending on your contract requirements and your negotiated subcontracting plan with your Contracting officer prior to contract award, and where the work is being perform (overseas) the foreign owned supplier may or may not be required to generate a plan or reporting performance.  However the socio-economic status to determine if the foreign owned business is a small business does not apply to the United States statutory requirements; however, it is required that if required to identify all small business categories in your subcontract reporting.  Based on the information above, please review your contract requirements and the information agreed to by your contracting officer.  Is your contracting officer aware that you have foreign subcontractors?  If not, foreign disclosure regulations may also apply.  Accurate subcontracting information is pertinent for your e-SRS (Electronic Subcontracting Reporting System) requirements.  The sooner your contracting officer is aware of these issues the better prior to your subcontracting reporting requirements.

     


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