Are FMS contract actions exempt from the requirements of FAR 19.702 in reference to the submission of an acceptable small business subcontracting plan
Open full Question Details
No. FMS contract actions are not exempt from submission of a small business subcontracting plan.
Per HQ AFMC/PK Policy Clarification Memorandum dated 13 Nov 2009 and FAR 19.702 , Subcontracting Plans are required for all contracting actions individually expected to exceed $650,000 ($1,500,000 for construction) unless they meet the exceptions specifically identified in FAR 19.702(b):
(1) From small business concerns;
(2) For personal services contracts;
(3) For contracts or contract modifications that will be performed entirely outside of the United States and its outlying areas; or
(4) For modifications to contracts within the general scope of the contract that do not contain the clause at 52.219-8, Utilization of Small Business Concerns (or equivalent prior clauses, e.g., contracts awarded before the enactment of Public Law 95-507).
Lastly, the Small Business Administration currently does not include Foreign Military Sales (FMS) acquisition dollars in computations for Small Business Goal achievement for the Department of Defense. Contracts with directed sources of supply such as the Committee for Purchase from the Blind and Severely Handicapped, contracts to the Federal Prison Industries, and contracts with an award performance outside the United States are also excluded from the Small Business goal determinations. However, these exclusions do not relieve the Contracting Officer from the requirement for ensuring a Subcontracting Plan is submitted per FAR 19.702