Subcontracting plans, teaming arrangements, and joint venture concepts in federal contracting.
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- What is a subcontracting plan in federal contracting?
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A document that describes how a contractor will manage and encourage subcontracting opportunities from small businesses and other socioeconomically disadvantaged firms.- Under FAR 19.7, when must a contractor submit a subcontracting plan?
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When the contract is expected to exceed specific dollar thresholds and the contractor will perform subcontracting work as part of the contract.- What is the difference between a commercial and non-commercial subcontracting plan?
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A commercial plan applies to commercial product or service contracts. A non-commercial plan applies to federal construction and other non-commercial work.- Who bears primary responsibility for achieving subcontracting goals?
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The prime contractor is responsible for ensuring subcontracting goals are met or making good-faith efforts to meet them.- What is the consequence of failing to meet subcontracting plan goals?
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The contractor may owe liquidated damages equal to the difference between the goal amount and what was actually subcontracted, unless good-faith efforts are demonstrated.- What is a teaming agreement?
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A written arrangement between two or more companies that outlines how they will work together, share responsibilities, and allocate costs and profits on a specific federal contract.- What are the two main types of teaming arrangements?
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Prime-subcontractor teaming and joint venture teaming, where partners retain separate identities in the first and pool resources in the second.- What is a joint venture in federal contracting?
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A legal partnership or entity formed by two or more companies to bid on and perform a federal contract as a single organization.- What is the key structural difference between a joint venture and a teaming agreement?
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A joint venture creates a single combined entity, while a teaming agreement keeps companies separate with one serving as the prime and others as subcontractors or partners.- Can team partners in a joint venture bid on the same federal contract independently?
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No, partners in a formal joint venture cannot bid independently on the same contract because they are bound by the joint venture agreement.- What is the role of the contracting officer in subcontracting oversight?
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The contracting officer reviews and approves subcontracting plans, monitors compliance with subcontracting goals, and takes enforcement action if goals are not met.- What is the purpose of a mentor-protege program in federal contracting?
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To encourage experienced contractors to mentor and develop business relationships with small, disadvantaged, or historically underutilized business zone businesses.- What socioeconomic categories can have subcontracting goals?
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Small businesses, small disadvantaged businesses (SDB), women-owned small businesses (WOSB), veteran-owned small businesses (VOSB), HUBZone small businesses, and other designated groups.- What is a flow-down requirement in subcontracting?
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The requirement that a prime contractor must pass down contractual terms, conditions, and compliance obligations to its subcontractors, including subcontracting plan requirements.- What is pass-through work in federal contracting?
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Work that a prime contractor directly awards to a subcontractor without performing any value-added work itself, which is generally restricted or prohibited.
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