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
Any work required to be done in accordance with the provisions of 41 U.S.C. chapter 65, Contracts for Materials, Supplies, Articles and Equipment Exceeding $15,000;
Question 4. 4. (TCO D) What are the three types of procurement statements of work? When is each the appropriate for a given contract? (Points :
This paper will elaborate the Department of Defense subcontracting plan programs, Acts, and policies that are in effect. Furthermore, will detail the type of subcontracting plans, when they apply, procedures, and routing given by the Federal Acquisition Regulation. Following will explain how subcontracting plans are utilized in source selections, the economic impacts subcontracting has on small businesses, and how subcontracting plans are managed.
The most valuable output of the Plan Procurement Process is the Procurement Management Plan. As is the case with almost every aspect of the project management process, it is essential and imperative that the project management team implement an effective and concise plan when it comes to the various components of procurement throughout the project’s life cycle. Specifically speaking, the procurement management plan refers to the plan that has been put into place that is meant to dictate and describe the entirety of the procurement process and how it is means to relate to and with the developing procurement documentation, and how contract closure will relate to all. The procurement management plan should be implemented and developed as early in the project life cycle as possible to assure that the procurement process is consistent throughout, however, in some cases the plan may be altered once the project begins, particularly if budgetary reasons dictate.
Any bid that is not sealed and lacking in the sealed bid prerequisites must use the negotiated method. Negotiation requires the technical and price proposals to be packaged separately. Negotiations may be held by a contracting officer to discuss discrepancies in the bids and ask for a revised
The Contractor's requests for progress payment needs to meet the following requirements:an itemization of the amounts requested related to the various elements of work covered and outlined by the contract; details of the amount included for each work performed by each subcontractor; A record of the total amount of each subcontract; record of previous amounts paid to each subcontractor; and additional relevant information. In other words, the records should obtain information regarding payment and requested payment of each contractor and all relevant details of the money spent and requested.
Original purpose of Congress houses of the Miller Act is to protect the subcontractors of federal construction who provide labor or material could recover from the prime contractor's payment bond. It should also cover the subcontractors or sub-subcontractors.
The second requirement that needs to be fullled by the parties in the contract is the
Reviving Job Creation and Laying a New Foundation for Economic Growth: This is another important document that provides information on issues related to investment for job creation and placing a new structure for economic growth. Small Business Access (SBA) is a significant challenge in the economic crisis. The economy restricts SBA to expand and operate the business (Whitehouse, 2009). There are several areas selected in which job creation investments will be made in the future such as education, clean energy, infrastructure, etc. This document also considers information related to Refocus Troubled Asset Relief Program (TARP), which is helpful for small business. The budget also eliminates capital gain tax on small businesses according to the American Recovery and Reinvestment Act. Enhancement in regional economic competitiveness is also essential for economic creativity and national growth. Another key is that the Department of Agriculture (USDA) supports rural innovation initiative that is important to foster rural revitalization.
Small businesses were once the backbone of the United States economy. After a time these business owners expanded, merged, and bought other businesses. This historic business trend has created some the well know corporations we know of today. One example would be the development of Wal-mart. Today, small businesses operate in the shadows of “big box” stores. However, small business owners account for more than 90% of, but only less than 5% or 10% of the GDP, “gross domestic product.” As a manager of a large corporation or a prospective business owner it is wise to be knowladgeble of new competitors, state of the economy, and current management trends. There are trends today that will change everyone’s expecatons of small business
As the foundation of the U.S. economy, small businesses employ 50 percent of the U.S. population. In 2010 the U.S. Census reported 27.9 million small businesses categorized by size (20-499 employees). Accounting for 64 percent of the net new jobs created between 1993 and 2011 and since the recent recession, from mid-2009 to 2011, small firms accounted for 67 percent of the net new jobs ("Employment Statistics | SBA.gov," 2014). Unfortunately, rising costs and inefficient economic policy threaten the basic building block of our economy. This ordinance further compounds the economy’s sluggish recovery. Repelling this ordinance is the first step towards removing unnecessary financial burdens.
Section 287.017, F.S. establishes five purchasing categories through which purchases made be made based upon certain conditions. Any good or service exceeding category two, $35,000, must be competitively procured unless there is an exemption and justification is provided for use of that exemption. If a State Term Contract does not offer the good or service required by the Agency, and sufficient justification is provided, purchases over category two must be made utilized one of the three competitive procurement methods: the Invitation to Bid, the Request for Proposal, or the Invitation to Negotiate. According to section 287.057(1)a, an Invitation to Bid is used when the agency is able to develop specific requirements pertaining to a commodity or group of commodities. When certain mandatory criteria are met on a pass or fail basis, the award goes to the lowest responsive bidder. (Section 287.057(1)(a)4).
The first stage allows the contractor to start the work followed by the second stage whereby a fixed price is negotiated for the contract. It can be used to appoint a main contractor early or as a means of appointing a specialist contractor early. It can also be used on a design and build project whereby an employer’s requirements are not expanded on enough for a contractor to come up with a realistic price. The first stage can be a ‘custom made’ agreement, a consultancy agreement or a pre-construction services agreement (PCSA). The early involvement of a contractor improves the construction and cost certainty of the project and for a more integrated project team, thus reducing likelihood of disputes. The second stage is a mathematical exercise. In two stage tendering, design risk is transferred to the contractor but the client can lose hold, as competition becomes less of a
This essay will examine how to best prepare a contract administration plan. The contract administration plan will examine different methods used in preparing a plan. This essay will explain how important it is to have technical and other support of personnel, the importance of surveillance, and to determine what functions need to be delegated, identify qualified personnel as well as authorized, it is necessary for the Contracting officer to be represented in administering contract requirements. Also there will be a discussion on what is determined
When choosing a type of procurement it is based on the clients experienced and knowledge of construction that the client has and there requirements. Once this has been decided then the relevant contracts can be drawn up outlining the relevant responsibilities shared and risk taken into consideration and also meeting the correct legislation and the Housing Grants, Construction and Regeneration Act 1996. With regards to the Housing Grants, Construction and Regeneration