FAR 52.219-8 states that small business concerns shall have the maximum practicable opportunity to participate in performing contracts let by any Federal agency, including contracts and subcontracts 1.
Under FAR 52.219-9, a subcontracting plan includes separate goals for the use of small business concerns, expressed in total dollars subcontracted and as a percentage of total planned subcontracting dollars 2.
Turn subcontract work into past performance
The evaluation should take into account past performance information about subcontractors that will perform major or critical aspects of the requirement 3. An offeror without a record of relevant past performance may not be evaluated favorably or unfavorably on past performance 4.
For a joint venture, the evaluation shall take into account the joint venture's past performance, and if it has none for award, the contracting officer shall consider the past performance of each party 5.
Bids2Bank's library marks subcontract and joint-venture records as not verifiable 6, because USAspending does not record subcontract or joint-venture roles 7.
Teaming on the way up
A contractor team arrangement can be a potential prime contractor agreeing with other companies to have them act as its subcontractors 8. The Government will recognize team arrangements when they are identified and the company relationships are fully disclosed in an offer 9.
Pick your first prime bid
The set-aside rule in FAR 19.502-2 looks for offers from at least two responsible small business concerns 10 and award at fair market prices 11. FAR 13.003 tells agencies to use simplified acquisition procedures to the maximum extent practicable for all purchases of supplies or services not exceeding the simplified acquisition threshold 12.
One of the limitations on subcontracting in 13 CFR 125.6 is that the concern will not pay more than 50% of the amount paid by the government to it to firms that are not similarly situated 13.
Worked example. Contractor J has three years of subcontract work for one agency office, with a prime's written evaluation for each year. When the office posts a small set-aside in J's main NAICS code, J bids as prime, plans to perform most of the work itself, and keeps its former prime as a subcontractor for one specialist task.
Past performance information is relevant, for future source selection purposes, regarding a contractor's actions under previously awarded contracts or orders 14.
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