Purchasing and Business Services Manual (PUR)

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Effective:7/1/2008

Revised:    

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PUR 503–02: Subcontract Awards for Federal Purchase Orders or Contracts in Excess of $550,000

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Purpose

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To state the requirements for subcontracts related to federal awards in excess of $550,000

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Source

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Federal Acquisition Regulation 52.219.8, 52.219-9, PL 95-507

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Policy

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Buyers will obtain a copy of the latest federal subcontracting plan from the manager of the Small Business and Diversity Initiatives and have the successful general contractor fill out that plan and return it to the Supplier Diversity manager.

Arizona State University agrees:

  1. that Federal Acquisition Regulation clause 52.219-8, entitled “Utilization of Small Business Concerns,” will be included in all subcontracts that offer further subcontracting opportunities

    and

  2. that all subcontractors, except small business (SB) concerns, who receive subcontracts in excess of $550,000 will be required to adopt and comply with a subcontracting plan similar to that required by Federal Acquisition Regulation 52.219-9, entitled “Small Business Subcontracting Plan.”

Such plans will be reviewed by comparing them with the provisions of Public Law (PL) 95-507 and ensuring that all minimum requirements of an acceptable subcontracting plan have been satisfied. The plan will then be incorporated into the resulting Purchase Order of Subcontract.

The acceptability of percentage goals shall be determined on a case-by-case basis, depending on:

  1. the supplies/services involved
  2. the availability of a potential:
    1. Small Business
    2. Service Disabled Veteran Owned Small Business (SDVO)
    3. Veteran Owned Small Business (VOSB)
    4. Historically Underutilized Business Zone (HUBZone)
    5. Small Disadvantaged Business
    6. Women-Owned Small Business

      and

    7. Historically Black Colleges and Universities/Minority Institutions

    and

  3. prior experience.

Once approved and implemented, plans will be monitored through the submission of periodic reports and/or, as time and availability of funds permit, periodic visits to subcontracting program participants.

That plan, together with any attachments, is submitted as a Subcontracting Plan to satisfy the applicable requirements of:

  1. PL 95-507, 103-355, 105-135
  2. the Historically Underutilized Business Zone Act of 1997
  3. the Veterans Entrepreneurship and Small Business Development Act of 1999, PL 106-50

as implemented by the Federal Acquisition Regulation, the Defense Supplement thereto, and PL 100-180 and 103-337. The following goals are required for the basic quantity (base period) and each option quantity (period) of the contract:

  1. Arizona State University agrees to submit such periodic reports and cooperate in any studies or surveys as may be required by the contracting agency in order to determine the extent of compliance by Arizona State University with the subcontracting plan and with the clause entitled “Utilization of Small Business Concerns” contained in the contract.
  2. Arizona State University agrees to submit the originals and copies of “Subcontracting Report for Individual Contracts,” standard form (SF) 294 and “Summary Subcontract Report” SF 295, in accordance with the instructions on the reports as referenced in PL 95-507, §211. Regardless of the effective dates of these contracts, the reports shall be submitted for the entire life of the contracts within 30 days after the close of each reporting period.

Purchasing and Business Services Responsibility

Purchasing and Business Services is responsible for:

  1. assisting departments in constructing small and diversity business plans

    and

  2. requiring subcontractors to submit their small and diversity business plans.

Department Responsibility

Departments are responsible for executing the small and diversity business plan(s).

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Cross-Reference

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For more information on contract awards in research and sponsored projects, see Research and Sponsored Projects Policies and Procedures Manual (RSP):

  1. RSP 503, “Purchasing”

    and

  2. RSP 509, “Closing Project Account(s).”

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