The Federal Acquisition Regulation (FAR) (52.219-9) requires a Subcontracting Plan for Small and Small Disadvantaged Businesses for each contract $500,000 and over, unless other arrangements are made during contract award. When these plans are required, prime contractors, such as Harvard, agree to purchase a percentage of the supplies and services required for the performance of the contract from small and minority businesses. Some Federal agencies set specific goals. Most rely on the prime contractor to make a “good faith effort.” The Subcontracting Plan specifies which items / commodities will be purchased from small and minority businesses, the total dollars to be spent each with small and minority businesses, and the percentage of total dollars budgeted for supplies and services that these purchases represent.
When required, the Subcontracting Plan is submitted by the Principal Investigator/Grants Manager to the appropriate SPA office along with the research proposal and budget. Once the award has been made, the Subcontracting Plan becomes part of the contract and the Principal Investigator is expected to meet the goals set in the Plan.
For information on Subcontracting Plans and a sample form visit the Harvard Procurement Office website. For further questions, contact your SPA representative.