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POLICY

Small Business Program Policy for Federal Contracts

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It is the policy of New York University (NYU, “the University”) that NYU complies with the United States (Public Law 95-507) which states that small business concerns (e.g., women, minority) shall have the maximum practicable opportunity to participate in the performance of contracts awarded by any Federal agency. This policy requires that for each contract funded by a Federal agency that exceeds $650,000 a Subcontracting Plan shall be negotiated and administered in accordance with Federal contract requirements.

Purpose of this Policy

The purpose of this policy is to provide guidance on the coordination, preparation and administration of a Subcontracting Plan for Small Business Concerns for Federal contracts or pass-through funds.

Scope of this Policy

This policy is applicable to all schools, departments, units and personnel of the University involved in administering sponsored awards.

Procedures for Implementation

The University will submit to and negotiate with the Federal agency a subcontracting plan which addresses separately purchasing and subcontracting with small and disadvantaged business concerns, and shall be included in the contract. Plans are generally submitted at the application stage and refer directly to budget projections. As a result, the Office of Sponsored Programs (OSP) assists the Purchasing Department with the development of such plan. A waiver may be granted by the sponsoring agency whenever there are likely to be no opportunities to subcontract to small business vendors. Such a waiver will be negotiated by OSP with the sponsor.

Coordination – The Purchasing Department is designated as the Liaison Office for the Subcontracting/Subawards Program with the following responsibilities.

  1. Maintain liaison with the Government on small business reporting.
  2. Ensure that the Federal Procurement regulation clauses listed below are included in subcontracts/subawards issued under Federal contracts:
    1. Subawards issued under a Federal Government Contract Prime Award that exceed the simplified acquisition threshold to all concerns (large and small);
    2. Clause: “Utilization of Small Business Concerns”;
    3. Subawards issued under a Federal Government Contract Prime Award that exceed the simplified acquisition threshold to other than small business concerns;
    4. Clause: “Small Business Subcontracting Plan.”
  3. Prepare procedures that govern Plan preparation, implementation and administration.
  4. Coordinate activities between Purchasing Department, Program Manager/Principal Investigator (PI), Department/Laboratory Administrator and Contract Officer to ensure timely submission of meaningful and appropriate Plans.
  5. Maintain records and reports of compliance with and accomplishments under sponsor approved Plans as of March 31st and September 30th.
  6. Submit reports of compliance and accomplishments under approved subcontracting plans to Program Managers/PI's, Subcontracting Plan Administrators and cognizant Institute personnel.
  7. Prepare and submit required reports of accomplishments under approved subcontracting plans to the contracting agencies.
  8. Reports:
    1. Individual Subcontract Reports File ISR (Formerly Standard Form 294)
      These reports should be submitted semi-annually for the periods ended March 31st and September 30th. Reports are due 30 days after the close of each reporting period. A separate report is required for each contract at contract completion and for each contract that contains a subcontracting plan. This report should document accomplishments under a subcontracting plan during the reporting period (6 months) and cumulatively from contract commencement.
    2. Summary Subcontract Reports File SSR (Formerly Standard Form 295)
      1. Submitted semi-annually for the six months ended March 31st and the twelve months ended September 30th. Reports are due 30 days after the close of each reporting period.
      2. A separate report is required for each Federal department or agency (i.e., Department of Defense, Department of Transportation, Department of Energy, NASA) which is awarded at least one contract that contains a Subcontracting Plan.
      3. This report document cumulatively the distribution of business (procurements) to small business concerns under all active contracts awarded by the same Federal department or agency whether or not each contract requires a subcontracting plan.
      4. The report also documents the subcontracting plan accomplishments under all active contracts and contracts completed during the reporting period which were awarded by the same Federal department or agency.

Preparation & Administration - Program Manager/PI, Department/Laboratory Administrator, Contract Officer, Purchasing Department

To be approved by the contracting sponsor, a subcontracting plan must:

  • Provide the maximum practicable opportunity for small business concerns to participate in the performance of the contract. Accordingly, it is important that the details of the cost portion of the proposal be clearly broken out with respect to intended procurement of subcontracts, subawards, equipment, materials and services. The following individuals are responsible for ensuring the appropriate level of detail in the contract:
    • Program Manager/PI – Ensures compliance with Federal regulations;
    • Department/Laboratory Administrator – Supports PI to ensure compliance with Federal regulations;
    • Purchasing Department – Obtains competitive bids/ best pricing;
    • Contract Officer – Ensures that terms and conditions of the award are satisfied.
  • Reflect separate percentage goals in terms of percentage of total dollars planned for each category of procurement for awards to (i) small business concerns, (ii) small disadvantaged business concerns and (iii) small women-owned business concerns. Procurement personnel will recommend sources of supply for this purpose.

Administration of Small Business Plan:

  • Purchasing maintains listings of small disadvantaged business concerns and their products, provided by the Director of Procurement;
  • Purchasing reviews each request/requisition submitted under the contract to ensure that
    • (i) business previously earmarked for small disadvantaged business concerns is directed to such firms;
    • (ii) business not so previously earmarked which can be purchased from known small disadvantaged business concerns is directed to such firms.
  • For all requests/requisitions submitted to the Purchasing Department for processing under a contract with a subcontracting plan, the Administrator should identify a Subcontracting Plan to enable review by Procurement for consideration for award to a small disadvantaged business concern.
Click here to download the Policy PDF
 
Notes
  1. Dates of official enactment and amendments: 09/01/13
  2. History: blank
  3. Cross References: blank

About This Policy

Effective Date: September 01, 2013
Supersedes: N/A
Issuing Authority: Sponsored Programs Administration
Responsible Officer: Assistant Vice-President for Post-Award Administration

Federal Contract (Procurement)

The appropriate agreement to be used in a relationship between the Federal government and a recipient whenever: (1) the principal purpose of the relationship is to acquire by purchase, lease, or barter property or services for the direct benefit or use of the Federal government; or (2) a Federal executive agency determines in a specific instance that the use of a type of procurement contract is appropriate.  Federal contracts are governed by the Federal Acquisition Regulation (FAR).

Small Business Subcontract Plan

Mandated under FAR 52.219-9 and applicable to Federal contracts that exceed the simplified acquisition threshold (currently $650,000); a plan is required which details the amount of goods or services, which will be acquired from Small Businesses.


NYU Approach and application of this policy, related resources and more available in the Handbook.

Sponsored Programs Administration Post-Award Handbook

NYU Approach and application of this policy, related resources and more available in the Handbook.
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