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Subcontracting Program

USAID will be initiating an enhanced subcontracting compliance review process in fiscal year 2012. This process will include the collection and analysis of additional information from prime contractors and subcontractors. The Office of Small and Disadvantaged Business Utilization (OSDBU) will analyze the data and generate reports for the Office of Acquisition and Assistance and senior agency leadership. The information provided will help USAID determine when discrepancies exist between subcontracting plan goals and actual subcontracting accomplishments achieved. OSDBU will provide the information to assist contracting officers by providing information that they can utilize to help determine when prime contractors have or have not made good faith efforts to achieve the goals established in their approved subcontracting plans. They can then take appropriate enforcement and/or contract performance deficiency reporting actions.

Subcontracting opportunities for small businesses in USAID contracts are a vital part of USAID's overall small business participation program. In negotiated acquisitions/sealed bid acquisitions expected to exceed $650,000 ($1,500,000 for construction) and that has subcontracting possibilities, the apparently successful non-small business offeror must submit an acceptable subcontracting plan. Contracting Officers are responsible for reviewing the plans determining if they are acceptable or not. Prior to accepting a subcontracting plan, Contracting Officer/Contract Specialists submit them to OSDBU for review and coordination.

If a USAID prime contractor, after conducting thorough market research, determines that they would not be able to meet or exceed a USAID subcontracting goal, they need to provide an explanation of their market research efforts and rationale for proposing a small goal in the subcontracting plan they submit to USAID.

We recommend that prime contractors utilize the Small Business Administration's Sub-Net database (http://web.sba.gov/subnet) as part of their efforts to locate quality subcontractors that will help them achieve their subcontracting goals. Small businesses can review this web site to identify opportunities in their areas of expertise. In addition, we recommend that firms register on USAID's Procurement Announcements site to receive notifications about potential subcontracting opportunities with USAID's prime contractors (http://forums.info.usaid.gov/Default.asp?Register=yes&action=8).

The Electronic Subcontracting Reporting System (ESRS) Contractor Guide can be downloaded at this link: http://www.esrs.gov/documents/esrs_contractor_user_guide_1.9.pdf

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