Required Monitoring and Reporting

Shared Responsibility


PRINCIPAL INVESTIGATOR (PI)

  • By signing the Small Business Subcontracting Plan agreement letter, agrees to monitor and make progress toward the federally mandated small business utilization goals throughout the course of the project
  • Demonstrates reasonable good efforts to purchase from small businesses and make progress toward meeting the utilization goals. Good faith is demonstrated by making progress toward spending with small businesses described in the Small Business Subcontracting Plan
  • Has project team assist with finding small businesses using the Explorer tool and seeks recommendations for appropriate small business vendors to meet target utilization goals from the Supplier Diversity Program Manager

THE PROJECT'S ADMINISTRATIVE SUPPORT (RESEARCH ADMINISTRATOR, LAB MANAGER, OR PROJECT MANAGER)

  • Uses the Explorer Tool. See the Searching for Diverse Businesses web page to learn more about searching for small businesses.
  • Assists the PI by providing periodic updates on whether the project spending has included purchases for goods and services from small and disadvantaged businesses as set forth in the Small Business Subcontracting Plan. .
  • Monitors spend and maintains records of when and why the project team has not been able to purchase from small businesses as stated in the Small Business Subcontracting Plan. 
  • In cooperation with the PI, contacts the Supplier Diversity Program Manager for recommendations on potential small business vendors to be used.

Whenever a proposal to alter the contract is to be submitted, which can include adding an additional phase, extending the date, or increasing the contract dollar amount, a new plan may be required to award the additonal funding. 

THE SUPPLIER DIVERSITY PROGRAM MANAGER

  • Offers potential small business vendor information for the project team’s consideration
  • Files required federal agency reports, which are called:
    • Individual Subcontract Reports (ISR) for each contract or subcontract twice per year
    • Annual Summary Subcontract Reports (SSR) to each federal agency to show all contract spending under current contracts with that agency. 

These reports show the most recent Small Business Subcontracting goals from the Subcontracting Plan and the percentages and dollar amount that have been spent are entered for the periods of time shown below.  

  • If the project has spent zero dollars in any of the required subcategories, the PI and team must provide an explanation for why there has been no progress to the Supplier Diversity Program Manager.
  • The PI and team must also describe the efforts that will be made to use small businesses before the next report is due to the contracting officer.

The Supplier Diversity Program Manager then adds this information to the project ISR in the federal Electronic Subcontracting Reporting System (eSRS)

These reports are due one month after the last day of the period of reporting:

  1. April 30 for the period of October 1 of the prior year through March 31 of the current year
  2. October 30 for the period of October 1 of the prior year through September 30 of the current year. 
  3. A final report is also due within 30 days of the expiration date of the agreement

IMPORTANT NOTE ABOUT FAR 19.705-7  LIQUIDATED DAMAGES:  

The Federal Acquistion Regulation reads: Failure to make a good faith effort to comply with the subcontracting plan means willful or intentional failure to perform in accordance with the requirements of the subcontracting plan, or willful or intentional action to frustrate the plan. Damages could possibly be an amount equal to the actual dollar amount by which the contractor failed to achieve each subcontracting goal.  At completion of the basic contract or any option, if project has failed to meet its subcontracting goals:

  1. The Contracting Officer shall review all available information for an indication that the contractor has not made a good faith effort to comply with the plan. If no such indication is found, the contracting officer shall document the file accordingly or 

  2. If the Contracting Officer decides that the contractor failed to make a good faith effort to comply with its subcontracting plan, the officer will:
  • Send written notice to the University and PI specifying the failure requesting a response within15 working days (or longer as necessary)
  • Advise the contractor of the possibility that the contractor may have to pay liquidated damages

In response, the contractor (PI and team) must explain the good faith efforts made in detail, before the Contracting Officer issues the final decision.  Remember the Small Business Subcontracting Plan is a contractual obligation and all efforts should be made to purchase as planned.  In the event that a small business cannot be used, documenting why that supplier was not used is critical.

In making a decision, the Contracting Officer must look to the totality of the contractor’s actions, consistent with the information and assurances provided in its plan. The fact that the contractor failed to meet its subcontracting goals does not, in and of itself, constitute a failure to make a good faith effort. For more information, see FAR 19.705-5.