# AFARS APPENDIX DD

- Part 1 -- Introduction

- DD-100 Purpose.
- DD-101 Applicability.
- DD-102 Goals.
- DD-103 Scoring.
- DD-104 Modification of Guide.
- DD-105 Use of Preaward Surveys.

- Part 2 -- Scoring System

AFARS -- Appendix DD
Subcontracting Plan Evaluation Guide
June 1, 1996

Part 1 -- Introduction

DD-100 Purpose.

The guide provides a methodology for uniform and consistent evaluation of subcontracting plans within the Army. It is designed to facilitate compliance with the mandates of Public Law to increase opportunities for small and small disadvantaged businesses.

DD-101 Applicability.

Except for subcontracting plans for commercial items, use this guide to review all subcontracting plans, including those submitted in response to the conditions described in FAR 19.705-2(d) and DFARS 219.705-2(d). See 19.708(b)(1) for special notices to be inserted in the solicitation regarding submission of subcontracting plans. A copy of the completed evaluation shall be included in the contract file.

DD-102 Goals.

Contracting officers must place special emphasis on negotiating reasonable goals in subcontracting plans. The goals must be realistic, challenging and attainable. The plan must demonstrate a real commitment to, and an active involvement in, providing subcontracting opportunities for small and small disadvantaged businesses.

DD-103 Scoring.

Score subcontracting plans in the context of the particular procurement. For instance, in smaller dollar value contracts, it may be impracticable or not cost effective for offerors to take the type of actions that may be appropriate in contracts for larger dollar values. However, in such cases, offerors must still address each element of the guide and discuss what they intend to do regarding each element. Contracting officers shall then assign appropriate point scores.

DD-104 Modification of Guide.

The evaluation guide and scoring system shall not be modified without the approval of the PARC. This approval authority may not be delegated.

DD-105 Use of Preaward Surveys.

For contracts administered by the Defense Contract Management Agnecy (DCMA), information needed to assess contractor compliance with subcontracting plans in current and previous contracts may be obtained by requesting a preaward survey in accordance with FAR 9.106.

Part 2 -- Scoring System

Point Points
Range Assigned
1. Policy statement or evidence of internal guidance to 0-5
company buyers recognizing commitment to Pub.L.
99-661, Section 1207, and Pub.L. 100-180,
Section 806.
0 No written policy statement in plan.
1-2 Plan includes a general policy, but no evidence of
recognition of special emphasis being placed on
subcontracting with SDBs, HBCUs and MIs as a
result of Pub.L.s.
3-5 Definitive corporate and management commitment
evidenced in individual plan and master plan by
specifically referencing the Pub.L.s.
2. Efforts to broaden SB and SDB active vendor base. 0-10
(FAR 19.704(a), 52.219-9(d), DFARS Subpart
219.5, 219.704(a)(1), 219.705 and 252.219-7003)
0 Description of efforts merely parrots requirements
of FAR to maintain listing of vendors.
1-2 Contains evidence that effort is directed at increasing
subcontracts to SBs and SDBs for non-complex and
general housekeeping supplies or services normally
awarded to firms already in existing vendor base.
3-10 Addresses efforts to increase the number of SB and
SDB sources awarded subcontracts, establishes plans
to use competition restricted to SDBs and gives details
about how plans to use competition restricted to SDBs
will be accomplished. (DFARS 219.705-4 and Subpart
219.5)

Note: After scoring the plan to this point, if zero points have been assigned for Element 2, proceed to Item 3, Outreach. If one or more points have been assigned for this Element 2, proceed to evaluation of the subelements labeled “minus 2” and “minus 3” to determine if points assigned so far must be reduced. Do not reduce points already assigned to less than zero. (No negative points are to be entered under “Points Assigned” for any Element.) These negative scores are additive; if both of the subelements apply, then minus five points are assessed to reduce points already assigned under this element 2.

minus 2 Includes efforts described above which rate 1-2 or 3-10 points but, when it would be appropriate, does not address effort to involve HBCUs and MIs in performing the contract for which the subcontracting plan is submitted. (DFARS 219.704(a)(1) and 219.705-4(d))

minus 3 Includes efforts described above which rate 1-2 or 3-10 points but does not address effort to identify and overcome obstacles which may prohibit award to HBCU and MI sources currently in vendor base.

Point Points
Range Assigned
3. Outreach (ongoing and planned actions) 0-10
(FAR 19.704(a),19.705-4, 52.219-9(d) and
52.219-9(e), DFARS 219.705).
0 No mention of outreach.
1-4 Describes efforts to work with organizations in
FAR 52.219-9(d)(11)(iv) to identify potential sources
for items not traditionally awarded to SB or SDB firms.
(FAR 52.219-9(d)(11)(iv) and 52.219-9(e))
5-10 Indicates intent to conduct reviews to determine the
competence, ability, experience and capacity available in
SB or SDB firms and to provide technical assistance to
SBs and SDBs or explains why such reviews or technical
assistance are not appropriate. (FAR 19.705-4(c)
and 52.219-9(e))

Note: After scoring the plan to this point, if zero points have been assigned for Element 3, proceed to Item 4, Description of supplies and services. If one or more points have been assigned for this Element 3, proceed to evaluation of the subelement labeled “minus 3” to determine if points assigned so far must be reduced. Do not reduce points already assigned to less than zero. (No negative points are to be entered under “Points Assigned” for any Element.)

minus 3 Fails to indicate the extent to which HBCU and MI participation will be considered and facilitated in performing the contract for which the subcontracting plan is submitted, or fails to indicate other efforts to increase HBCU and MI participation in future DoD acquisitions. (DFARS 219.705-4(d))

Point Points
Range Assigned
4. Describes supplies and services to be subcontracted 0-10
and planned for subcontracting to SBs, SDBs, HBCUs
and MIs. (FAR 19.705-4(d), 52.219-9(d)(3), 52.219-9(e)
and DFARS 219.705).
0 No mention.
1-4 Generic list of routine supplies and services included in
materials listing for the specific contract.
5-7 Indicates intent to review major product/system
components and key project elements of R&D,
construction, service and spare parts contracts for
subcontracting to SBs, SDBs, HBCUs and Mis.
(FAR 19.705-4(d)(3) and (4), 52.219-9(e)(1) and (2)
and DFARS 219.705)
8-10 Substantive plan actually targets specific SBs, SDBs,
HCBUs and MIs for review to determine their
competence, ability, experience and capacity and
identifies specific components or major portions of the
acquisition for consideration of SB, SDB, HBCU or
MI competition. Also, indicates intent to work with
large business subcontractors for major subsystems or
key project elements to ensure “flowdown” of
this philosophy. (FAR 19.705-4(d) and DFARS 219.705)
5. Describes specific efforts, based on results of efforts 0-15
described in Elements No. 3 and No. 4 to ensure that
SB, SDB, HBCU and MI concerns have equitable
opportunity to participate in acquisitions.
(FAR 19.704(a), 19.705-4, 52.219-9(d) and DFARS
219.705).
0 No mention.
1-4 Description of efforts merely parrots FAR 19.704(a)(3)
and (6) and 52.219-9(d)(8).
5-8 Describes how the company intends to evaluate its
own SB and SDB award performance and program
effectiveness against the established goals, both
company-wide and for the individual plan being
negotiated. (FAR 19.704(a)(1) and (6) and
52.219-9(d)(11)(v))
9-12 Includes SBs, SDBs, HBCUs and MIs by name as
members of original team for producing specific major
components or subassemblies, providing a major
service or performing a significant portion of the
effort. (DFARS 219.705-2(d))
13-15 Describes special efforts to establish long-range
relationships with SBs, SDBs, HBCUs and Mis,
including leader-follower techniques, when
appropriate. (FAR 19.705-4(d)(4) and DFARS
219.705-2(d))
6. Development of percentage goal is based on planned 0-40
subcontracting which is challenging, yet realistic.
(FAR 19.705-4(d), DFARS 219.704(a)(1) and
219.705-4).
0 Fails to include a specific goal for subcontracting with
SBs, SDBs, HBCUs and MIs or proposes zero percent
goal without substantive justification.
1-5 Sets small business goal of less than 10 percent and/or
SDB/HBCU/MI goal of two percent or less with no
significant justification.
6-10 Sets goals of less than 10 percent (SB) and 2 percent
(SDB), but contractor shows evidence of reasonable
effort, including use of set-asides, to involve Sbs,
SDBs, HBCUs or MIs in non-traditional areas.
11-20 Sets goals of over 10 percent (SB) and 2 percent (SDB)
and also identifies specific SB, SDB, HBCU or MI
concerns planned to be subcontractors, including the
item or service or effort to be subcontracted. Indicates
extent to which firms have participated in proposal
preparation or otherwise indicates extent to which
subcontracting to these firms may reasonably be assured.
Goals are realistic in view of actions stated in other
portions of the plan and make-or-buy plan, if applicable.
21-30 Same as for 11-20 points, but proposed percent of goal
is reasonable in comparison with prior experience, yet
indicates reasonable effort to improve on past
experience in terms of dollars, number of SDBs,
HBCUs, and MIs involved, and movement into area
without previous SDB, HBCU or MI involvement.
31-40 Same as 21-30 points, but includes evidence that if
SBs, universities or institutions other than HBCUs
or MIs are performing on a major component or
subassembly, providing a major service or performing
on a key project element, SDBs, HBCUs and MIs will
also be given an opportunity to perform. Also, the
percentage of the SDB, HBCU, MI goal compares
favorably with the percentage of SB goal, consistent
with the Government-wide goals of 20 percent to SB
with five percent to SDB, or is otherwise explained,
and the plan includes a forecast for improvement.
(The SB and SDB goals in the subcontracting plan
should approximate the ratio between the SB and
SDB Government-wide goals.)
7. Past performance. 0-10
Extent to which the company has historically been
successful in establishing realistic, yet challenging,
goals and achieving them. Consider DCMC
comments on prime contractor’s justifications for
prior failure to achieve goals. To avoid penalizing the
contractor when there has been no previous defense
contract, assign 10 points. (FAR 19.705-4(d)(1) and
(d)(2)(iii), 19.706 and DFARS 219.706).

8. Other regulatory and statutory requirements.
If any of the following are answered “NO,” the plan is not acceptable and must be revised to comply prior to award:

Does the plan have --

A. A separate goal for SB and SDB? (FAR 19.704(a)(1) and FAR 52.219-9(d)(1) and (2))

YES NO

B. A separate goal for the basic contract and, if applicable, each option? (FAR 19.704(c))

YES NO

C. The name of the company employee responsible for administration of plan and employee’s duties? (FAR 19.704(a)(2) and 52.219-9(d)(7))

YES NO

D. A statement affirming intent to comply with subcontracting “flowdown” provisions? (FAR 19.704(a)(4) and 52.219-9(d)(10))

YES NO

E. A statement affirming willingness to cooperate in studies and to provide reports? (FAR 19.704(a)(5) and 52.219-9(d)(10))

YES NO

F. A statement that indirect costs are either included or excluded from the proposed goals and, if included, how they will be prorated? (FAR 52.219-9(d)(6))

YES NO

G. A description of efforts to ensure that SBs and SDBs have an equitable opportunity to participate in the acquisition? (FAR 52.219-9(d)(8))

YES NO

H. A recitation of the types of records maintained to demonstrate procedures adopted to comply with the requirements and goal in the plan? (FAR 52.219-9(d)(11))

YES NO