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   <concept id="DFARS_219.702-70"
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      <title class="- topic/title ">
         <ph props="autonumber" class="- topic/ph ">219.702-70</ph> Statutory requirements for the Test Program for Negotiation of Comprehensive Small Business Subcontracting Plans.</title>
      <conbody class="- topic/body  concept/conbody ">
         <p outputclass="List1" class="- topic/p ">(a) <i class="+ topic/ph hi-d/i ">Test Program</i>. In accordance
with 15 U.S.C. 637 note, DoD has established a test program to determine
whether comprehensive subcontracting plans on a corporate, division,
or plant-wide basis will reduce administrative burdens while enhancing
subcontracting opportunities for small and small disadvantaged business
concerns.</p>
         <p class="- topic/p ">This program is referred to as the Test Program for Negotiation
of Comprehensive Small Business Subcontracting Plans (Test Program).</p>
         <p outputclass="List1" class="- topic/p ">(b) <i class="+ topic/ph hi-d/i ">Eligibility requirements.</i>To
become and remain eligible to participate in the Test Program, a
business concern is required to have furnished supplies or services
(including construction) under at least three DoD contracts during
the preceding fiscal year, having an aggregate value of at least
$100 million.</p>
         <p outputclass="List1" class="- topic/p ">(c) <i class="+ topic/ph hi-d/i ">Comprehensive subcontracting plans.</i>
         </p>
         <p outputclass="List2" class="- topic/p ">(1) The Defense Contract Management Agency
will designate the contracting officer who shall negotiate and approve comprehensive
subcontracting plans with eligible participants on an annual basis.</p>
         <p outputclass="List2" class="- topic/p ">(2) Test Program participants use their
comprehensive subcontracting plans, in lieu of individual subcontracting
plans, when performing any DoD contract or subcontract that requires
a subcontracting plan.</p>
         <p outputclass="List1" class="- topic/p ">(d) <i class="+ topic/ph hi-d/i ">Assessment.</i> The contracting
officer designated to manage the comprehensive subcontracting plan
shall conduct a compliance review during the fiscal year after the
close of the fiscal year for which the plan is applicable. The contracting
officer shall compare the approved percentage or dollar goals to
the total, actual subcontracting dollars covered by the comprehensive
subcontracting plan.</p>
         <p outputclass="List2" class="- topic/p ">(1) If the contractor has failed to meet
its approved subcontracting goal(s), the contracting officer shall
give the contractor written notice specifying the failure, advising
of the potential for assessment of liquidated damages, permitting
the contractor to demonstrate what good faith efforts have been
made, and providing a period of 15 working days (or longer period
at the contracting officer’s discretion) within which to respond.
The contracting officer may take the contractor’s failure to respond
to the notice as an admission that no valid explanation exists.</p>
         <p outputclass="List2" class="- topic/p ">(2) The contracting officer shall review
all available information to determine whether the contractor has
failed to make a good faith effort to comply with the plan.</p>
         <p outputclass="List2" class="- topic/p ">(3) If, after consideration of all relevant
information, the contracting officer determines that the contractor
failed to make a good faith effort to comply with the comprehensive
subcontracting plan, the contracting officer shall issue a final
decision. The contracting officer’s final decision shall include
the right of the contractor to appeal under the Disputes clause. The
contracting officer shall distribute a copy of the final decision
to all cognizant contracting officers for the contracts covered
under the plan.</p>
         <p outputclass="List1" class="- topic/p ">(e) <i class="+ topic/ph hi-d/i ">Liquidated damages.</i> The amount
of liquidated damages shall be the amount of anticipated damages
sustained by the Government, including but not limited to additional
expenses of administration, reporting, and contract monitoring,
and shall be identified in the comprehensive subcontracting plan.
Liquidated damages shall be in addition to any other remedies the
Government may have.</p>
         <p outputclass="List1" class="- topic/p ">(f) <i class="+ topic/ph hi-d/i ">Expiration date.</i> The Test Program
expires on December 31, 2027.</p>
      </conbody>
   </concept>
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