# 519.705-2 Determining the need for a subcontracting plan.

1. (a) When the contracting officer calculates the applicable threshold, consider the actual or estimated value of the contract for the entire term of the contract, including any option period(s). This also applies to schedule contracts and other indefinite delivery type contracts. Consider the estimated value of all orders expected to be placed during the term plus all options.

2. (b) FAR19.705-2(d) permits the contracting officer to require submission of subcontracting plans with initial offers under a negotiated acquisition. The contracting officer must require all offerors (other than small business concerns) to submit subcontracting plans with their initial offers when a negotiated acquisition meets all conditions:

   1. (1) The contracting officer anticipates receiving individual subcontracting plans (not commercial plans).

   2. (2) The contracting officer will award on the basis of trade-offs among cost or price and technical and/or management factors under FAR 15.101-1.

   3. (3) The acquisition is not a commercial item acquisition.

   4. (4) The acquisition offers more than minimal subcontracting opportunities.

   5. (5) An offeror’s subcontracting plan is identified as an evaluation factor in the solicitation.

3. (c) Nothing in paragraph (b) above limits the contracting officer’s ability to request subcontracting plans with initial offers under other negotiated acquisitions when he or she decides such action is appropriate under FAR 19.705-2(d). For example, such action may be appropriate for multiple award schedules where GSA may have responsibility for negotiating commercial plans.

4. (d) Notify the AAOSBU after receipt of offers if the contracting officer determines that an apparent successful offeror’s proposal has no subcontracting opportunities.

   1. (1) Coordinate the notice through the contracting officer's SBTA.

   2. (2) Include justification documenting the rationale behind a determination of no subcontracting opportunities. The contracting officer may use the justification provided by the apparent successful offeror

   3. (3) Obtain AAOSBU concurrence on the determination prior to contract award.