Small Business Subcontracting Plan

Steps for Production

1. OSP notifies the Procurement Small Business Administrator

The Office of Sponsored Programs (OSP) notifies the Procurement Small Business (SB) Administrator of a Federal contract request from a Principal Investigator (PI) that exceed $700,000 for goods and services and more than $1.5 million for construction of a public facility.

2. OSP schedules a meeting with the PI & SB Administrator

The Office of Sponsored Programs schedules a meeting with the Principal Investigator (PI) and Procurement Small Business Administrator to develop a Small Business Subcontracting Plan.

3. PI submits a budget to OSP & SB Administrator

Upon the conclusion of the initial meeting, the PI submits a budget to OPS and the Small Business Administrator. The budget should include: direct cost of materials, supplies, travel, other direct costs, consultants, and subcontractors.

4. SB Administrator sends the PI a RFQ form to complete

A request for quotation (RFQ) form is sent to the Principal Investigator (PI) and his/her team to complete. The form should list all products (materials, supplies, and equipment) and/or services that may be subcontracted for at least one year of the life of the contract. Once the form is submitted, the Procurement Sourcing Manager will submit the RFQ to small businesses. Please Note: The RFQ process takes a minimum of five weeks.

5. Small Business Goals are Established

Upon receipt of the request for quotation responses, the small business goals are determined based on the subcontracting dollar amount. The total estimated dollar value of all planned subcontracting is developed according to the supplies and services that will be required for the contract. OSP and the SB Administrator assess the RFQ responses according to the subcontracting allotted dollars.

6. The SBSP is reviewed, signed, and submitted to the federal agency

Once the small business goal categories are determined, the Office of Sponsored Programs (OSP) and the Small Business Administrator review and assess the Small Business Contracting Plan (SBSP) for accuracy. If the plan is approved, the Small Business Administrator signs the plan. OSP submits the SBSP to the federal agency for consideration. 

Each federal agency has an annual goal for small business participation in its contracts.