§ 1819.705-4 - Reviewing the subcontracting plan.

(a) Subcontracting plans must reflect realistic and justifiable percentage and dollar goals for subcontracting with small business concerns and small disadvantaged business concerns. Prime contractors shall be encouraged to submit, when possible, positive goals (i.e., greater than zero) in their initial plans. In evaluating subcontracting plans, contracting officers shall challenge any unrealistically low and particularly any proposed zero goals to ascertain what opportunity exists for subcontracting with small and small disadvantaged firms. The evaluation may include a specific review of the factors used by the prime contractor to develop its goal, the past performance of the prime contractor on similar requirements, and the current procedures used by the prime to maximize the opportunities for small and small disadvantaged businesses to participate in its subcontracting program. The contract file shall be documented to reflect the review and the contracting officer's decision on the goal which is finally accepted.

(b) NASA contracting officers may accept as an element of a subcontracting plan the prime contractor's intention to use total small business, small disadvantaged business, women-owned business, historically black college and university, or minority educational institution set-asides in awarding subcontracts so long as such set-asides are competitive and awards are made at reasonable prices. Use of this procedure will be viewed as a good indication of an aggressive subcontracting plan. Set-asides may be encouraged but may not be required when negotiating subcontracting plans.