RCUH Policies and Procedures
of the University of Hawai‘i
2.208 Small Business Subcontracting Plan
The purpose of this policy is to comply with FAR 52.219-9 and Public Law 95-
507 concerning Small Business and Small Disadvantaged Business Utilization Programs.
A. Commercial Plan – Under FAR 19.701, “Commercial Plan” means a subcontracting
plan (including goals) that covers the offeror’s fiscal year, and applies to the entire
production of commercial items sold by either the entire company or a portion
thereof (e.g., division, plant, or product line).
B. Small Business Concern – A business that is independently owned and operated, is
organized for profit, is not nationally dominant in its field of business, and meets the
size standard eligibility set by the U.S. Small Business Administration (SBA). For
additional information, see https://www.sba.gov/contracting/getting-startedcontractor/make-sure-you-meet-sba-size-standards/what-are-small-business-sizestandards.
C. Small Disadvantaged Business Concern – A small business that is at least 51
percent owned by one or more socially and economically disadvantaged individual(s).
A publicly owned business can be considered as long as 51 percent of its stocks are
owned by one or more socially and economically disadvantaged individuals who
manage the daily operation of the business. The business needs to be certified by
the SBA. The total net worth of each socially and economically disadvantaged
individual must also not exceed $750,000 after taking into consideration the
exclusions in 13 CFR 124.104 (c)(2). The following groups qualify as socially
1. Black Americans;
2. Hispanic Americans;
3. Asian Pacific Americans (persons with origins from Burma, Thailand, Malaysia,
Indonesia, Singapore, Brunei, Japan, China (including Hong Kong), Taiwan, Laos,
Cambodia (Kampuchea), Vietnam, Korea, The Philippines, U.S. Trust Territory of
the Pacific Islands (Republic of Palau), Republic of the Marshall Islands,
Federated States of Micronesia, the Commonwealth of the Northern Mariana
Islands, Guam, Samoa, Macao, Fiji, Tonga, Kiribati, Tuvalu, or Nauru);
4. Subcontinent Asian Americans (persons with origins from India, Pakistan,
Bangladesh, Sri Lanka, Bhutan, the Maldives Islands or Nepal); and
5. Native Americans (Alaska Natives, Native Hawaiians, or enrolled members of a
Federally or State recognized Indian Tribe).
Being born in a country does not, by itself, suffice to make the birth country an
individual’s country of origin for purposes of being included within a designated
Economically disadvantaged individuals are socially disadvantaged individuals whose
ability to compete in the free enterprise system has been impaired due to diminished
capital and credit opportunities as compared to others in the same or similar line of
business who are not socially disadvantaged. See 13 CFR 124.103(b).
D. Historically Underutilized Business Zones (HUBZone) Concern – A small business that
is located in a HUBZone with at least 35 percent of its employees also living in the
HUBZone. See 13 CFR 126.200. To be considered as a business in a HUBZone,
certification must be received from the SBA.
E. Service-Disabled Veteran Owned Small Business Concern – A small business that is
at least 51 percent owned and operated by one or more service-disabled veterans. In
the case of a publicly owned business, at least 51 percent of its stocks must be
owned by one or more veterans who must also manage the daily operation of the
business. If the veteran is permanently disabled, the spouse or permanent caregiver
must manage the business operation. See 13 CFR 125.11 et al.
F. Veteran Owned Small Business Concern – A small business that is at least 51
percent owned and operated by one or more veterans. In the case of a publicly
owned business, at least 51 percent of its stocks must be owned by one or more
veterans who also manage the daily operation of the business. See 38 CFR 74.
G. Women Owned Small Business Concern – A small business that is at least 51
percent owned and operated by one or more women. In the case of a publicly owned
business, at least 51 percent of its stocks must be owned by one or more women
who also manage the daily operation of the business. See 13 CFR 127.
H. Subcontract – Any agreement between the awardee of a prime contract and a
subcontractor for goods or services procured for the performance of the prime
contract. See 13 CFR 125.1.
II. When a Small Business Subcontracting Plan Is Required
Under FAR 52.219-9(d)(9), a Small Business Subcontracting Plan is required when the
award instrument is a federal contract exceeding $700,000 (over $1.5 million for
construction of a public facility), or as amended.
The Small Business Subcontracting Plan requires grantees to utilize small businesses when
awarding subcontracts under federal contracts. The SBA classifies small business concerns
into the above referenced six (6) categories:
A. Small Business Concern;
B. Small Disadvantaged Business Concern;
C. HUBZone Small Business Concern;
D. Service-Disabled Veteran-Owned Small Business Concern;
E. Veteran-Owned Small Business Concern; and
F. Women-Owned Small Business Concern.
III. Submitting a Small Business Subcontracting Plan
A. Preparing and Filing the Plan
1. The Principal Investigator (PI) is responsible for preparing the subcontracting
plan, which shall be reviewed by the Fiscal Administrator (FA), and approved by
the RCUH Director of Finance (for RCUH Direct Projects) or the Director of the UH
Office of Research Services (ORS) (for UH Service-Ordered Projects). The FA is
responsible for submitting the subcontracting plan to the federal agency
responsible for the funding. The format for the Subcontracting Plan can be found
on the following website: http://www.onr.navy.mil/en/contracts-grants/smallbusiness/subcontracting-plans.aspx.
2. Once the plan has been submitted and approved by the Federal Contracting
Officer, the PI is responsible for complying with the contents of the subcontracting
3. For Direct Projects, a copy of the approved subcontracting plan should be kept in
the RCUH Direct Project’s procurement files. For UH Service-Ordered Projects, a
copy of the approved subcontracting plan should be kept in the UH Project’s
procurement files, and a copy should also be provided to ORS.
B. Executing the Plan/Vendor Selection
1. To ensure compliance in selecting qualified small businesses, the PI should first
check the System for Award Management (SAM) website to see if the vendor is
listed as a certified small business. (Examples of local firms include DataHouse
Consulting, and TOMCO Corp.)
2. If the business is not registered with the SBA, the PI should have the vendor fill
out and submit the Business Classification Certification Statement before the FA
issues the procurement document (i.e., purchase order or contract). This form will
let the FA know if the vendor is considered a small business as defined on the
second page of the form. The FA is responsible for the retention of the form.
3. To obtain a HUBZone (Historically Underutilized Business Zone) certification, go
to https://www.sba.gov/hubzone/. Businesses with HUBZone certification receive
preferences on federal contracts. (Note: A business that is located in an SBA
designated HUBZone does not automatically receive HUBZone status. The
business must be certified and recognized by the SBA.)
4. To obtain status as a Small Disadvantaged Business, the business must register
for certification by the SBA at the following website:
5. Under FAR 52.219-9(d)(11)(iii), if a subcontract or purchase order is expected to
exceed $150,000 utilizing federal prime contract funds, the PI needs to make an
effort to contract with a small business concern. To assist in recording his/her
efforts in finding a small business vendor or subcontractor, the PI may
use Attachment 38 Subcontract/Purchase Order Expected to Exceed $150,000
Under a Federal Prime Contract Worksheet. This worksheet is used to record the
information obtained by the PI in locating a small business concern. This
worksheet should be provided to the FA for the procurement file.
C. Periodic Reporting
1. The PI must prepare the Individual Subcontracting Report (ISR) which shall be
reviewed by the FA, and approved by the RCUH Director of Finance (for RCUH
Direct Projects) or the Director of the UH Office of Research Services (for UH
Service-Ordered Projects). The FA shall submit the report to the appropriate
federal agency in eSRS (www.esrs.gov).
2. Reports for Department of Defense (DOD) contracts shall be submitted semiannually for the six (6) month period ending March 31st and the twelve (12)
month period ending September 30th.
3. Reports for prime contracts with civilian agencies, except for contracts covered by
an approved Commercial Plan, shall be submitted annually for the twelve (12)
month period ending September 30th.
4. The RCUH Project Administration Office will be responsible for filing the Summary
Subcontracting Report (SSR) as required by the sponsoring federal agency, for
Direct Projects. ORS will be responsible for filing the SSR as required by the
sponsoring federal agency, for UH Service-Ordered Projects.
IV. Relevant Documents
Business Classification Certification Statement
Attachment 38 Subcontract/Purchase Order Expected to Exceed $150,000 Under a Federal
Prime Contract Worksheet
Date Revised: 7/31/2019