[Code of Federal Regulations]
[Title 48, Volume 1]
[Revised as of October 1, 2002]
From the U.S. Government Printing Office via GPO Access
[CITE: 48CFR19.705-1]

[Page 365]
 
            TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM
 
                CHAPTER 1--FEDERAL ACQUISITION REGULATION
 
PART 19--SMALL BUSINESS PROGRAMS--Table of Contents
 
         Subpart 19.7--The Small Business Subcontracting Program
 
Sec. 19.705-1  General support of the program.

    The contracting officer may encourage the development of increased 
subcontracting opportunities in negotiated acquisition by providing 
monetary incentives such as payments based on actual subcontracting 
achievement or award-fee contracting (see the clause at 52.219-10, 
Incentive Subcontracting Program, and 19.708(c)). This subsection does 
not apply to SDB subcontracting (see 19.1203). When using any 
contractual incentive provision based upon rewarding the contractor 
monetarily for exceeding goals in the subcontracting plan, the 
contracting officer must ensure that (a) the goals are realistic and (b) 
any rewards for exceeding the goals are commensurate with the efforts 
the contractor would not have otherwise expended. Incentive provisions 
should normally be negotiated after reaching final agreement with the 
contractor on the subcontracting plan.

[48 FR 42240, Sept. 19, 1983, as amended at 60 FR 48262, Sept. 18, 1995; 
63 FR 34065, June 22, 1998; 63 FR 36123, July 1, 1998]

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