[Code of Federal Regulations]

[Title 48, Volume 1]

[Revised as of October 1, 2005]

From the U.S. Government Printing Office via GPO Access

[CITE: 48CFR19.705-1]



[Page 377]

 

            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]