This document summarizes a Q&A session with Dwight Johnson from the SBA on small business contracting requirements. Mr. Johnson addressed various questions about implementing provisions from the 2010 Small Business Jobs Act, subcontracting plan requirements, reporting in the electronic subcontracting reporting system, dealing with directed subcontractors, recertification of small businesses, conducting audits, and training materials available. He emphasized communicating with agencies about goals, documenting when goals cannot be met, and renegotiating plans when necessary.

1. 2013 Minnesota SBLO Training
“It takes more than the SBLO”
Post-Session Q & A with Dwight Johnson,
Procurement Center Representative - IA, MN, NE, ND & SD
SBA Office of Government Contracting, Omaha
1) Please provide an update on when the remaining provisions of the 2010 Small Business Job Act
will go into effect?
DJ’s Answer: Attached is a PowerPoint on the latest with the Jobs Act. SBA has been very busy
addressing many changes, the exact status of things when it comes to creating regulations and
going through the Federal Register process is unpredictable.
2) There is a provision in the 2010 Jobs Acts that requires Primes to report to the CO a written
explanation if a small business is not used and was identified in the small business plans. Many
small businesses are used for specific task identified in an IDIQ contract. If the prime does not
win the task order where a small business was going to be used, does this requirement apply?
DJ’s Answer: A prime may not be accountable if there are no task orders.
3) Provide any insight into H.R Bill 2232 (See below).
Rep Graves, Chairman of the House Small Business Committee last week introduced H.R. 2232,
"Make Every Small Business Count Act of 2013" which would amend the Small Business Act to
permit prime contractors covered by a subcontracting plan pertaining to a single contract with a
Federal agency to receive credit against such a plan for using small business subcontractors at
any level of subcontracting.
DJ’s Answer: Again, any bill introduced has to get through Congress and if passed, follow the
long path toward being implemented. This would be a very long time.
4) How much time do you have to re-submit a rejected ISR?
DJ’s Answer: There is nothing in the regulations that states a time. We recommend submitting
a response as soon as possible. Communicate with your customer so they know that you are
working on it and provide information on issues.
5) Related to reporting for contracts on the GSA Schedule, do we report all activity under that
schedule, or just for particular ordering actions?
DJ’s Answer: For GSA, one would report regularly as required regardless of task orders.
6) We are a subcontractor under a Prime Contractor and file individual ISRs via eSRS (on a PO
basis). The Prime Contractor (our customer) approves those ISRs in the eSRS system. Is my
company, as the subcontractor, also required to file SSR’s in eSRS (we have a master boilerplate
plan template and file per Division; we do not file commercial or comprehensive plans)?
DJ’s Answer: From what you are saying, it would seem that your reporting would be the same as
that of anyone else, meaning that you would also submit and SSR.

2. 2013 MN SBLO Training
Q&A with Dwight Johnson, PCR
SBA Office of Government Contracting
2 | P a g e
7) We are a prime contractor with the US government under a Firm Fixed Price Contract for
Services & Supplies. The contracting officer has never requested a SBP from us. Would we
somehow be exempt from the requirement to file an SBP under a contract?
DJ’s Answer: Yes. Whether or not a prime is exempt from filing a subcontracting plan when it
meets the subcontracting plan thresholds is an issue internal to the agency. It would appear
they have made an exception – as they are permitted to do.
8) We collect a full Representations & Certifications form (about 15 pages) form all of our
Subcontractors at the time of contract. This is an annually updated document. I found the Self-
Certification Short form in the 2010 SBLO Handbook. Can we use this short form for each
submittal/contract once we have the annual document?
DJ’s Answer: As surprising as it may seem, some of us are advocates of “short”. You might be
gathering to too much information. You need to have a short certification on file and also be
sure that is up-to-date when submitting a subcontracting plan proposal that includes the name
of that firm. FAR 19.703.
9) When the government asks us to submit a proposal, they give us a week or less to submit. How
do we utilize small businesses when most of them can’t meet that short turn-around time?
DJ’s Answer: If you have such short turn-around, this must be a task order contract, where you
small businesses should already be in place. If you do a substantial amount of work with the
government, you should have a small business program in place that allows you meet
requirements even in a short time. However, the short time you mention is not fully understood
here.
10) How do you deal with meeting your goals when the client constantly “directs” you to use a
certain subcontractor(s) that are large business?
DJ’s Answer: Document the request with the government and ask for written comment the
need for the directed source and on expectations for small business goals. Have market
research available to show how this will impact small business goals.
11) How do we (as a large business) account for the subcontracting dollars previously awarded to a
HUBZone small business upon notification that the subcontractor is no longer HUBZone
certified? For example, we awarded a three year contract to a HUBZone company, after year
one, they notify us that they no longer qualify as a HUBZone business. How should we classify
the small business for the remainder of the two years? Do they remain a HUBZone for the life of
that contract? If not, how do we account for the subcontracting dollars spent during the first
year?
DJ’s Answer: The HUBZone retains its status for the duration of the contract with the prime.
Thereafer, it could only be counted as a small business.
12) Do we have to have staff with SBLO title?
DJ’s Answer: Yes. Your subcontracting plan requires the name of the person who will administer
your small business program, the SBLO. See FAR 19.704. Subcontracting plan requirements.
(a)(7) The name of an individual employed by the offeror who will administer the offeror’s
subcontracting program, and a description of the duties of the individual.

3. 2013 MN SBLO Training
Q&A with Dwight Johnson, PCR
SBA Office of Government Contracting
3 | P a g e
13) When an audit occurs, is there a typical list of items that are reviewed? If so, may we see an
example? May we see examples of the types of reports companies like Medtronic provided to
auditors to prove their goals? Is there a check list available for preparing for an audit?
DJ’s Answer: We would provide information needed in advance. If you look at the requirements
contained within the 11 elements of a subcontracting plan, you would get a very general ideal of
the things we would look for - FAR 19.704 Subcontracting plan requirements. (a)(11). You
might also check the DCMA form 640 A key thing to remember is that it is possible SBA would
simply look at www.esrs.gov and ask why you are not making your goals and give you time to
provide a remedial plan. Reviews are based upon the information the prime enters into ESRS.
By the way, we would always want to see a letter of appointment of the SBLO by top
management, a policy letter from the CEO, and a position description for the SBLO.
14) If you set goals at the start of the contract, but later find that there are not enough qualified
vendors to fulfill those goals, how do you express this to your client and SBA and can you
resubmit your plan? If you can resubmit, how do you do that?
DJ’s Answer: It is worth it to do this by renegotiating with the contracting officer. If you want
one goal reduced, ask for another to be increased. Document the goals that cannot be met. No
one wants goals that are impossible but we do like challenging. Note that according to our
regulations as 13 CFR 125.3, we define having achieved good faith in contracting as have missed
one goal but made up by the missed amount with another goal.
15) Staff and management training is a component of all internal small business programs, are there
education/training/awareness materials available for our use?
DJ’s Answer: You could help us out by providing specific subjects that you would like to have
covered. We do lots of webinars but have not do much with this subject. So we are really eager
to hear about what you need. However, there are many PowerPoint program on the Internet
on subcontracting plan requirements.
SBLO Handbook Version 2010:
http://www.sba.gov/sites/default/files/Small_Business_Liaison_Officer_(SBLO)_Handbook_6_2010.pdf