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DoD is issuing a final rule to amend the Defense Federal Acquisition Regulation Supplement (DFARS) to clarify the entity to which Summary Subcontract Reports (SSRs) are to be submitted and the entity that acknowledges receipt of, or rejects, SSRs in the Electronic Subcontracting Reporting System (eSRS). The SSR is used to collect prime contractors’ and subcontractors’ subcontract award data for a specific Federal Government agency when the prime or subcontractor: (a) holds one or more contracts over $700,000 (over $1,500,000 for construction of a public facility); and (b) is required to report subcontracts awarded to various types of small business under an individual subcontracting plan with the Federal Government. Currently, the contractors submit the SSR to the various individual DoD components (i.e., departments and agencies within DoD) with which they have contracts. As a result of this rule, contractors with individual subcontracting plans will submit a single, consolidated SSR in eSRS at the DoD-level, which will be acknowledged or rejected in eSRS at the DoD-level. These revisions will bring DFARS into compliance with the requirement for a consolidated SSR in the clause at Federal Acquisition Regulation 52.219-9, Small Business Subcontracting Plan. This rule will also have a positive impact on contractors, because they will be able to submit a single consolidated SSR to DoD, instead of multiple SSRs to DoD components.

Statement of Need:

The purpose of the rule change is to amend the Defense Federal Acquisition Regulation Supplement (DFARS) to implement a policy that streamlines the submission and review of Summary Subcontract Reports (SSRs) for DoD contractors. Instead of the current practice of submitting multiple SSRs to various departments or agencies within DoD, contractors with individual subcontracting plans will submit one consolidated SSR at the DoD level in the Electronic Subcontracting Reporting System (eSRS). The consolidated SSR will be acknowledged or rejected in eSRS at the DoD level. Large business contractors currently submit SSRs to the department or agency within DoD that administers the majority of the contractor’s individual subcontracting plans, and these contractors frequently must submit SSRs to each department or agency within DoD with which they have contracts. This results in extra work for the contractors and creates problems with duplicate subcontracting data. By requiring submission and review of SSRs at the DoD level, this rule identifies a solution for these issues.

Summary of the Legal Basis:

This rule is issued under the authority at 41 U.S.C. 1303, functions and authority, which provides the authority to issue and maintain the Federal Acquisition Regulation and executive agency implementing regulations.

Alternatives:

There are no known alternatives that would achieve the efficiencies expected from this rule. The current submission requirements result in extra work for contractors and create problems with duplicate subcontracting data being reported.

Anticipated Costs and Benefits:

By requiring submission and review of SSRs at the DoD level, this rule solves these issues. The following is a summary of the estimated anticipated public cost savings calculated in 2016 dollars at a 7-percent discount rate and in perpetuity:

Annualized Cost Savings: -$25,514

Present Value Cost Savings: -$364,492

Risks:

There are no identified risks associated with this rule. The rule should serve to eliminate the potential for duplicative reporting of subcontracting data to DoD.