PURPOSE OF THIS POLICY

The intent of the Supplier Inclusion Program is to provide small business concerns an equitable opportunity to compete for business and to support the university’s inclusive, equitable, and socially responsible purchasing. The Supplier Inclusion program provides a resource to assist the university community in utilizing small and diverse businesses and to ensure compliance with applicable federal regulations. Federal law requires that recipients of certain federal contracts that are subject to the FAR (Federal Acquisition Regulations) provide maximum practicable opportunities to small business concerns in their acquisitions when expending funds under a federal contract. (FAR 19.702).

In addition, the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (“uniform guidance”), at 2 C.F.R. § 200.321 requires that the University take all necessary affirmative steps to assure small business concerns be used whenever possible when expending federal grant funds.

APPLICATION OF THIS POLICY

This policy applies to all CSU business units and employees involved in purchasing decisions, as well as those administering federal contracts and sponsored awards.

DEFINITIONS USED IN THIS POLICY

Small business concerns, as defined by the federal government, means small business (SB), veteran-owned small business (VOSB), service-disabled veteran-owned small business (SDVOSB), Historically Underutilized Business Zone small business (HUBZone), small disadvantaged business (SDB), women-owned small business (WOSB) concerns, economically disadvantaged women-owned small business (EDWOSB), 8(a) Business Development program (8(a)),  Alaskan Native Corporation or Indian Tribe (ANC) as well as historically black colleges or universities or minority institutions (HBCU/MIs).

Small Business Subcontracting Plan means a formal plan established for each contract funded by a Federal agency that exceeds the regulatory threshold (currently $750,000, or $1.5 million for construction of a public facility), outlining the institution’s goals and actions for providing small business concerns with the maximum practicable opportunity to participate in the performance of a contract or subcontract.

POLICY STATEMENT

CSU values the diversity, innovation, and competition achieved by engaging local, small and disadvantaged businesses in university activities. Accordingly, the University maintains a Supplier Inclusion Program to support the University's mission of outreach and public service, enhance economic inclusion, strengthen the University's ability to compete for federal and state-sponsored programs and research funds, and ensure compliance with applicable law. Small and diverse supplier utilization across the university increases competition and the depth of our suppliers. Departments, units, and research groups are encouraged to leverage the university’s economic power to support local economies and empower the communities we serve with meaningful community engagement, as well as to purchase from small businesses and businesses owned by members of traditionally underrepresented groups. The Supplier Inclusion Program will help departments, units, and research groups utilize spend with diverse suppliers by increasing the internal visibility of those suppliers.

CSU remains committed to complying with federal requirements regarding small business contracting. It is the policy of the University to provide maximum practicable opportunities to small business concerns in its acquisitions. CSU will affirmatively seek out small and disadvantaged businesses when contracting for goods and services under sponsored awards and use all reasonable measures to meet the goals established for small business subcontracting.

POLICY PROVISIONS

Procurement Services is responsible for managing efforts to identify, engage, and share qualified local, small, and diverse suppliers with the University.

Procurement Services will continue efforts to support purchasing with local, small, and diverse businesses. Procurement Services will evaluate their processes and find methods to increase equitable opportunity for small business concerns, for example, by developing courtesy notice lists of local, small, and diverse businesses for purchasing agents.

Procurement Services will engage in continuous outreach with community businesses and relevant external organizations, such as area Chamber of Commerce, Economic Development Groups, national councils, to locate local, small, and diverse businesses capable of supplying the products and services required by the University.

Procurement Services is responsible for helping local, small, and diverse businesses understand the procurement process of the University. The Supplier Inclusion program staff will connect small business concerns to relevant purchasing agents and help them identify procurement opportunities on campus.

When appropriate, Procurement may suggest potential small business suppliers to major contractors to develop new contractual arrangements for second-tier suppliers.

Employees of the University should make a good faith effort to include local, small, and diverse suppliers in their departmental or unit procurement opportunities.

Small Business Contracting Plans

1.  Responsibilities of CSU Procurement Services

Procurement Services is designated as the Small Business Liaison Office for the purpose of the Small Business Administration with the following responsibilities:

1. Appoint a Small Business Liaison Officer (SBLO) to oversee the program and interact with the Small Business Administration for small business compliance and reporting.
2. Identify small business concerns and maintain a database.
3. Establish and implement procedures to be followed when a Small Business Subcontracting Plan (Plan) is required, following regulatory requirements and guidance (including the Small Business Administration’s Handbook for Small Business Liaison Officers).
4. Coordinate activities between Procurement Services, the Principal Investigator (PI), department/laboratory administrator, and research administrator to ensure timely submission of meaningful and appropriate Plans.
5. Offer training to campus constituents regarding contracting with small business concerns.
6. Maintain records and reports of compliance with and accomplishments under sponsor-approved plans as of March 31st and September 30^theach year or as required by the Small Business Administration.
7. Submit reports of compliance and accomplishments under approved subcontracting plans to PIs, Subcontracting Plan Administrators and cognizant Institute personnel.
8. Prepare and submit required reports of accomplishments under approved subcontracting plans to the contracting agencies.
9. Maintain relationships with and explain CSU’s procedures to small business suppliers.
10. When small business concerns are identified as potential suppliers, suggest them to major contractors to develop new contractual arrangements for second-tier suppliers.
11. Establish goals for the utilization of small business concerns and monitor progress towards those goals.
    
    

2.  Responsibilities of Other Individuals and Offices

1. Principal Investigator (PI): Prepares budget estimates for the sponsored project and ensures compliance with award terms and conditions as well as applicable federal regulations including the development of the Plan based on the sponsored project budget. Award compliance includes ensuring goods and/or services are procured through small business vendors as required by the Plan and as directed by Procurement Services.
2. Department: Supports PIs in preparing budget estimates and submitting budget estimates to Procurement Services; ensures compliance when expending funds by initiating procurement actions with small business concerns in accordance with executed Plan.
3. Office of Sponsored Programs: Supports the PI and department by reviewing proposals and authorizing submission to the sponsor; ensures that a sponsor’s terms and conditions comply with federal regulatory compliance requirements and University policies and procedures. The Office of Sponsored Programs has the following responsibilities under this policy: 

1. Notify SBLO as soon as a Request For Proposal is received that includes the requirement for a Small Business Subcontracting Plan;
2. Coordinate with SBLO and the campus department (e.g., Principal Investigator) in the development of the Subcontracting Plan and any modifications thereto; 
3. Provide SBLO with Small Business Subcontracting Plans upon their approval by the contracting officer;
4. Endorse official proposal, thereby endorsing the Small Business Subcontracting Plan;
5. Notify SBLO of any changes to University expenditure accounts assigned to these projects;
6. Maintain an up-to-date report on all sponsored research accounts;
7. The SBLO along with the responsible senior research administrator and sub-award administrator will ensure that applicable regulation clauses are included in subcontracts and sub-awards issued under federal contracts. This includes the flow down of small business subcontracting plan requirements in lower tier subcontracts, as applicable.

3. Reports

The SBLO is responsible for submitting reports to the Small Business Administration and sponsor agencies, as required. These include the Individual Subcontract Reports (ISRs) and Summary Subcontract Reports (SSRs) that are submitted through the Electronic Subcontracting Reporting System (eSRS).

COMPLIANCE WITH THIS POLICY

Failure to make a good faith effort to comply with the small business subcontracting plan can result in the University being required to pay the government liquidated damages in the amount equal to the actual dollar amount by which the contract failed to achieve each subcontracting goal. Liquidated damages shall be in addition to any other remedies that the government may have per FAR 52.219-16.  The Principal Investigator is ultimately responsible for compliance with the subcontracting plan, with assistance from departmental support personnel, Office of Sponsored Projects, and the Small Business Liaison Officer. For compliance assistance, contact the SBLO in Procurement Services.

The Supplier Inclusion Program is subject to audit by the Small Business Administration and awarding federal agencies.

REFERENCES

Federal Acquisition Regulation, Subpart 19.7, The Small Business Subcontracting Program

Federal Acquisition Regulation, the contract clause for Subpart 19.7 at Subpart 52.219-9, Small Business Subcontracting Plan

Code of Federal Regulations, 2 CFR 200.321, Contracting with Small and Minority Businesses, Women's Business Enterprises, and Labor Surplus Area Firms

Current threshold requirements

FORMS AND TOOLS

Small Business Subcontracting Plan Process Map  
Small Business Subcontracting Plan Outline Worksheet
Small Business Subcontracting Plan FAQ

APPROVALS

Approved by Anthony A. Frank, President, September 12, 2018.

Revision approved by Dave Ryan, Interim Co-Vice President for University Operations, on June 9, 2022.