What are the USPS® Policies for Subcontracting Work?

Does the USPS® Promote Subcontracting With Small, Minority, and Woman-Owned Businesses (SMWOBs)?

Yes!  For contracts over $1M in value, we require firms submitting proposals to include a subcontracting plan describing their goals contracting with SMWOB suppliers and subcontractors.  The content of that plan is subject to negotiations, and it becomes a part of the contract at award.  The Supplying Principles and Practices calls for quarterly reports on subcontract efforts with SMWOBs on essential contracts of $500K or more.

As a Large Supplier, We Do Contract With SMWOBs, but Often These Contracts Do Not Directly Support Our Postal Work.  Do We Report Those Transactions?

Yes, if the subcontract falls into your G&A or overhead pools, or indirectly supports your performance of the USPS, and it would be, in whole or in part, allocable to the USPS contract, you should report the allocable portion.  Obviously, the allocation must be reasonable and in line with generally accepted accounting practices.

As a Government Contractor, We File Company-Wide Reports.  In the Past, We Have Submitted Those Reports to the USPS®.  Will They Still Be Adequate?

No. We are looking for USPS contract-specific data.  We want to know, in a general way, what portion of our procurement dollar is going to small, minority-owned, and women-owned businesses.  We have modified our policy and practices to permit allocations so that we can better assess the dollar distribution patterns.

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