A small business subcontracting plan (SBSP) is required for federal contracts and subcontracts totaling $900,000 or more. The SBSP establishes goals for the percentage of direct costs allocated to small business categories. To demonstrate compliance, MIT reports small business activity to the federal government semi-annually.
Principal Investigators (PIs) are responsible for meeting the percentage goals outlined in their SBSP. Failure to do so may result in fund reimbursement to the sponsor and jeopardize future funding for the PI and other MIT applicants.
DLCI Responsibilities
- Prior to proposal routing, complete the SBSP Template [XLSX] and submit to Research Finance (ras-finance@mit.edu) for review and signature.
- Monitor goal achievement throughout the award period. Important: P-Card activity is not included in governmental spend reporting and will not count toward goal achievement.
- Ensure all expenditures are charged to the correct award in a timely fashion, to meet MIT’s semi-annual reporting requirements.
- Respond to any governmental concerns.
If the initial award was below the threshold, you may be asked for an SBSP if additional funds cause the total award to equal or exceed $900,000.
Policy and Regulations
- All purchases must comply with MIT’s Procurement Policy.
- See FAR Part 19 (Small Business Programs) and Part 52 (Solicitation Provisions & Contract Clauses) for detailed regulatory requirements.
Questions
Contact Research Finance (ras-finance@mit.edu).