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DFARS Clause RFO

252.219-7996

Small Business Subcontracting Plan (DoD Contracts)
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Effective Date
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RFO
RFO-only clause

This clause (252.219-7996) was introduced by the Revolutionary FAR Overhaul (Deviation 2026-O0037), replacing 252.219-7003. It does not yet appear in the codified eCFR and applies to contracts using the RFO model.

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SMALL BUSINESS SUBCONTRACTING PLAN (DOD CONTRACTS)—BASIC
(DEVIATION 2026-O0037) (FEB 2026)

This clause supplements the Federal Acquisition Regulation 52.219-9, Small Business
Subcontracting Plan, clause of this contract.

(a) Definitions. As used in this clause—

"Summary Subcontract Report (SSR) Coordinator" means the individual who is
registered in the Electronic Subcontracting Reporting System (eSRS) at the
Department of Defense level and is responsible for acknowledging receipt or rejecting
SSRs submitted under an individual subcontracting plan in eSRS for the Department of
Defense.

(b) Subcontracts awarded to qualified nonprofit agencies designated by the
Committee for Purchase From People Who Are Blind or Severely Disabled (41 U.S.C.
8502-8504), may be counted toward the Contractor's small business subcontracting
goal.

(c) A mentor firm, under the Pilot Mentor-Protege Program established under
section 831 of Public Law 101-510, as amended, may count toward its small
disadvantaged business goal, subcontracts awarded to—

(1) Protege firms which are qualified organizations employing the severely
disabled; and

(2) Former protege firms that meet the criteria in section 831(g)(4) of Public
Law 101-510.

(d) The master plan is approved by the Contractor's cognizant contract
administration activity.

(e) In those subcontracting plans which specifically identify small businesses, the
Contractor shall notify the Administrative Contracting Officer of any substitutions of
firms that are not small business firms, for the small business firms specifically
identified in the subcontracting plan. Notifications shall be in writing and shall occur
within a reasonable period of time after award of the subcontract. Contractor-specified
formats shall be acceptable.

(f)(1) For DoD, the Contractor shall submit reports in eSRS as follows:

(i) Submit the Individual Subcontract Report (ISR) to the contracting officer
at the procuring contracting office, even when contract administration has been
delegated to the Defense Contract Management Agency.

(ii) Submit the consolidated SSR for an individual subcontracting plan to
the "Department of Defense."

(2) For DoD, the authority to acknowledge receipt or reject reports in eSRS is as
follows:

(i) The authority to acknowledge receipt or reject the ISR resides with the
contracting officer who receives it, as described in paragraph (f)(1)(i) of this clause.

(ii) The authority to acknowledge receipt of or reject SSRs submitted under
an individual subcontracting plan resides with the SSR Coordinator.

(g) Insert the clause at Defense Federal Acquisition Regulation Supplement
(DFARS) 252.219-7997, Small Business Subcontracting Plan (Test Program), in
subcontracts with subcontractors that participate in the Test Program described in
DFARS 219.206-70, if the subcontract is expected to exceed the applicable threshold
specified in Federal Acquisition Regulation 19.109(a)(1) and to have further
subcontracting opportunities.

(End of clause)

Alternate I. As prescribed in 219.109(e)(2)(A)(2), use the following clause, which uses
a different paragraph (f) than the basic clause.

SMALL BUSINESS SUBCONTRACTING PLAN (DOD CONTRACTS)—ALTERNATE
I (DEVIATION 2026-O0037) (FEB 2026)

This clause supplements the Federal Acquisition Regulation 52.219-9, Small Business
Subcontracting Plan, clause of this contract.

(a) Definitions. As used in this clause—

"Summary Subcontract Report (SSR) Coordinator" means the individual who is
registered in the Electronic Subcontracting Reporting System (eSRS) at the
Department of Defense level and is responsible for acknowledging receipt or rejecting
SSRs submitted under an individual subcontracting plan in eSRS for the Department of
Defense.

(b) Subcontracts awarded to qualified nonprofit agencies designated by the
Committee for Purchase From People Who Are Blind or Severely Disabled (41 U.S.C.
8502-8504), may be counted toward the Contractor's small business subcontracting
goal.

(c) A mentor firm, under the Pilot Mentor-Protege Program established under
section 831 of Public Law 101-510, as amended, may count toward its small
disadvantaged business goal, subcontracts awarded to—

(1) Protege firms which are qualified organizations employing the severely
disabled; and

(2) Former protege firms that meet the criteria in section 831(g)(4) of Public
Law 101-510.

(d) The master plan is approved by the Contractor's cognizant contract
administration activity.

(e) In those subcontracting plans which specifically identify small businesses, the
Contractor shall notify the Administrative Contracting Officer of any substitutions of
firms that are not small business firms, for the small business firms specifically
identified in the subcontracting plan. Notifications shall be in writing and shall occur
within a reasonable period of time after award of the subcontract. Contractor-specified
formats shall be acceptable.

(f)(1) For DoD, the Contractor shall submit reports in eSRS as follows:

(i) The Standard Form 294, Subcontracting Report for Individual Contracts,
shall be submitted in accordance with the instructions on that form.

(ii) Submit the consolidated SSR to the "Department of Defense."

(2) For DoD, the authority to acknowledge receipt of or reject SSRs submitted
under an individual subcontracting plan in eSRS resides with the SSR Coordinator.

(g) Insert the clause at Defense Federal Acquisition Regulation Supplement
(DFARS) 252.219-7997, Small Business Subcontracting Plan (Test Program), in
subcontracts with subcontractors that participate in the Test Program described in
DFARS 219.206-70, if the subcontract is expected to exceed the applicable threshold
specified in Federal Acquisition Regulation 19.109(a)(1) and to have further
subcontracting opportunities.

(End of clause)

Alternate II. As prescribed in 219.109(e)(2)(A)(3), use the following clause, which
uses different paragraphs (a) and (b) than the basic clause.

SMALL BUSINESS SUBCONTRACTING PLAN (DOD CONTRACTS)—ALTERNATE
II (DEVIATION 2026-O0037) (FEB 2026)

(a) Definitions. As used in this clause—

"Eligible contractor" means a business entity operated on a for-profit or nonprofit
basis that—

(1) Employs severely disabled individuals at a rate that averages not less than
33 percent of its total workforce over the 12-month period prior to issuance of the
solicitation;

(2) Pays not less than the minimum wage prescribed pursuant to 29 U.S.C. 206
to the employees who are severely disabled individuals; and

(3) Provides, for its employees, health insurance and a retirement plan
comparable to those provided for employees by business entities of similar size in its
industrial sector or geographic region.

"Summary Subcontract Report (SSR) Coordinator" means the individual who is
registered in the Electronic Subcontracting Reporting System (eSRS) at the
Department of Defense level and is responsible for acknowledging receipt or rejecting
SSRs submitted under an individual subcontracting plan in eSRS for the Department of
Defense.

(b)(1) Subcontracts awarded to qualified nonprofit agencies designated by the
Committee for Purchase From People Who are Blind or Severely Disabled (41 U.S.C.
8502-8504), may be counted toward the Contractor's small business subcontracting goal
(section 8025 of Pub. L. 108-87).

(2) Subcontracts awarded to eligible contractors under the Demonstration
Project for Contractors Employing Persons with Disabilities (see Defense Federal
Acquisition Regulation Supplement (DFARS) 226.72) may be counted toward the
Contractor's small disadvantaged business subcontracting goal (section 853 of Pub. L.
108-136, as amended by division H, section 110 of Pub. L. 108-199).

(c) A mentor firm, under the Pilot Mentor-Protege Program established under
section 831 of Public Law 101-510, may count toward its small disadvantaged business
goal, subcontracts awarded to—

(1) Protege firms which are qualified organizations employing the severely
disabled; and

(2) Former protege firms that meet the criteria in section 831(g)(4) of Public
Law 101-510.

(d) The master plan is approved by the cognizant contract administration activity
for the Contractor.

(e) In those subcontracting plans which specifically identify small businesses, the
Contractor shall notify the Administrative Contracting Officer of any substitutions of
firms that are not small business firms, for the small business firms specifically
identified in the subcontracting plan. Notifications shall be in writing and shall occur
within a reasonable period of time after award of the subcontract. Contractor-specified
formats shall be acceptable.

(f)(1) For DoD, the Contractor shall submit reports in eSRS as follows:

(i) Submit the Individual Subcontract Report (ISR) to the contracting
officer at the procuring contracting office, even when contract administration has been
delegated to the Defense Contract Management Agency.

(ii) Submit the consolidated SSR for an individual subcontracting plan to
the "Department of Defense."

(2) For DoD, the authority to acknowledge receipt or reject reports in eSRS is as
follows:

(i) The authority to acknowledge receipt or reject the ISR resides with the
contracting officer who receives it, as described in paragraph (f)(1)(i) of this clause.

(ii) The authority to acknowledge receipt of or reject SSRs submitted under
an individual subcontracting plan resides with the SSR Coordinator.

(g) Include the clause at DFARS 252.219-7997, Small Business Subcontracting Plan
(Test Program), in subcontracts with subcontractors that participate in the Test
Program described in DFARS 219.206-70, if the subcontract is expected to exceed the
applicable threshold specified in Federal Acquisition Regulation 19.109(a)(1) and to
have further subcontracting opportunities.

(End of clause)

Source: acquisition.gov RFO Part 52

(e)(2)(A) Insert the clause at 252.219-7996 , Small Business Subcontracting Plan
(DoD Contracts), in solicitations and contracts, including those using FAR part 12
procedures for the acquisition of commercial products and commercial services, that
contain the clause at FAR 52.219-9, Small Business Subcontracting Plan.

(1) Insert the basic clause at 252.219-7996, when using the basic,
alternate I, or alternate II of FAR 52.219-9.

(2) Use the alternate I clause at 252.219-7996, when using
Alternate III of FAR 52.219-9.

(3) Use the alternate II clause at 252.219-7996 when using the
Demonstration Project described at 226.72.

(B) For contracts with comprehensive subcontracting plans approved
under the Test Program described in 219.206-70, including contracts using FAR part 12
procedures for the acquisition of commercial products and commercial services, insert
the clause at 252.219-7997, Small Business Subcontracting Plan (Test Program),
instead of the clauses at—

(1) 252.219-7996 , Small Business Subcontracting Plan (DoD
Contracts);

(2) FAR 52.219-9, Small Business Subcontracting Plan; and

(3) FAR 52.219-16, Liquidated Damages—Subcontracting Plan.

(f) Do not use the clause at FAR 52.219-10, Incentive Subcontracting Program, in
contracts with comprehensive subcontracting plans approved under the Test Program
described in 219.206-70.
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