Parker Hannifin Corporation INDIVIDUAL SUBCONTRACTING PLAN FOR SMALL BUSINESS CONCERNS Solicitation or Contract No.: PO# 5500341553 Total Contract Amount (including options): $ 5,080,848.53 Description (Item/Service): JSF Lift Fan Tubes Period of Contract Performance: 04/2015 12/31/2018 Customer: Rolls-Royce Plan No. PHSPD RR PO 5500341553 Contractor: Facility: Parker Hannifin Corporation Stratoflex Products Division (Division Name) Fort Worth, TX, Camarillo, CA, Jacksonville, FL, Mansfield, TX, Monterey, MX (Division Locations) 60-339-550 (Division DUNS Number) Prepared by: Title: Alan Carter, (C.P.M.) Strategic Commodity Manager / Division Small Business Liaison Officer Date: April 29, 2015 Page 1 of 8
PART 1. PERCENTAGE AND SUBCONTRACTING DOLLAR GOALS The following goals are expressed in terms of percentage of total subcontract dollars and dollar goal amount to be subcontracted to Small Business concerns. A. Large Business Totals (LB) 1.91% $65,828.33 B. Small Business Totals (SB) 98.09% $3,377,163.78 (1) HUBZone Small Busines (HZ) 0% $0 (2) *Small Disadvantaged Business (SDB).21% $7,304.88 (3) Women-Owned Small Business (WOSB) 2.45% $84,361.32 (4) Service-Disabled Veteran-Owned Small Business (SDVOSB) 0% $0 (5) Veteran-Owned Small Business (VOSB) 2.27% $78,104.70 (6) Historically Black Colleges, Universities & Minority Institutions (HBCU/MI) (7) SB/SDB Alaska Native Corporations (ANC) & Indian tribes (8) **ANCs & Indian tribes that are not Small Business Concerns 0% $0 0% $0 0% $0 * The goals for HBCU/MIs/ANCs/Indian tribes are a component of the percentage goal used for SDB concerns. The percentage goal for SDB concerns shall be a composite goal which includes anticipated use of HBCUs/MIs/ANCs/Indian tribes as subcontractors in addition to anticipated use of SDB concerns. **The goals for ANCs & Indian tribes which are large business concerns are a component of the percentage goal included in the SB section. Note: If HBCU/MI is zero because this particular effort does not lend itself to use of higher educational institution requirements, then a statement to this effect must be added. C. Total Subcontract Dollars $3,422,992.11 Page 2 of 8
Principal supply and service areas consist of machining and raw materials, and the purchase of components including springs, retainers, seals. Principal Supply area includes: Large Business subcontracting is planned in the areas of: Small Business Subcontracting is planned in areas of; HUBZone Small Business subcontracting is planned in areas of; Small Disadvantaged Business subcontracting is planned in areas of; Women-Owned Small Business subcontracting is planned in areas of; Service-Disabled Veteran-Owned Small Business subcontracting is planned in areas of; Veteran-Owned Small Business subcontracting is planned in the areas of; Alaska Native Corporations subcontracting is planned in the areas of, Indian Tribe subcontracting is planned in the areas of, The method used in developing the planned Subcontracting goals were based on; The method used to identify potential sources for solicitation purposes; A statement as to whether or not the plan includes indirect costs in establishing subcontracting goals; A description of the method used to determine the proportionate share of indirect costs to be incurred with Small Business (including ANCs and Indian tribes), Service-Disabled Veteran-Owned Small Business, Veteran-Owned Small Business, HUBZone Small Business, Small Disadvantaged Business (including ANCs and Indian tribes), and Women-Owned Small Business concerns. Page 3 of 8
PART 2. SUBCONTRACTING PROGRAM ADMINISTRATOR (SPA) A. Name ALAN CARTER; Strategic Commodity Manager, will serve as the Small Business Liaison Officer (SBLO). (Name and Title) Address: 220 ROBERTS CUT-OFF ROAD, FORT WORTH, TX 76114 Telephone: 817-210-1328 Email: alan.carter@parker.com Alan Carter, reporting to Craig Kaso; Division Procurement Manager, has been designated as the Subcontracting Program Administrator (SPA) for the Stratoflex Products Division. B. Duties It will be the responsibility of the SPA to: 1. Maintain Liaison with the Division Contract Administrator or Business Team Leader and with Government Agencies on Small Business and Small Disadvantaged Business Concerns matters. 2. Coordinate compliance with the "Utilization of Small Business Concerns" clause. 3. Coordinate compliance with the flow down provisions for the "Utilization of Small Business Concerns" clause, the "Subcontracting Plan for Small Business Concerns" clause, and the Liquidated Damages Subcontracting Plan clause. 4. Administer the Division's compliance with the Small Business Concerns Subcontracting Plans. 5. Submit the Individual Subcontract Report (ISR) and/or the Summary Subcontract Report (SSR), using the Electronic Subcontracting Reporting System (esrs) at http://www.esrs.gov, following the instructions in the esrs. 6. Ensure that all subcontractors with subcontracting plans agree to submit the ISR and/or the SSR using the esrs. 7. Provide the prime contract number, Parker s DUNS number, and the e-mail address of the Government or Contractor official responsible for acknowledging or rejecting the reports, to all first-tier subcontractors with subcontracting plans so they can enter this information into the esrs when submitting their reports. 8. Require that each subcontractor with a subcontracting plan provide the prime contract number and its own DUNS number, and the e-mail address of the Government or Contractor official responsible for acknowledging or rejecting the reports, to its subcontractors with subcontracting plans. 9. Cooperate with the Contracting Officer and Small Business Administration in any studies and surveys of the Division's subcontracting procedures and practices that the Contracting Officer and Small Business Administration may from time to time conduct. It will be the responsibility of the SPA to prepare subcontracting plans as follows: 1. Obtain estimated subcontract dollars from the contract cost estimate. 2. Analyze the priced bill of materials for major subcontract items. Page 4 of 8
3. Coordinate with purchasing to identify actual or potential Small Business, (including ANCs and Indian tribes) Service-Disabled Veteran-Owned Small Business, Veteran-Owned Small Business, HUBZone Small Business, Small Disadvantaged Business, Women-Owned Small Business items, and Historically Black colleges and Universities and Minority Institutions. 4. Apply a percentage based on past history for the balance of the subcontract dollars. 5. Add items from "4" above to obtain the goal expressed in percent and dollar value of the total subcontract dollars. PART 3. DESCRIPTION OF EFFORTS A. In order to effectively implement this plan, the Division shall: 1. Issue and promulgate policy statements in support of this effort, develop written procedures and work instructions, and assign specific responsibilities regarding requirements of this clause. 2. Demonstrate continuing management interest and involvement in support of this effort through such actions as regular reviews of progress and support of overall divisional goals and objectives. 3. Train and motivate division personnel regarding the support of Small Business, (including ANCs and Indian tribes) Service-Disabled Veteran-Owned Small Business, Veteran-Owned Small Business, HUBZone Small Business, Small Disadvantaged Business, and Women-Owned Small Business firms. 4. Assist Small Business concerns by arranging solicitations, time for the preparation of bids, quantities, specifications, and delivery schedules to facilitate the participation of such concerns. Where lists of potential Small Business subcontractors are excessively long, reasonable effort shall be made to give all such Small Business concerns an opportunity to compete over a period of time. 5. Provide adequate and timely consideration of the potentialities of Small Business concerns in all "make-orbuy" decisions. 6. Counsel and discuss subcontracting opportunities with representatives of Small Business firms as are referred by the Small Business Utilization Specialists responsible for monitoring performance under this program and representatives of the SBA. B. Notwithstanding the above, the Purchasing Department shall have the following responsibilities: 1. Require, to the extent practicable, widespread solicitation of qualified Small Business, (including ANCs and Indian tribes) Service-Disabled Veteran-Owned Small Business, Veteran-Owned Small Business, HUBZone Small Business, Small Disadvantaged Business, and Women-Owned Small Business concerns prior to award of purchase orders. 2. Prior to the solicitation of quotation, buying personnel will review the List of Small Disadvantaged Business Concerns in an effort to include at least one (1) Small Disadvantaged Business concern in each bid solicitation, whenever it has been determined that such firms have the desired production or service capabilities. 3. Identify potential sources for solicitation purposes using existing company source lists, the Central Contractor Registration (CCR) Dynamic Small Business Search, veterans service organizations, the National Minority Purchasing Council Vendor Information Service, the Research and Information Division of the Minority Business Development Agency in the Department of Commerce, small, HUBZone, small disadvantaged, and women-owned small business trade associations, and posting notices of sources sought and/or RFPs/RFQs on the SBA s SUB-NET. 4. Provide adequate and timely consideration of the potentialities of known Small Business concerns in all "make-or-buy" decisions. Page 5 of 8
5. Allow sufficient time for competent Small Business concerns to submit bids. 6. Permit Small Business concerns, to the extent practicable, to submit bids for quantities less than the total requirements. 7. Make appropriate specifications and drawings readily available to qualified interested Small Business concerns. 8. Establish realistic delivery schedules, consistent with contractual requirements that do not preclude submission of bids from competent Small Business concerns. 9. Establish procedures as required to comply with contractual Subcontracting Plan requirements. 10. Maintain records showing whether each prospective subcontractor is a Small Business, (including ANCs and Indian tribes) Service-Disabled Veteran-Owned Small Business, Veteran-Owned Small Business, HUBZone Small Business, Small Disadvantaged Business, or Women-Owned Small Business concern. 11. Maintain records on a contract-by-contract basis with respect to each purchase order exceeding $150,000, information substantially as follows: a. Whether small business was solicited and if not, why not; b. Whether HUBZone Small Business was solicited and if not, why not; c. Whether small disadvantaged business was solicited and if not, why not; d. Whether Women-Owned Small Business was solicited and if not, why not; and e. Whether Service-Disabled Veteran-Owned Small Business was solicited and if not, why not; f. Whether Veteran-Owned Small Business, was solicited and if not, why not; and g. Reasons for the failure of responding Small Businesses, (including ANCs and Indian tribes) Service- Disabled Veteran-Owned Small Business, Veteran-Owned Small Business, HUBZone Small Businesses, Small Disadvantaged Businesses, or Women-Owned Small Businesses to receive the subcontract award. 12. On a contract-by-contract basis, records to support award data submitted to the Government are to include name, address, and size status of subcontractor. 13. The information required in 10 above, plus a breakdown of Large Business, Small Business, Service-Disabled Veteran-Owned Small Business, Veteran-Owned Small Business, HUBZone Small Business, Small Disadvantaged Business, and Women-Owned Small Business awards, will be summarized semi-annually and submitted to the Subcontracting Plan Administrator and any other additional internal distribution as desired. The summary report will segregate purchase orders awarded into the following categories: a. Awards under DOD prime contracts and subcontracts. b. Awards under NASA prime contracts and subcontracts. c. Awards under all other Federal agencies. d. Indirect charge awards. e. Awards under Commercial Contracts. f. Breakout awards to Small Disadvantaged Business concerns by NAIC Sub-sector Code. Page 6 of 8
14. The Utilization of Small Business Concerns clause in FAR 52.219-8 shall be included in all subcontracts that offer further subcontracting opportunities except those which will be performed entirely outside of any state, territory, or possession of the United States, the District of Columbia, or the Commonwealth of Puerto Rico or those which are for services personal in nature. 15. The clauses at FAR 52.219-9 entitled "Small Business Subcontracting Plan and at FAR 52.219-16 entitled Liquidated Damages Subcontracting Plan," are included in all Government contract-related requests for quotation where the price is expected to be in excess of $650,000 and subsequently, in all subcontracts awarded to Large Business concerns with a contract value in excess of $650,000, placed under Government prime contracts or subcontracts. This is to insure that the subcontractor will adopt a plan in consonance with the clause. 16. Provide notices to subcontractors concerning penalties and remedies for misrepresentations of business status for the purpose of obtaining a subcontract that is to be included as part of a goal contained in the division s subcontracting plan. PART 4. ASSURANCES: FLOW DOWN The Division will include the clause entitled Utilization of Small Business Concerns in all subcontracts and will require all subcontractors (except small business concerns) who receive subcontracts in excess of $650,000 to adopt a plan in consonance with the applicable Subcontracting Plan for Small Business concerns clause. PART 5. ASSURANCES: REPORTING AND COOPERATION The Division will submit periodic ISR and SSR reports, using the U.S. Government Electronic Subcontracting Reporting System (esrs) at http://www.esrs.gov and cooperate in any studies or surveys as may be required by the contracting agency or the Small Business Administration in order to determine the extent of compliance with the subcontracting plan. Ensure that large business subcontractors with small business subcontracting plans agree to submit the ISR and SSR. PART 6. RECORDS The Division will maintain the following records to demonstrate compliance with the requirements and goals set forth in the plan: a. Each purchase order will be coded to indicate whether the supplier is a Large Business, Small Business, (including ANCs and Indian tribes) Service-Disabled Veteran-Owned Small Business, Veteran-Owned Small Business, HUBZone Small Business, Small Disadvantaged Business, or Women-Owned Small Business concern. b. All purchase order commitments will be entered on data processing records. c. A data processing report summarizing all purchase commitments semi-annually against DOD contracts, NASA contracts, other Federal contracts, Commercial contracts, and for Indirect (overhead) accounts will be prepared and utilized for preparation of the ISR and SSR reports using the U.S. Government esrs. d. The semi-annual processing report will list pertinent data for each purchase order. e. A list of Small Disadvantaged Business and HUBZone Small Business concerns will be maintained. This is a listing of all such Suppliers which have been specifically approved for use by the Division. All HUBZone small business concerns will be verified by accessing the Central Contractor Registration database or by contacting a district SBA Office for eligibility. f. The Supplier List will be marked to identify each supplier as a Large Business, Small Business, (including ANCs and Indian tribes) Service-Disabled Veteran-Owned Small Business, Veteran-Owned Small Business, HUBZone Small Business, Small Disadvantaged Business, or Women-Owned Small Business concern. g. Written representations of Supplier status as a Large Business, Small Business, (including ANCs and Indian tribes) Page 7 of 8
Service-Disabled Veteran-Owned Small Business, Veteran-Owned Small Business, HUBZone Small Business, Small Disadvantaged Business, or Women-Owned Small Business concern will be maintained. h. An annual processing report will list a "breakout" of subcontract awards, in whole dollars, to Small Disadvantaged Business concerns by the North American Industry Classification System (NAICS) Sub-sector code. i. Maintain records to support such efforts as: i) contracts with disadvantaged and small business trade associations; ii) iii) contracts with business development organizations; and attendance at small and disadvantaged business procurement conferences and trade fairs. j. Maintain records to support internal activities to guide and encourage buyers such as; i) workshops, seminars, training programs, etc.; and ii) monitoring activities to evaluate compliance. PART 7. Accumulate indirect purchases for Large Business, Small Business, (including ANCs and Indian tribes) Service-Disabled Veteran-Owned Small Business, Veteran-Owned Small Business, HUBZone Small Business, Small Disadvantaged Business, and Women-Owned Small Business and then allocate to DOD, NASA, other Federal and commercial contracts based on total dollars. Page 8 of 8