92 STAT. 1768
Incentives for small business subcontracting.
Subcontracting plans.
PUBLIC LAW 95-507—OCT. 24, 1978
"(4)(A) Each solicitation of an offer for a contract to be let by a Federal agency which is to be awarded pursuant to the negotiated method of procurement and which may exceed $1,000,000, in the case of a contract for the construction of any public facility, or $500,000, in the case of all other contracts, shall contain a clause notifying potential offering companies of the provisions of this subsection relating to contracts awarded pursuant to the negotiated method of procurement. "(B) Before the award of any contract to be let, or any amendment or modification to any contract let, by any Federal agency which— "(i) is to be awarded, or was let, pursuant to the negotiated method of procurement, "(ii) is required to include the clause stated in paragraph (3), "(iii) may exceed $1,000,000 in the case of a contract for the construction of any public facility, or $500,000 in the case of all other contracts, and " (iv) which offers subcontracting possibilities, the ai^parent successful offeror shall negotiate with the procurement uuthority a subcontracting plan which incorporates the information prescribed in paragraph (6). The subcontracting plan shall be included in and made a material part of the contract. "(C) If, within the time limit prescribed in regulations of the Federal agency concerned, the apparent successful off'eror fails to negotiate the subcontracting plan required by this paragraph, such offeror shall become ineligible to be awarded the contract. Prior compliance of the off'eror with other such subcontracting plans shall be considered by the Federal agency in determining the responsibility of that offeror for the award of the contract. "(D) No contract shall be awarded to any offeror unless the procurement authority determines that the plan to be negotiated by the offeror pursuant to this paragraph provides the maximum practicable opportunity for small business concerns and small business concerns owned and controlled by socially and economically disadvantaged individuals to participate in the performance of the contract. " (E) Notwithstanding any other provision of law, every Federal agency, in order to encourage subcontracting opportunities for small business concerns and small business concerns owned and controlled by the socially and economically disadvantaged individuals as defined in paragraph (3) of this subsection, is hereby authorized to provide such incentives as such Federal agency may deem appropriate in order to encourage such subcontracting opportunities as may be commensurate with the efficient and economical performance of the contract: Provided, That, this subparagraph shall apply onl}- to contracts let pursuant to the negotiated method of procurement. "(5)(A) Each solicitation of a bid for any contract to be let, or any amendment or modification to any contract let, by any Federal agency which— " (i) is to be awarded pursuant to the formal advertising method of procurement, "(ii) is required to contain the clause stated in paragraph (3) of this subsection, "(iii) may exceed $1,000,000 in the case of a contract for the construction of any public facility, or $500,000, in the case of all other contracts, and " (iv) offers subcontracting possibilities, shall contain a clause requiring any bidder who is selected to be awarded a contract to submit to the Federal agency concerned a sub-
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