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A $30 million contract was awarded to ZED, Inc., for technical support services. It is a cost-plus-fixed-fee contract that required a small business subcontracting plan,

A $30 million contract was awarded to ZED, Inc., for technical support services. It is a cost-plus-fixed-fee contract that required a small business subcontracting plan, and it also included small business participation requirements. Government property was provided for both the contractor and subcontractors. Certified cost or pricing data were not required. Since the contract was awarded, ZED has been submitting quarterly small business participation reports. The latest report reveals that ZED is meeting all its small business participation requirements except for those related to subcontracting with Service-Disabled Veteran-Owned Small Businesses (SDVOSBs). ZED's SDVOSB requirement is $300,000; however, ZED has not awarded any subcontracts to SDVOSBs, so far. What would you do? (Select the three alternatives that apply.)

Solution Options:

1) Because ZED failed to meet its SDVOSB requirement, reject ZED's small business participation report in the Electronic Subcontracting Reporting System (eSRS).

2) Consider asking ZED to submit a corrective action plan detailing actions ZED will take to meet its SDVOSB requirement.

3) Follow up with ZED to find out why it is not meeting its SDVOSB requirement.

4) Remind ZED that its compliance with its small business participation requirements and its subcontracting plan are evaluated in the Contractor Performance Assessment Reporting System (CPARS).

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