FAQs

What if the PI does not meet the spend goals detailed in the SBSP?

Question:

What if the PI does not meet the spend goals detailed in the SBSP?


Answer

The sponsor may determine that the PI and team have not made good faith efforts to procure small businesses. The University of Illinois could be held liable for fines and be required to return/refund the full amount of the contract.

It is important to formulate a realistic SBSP and execute its budgeting details. There are potential monetary penalties for not meeting goals (see FAR 19.702). Moreover, non-compliance issues, such as not meeting goals set in the SBSP are documented by federal agencies and could affect all future funding applicants at the University.

The fact that goods and services from a small business vendor may cost more is not considered by the government to be an acceptable excuse for not using them, unless the cost is prohibitive.


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