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Article Index 8a / Appeals and Protests / ASSIST / Certifications / Document Categories Getting Contracts / How DoD Buys / HUB Zone / How to Acquire Specifications Joint Ventures / NAICS Code Determination / Preaward Determination of Responsibility SDVOSB / Small Business Overview / Small Business Set Aside Small Disadvantaged Business / Special Help for Small Businesses / Types of Contracts Very Small Business Set Aside / Woman Owned Business / 13CFR125 (* Please see the FAR and any applicable supplements for the most current information) 8(a) Business Development Program Sole Source FAR 19.8 covers contracting with the Small Business Administration or, as it is commonly known, the 8(a) program. Through their cooperative efforts, the SBA and an agency match the agency’s requirements with the capabilities of 8(a) small disadvantaged business concerns. WHEN TO USE: If you determine that: 1. The anticipated award price, including options, does not exceed $5 million for manufacturing or $3 million for all other requirements. 2. The vendor is responsible with respect to performance, and 3. The award can be made at a fair and reasonable price 4. Note: The 8(a) firm must be a current participant in the 8(a) program on the date of award HOW TO USE: 1. Conduct market research. Suggested method: CCR Dynamic Small Business Search, using “8(a) Certification Required” and relevant NAICS code and/or Keyword criteria. Go to: http://dsbs.sba.gov/dsbs/dsp_dsbs.cfm 2. Negotiate requirement as customary 8(a) Business Development Program Competitive WHEN TO USE: If you determine that: 1. The anticipated award price, including options, exceeds $5 million for manufacturing or $3 million for all other requirements. 2. It is likely that two or more qualified 8(a) certified firms would submit offers, if the requirement were competed. 3. The requirement has not been accepted by SBA for award as a sole source 8(a) procurement on behalf of a tribally-owned or ANC-owned concern. (The competitive threshold does not apply to tribally-owned or ANC concerns.) 4. The vendor is responsible with respect to performance, and 5. The award can be made at a fair and reasonable price 6. The procuring activity will request that the SBA district office servicing the apparent successful offeror determine the firm’s eligibility for award. PROGRAM: 8(a) Alaska Native Corporations (ANCs) and Indian Tribally owned concerns Affiliation rules: A concern owned by an Indian tribe or ANC cannot be found to be affiliated with the Indian tribe or ANC for any reason. In determining the size of a small business concern owned by a socially and economically disadvantaged Indian tribe (or a wholly owned business entity of such tribe) for either 8(a) BD program entry or contract award, the firm’s size shall be determined independently without regard to its affiliation with the tribe, any entity of the tribal government, or any other business enterprise owned by the tribe, unless the Administrator determines that one or more such tribally-owned business concerns have obtained or are likely to obtain, a substantially unfair competitive advantage within an industry category. (SBA Legal opinion issued January 12, 2004) PROGRAM: Exemption from competitive threshold for 8(a) Participants owned by ANCs and Indian Tribes HOW TO USE: SBA may award a sole source 8(a) contract to a Participant concern owned and controlled by an Indian tribe or an ANC where the anticipated value of the procurement exceeds the applicable competitive threshold if SBA has not accepted the requirement into the 8(a) BD program as a competitive procurement. There is no requirement that a procurement must be competed whenever possible before it can be accepted on a sole-source basis for a tribally-owned or ANC-owned concern, but a procurement may not be removed from competition to award it to a triballyowned or ANC-owned concern on a sole-source basis (13 CFR § 124.506 (b)). Caution: If in doubt regarding size, it is appropriate to seek a formal size determination from the SBA’s Office of Government Contracting. Such a request may be made either by the contracting officer or the SBA. APPEALS/PROTESTS: NAICS code appeals, Small Business Representation Protests NAICS APPEALS: The CO’s NAICS determination is final unless appealed IAW FAR 19.303. The appeal petition must be in writing and served and filed within 10 calendar days after the issuance of the initial solicitation. SBA’s Office of Hearings and Appeals (OHA) decides such appeals. SB REPRESENTATION: An offeror represents that it is a small business concern in connection with a specific solicitation if it meets the definition of a small business concern applicable to the solicitation (IAW the NAICS size standard). Another offeror, the SBA, or another interested party may protest the SB representation of an offeror. (NOTE: For competitive 8(a) contracts, only an offeror, the CO or the SBA may file a protest.) A protest by any concern or other interested party must be received by the CO within five business days after bid opening (in sealed bid acquisitions) or receipt of the notification from the CO that identifies the apparently successful offeror (in negotiated acquisitions). The CO may question the SB representation at any time before or after award. Within 10 business days after receiving a protest, the challenged offeror’s response, and other pertinent information, the SBA Government Contracting Area Director or designee will determine the size status of the challenged concern and notify the contracting officer, the protester, and the challenged offeror of its decision. The provision at 52.219-1, Small Business Program Representations, or 52.212-3(c)(4), Offeror Representations and Certifications-Commercial Items, is used by offerors to provide their business status. DISADVANTAGED BUSINESS STATUS: IAW FAR 19.304, to be eligible to receive a benefit as a prime contractor based on its disadvantaged status, a concern, at the time of its offer, must either be certified as a small disadvantaged business (SDB) concern or have a completed SDB application pending at the SBA (see FAR 19.001). This is a formal certification process and not to be confused with self-representation as a small business concern. The CO may confirm that the concern is identified as a SDB concern by accessing Central Contractor Registration (see www.ccr.gov) or by contacting the SBA’s Office of Small Disadvantaged Business Certification and Eligibility. An offeror, excluding an offeror determined by the CO to be non-responsive or outside the competitive range, or an offeror that SBA has previously found to be ineligible for the requirement at issue, may protest the apparently successful offeror’s representation of disadvantaged status by filing a protest in writing with the CO. The CO or the SBA may protest in writing a concern’s representation of disadvantaged status at any time following bid opening or notification of intended award. SBA regulations concerning such protests are contained in 13 CFR 124, Subpart B. HUBZone Status Protests 1. Who initiates? For sole-source awards, SBA or the contracting officer; for competitive awards, any interested party. 2. Format: in writing and specific. 3. Filing: Unsuccessful offeror - to the contracting officer; contracting officer or SBA, to the AA/ HUBZone. 4. Delivery: in person, by Fax, U.S. Postal Service, or Express Mail. 5. Timeliness: 5 business days of bid opening or notification of successful offeror. 6. Processing: SBA will notify the contracting officer and the protester of the date of receipt and whether the protest will be processed or dismissed; SBA will determine HUBZone status within 15 business days of receipt unless extended. 7. The AA/HUBZone makes final determination; SBA will notify the CO, protester, and the protested firm of its determination. If upheld, the protested firm is decertified, effective immediately. 8. If SBA fails to decide the protest within 15 business days, unless the CO grants an extension, the CO may award the contract. 9. Appeals: The HUBZone SBC, protestor, or CO may appeal; appeals must be received by SBA within 5 business days after receipt of the protest determination; SBA will only re-examine cases where there was a clear and significant error or complete failure to consider a significant fact. Appeals must be in writing. Appeals will be decided by the ADS/GC & BD. (13 CFR 126.800-805) If the SBA determines that a concern is a qualified HUBZone small business concern, it will issue a certification to that effect and will add the concern to the List of Qualified HUBZone Small Business Concerns on its Internet website at http://www.sba.gov/hubzone. A firm on the list is eligible for HUBZone program preferences without regard to the place of performance. The concern must appear on the list to be a HUBZone small business concern. Service-disabled Veteran-owned Small Business Protests 1. Protests involving the veteran’s service-connected eligibility: The CO receiving the protest refers the matter to the SBA’s Office of Government Contracting for resolution. 2. SBA will rely upon existing VA or DOD determinations and will help enforce penalties for false representation. If SBA fails to decide the protest within 15 business days, unless the CO grants an extension, the CO may award the contract. ASSIST ASSIST is a database system for DOD-wide standardization information management. The ASSIST database system resides at the DODSSP, located at the Defense Automated Printing Service (DAPS) in Philadelphia, Pennsylvania. ASSIST-Online is a Windows-based version accessible via Telenet. It is comprised of four parts: The Department of Defense Index of Specifications and Standards (DODISS), the SD-1 Standardization Directory, the SD-4 Status of Standardization Projects, and the Acquisition Management Source Data List (AMSDL). ASSIST Online is available as a yearly subscription service. The ASSIST-Online subscription includes a copy of the current ASSIST Computer base Training (CBT) CD. The DODSSP also offers an ASSIST-CD. This standalone product consists of primary DODISS information and selected DODSSP document information, and boasts extensive report- generation capabilities. Certifications Self-representation versus formal certification process Some small business groups require formal certifications in order to receive the benefits of their specific small business program. Some groups merely self-represent their business status when completing the solicitation representations and certifications clauses. Contracting Officers should check Central Contractor Registration (www.ccr.gov) to check business status, or contact the SBA. SMALL BUSINESS STATUS: Self-representation SMALL DISADVANTAGED BUSINESS STATUS: Formal certification required by the SBA SBA’s 8(a) BD PROGRAM STATUS: Formal certification required by the SBA. HUBZONE CERTIFICATION: Formal certification required by the SBA. SERVICE DISABLED VET CERTIFICATION: Self-certification WOMAN-OWNED SMALL BUSINESS STATUS: Self-certification Document Categories in the DODSSP Collection Military / Performance / Detail Specifications Military Standards DoD-adopted Non-Government / Industry Specifications and Standards Federal Specifications and Standards Military Handbooks Qualified Products / Manufacturer's Lists (QPLs/QMLs) USAF / USN Aeronautical Standards / Design Standards USAF Specifications Bulletins Although the DODSSP Collection contains over 50,000 line items, not all documents specified in Government procurements are included (e.g.: engineering drawings, some Departmental documents, and the majority of all Non-Government / Industry Standards). The Department of Defense Index of Specifications and Standards (DODISS) contains the complete list of Standardization documents in the DODSSP Collection. This reference publication is available online to all ASSIST subscribers, on CD-ROM for single issue or subscription purchase or in paper format from the Superintendent of Documents. How DOD Buys Almost 98 percent of DoD's purchase transactions are for $100,000 or less. Although they account for less than 20 percent of DoD's procurement dollars, they total in the billions of dollars each year. Most of these millions of actions are accomplished using simplified acquisition procedures. Oral solicitations or very brief written requests for quotations are issued to prospective suppliers in the local purchasing area. The successful quoter is issued a purchase order, and compliance with the order (i.e., delivering the product or performing the service) constitutes contract acceptance and fulfillment. Purchases over $100,000 are made by sealed bidding by competitive proposals, or (in unusual circumstances only) by other-than-competitive procedures. Sealed bids are used when the Government knows exactly what it needs, while competitive proposals allow flexibility in defining the exact requirement or the terms and conditions of the procurement. Procurement by sealed bidding begins with the issuance of an invitation for bids (IFB) containing all the information bidders need to respond. The IFB states the needs of the purchasing activity and defines the work in sufficient detail to permit all bidders to compete on the same basis. It also identifies all factors to be considered in evaluating the bids. A standard form is provided on which bids are submitted, and a specific time is set for bid opening. The opening is held in public (you can attend), and the contract is awarded to that responsible bidder whose bid offers the best value to the Government. When sealed bids are not appropriate, competitive proposals are solicited. The purchasing office issues a request for proposals (RFP). After reviewing the proposals received, the contracting officer ordinarily will negotiate with those suppliers that have submitted acceptable proposals, seeking the most advantageous best value contract for the Government. HUBZone PROGRAM: HUBZone Set-Aside WHEN TO USE: Whenever there is a reasonable expectation that: 1. Two or more qualified HUBZone small business concerns will compete for the requirement, and 2. The requirement can be obtained at a "fair and reasonable" price. (FAR 19.1305 (a)). HOW TO USE: Conduct market research to establish 1 and 2, above. Suggested method: CCR/Dynamic Small Business Search, using HUBZone Certification Required, and relevant NAICS Code and/or Keyword criteria. Go to: http://dsbs.sba.gov/dsbs/dsp_dsbs.cfm (FAR 10.002(b)(2)). Publish requirement as customary, noting HUBZone Set-Aside. PROGRAM: HUBZone Sole-Source WHEN TO USE: If you determine that: 1. Requirement is not being performed by a non-HUBZone small business; 2. Requirement is greater than the simplified acquisition threshold; 3. Only one HUBZone-certified firm can satisfy the requirement; 4. It is not likely that two or more qualified HUBZone certified firms would submit offers, if the requirement were competed; 5. The anticipated award price, including options, does not exceed: $5 million for manufacturing; or, $3 million for all other requirements. 6. The vendor is responsible with respect to performance; and 7. The award can be made at a fair and reason able price. (FAR 19.1306 (a)) HOW TO USE: Conduct market research. Suggested method: CCR/Dynamic Small Business Search, using HUBZone Certification Required, and relevant NAICS Code and/or Keyword criteria. Go to: http://dsbs.sba.gov/dsbs/dsp_dsbs.cfm. (FAR 10.002(b)(2)). Negotiate requirement as customary. PROGRAM: Full and Open Competition, with HUBZone Price Evaluation Preference WHEN TO USE: If you determine that: 1. The requirement is greater than or equal to the simplified acquisition threshold; 2. Price is a selection factor; 3. All fair and reasonable offers are not accepted. (FAR 191307(a)). HOW TO USE: Conduct market research to establish 1 and 2, above. Suggested method: CCR/Dynamic Small Business Search, using HUBZone Certification Required, and relevant NAICS Code and/or Keyword criteria. Go to: http://dsbs.sba.gov/dsbs/dsp_dsbs.cfm (FAR 10.002(b)(2)). Publish requirement as customary. Price evaluation preference of 10% applied to all offers except those: of HUBZone small business concerns; of other small business concerns, of eligible products under Trade agreements Act, and, where application would be inconsistent with memoranda of agreement of international agreements with foreign governments. (FAR 19.1307(b)). PROGRAM: All HUBZone Set-Asides, HUBZone Sole-Source, Full and Open Competition with Application of HUBZone Price Evaluation Preference JOINT VENTURES: All parties to joint venture must be HUBZone-certified. (13 CFR 126.616) Joint ventures under HUBZone authority are not approved by SBA. NON-MANUFACTURING RULE WAIVER: There are no non-manufacturing rule waivers under HUBZone authority. However, for contracts at or below $25,000, firm may provide the end item of any domestic manufacturer. (13 CFR 126.601) SUBCONTRACTING LIMITATIONS : For construction and service requirements under HUBZone authority, HUBZone-certified firms must perform at least 50% of the effort. . (13 CFR 126.700) MENTOR PROTEGE: Recognized mentor protégé relationships will not result in finding of affiliation. Protégée may team with and subcontract to its mentor. (13 CFR 126.618) RELATIONSHIP BETWEEN 8(a) AND HUBZone PROGRAMS: SBA’s Procedural Notice of October 10, 2001 established that: 1. HUBZone and the 8(a) Programs have parity in the order of precedence; 2. Contracting officers are free to use their best judgment as to which vehicle is most appropriate. Program goal achievement may be a factor in this determination. Requirements currently awarded under the 8(a) Program cannot be awarded under HUBZone authority unless released from the 8(a) Program by SBA (13 CFR 126.605). How to Acquire Specifications Department of Defense Single Stock Point (DoDSSP) was created to centralize the control, distribution, and access to the extensive collection of Military Specifications, Standards, and related standardization documents either prepared by or adopted by the DoD. The DODSSP mission and responsibility was assumed by the Defense Automated Printing Service (DAPS) Philadelphia Office, in October 1990. The responsibilities of the DODSSP include electronic document storage, indexing, cataloging, maintenance, publish-on-demand, distribution, and sale of Military Specifications, Standards, and related standardization documents and publications comprising the DODSSP Collection. The DODSSP also maintains the Acquisition Streamlining and Standardization Information System (ASSIST) management/research database. Joint Ventures PROGRAM: Relationship between 8(a) Standard Joint Venture (JV) and 8(a) Mentor Protégé Joint Venture Standard Joint Venture (JV) (13 CFR 124.513): 1. JV represents a single entity that will perform on a specific contract. 2. Size: The combined size of the two partners must be small for the JV to be eligible. 3. JV approved by the local SBA office district director. 8(a) Mentor Protégé JV (13 CFR 124.520): 1 8(a) firm must be protégé. 2. Mentor may be a large business as only the size of the protégé is what counts, (provided the protégé qualifies as small for the size standard corresponding to the NAICS code assigned to the procurement) due to the exclusion from affiliations rule. (13 CFR 121.103). 3. MP Agreement approved by the SBA’s Associate Administrator for Business Development (AA/BD). PROGRAM: 8(a) Joint Ventures (JV) in General WHEN TO USE: There is no limitation on the type of 8(a) contract for which a joint venture may be eligible. Thus, JV may qualify for either a sole source or competitive 8(a) procurement. 13 CFR 124.513 (a) (2) provides that a JV is permissible only where an 8(a) concern lacks the necessary capacity to perform the contract on its own, and the agreement is fair and equitable and will be of substantial benefit to the 8(a) concern. HOW TO USE: 1. The local SBA district director must approve of all 8(a) joint ventures before contract award. 2. Joint ventures are approved by the SBA district director only on a contract by contract basis. 3. It is the responsibility of the procuring activity to confirm eligibility of the JV with SBA, prior to awarding the contract. NAICS Code Determination Using the North American Industry Classification System (NAICS) When to use: The NAICS code describes what is being purchased and is required on every requirement above the micro- purchase threshold. The contracting officer (CO) determines the appropriate NAICS code and related small business size standard and includes them in the solicitation. (FAR 19.303(a)). How to use: The appropriate NAICS is selected based upon the CO’s thorough review of the acquisition documentation, including the statement of work, specifications, and other communications with requirements personnel. Then the CO will review the NAICS manual and match the work to the appropriate NAICS Code. The installation Small Business Specialist and the SBA have input and opportunity to comment on the selected NAICS code either early in the acquisition planning or when reviewing the small business coordination documentation (i.e., DD Form 2579). Preaward Determination of Responsibility DoD awards contracts only to contractors found to be responsible. The purchasing activity must evaluate the offerors in order to make a positive finding as to responsibility. Getting accepted as a "responsible" contractor is not like getting on a qualified products list. You can't arrange for a survey at your convenience and wait until you are approved before submitting an offer. The determination of responsibility is done only in connection with an offer when you are the apparent low or otherwise successful offeror. To be found responsible, you must be able to demonstrate that you (1) have, or are able to obtain, adequate financial resources; (2) are able to comply with the delivery requirements; (3) have a satisfactory record of performance; (4) have a satisfactory record of integrity and business ethics; (5) have, or are able to obtain, the necessary organization, experience, accounting and operational controls, and technical skills; (6) have, or are able to obtain, the necessary production, construction, and technical equipment and facilities; and (7) are otherwise qualified and eligible to receive an award under applicable laws and regulations. Sometimes a contracting officer proposes to reject the apparent successful offer of a small business firm because of doubt as to whether the firm is sufficiently responsible to perform the contract. In that event, the case must be referred to the SBA. If the SBA determines that the small business firm is responsible, it issues a Certificate of Competency (CoC) to the contracting officer, who then must award the contract to the small business firm. Service-disabled Veteran-owned Small Businesses (SDVOSB) - Allows small businesses to self-certify as service- disabled veteran-owned businesses - Significantly and permanently impaired veterans may be assisted in the daily business operations by a spouse or permanent caregiver. - Any challenge to a firm’s status as a small business or standing as a service-disabled veteran-owned small business must be referred to the SBA for resolution Exclusions from SDVOSB set-aside rules: - Federal Prison Industries - Javits-Wagner-O’Day organizations - existing IDIQ contracts - federal supply schedule sources - requirements currently in the 8(a) program, unless released by the SBA, and - commissary sales PROGRAM: Service-Disabled Veteran Owned Small Business (SDVOSB) Sole source WHEN TO USE: If the CO determines that: 1. A SDVOSB concern is a responsible contractor with respect to performance. 2. There is not a reasonable expectation that 2 or more small business concerns owned and controlled by service-disabled veterans will submit offers for the contracting opportunity. 3. The anticipated award price of the contract (including options) will not exceed- - $5 million in the case of a contract opportunity assigned in NAICS codes for manufacturing; or - $3 million in the case of any other contract opportunity; 4. The contract award can be made at a fair and reasonable price. HOW TO USE: Conduct market research. Document findings. Negotiate as customary. Noncompetitive SDVOSB procedures may be used below the Simplified Acquisition Threshold. PROGRAM: Service-Disabled Veteran Owned Small Business (SDVOSB) Set-Aside WHEN TO USE: If the CO determines that: There is a reasonable expectation that not less than 2 small business concerns owned and controlled by service-disabled veterans will submit offers and that the award can be made at a fair market price. HOW TO USE: Conduct market research. Publish requirement as customary, noting Service-disabled Veteran-owned Set-Aside. Contract is awarded on the basis of competition restricted to small business concerns owned and controlled by service disabled veterans. SBA PCR may appeal a CO decision not to do a set-aside above the SAT. If only one offer is received, the CO may award if price is reasonable. If no offers are received, the CO must cancel and compete as a small business set-aside. PROGRAM: Contracting with Service-Disabled Veteran Owned Small Business (SDVOSB) Joint Ventures may be SDVOSB if at least one member of the JV is a service-disabled vet, the partners are small businesses, the SDVOSB receives at least 51% of the profits and the agreement is in writing. You can search for service-disabled veteran-owned small businesses in: 1. VIP Database, at http://vip.vetbiz.gov/search/default.asp 2. Central Contractor Registration, Dynamic Small Business Search, at http://dsbs.sba.gov/dsbs/dsp_dsbs.cfm General Small Business Overview Did you know? 97% of all U.S. business firms are small (there are over 13 million small enterprises): - Small business accounts for 48% of the nonfarm gross national product (GNP) - 55% of the U.S. labor force is employed by firms under 100 employees - Small business accounts for two thirds of all new jobs created in the past ten years - Small business leads in innovative research and development (R&D), producing 24 times as many major innovations as large businesses What is a Small Business? Generally speaking, the term "small business" encompasses the following sub-sets: - Small business concerns (SB) - Small disadvantaged business concerns (SDB) - Historically Underutilized Business Zone small business concerns (HUBZone SBCs) - 8(a) program small disadvantaged business concerns (8(a)) - Service Disabled Veteran-owned small business concerns (SDVOSB) - Veteran-owned small business concerns (VOSB) - Woman-owned small business concerns (WOSB) The Federal Acquisition Regulation (FAR) 19.001 defines "small business concern" as a business entity, including its affiliates, organized for profit, that: - is independently owned and operated, - not dominant in the field of operation in which it is bidding on government contracts, and - qualifies as a small business under the criteria and size standards in 13 CFR Part 121 (see 19.102). Small Business Set-Aside WHAT IS A SMALL BUSINESS SET-ASIDE? A "set-aside for small business" is the reserving of an acquisition exclusively for participation by small business concerns. WHEN TO USE: Acquisition of supplies or services valued between $2,500 to $100,000 are automatically reserved exclusively for small business and shall be set aside for small business unless there is not a reasonable expectation of obtaining offers from two or more responsible small business concerns that are competitive in terms of market prices, quality, and delivery. The CO shall set aside any acquisition over $100,000 for small business participation when there is a reasonable expectation that offers will be obtained from at least two responsible small business concerns, and award will be made at fair market prices. (FAR 19.502-2) HOW TO USE: Conduct market research. Suggested method: CCR/Dynamic Small Business Search and relevant "NAICS Code" and/or "Keyword" criteria. Go to: http://dsbs.sba.gov/dsbs/dsp_dsbs.cfm (FAR 10.002(b)(2)). Publish requirement as customary, noting Small Business Set-aside. Small & Disadvantaged Business PROGRAM: Small Disadvantaged Business (SDB) Price Evaluation Adjustment (PEA) (FAR 19.11) WHEN TO USE: 1. DOD cannot use this mechanism at this time. 2. Legislation enacted by the Congress in 1999 prohibited DOD from providing SDBs with a price preference if DOD met its 5% SDB goal the previous fiscal year, which it has consistently done every year since then (Title 10, USC 2323). HOW TO USE: Not applicable. PROGRAM: Evaluation Factor for Small Disadvantaged Business (SDB) Participation (FAR 19.1202) WHEN TO USE: 1. In all competitive, negotiated acquisitions expected to exceed $1 million for construction, and $500,000 for all other, except as excluded: 2. Excluded requirements: HUBZone set-asides, and service-disabled veteran-owned small business setasides; 8(a) acquisitions; negotiated acquisitions where the lowest price, technically acceptable source selection process is used; or contract actions that will be performed entirely outside of the United States and its outlying areas. 3. This mechanism is mandatory when applicable. HOW TO USE: 1. Require offerors to provide targets, expressed as dollars and percentages of total contract value, by the contractor, including joint venture partners, and team members, and a total target for SDB participation by subcontractors. 2. Require an SDB offeror that waives the SDB price evaluation adjustment, to provide with its offer a target for the work that it intends to perform as the prime contractor. 3. Targets will be incorporated into and become part of any resulting contract. Contractors with SDB participation targets shall be required to report SDB participation. 4. SDB concerns considered in the evaluation are listed in the contract, and the contractor shall be required to notify the CO of any substitutions of firms that are not SDB concerns. 5. Clauses at 52.219-25 are used. PROGRAM: Incentive Subcontracting with Small Disadvantaged Business (SDB) WHEN TO USE: 1. Negotiated Acquisitions containing targets for SDB participation (only used when the contract is expected to exceed $500,000 or $1 million for construction). 2. When the contracting officer considers it necessary or desirable to encourage subcontracting opportunities for small disadvantaged businesses. 3. This mechanism is always optional at the discretion of the agency. (FAR 19.1203) HOW TO USE: 1. When contracting by negotiation, insert a clause substantially the same as the clause at 52.219-26, Small Disadvantaged Business Participation Program-Incentive Subcontracting, in solicitations and contracts containing the clause at 52.219-25, Small Disadvantaged Business Participation Program-Disadvantaged Status and Reporting. 2. Include an award fee provision in lieu of the incentive, if appropriate; in such cases, however, do not use the clause at 52.219-26. (19.1204(c)) Special Help for Small Businesses It is national policy that a fair proportion of the products and services used by DoD shall be purchased from small, small disadvantaged, and women-owned small businesses. Certain factors limit DoD's ability to contract with small business. Vast amounts of facilities and working capital are required to produce major weapons systems. In many cases, even the resources of large business can be strained by performance and cost risks. To offset these factors, DoD has implemented a major program to ensure the award of a fair proportion of its contracts to small businesses. This program includes special personnel to assist small businesses, and the following purchasing procedures: Permitting offers on less than the total requirements and allowing the maximum time possible for preparation of offers. Setting aside, for award to small business only, any procurements where there is a reasonable expectation that at least two responsible small businesses will offer the products of small business concerns at reasonable prices. Most purchases under $100,000 are reserved for competition among small business only. Setting aside a portion of a procurement that would otherwise be too large for a total small business set-aside. Any business, large or small can compete for the non set-aside portion. Small business is then given the opportunity to receive a contract for the set-aside portion at the price of the non set-aside portion. Having the SBA review a small business' capability in the event the contracting officer determines it to be nonresponsible (see Preaward Determination of Responsibility below). Encouraging large DoD contractors to subcontract with small, small disadvantaged and women-owned small businesses. In addition to helping all small business firms, DoD provides special emphasis to increase participation by small disadvantaged business firms. The main features are as follows: Seeking small disadvantaged business firms to supply the needed products and services, and setting aside for small disadvantaged business firms those solicitations where DoD can expect to obtain satisfactory performance, adequate competition, and a reasonable price from among the respondents. Contracting directly with the SBA, which will then subcontract the work to small businesses certified by the SBA as being socially and economically disadvantaged. DoD and SBA identify products and services that can be provided by small disadvantaged businesses that have an SBA-approved business development plan. The FAR (Subpart 19.8) provides detailed information on this procedure. Encouraging special attention to small disadvantaged business firm by DoD's large prime contractors in their programs of subcontracting. Types of Contracts DoD generally uses fixed-price contracts to acquire products and services. Cost-reimbursement contracts are used only when fixed-price contracts are not feasible. Most research and development (R&D) contracts are of the cost- reimbursement type. Fees under cost-reimbursement contracts are either fixed at the outset or subject to adjustment in accordance with a formula established in the contract. When unusual circumstances exist, a letter of intent may be used to authorize a contractor to start work before the final contract is executed. Very Small Business Set-Aside Program for Federal Government Contracts The U.S. Small Business Administration’s Very Small Business Set-Aside Pilot Program was created to ensure that small businesses get their fair share of government contracts and subcontracts. The program, an extension of the SBA’s Small Business Set-Aside Program, is administered by the SBA as a pilot to increase opportunities for very small businesses. Procurement requirements estimated to be between $2,500 and $50,000 must be reserved for eligible VSB concerns in designated pilot SBA districts. The program is designed for businesses with fewer than 15 employees and less than $1 million in average annual receipts. The pilot program is limited to geographic areas served by 10 specifically designated SBA district offices throughout the country. How Does the VSB Program Work? Under the Very Small Business Set-Aside Pilot Program, federal government agencies which have requirements for goods or services ranging between $2,500 and $50,000 must first try to have very small businesses fulfill the contracts. Federal government small contracts add up to big business — $5.2 billion worth in fiscal 1997. All types of contracts authorized under the Federal Acquisition Regulation will be available under the VSB pilot program, which runs through Sept. 30, 2000. The VSB Set-Aside Pilot Program requires that federal procurement contracts between $2,500 and $50,000 must be reserved for very small businesses if: • the sales contract (for products or services) will be performed in one of the 10 geographical areas included in the pilot program, and • there is a reasonable expectation of obtaining two or more competitive bids from responsible very small businesses headquartered in the same geographic area. How Can Your Business Participate? • The first step, which is simple and free, is to register your business on PRO-Net®, the SBA’s source list of small business suppliers, at: www.pronet.sba.gov. PRO-Net® will guide you through simple forms that provide purchasers with information on the capabilities of your business and the types of goods or services you provide. Your business’s profile will also reach those state and local government purchasers using PRO-Net® databases to fill their orders. Prime contractors to the federal government seeking small business contractors, subcontractors or small business partnerships also use Pro-Net®. The PRO-Net® database is free to all small businesses seeking federal, state or private contracts. Another advantage to registering is that PRO-Net® provides an electronic link to the Commerce Business Daily, federal agency World Wide Web home pages and other sources of procurement opportunities, information, assistance and training for your business. • The second step is to ensure that your e-mail address and World Wide Web site, if you have them, are listed so that government buyers can easily contact you with solicitations for your goods or services. • In the third step, your business should consider allowing government purchasers to pay for your goods or services with credit cards. • The last step is to market your business to federal agencies in need of your products or services. The SBA District Office and our SBA representatives at federal procurement centers throughout the country can help you identify federal purchasing agencies in your area. Are There Other Requirements for Participation? There are no other formal requirements for the VSB program, except to respond to federal agency procurement solicitations if you desire to compete for a particular contract. Your firm will self-certify its VSB status as part of your oral or written offer to the government. Where Can I go for More Information? Visit the Very Small Business Web site at: www.sba.gov/gc/ Where Is the Program Available? The designated SBA offices and the geographic areas they serve are: • Albuquerque, NM: New Mexico. • Boston, MA: Massachusetts. • Columbus, OH: Adams, Allen, Ashland, Athens, Auglaize, Belmont, Brown, Butler, Champaign, Clark, Clermont, Clinton, Coshocton, Crawford, Darke, Delaware, Fairfield, Fayette, Franklin, Gallia, Greene, Guernsey, Hamilton, Hancock, Hardin, Highland, Hocking, Holmes, Jackson, Knox, Lawrence, Licking, Logan, Madison, Marion, Meigs, Mercer, Miami, Monroe, Montgomery, Morgan, Morrow, Muskingum, Noble, Paulding, Perry, Pickaway, Pike, Preble, Putnam, Richland, Ross, Scioto, Shelby, Union, Van Wert, Vinton, Warren, Washington, and Wyandot counties. • Detroit, MI: Michigan. • El Paso, TX: Brewster, Culberson, El Paso, Hudspeth, Jeff Davis, Pecos, Presidio, Reeves, and Terrell counties. • Los Angeles, CA: Los Angeles, Santa Barbara, and Ventura counties. • Louisville, KY: Kentucky. • New Orleans, LA: Louisiana. • Philadelphia, PA: Adams, Berks, Bradford, Bucks, Carbon, Chester, Clinton, Columbia, Cumberland, Dauphin, Delaware, Franklin, Fulton, Huntington, Juniata, Lackawanna, Lancaster, Lebanon, Lehigh, Luzerne, Lycoming, Mifflin, Monroe, Montgomery, Montour, Northampton, Northumberland, Philadelphia, Perry, Pike, Potter, Schuylkill, Snyder, Sullivan, Susquehanna, Tioga, Union, Wayne, Wyoming, and York counties; and the state of Delaware. • Santa Ana, CA: Orange, Riverside, and San Bernadino counties. For More Information SBA offices are located in all 50 states, the District of Columbia, Puerto Rico, the U.S. Virgin Islands and Guam. For the office nearest you, look under "U.S. Government" in your telephone directory, or contact: • SBA Answer Desk: 1-800 U ASK SBA • Fax: 202-205-7064 • TDD: 704-344-6640 • Your rights to regulatory fairness: 1-888-REG-FAIR • OnLine Electronic Bulletin Board (modem and computer required) 1-800-697-4636 (limited access) 1-900-463-4636 (full access) 202-401-9600 (Washington, D.C., metro area) • Internet Home page: www.sba.gov Gopher: gopher.sba.gov Telnet: telnet.sba.gov U.S. Business Advisor: www.business.gov SBA Affiliates Inquire at your local SBA office for the location nearest you. • BICs — Business Information Centers • TBICs — Tribal Business Information Centers • OSCSs — One Stop Capital Shops • SCORE — Service Corps of Retired Executives • SBDCs — Small Business Development Centers • USEACs — U.S. Export Assistance Centers • WBCs — Women’s Business Centers SBA Publications • Resource Directory for Small Business Management — a listing of low-cost business management publications and videotapes • The Facts About ... SBA Publications — a listing of free SBA publications Did you know that in fiscal 1998 the SBA — • maintained a guaranteed loan portfolio of more than $40 billion in loans to 491,000 small businesses that otherwise would not have had such access to capital? • backed more than 47,100 loans totaling $10.8 billion to America’s small businesses? • made a record 3,456 investments worth $3.24 billion through its venture capital program? • provided more than 30,000 loans totaling over $728 million to disaster victims for residential, personal-property and business losses? • extended management and technical assistance to nearly 830,000 small businesses through its 12,400 Service Corps of Retired Executives volunteers and 1,000 small business development center locations? • helped 6,000 small disadvantaged businesses obtain $5.9 billion in federal contracts? Did you know that America’s 23 million small businesses — • employ more than 50 percent of the private workforce? • generate more than half of the nation’s gross domestic product? • are the principal source of new jobs? All of the SBA’s programs and services are provided to the public on a nondiscriminatory basis. Woman-owned Small Business Contract Assistance for Women Business Owners (CAWBO) The Program: The 1994 Federal Acquisition Streamlining Act (FASA) set a 5% government- wide goal for procurement dollars (both prime and subcontracting) to womenowned small businesses (WOSBs) - Small businesses to self-certify as women-owned small businesses - See also http://www.womenbiz.gov for more information See also http://www.women-21.gov, which is a portal for women’s entrepreneurship in the 21st Century. All Rights Reserved / GovernmentContracts |
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