89-1.705-3 Screening of procurements.

(a) Individual Set-Asides. The Department has established a comprehensive review and screening process of procurement actions for possible participation in those actions by small business, small disadvantaged business, and labor surplus area concerns (see 89-16.804).

(b) Initiation of Class Set-Asides. (1) Class Set-Asides. By agreement with SBA, DOE has established a class set-aside for procurements of construction where the estimated value is from $10,000 through $3,000,000, including new construction and repair and alteration of structures. Lists of other class set-asides shall be maintained by all DOE procuring offices, including contractors who manage Government-owned sites. These lists shall be updated at least annually.

(2) In establishing and reviewing small business class set-asides, consideration shall be given to contracting with SBA pursuant to FPR 1-1.705–7 as well as the set-aside priorities in FPR 1-1.706-1. The list of class set-asides maintained at DOE and contractor procuring activities shall identify corresponding priorities.

89-1.705-7 Performance of contract by SBA.

(a) Consideration will be given to contracting with SBA in order to foster or assist in the establishment or growth of SBA-designated socially and economically disadvantaged small busi

ness concerns.

(b) The SBA has delegated to its field offices authority to negotiate contracts and subcontracts under Section 8(a) of the Small Business Act. Heads of procuring activities or designees should assure full cooperation with SBA in efforts to place procurements with firms which are eligible for subcontract awards by SBA under Section 8(a). They shall take the necessary steps

to:

(1) Invite appropriate SBA field representatives to identify needs for 8(a) contracts and to provide for cooperation and assistance on the part of DOE in verifying the availability or nonavailability of requirements, funding and other pertinent factors;

(2) Propose any requirements which appear to offer potential opportunity for contracting with SBA under the authority of Section 8(a) of the Small Business Act, for consideration by appropriate SBA field representatives; and

(3) Work out detailed arrangements for individual 8(a) contracts with SBA offices, consistent with FPR 1-1.712. Any problems relating to contracting with SBA should be reported to the Director, SDBU, Headquarters.

(c) Once a product or service has been procured successfully from the SBA,-future requirements for similar products or services shall be considered for procurement from SBA. The SB/DB specialist shall maintain a list of recurring procurements subject to this subsection.

89-1.706 Procurement set-aside for small business.

89-1.706-1 General.

(a) Procurements of $10,000 or less awarded through small purchase procedures, are setaside for small business. (See 89-3.601)

(b) In addition to paragraph (a) of this section, Contracting Officers are authorized and encouraged to seek set-asides for all susceptible procurements including procurement of architectural and engineering services, research, development, test and evaluation.

(e)(1) In lieu of the set-aside priorities set forth in FPR 1-1.706–1(a) and (e), DOE shall award contracts, and encourage the placement of subcontracts for procurement to small business concerns in the following manner:

(i) Concerns which are small business concerns and which are located in labor surplus areas, on the basis of a total set-aside;

aside;

(ii) Concerns which are small business concerns, on the basis of a total set

(iii) Concerns which are small business concerns and which are located in a labor surplus area, on the basis of a partial set-aside; and

aside.

(iv) concerns which are small business concerns, on the basis of a partial set

(2) After priority is given to the small business concerns specified in subsection (e), priority shall also be given to the awarding of contracts and the placement of subcontracts, on the basis of a total set-aside, to concerns which:

(i) Are not eligible under subsection (e);

(ii) Are not small business concerns; and

(iii) Will perform a substantial proportion of the production of those contracts and subcontracts within areas of concentrated unemployment or underemployment or within labor surplus areas.

area.

(3) See FPR 1-1.801 for the definition of a concern located in a labor surplus

89-1.706-5 Total set-asides.

It is DOE policy to use the preferred method of procurement known as "Small Business Restricted Advertising" for contracts involving total set-asides unless there are circumstances which make conventional negotiation necessary.

$9-1.710 Subcontracting with small business concerns.

Procuring activities shall maintain lists of active prime contracts containing the clause entitled "Subcontracting Plan for Small Business Concerns and Small Business Concerns Owned and Controlled by Socially and Economically Disadvantaged Individuals."

89-1.710-3 Required clauses.

(a) On April 20, 1979, the Office of Federal Procurement Policy (OFPP) issued, in the Federal Register (44 FR 23610), its implementation of Section 211 of Pub. L. 95–507. This issuance as modified on June 18, 1979 (44 FR 35068), contains various subcontracting provisions and guidance for their use. FPR Temporary Regulation 50 (44 FR 38478) requires the use of OFPP's clauses and procedures.

DOE activities shall not utilize Part D, "Incentive Subcontracting Program," of OFPP's April 20, 1979 issuance, without prior approval of the Senior Procurement Official, Headquarters, or his designee.

(c) The following contract clause is to be included in formally advertised and negotiated procurements when there is a requirement for a small and small disadvantaged business subcontracting plan. Contracting Officers may modify this clause to specify the forms on which quarterly reports are to be submitted.

"Subcontracting Plan for Small Business Concerns and Small Business Concerns Owned and Controlled by Socially and Economically Disadvantaged Individuals."

(a) the contractor agrees to comply in good faith with the Small and Small Disadvantaged Business Concerns Subcontracting Plan which is hereby incorporated in and made a part of this contract. In this connection, the contractor shall: (1) Use his best efforts to attain such percentage goals as may be set forth

in the plan.

(2) Designate an individual who will:

(i) Maintain liaison with the Government on matters relating to small business concerns and small business concerns owned and controlled by socially and economically disadvantaged individuals;

(ii) Monitor compliance with the clause entitled “Utilization of Small Business Concerns and Small Business Concerns Owned and Controlled by Socially and Economically Disadvantaged Individuals"; and

(iii) Administer the contractor's plan.

(3) Provide adequate and timely consideration of the potentialities of small business concerns and small business concerns owned and controlled by socially and economically disadvantaged individuals in all “make-or-buy” decisions.

(4) Assure that small business concerns and small business concerns owned and controlled by socially and economically disadvantaged individuals will, consistent with efficient performance of the contract, have the maximum practicable opportunity to compete for subcontracts, particularly by arranging solicitations, time for the preparation of bids, quantities, specifications, and delivery schedules so as to facilitate the participation of such concerns. Where the Contractor's lists of potential subcontractors which are small business and small business concerns owned and controlled by socially and economically disadvantaged individuals are excessively long, reasonable effort shall be made to give all such concerns an opportunity to compete over a period of time.

(5) Maintain records showing:

(i) Whether each subcontractor is a small business concern or a small business concern owned and controlled by socially and economically disadvantaged individuals; and

(ii) Procedures which have been adopted to comply with the plan and the policies set forth in this clause.

(6) Notify the Contracting Officer before soliciting bids, quotations, or proposals on any subcontract (including purchase orders) in excess of $10,000 if:

(i) No small business concern or small business concern owned and controlled by socially and economically disadvantaged individuals is to be solicited, and (ii) The Contracting Officer's consent to the subcontract is required by a "Subcontracts" clause in this contract. Such notification will state contractor's reasons for nonsolicitation of small business and small business concerns owned and controlled by socially and economically disadvantaged individuals and will be given as early in the procurement cycle as possible so that the Contracting Officer may suggest potentially qualified small business concerns or small business concerns owned and controlled by socially and economically disadvantaged individuals. In no case will the procurement action be held up when to do so would, in the Contractor's judgment, delay performance under the contract and the Contractor's notification shall specify that he is proceeding with the solicitation.

(7) Include the clause "Utilization of Small Business Concerns and Small Business Concerns Owned and Controlled by Socially and Economically Disadvantaged Individuals" in all subcontracts over $10,000 which offer further subcontracting opportunities.

(8) Cooperate in any studies or surveys of the Contractor's subcontracting procedures and practices as may be required by the DOE or the Small Business Administration.

(9) Submit quarterly reports of subcontracting to small business concerns and small business concerns owned and controlled by socially and economically disadvantaged individuals on such forms as may be specified elsewhere in this contract. (b) The Contractor agrees that failure to comply in good faith with the clause entitled "Utilization of Small Business Concerns and Small Business Concerns Owned and Controlled by Socially and Economically Disadvantaged Individuals," or the

terms of the subcontracting plan incorporated into the contract will be a material
breach of the contract and the contract may be terminated in whole or, in part, for
default.

(c) The contractor further agrees to insert in all subcontracts hereunder (ex-
cept those with small business concerns) which contain the clause entitled "Utilization
of Small Business Concerns and Small Business Concerns Owned and Controlled by
Socially and Economically Disadvantaged Individuals," which offer further subcon-
tracting opportunities, and which may exceed $1,000,000 in the case of a subcontract
for the construction of any public facility or in excess of $500,000 in the case of all
other subcontracts, provisions which shall conform substantially to the language of
this clause, including this paragraph (c), and to notify the Contracting Officer of the
names of such subcontractors.

(d) The provisions of this clause shall not apply to small business concerns.

$9-1.710-5 Subcontracting certification.

The following certification shall be used in solicitations expected to exceed $500,000 or $1,000,000 if solely for construction of a public facility which contain the "Utilization of Small Business Concerns and Small Business Concerns Owned and Controlled by Socially and Economically Disadvantaged Individuals."

(a) The offeror represents that the following conditions prevail which determine whether the firm shall be required to submit a subcontracting plan for small business concerns and small business concerns owned and controlled by socially and economically disadvantaged individuals:

(1) He is ( ) a small business as defined in accordance with 13 CFR, Part 121 of the SBA regulations;

(); and

(2) Subcontracting possibilities are not offered with respect to this contract

(3) The contract is not expected to exceed $1,000,000 (if solely for construc

tion of a public facility) or $500,000 otherwise ( ).

(b) The offeror represents that he is not ( ) required to submit plans for subcontracting with small and small disadvantaged businesses because he has properly executed one or more of the above representations.

89-1.750 Access to procurement information.

For any contract (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 which is for services which are personal in nature) to be let by the Department, any small business concern, upon its request, shall be provided:

(a) A copy of the bid sets and specifications with respect to the contract;

(b) The name and telephone number of the Contracting Officer responsible for the contract; and

(c) Adequate citations to each major Federal law or Department rule which must be complied with in performing the contract.

89-1.751 Small business set-aside-recurring procurements.

Once a product or service has been procured successfully on the basis of a total or partial small business set-aside, future requirements for similar products or services shall be considered for small business set-asides. (See 9–3.601.) The SB/DB specialist shall maintain a list of recurring procurements subject to this subsection.

Subpart 9-1.8 Labor Surplus Area Concerns

$9-1.800 General.

(a) This subpart sets forth the policies for the utilization of labor surplus area (LSA) concerns in DOE procurements.

(b) Procurement actions shall be reviewed for potential labor surplus area set-aside consideration in accordance with §9–16.804–4.

89-1.802-1 General policy.

It is the policy of DOE to award appropriate contracts to, and to execute agreements with, eligible labor surplus area concerns and to encourage prime contractors to place subcontracts with concerns which will perform substantially in labor surplus areas. (See FPR 1-1.8.)

89-1.804 Total set-aside.

It is DOE policy to use the preferred method of procurement known as “labor surplus area restricted advertising" for contracts involving total set-asides unless there are circumstances which make conventional negotiation necessary.

89-1.805 Subcontracting with labor surplus area concerns.

(a) DOE encourages prime contractors to place subcontracts, including purchase orders, with labor surplus area concerns.

(b) Procuring Activities shall maintain lists of active prime contracts of $500,000 or more which contain the Labor Surplus Area Subcontracting Program Clause set forth in FPR 1-1.805– 3(b). Lists shall contain:

(1) The title, address, and telephone number of the prime contractor's liaison office. (2) Estimated dollar value of the contract.

(3) Period of performance.

(4) Nature of the work to be performed.

(5) Contract number.

89-1.807 Records and reports.

Records and reports shall be as required by "A Guide to Preparation of DOE Quarterly Procurement and Financial Assistance Reports."

OMB CONTROL No.: 1901-0021.