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519.202 Specific policies.

Subpart 519.3-Determination of

Status as a Small Business
Concern

519.302 Protesting a small business

representation. If SBA determines that an offeror is not a small business and there is evidence that the offeror knowingly misrepresented itself as a small business, the contracting officer shall refer the matter to the Inspector General (J) for investigation. (56 FR 3044, Jan. 28, 1991)

519.202–2 Locating small business

sources. (a) Contracting officers should request assistance from SBTAs in locating small business sources.

(b) Business Service Centers (BSCs) will:

(1) Announce advance and current information about GSA business opportunities.

(2) Provide information, assistance, and counseling to enable small business concerns to take full advantage of business opportunities.

(3) Develop publications and public relations techniques designed to obtain maximum interest and participation of small business concerns. This activity will include, but not be limited to, the following:

(i) Arranging for and participating in meetings with business groups such as Chambers of Commerce, trade associations and similar organizations, State development corporations, Governors' and Mayors' advisory groups, local business and civic organizations, and small business councils.

(ii) Developing, preparing, and distributing informational material designed to stimulate the interest of small business concerns.

(iii) Developing interest and cooperation on the part of trade publications, the local press, and other media.

(4) Whenever practical, access the Small Business Administration's (SBA) Procurement Automated Source System (PASS) to locate small business sources.

(c) BSC's will keep each other and the Office of Small and Disadvantaged Business Utilization (AU) informed on items of mutual interest regarding the small business programs. (54 FR 26527, June 23, 1989, as amended at 56 FR 3044, Jan. 28, 1991)

519.304 Solicitation provisions.

The contracting officer shall insert provision substantially the same as that at 552.219-1, Small Business Concern Representation, in all solicitations instead of the provision at FAR 52.219_1. When using small purchase procedures the information required by the provision at 552.219_1 may be obtained through other means. (57 FR 37890, Aug. 21, 1992)

Subpart 519.5-Set-Asides for

Small Business

519.500 Scope of subpart.

The requirements in this subpart for setting aside acquisitions and for reviewing non-set-aside determinations do not apply to construction, architectural and engineering, or trash/garbage collection services estimated to exceed $25,000 that are acquired under the Small Business Competitiveness Demonstration Program during periods when goals are being met and contracting officers are required to contract for such services using unrestricted procedures. (See FAR 19.10.) However, contracts for these services may be awarded under the 8(a) program. (56 FR 3044, Jan. 28, 1991) 519.502 Setting aside acquisitions. 519.502-1 Requirements for setting

aside acquisitions. Where a contracting officer determines that a small business set-aside of a procurement under FAR 19.5 is not feasible, the procedures in 519.502-70 must be followed. Contracting officers

519.202–5 Data collection and report

ing requirements. Contracting officers shall submit a GSA Form 2677, Minority Contract Fact Sheet, to the SBTA when an 8(a) contract is awarded or modified. (57 FR 37890, Aug. 21, 1992)

shall periodically review individual set-asides to identify commodities and services suitable for class set-asides.

519.502_3 Partial set-asides.

(a) Initiating partial set-asides for stock items. Partial set-asides for procurement of stock items may be made when the following Economic Order Quantity (EOQ) factors are present:

(1) For annual contracts, an EOQ factor not exceeding 3 months; and

(2) For 6-month contracts, an EOQ factor not exceeding 1 month.

(b) Contract award. When the setaside portion of an item is awarded to the same concern as the corresponding non-set-aside portion, the award must be documented by issuing a separate contract or contract number for each group of items.

(c) Partial coverage. When only the non-set-aside portion of the procurement is awarded before the expiration of the current contract, contractual documents covering the transaction must be distributed to the ordering activities to provide at least partial coverage of the requirements.

(d) Contract coding. Information regarding partial or total set-asides must be included on GSA Form 1535, Recommendation for Award(s), as appropriate. Further, if a class set-aside is involved, the face of the GSA Form 1535 must be annotated as follows: Class set-asides apply to items

the review can be made by GSA and SBA within the timeframe provided in (c) of this section.

(c) Review of the contracting officer's determination should normally be completed within 5 workdays. GSA and SBA reviewing officials should notify the contracting officer if additional time is needed and request an extension of time to complete the review.

(d) Before the GSA or SBA reviewing officials provide additional small business sources to the contracting officer when requesting reconsideration of the non-set-aside determination, the reviewing officials shall contact the sources to ensure the source is interested in submitting an offer and to obtain information regarding the capability of the source to fulfill the Government's requirements. The information obtained should be provided to the contracting officer for consideration.

(e) If the SBTA recommends that the contracting officer set the procurement aside and the contracting officer still believes the procurement should be unrestricted, the matter must be referred to the contracting director's first level supervisor for a decision.

(f) If the SBA representative recommends that the contracting officer set the procurement aside and the contracting officer rejects the recommendation, the contracting officer shall comply with FAR 19.505. 519.503 Setting aside a class of acqui

sitions. (a) A class set-aside may consist of an item (or service), a group of related items under a Federal Supply Class (FSC), or a whole FSC when restricted to small business on more than a onetime basis, as distinct from a one-time basis. A single item or a group of items restricted to small business on more than a one time basis, even though constituting only a small portion of an FSC, is defined as a class set-aside.

(b) Class set-aside determinations must be documented in the following format:

(e) Ordering procedures. The Inventory Manager shall ensure that the specified division of orders is made in accordance with the clause at 552.219-71 in those cases where two contractors are to supply the same item(s).

519.502–70 Review of non-set-aside de

terminations. (a) If the contracting officer decides that a procurement that is expected to exceed $25,000 cannot be set aside for small business, the reasons for the decision must be recorded on the GSA Form 2689, Procurement Not Set Aside. The GSA Form 2689 must be submitted to the SBTA for review and coordination with the SBA.

(b) The SBTA will provide a copy of the GSA Form 2689 to the SBA representative as soon as possible so that

SMALL BUSINESS CLASS SET-ASIDE

DETERMINATION In accordance with FAR 19.502-2, it is hereby determined that procurements by the (name of contracting activity) of the following items or services will be set aside for small

business concerns on a class basis. This de- (b) If the SBA Central Office informs termination does not apply to any individual the contracting officer that it concurs procurement for which small purchase proce

with its Regional Office's intention to dures are to be used and applies only to the

issue a COC, the documentation availcontracting activity named above.

able clearly supports an appeal, and (List items or services)

the contracting officer believes an ap

peal to be in the Government's interThe above format must be appro- est, the contracting officer shall conpriately modified with respect to any tact AU and request that office forclass of procurements proposed to be mally appeal the SBA decision on the partially set-aside. It must be signed agency's behalf. After considering all by the contracting officer having pro- the facts and conferring with the applicurement responsibility for the class of cable contracting activity, AU will deitems or services involved, approved by cide whether or not to file a formal apthe appropriate contracting director or peal. Before a decision is made not to a designee, and placed in the contract appeal, AU shall notify the applicable file.

Central Office Service. Once a decision

is made regarding the appeal the con519.508 Solicitation provisions and

tracting officer will be notified. contract clauses. The contracting officer shall insert Subpart 519.7-Subcontracting the clause at 552.219_71, Allocation of with Small Business and Small Orders Partially Set-Aside Items, in

Disadvantaged Business Consolicitations and requirements type

cerns supply contracts that are partially set aside for small business.

519.701 Definitions.

Commercial products plan means an Subpart 519.6-Certificates of

annual subcontracting plan effective Competency and Determina

during the offeror's fiscal year for all tions of Eligibility

of the offeror's commercial products,

and which has goals based on the 519.602 Procedures.

offeror's production of both commer

cial and noncommercial products. This 519.602–3 Resolving differences between the agency and the Small

type of plan may apply to the produc

tion of the offeror's entire company, or Business Administration.

it may be limited to a division or (a) Within 5 working days or such

plant. longer period as may be agreed to after

Individual contract plan means a subthe contracting officer makes a request

contracting plan that applies to a speto the SBA Regional Office to appeal a cific contract and that has goals which notice of intention to issue a Certifi

are based upon the company's planned cate of Competency, the contracting subcontracting and purchasing of sup office shall prepare and forward the fol

plies and services in support of the perlowing information to AU:

formance of a specific contract, except (1) Copies of all correspondence be- that indirect costs incurred for comtween GSA and SBA concerning the

mon or joint purposes may be allocated case, including initial notice to SBA

on a prorated basis to the contract. Inthat a small business had been found

dividual contract plans may incornonresponsible;

porate a master subcontracting plan. (2) Copies of all technical documents Master subcontracting plan means a sent to SBA along with the notice (i.e., subcontracting plan which contains all solicitation, preaward surveys, ab- of the required elements except goals, stract of offers, if any, etc.);

and which may be incorporated into an (3) A fact sheet detailing all perti- individual plan provided (a) the master nent information to support an appeal plan has been approved by a Governaction to SBA, including any new in- ment contracting officer, (b) the formation and a justification of the offeror provides a copy of the approved contracting officer's decision to con- master plan and evidence of its ap tinue the appeal.

proval to the contracting officer and

(c) goals and any deviations from the master plan are approved by the contracting officer. Master subcontracting plans are useful for offerors who anticipate receiving many Government contracts requiring individual subcontracting plans. 519.702 Statutory requirements.

(a) The Small Business Act treats contracts and modifications separately, not cumulatively. Accordingly, if a subcontracting plan is not required at the time of award because the value of the contract is below the threshold, a subcontracting plan will not be required if a subsequent modification increases the value of the contract to an amount which exceeds the threshold, unless the value of the modification itself exceeds $500,000 or $1 million for construction contracts.

(b) It is not necessary to obtain another subcontracting plan for a modification exceeding $500,000 ($1 million for construction contracts) if the contract already includes a subcontracting plan. Modifications may be incorporated into an existing plan and, upon approval, the original plan goals revised to include the new effort.

options to extend the period of performance may be established for a period less than the full term of the contract (including options) when it is impractical to establish goals for the full term. However, the plan must include a schedule for establishing goals for the balance of the term of the contract and must establish separate goals for each option (see FAR 19.704(c)).

(b) Types of plans. For commercial products and public utility service contracts either a commercial products plan or an individual contract plan must be submitted. Individual contract plans must be submitted for all other contracts.

(c) Duration of plans- (1) Individual plans. The plan must cover the entire period of contract performance, including option periods (but see (a)(3), of this section, for goals).

(2) Commercial products plans. A commercial products plan is approved by the first Federal agency awarding a contract for commercial products during the contractor's fiscal year, and is applicable to every additional Federal contract for commercial products awarded to that contractor during the contractor's same federal year. If the approved plan is limited to a division or plant, it only applies to additional contracts for commercial products of that particular division or plant. The cutoff date for applying a previously approved commercial products plan to additional Federal contracts is the end of the company's fiscal year in which the plan was approved. If the contract extends beyond the contractor's fiscal year, the GSA contracting officer responsible for monitoring the existing plan, under $519.706–70 (c) and (d), must request a new plan 30 days prior to the end of the contractor's fiscal year. (54 FR 26527, June 23, 1989, as amended at 54 FR 40060, Sept. 29, 1989; 56 FR 3044, Jan. 28, 1991; 56 FR 59220, Nov. 25, 1991)

519.704 Subcontracting plan require

ments. (a) Subcontracting goals. (1) Positive subcontracting goals for small and small disadvantaged business concerns are required to establish a gauge for measuring results, and to provide an incentive for continuing efforts to increase the dollar value of contracts placed with small and small disadvantaged business concerns.

(2) Although there may be no known small or small disadvantaged business concerns that furnish the products or services required by a prospective contractor at the time a subcontracting plan is developed, a zero goal is not acceptable. A contractor is expected to make continuing efforts during the contract period to locate and identify newly emerging small and small disadvantaged business concerns as potential suppliers. Additionally, there may be subcontracting opportunities in the area of indirect costs.

(3) Goals in individual plans for multiyear contracts or contracts with

519.705 Responsibilities of the con

tracting officer under the sub

contracting assistance program. 519.705–2 Determining the need for a

subcontracting plan. (a) Before making a determination under FAR 19.705–2 that subcontracting opportunities exist on a

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prospective contract, which meets the dollar threshold, the contracting officer must submit the determination to the SBTA for review and comments. The SBTA shall contact the Director, Office of Small and Disadvantaged Business Utilization (AU), and consider any comments or recommendations offered.

(b) The requirement for submission of a subcontracting plan by only the ap parent successful offeror (FAR 19.702(a)(1)) does not apply to negotiated solicitations for prospectus level projects for construction, repair and alteration or leases of real property. Except for lease alterations (see 519.702), negotiated solicitations for prospectus level projects for construction, repair and alteration or leases of real prop erty shall require submission of a subcontracting plan in the format described in FAR 52.219-9 by all offerors that are not small business concerns. The plan will be negotiated concurrently with the cost and any required technical and management proposal. If an offeror fails to submit the required subcontracting plan and/or fails to correct deficiencies in the plan within the time period specified by the contracting officer, the offeror will be ineligible for award. (56 FR 64213, Dec. 9, 1991)

by the SBTA) by which the SBTA must submit comments. Oral comments may be accepted by the contracting officer when time restraints do not permit the SBTA to complete review on GSA Form 3584, Checklist for Review of Subcontracting Plan.

(3) The plan may be submitted to the SBA/PCR for concurrent review.

(4) Comments by the SBTA and/or SBA/PCR must be considered by the contracting officer in negotiating the plan and reasons for rejecting recommendations documented on GSA Form 3584 before submission of the plan to the SBTA and the SBA/PCR for final review. The contracting officer may award the contract if the SBTA and SBA/PCR have not completed their final review within 3 working days of the submission. In the case of an unresolved disagreement received during that period, the contracting officer must contact the Director, AU (see $519.705_5(a)).

(5) Except as provided in (a)(2), above, GSA Form 3584 must be used by the procuring contracting officer (PCO) and SBTA when reviewing subcontracting plans. Its use by the SBA PCR when reviewing plans is optional.

(b) In the goals section of the plan, small disadvantaged business goals are to be included in small business goals and, also, stated separately. If it is not clear from the plan that the offeror has done this, the contracting officer shall request clarification and have the offeror correct the goals, if necessary.

(c) The contracting officer shall question an offeror's proposed subcontracting goals when it appears that the goals, viewed against the criteria expressed at FAR 19.705-4(d), appear to offer less than the maximum practical opportunities for small and small disadvantaged subcontractors.

(d) The contracting officer's determination that an option offers no subcontracting opportunities must be explained either on GSA Form 3584 or as an attachment thereto, before it is for warded to the SBTA and the SBA PCR for review.

(e)(1) Before determining the responsibility of an offeror on a contract requiring a subcontracting plan, the contracting officer shall review the offeror's compliance with previous sub

519.705-4 Reviewing the subcontract

ing plan. (a) Early review of the subcontracting plan by the SBTA is usually beneficial in expediting contract awards by eliminating last minute disagreements between the contracting officer and SBTA over the content or goals expressed in the subcontracting plan.

(1) In a negotiated acquisition, a copy of the subcontracting plan must be provided to the SBTA as soon as practicable after review by the contracting officer and before negotiating the plan. If the solicitation required subcontracting plans from all offerors, the contracting officer shall provide to the SBTA only the plans of firms in the competitive range.

(2) When providing the plan to the SBTA, the contracting officer shall establish a definite date (a minimum of 5 working days, unless a shorter period is agreeable to the SBTA, from receipt

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