The Department has developed a simplified form for contracts covering supplies and services under $10,000. Only those provisions which are necessary for small contracts are included. This provides a short, readily understandable, easy-to-read invitation for bid and contract.

Proposed procurements estimated to exceed $5,000 in value are publicized in the "Commerce Business Daily". Agriculture procurement officers throughout the nation provide business information services for interested businessmen. Counsel rendered ranges from the details on how to get on bidder's lists and what forms to use, to how and where to obtain information about current bidding opportunities. Our Washington office answers hundreds of inquiries annually, providing generalized information about the procurement programs of the Department.

During fiscal year 1967, the Department of Agriculture was represented at fifteen "Business Opportunity/Federal Procurement Conferences" which were held throughout the United States. One of the main purposes of these conferences is to assist small business concerns in locating additional Federal purchasing sources for their commodities within their general locality.

1 Includes (a) contracts for construction of roads, trails, dams, and buildings (estimated 41 percent of total); and (b) procurements of supplies, materials, etc. (estimated 59 percent of total), for consumption or use by the Department in carrying out its programs.

TABLE 2.-SECS. 6 AND 32 COMMODITY PROCUREMENTS (42 U.S.C. 1755, 7 U.S.C. 612c, 15 U.S.C. 713c)

1964. 1965.

1966. 1967

1964.

1965.

1966.

1967.

TABLE 3.-SEC. 416, COMMODITY CREDIT CORPORATION PROCUREMENTS (7 U.S.C. 1431)

ATOMIC ENERGY COMMISSION

(The subcommittee's request for information follows:)

SELECT COMMITTEE ON SMALL BUSINESS,
HOUSE OF REPRESENTATIVES OF THE UNITED STATES,
Washington, D.C., October 10, 1967.

Hon. GLENN T. SEABORG,
Chairman, Atomic Energy Commission,
Washington, D.C.

DEAR MR. CHAIRMAN: The Procurement Subcommittee of the House Select Committee on Small Business is conducting a study of the small business procurement policies, practices and programs of Federal departments and agencies. In connection with this study, it will be appreciated if you would furnish the following: 1. Statistical report showing small business participation by dollars and percent in the Commission's advertised, negotiated and set-aside procurements of supplies, services and construction during fiscal years 1964-1967.

2. Statistical report for the same period showing small business participation by dollars and percent in subcontracting by AEC prime contractors.

3. Statements of policies applied and methods utilized to develop and encourage small business participation in the commission's procurements at prime and subcontract levels.

A response and your comments in 12 copies by October 31 will be appreciated. Sincerely yours,

(The response follows:)

Hon. ABRAHAM J. MULTER,
Chairman, Procurement Subcommittee,
Select Committee on Small Business,
House of Representatives.

ABRAHAM J. MULTER, Chairman, Procurement Subcommittee.

U.S. ATOMIC ENERGY COMMISSION,
Washington, D.C., October 31, 1967.

DEAR MR. MULTER: As requested in your October 10, 1967, letter, we are providing statistical data and information concerning policies and methods utilized to develop and encourage small business participation in Atomic Energy Commission procurements at prime and subcontract levels.

We appreciate the opportunity to send this information concerning the Atomic Energy Commission's small business program, and we would first like to comment briefly on our procurement and contracting program in general, even though we may duplicate some of the information provided in our October 9,1963, letter to the Subcommittee (supplemented by testimony by AEC witnesses at hearings held by the Subcommittee in November 1963).

Basic to an understanding of AEC's small business activities is recognition that the AEC carries out its program in the main through a relatively few large prime operating contractors. The amount and diversity of manpower and other resources required of these operating contractors are generally beyond the capacities of the normal small business. For example, the major portions of AEC's total contract costs of approximately $2.3 billion for FY 1967 went to our large operating contractors-those major corporations, universities, and associations of universities which actually run the extensive AEC-owned production, manufacturing, and research and development complexes. The great majority of opportunities for small business participation in our program occurs under these large operating contracts, at the subcontract level. This is where the vast bulk of AEC's real procurement is done and where the small business program is focused.

This does not mean that we do not emphasize small business participation in the prime contracting areas when they are suitable for performance by small business, for we do. Over the years, however, our experience has been that from a dollar standpoint the small business opportunities are at the operating contractor's procurement level. AEC pioneered the subcontract small business program back in 1951. We believe our contractors have given it good support. Exhibit A illustrates graphically the results.

(Exhibit A referred to follows:)

EXUESIT A

EXHIBIT A

AEC

SUBCONTRACTING

TO SMALL BUSINESS

Statistical data showing small business participation in AEC prime procurements for Fiscal Years 1964-1967 are enclosed as Exhibit B-1.

Includes original contracts, modifications, amendments, and supplemental agreements.

The data shown for fixed-price and cost-type actions. As emphasized in our transmittal letter, the predominant share of AEC contract dollars is for operation of Government-owned plants, laboratories, and other facilities, and for certain complex construction jobs. Because such contracts must, by their nature, be cost type, it follows that a relatively small percentage of our total prime contract dollars are awarded as a result of competitive bidding. Even though there is no formally advertised bidding, as such, for these negotiated procurements, they are made on a competitive basis to the maximum practical extent, and procedures are followed to provide assurance that the contractor selected is in the best interests of the Government.

* Includes materials, supplies, and equipment for construction and for other than construction.

4 Includes architect-engineer, rents and utilities, research and development, and other services.

Data concerning AEC direct procurement and prime cost-type contractor setaside awards of supplies, services, and construction for the same period are enclosed as Exhibit B-2.

(Exhibit B-2 follows:)

EXHIBIT B-2

AEC DIRECT PROCUREMENT SET-ASIDE AWARDS OF SUPPLIES, SERVICES, AND CONSTRUCTION

1 Records are not maintained which would enable us to provide information on set-aside awards by category of procurement.