POST OFFICE DEPARTMENT (The subcommittee's request for information follows:) SELECT COMMITTEE ON SMALL BUSINESS, Hon. LAWRENCE F. O'BRIEN, Post Office Department, Washington, D.C. DEAR MR. POSTMASTER GENERAL: 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 department's advertised, negotiated and set-aside procurements over $100 during fiscal years 1964-1967. 2. Description by type of requirements procured and the relative dollar value of each category. 3. Statements of policies applied and methods utilized to develop and encourage small business participation in the department's procurements. A response and your comments in 12 copies by October 31 will be appreciated. Sincerely yours, (The response follows:) Hon. ABRAHAM J. MULTER, ABRAHAM J. MULTER, Chairman, Procurement Subcommittee. POST OFFICE DEPARTMENT, ASSISTANT POSTMASTER GENERAL, Washington, D.C., November 6, 1967. Chairman Procurement Subcommittee, Select Committee on Small Business, House of Representatives, Washington, D.C. DEAR MR. CHAIRMAN: This is in further reference to your letter of October 9, 1967, and our reply of October 10, 1967, in connection with the study of small business procurement policies, practices and programs of Federal departments and agencies. The information requested is attached hereto. We will be glad to furnish any additional information which you may desire. Sincerely, (The attachment referred to follows:) JOHN L. O'MARRA, Assistant Postmaster General. STATEMENT OF POST OFFICE DEPARTMENT POLICY AND METHODS UTILIZED To DEVELOP AND ENCOURAGE SMALL BUSINESS PARTICIPATION IN THE DEPARTMENT'S PROCUREMENTS The Post Office Department is guided by provisions of the Federal Procurement Regulations which prescribe small business policies. The Procurement Division of the Bureau of Facilities is responsible for determining those individual procurements which are to be set aside for small business. Each individual invitation is considered for small business set aside at the time of preparation. Complexity of the item, past bidding experience and the ability of small business concerns to meet the terms, conditions and specifications are carefully considered before a final decision is made. Small business concerns are not excluded from bidding on any procurement as copies of the invitations are mailed to all persons or firms, regardless of size, on the bidder's list. Invitations to bid do not exclude small business concerns simply because they are classified as such. All firms, regardless of size, must, of course, meet the standards of a responsible prospective contractor as set forth in FPR 1-1.310.5. Any questions with respect to capacity or credit are referred to the Small Business Administration for final determination as to capacity and credit and for issuance of a Certificate of Competency. Invitations to bid are issued by this Department for items to meet the Department's needs. Copies are sent to all firms on the appropriate bidder's list and, in addition, procurements are publicized in the Department of Commerce Synopsis of U.S. Government Proposed Procurements Sales and Contract Awards in accordance with FPR 1-2.203-4 and 1-1.1003. The specifications mailed with the invitations to bid describe the product or service which is required. These specifications are of necessity somewhat inflexible at times; however, this is necessary to insure that the Department's requirements will be met. Every effort is made to avoid restrictive specifications or to require items or services of a quality which is in excess of requirements. Many of the procurements made by the Department are of a relatively small monetary value, that is, less than $100,000. Invitations to bid are issued frequently for reasonable quantities, thereby giving small business concerns ample opportunity to submit bids. The majority of our present contracts are performed by the prime contractor. The clause entitled "Utilization of Small Business Concerns" prescribed by FPR 1-1.710-3a is included in all invitations which may exceed $5,000. In addition, the small business subcontracting program clause prescribed by FPR 1-1.710-3b is included in all invitations which may exceed $500,000. DEPARTMENT OF STATE (The subcommittee's request for information follows:) Hon. DEAN RUSK, SELECT COMMITTEE ON SMALL BUSINESS, Department of State, Washington, D.C. DEAR MR. SECRETARY: 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 department's advertised, negotiated and set-aside procurements over $100 during fiscal years 1964-1967. 2. Description by type of requirements procured and the relative dollar value of each category. 3. Statements of policies applied and methods utilized to develop and encourage small business participation in the department's procurements. A response and your comments in 12 copies by October 31 will be appreciated. Sincerely yours, (The response follows:) Hon. ABRAHAM J. MULTER, ABRAHAM J. MULTER, Chairman, Procurement Subcommittee. DEPARTMENT OF STATE, Washington, D.C., October 26, 1967. Chairman, Procurement Subcommittee, Select Committee on Small Business, House of Representatives. DEAR MR. CHAIRMAN: The Department welcomes this opportunity to furnish the report and information on its Small Business Program which you requested in your letter of October 9. 1. The statistical report below reflects, both on volumetric and percentage bases, a healthy participation by small business concerns in the procurement program of the Department: 2. The Department's records on its Small Business Program are kept in accordance with the requirements of 41 CFR 1-1.709. Unfortunately, these records do not reflect the type of requirements procured nor the dollar value by category. We are therefore unable to furnish this information. We can state, however, that the nature of the Department's functions does not generate unusual or esoteric requirements. 3. The Department applies all of the policies and procedures provided in the Federal Procurement Regulations (41 CFR 1) to increase small business participation in its procurement program. We hope that this information will be of aid to your Subcommittee. Sincerely yours, WILLIAM B. MACOMBER, JR., Assistant Secretary for Congressional Relations. TENNESSEE VALLEY AUTHORITY (The subcommittee's request for information follows:) Hon. AUBREY J. WAGNER, 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 authority's advertised, negotiated and set-aside procurements over $100 during fiscal years 1964-1967. 2. Statistical report for the same period showing small business participation in procurements of coal and heavy equipment. 3. Description by type of other requirements procured and the relative dollar value of each category. 4. Statements of policies applied and methods utilized to develop and encourage small business participation in the authority's procurements. A response and your comments in 12 copies by October 31 will be appreciated. Sincerely yours, (The response follows:) Hon. ABRAHAM J. MULTER, ABRAHAM J. MULTER, Chairman, Procurement Subcommittee. TENNESSEE VALLEY AUTHORITY, Knoxville, Tenn., October 27, 1967. Chairman, Procurement Subcommittee, House Select Committee on Small Business, The House of Representatives, Washington, D.C. DEAR MR. MULTER: This is in response to your letter of October 10, 1967, requesting information on TVA's small business procurement program for fiscal years 1964-1967 and the policies and methods used to encourage small business participation in that program. 1. Statistical report showing small business participation by dollars and percent in TVA's advertised, negotiated and set-aside procurements over $100 during fiscal years 1964-1967. The following is for all purchases over $100 excluding purchases from foreign sources, Federal sources of supply, educational and nonprofit institutions and blind-made products: (504) 2. Statistical report for the same period showing small business participation in procurements of coal and heavy equipment. We do not maintain statistics on purchases of heavy equipment which would enable us to determine the volume of small business participation in TVA's procurement of heavy equipment. However, we would like to point out that TVA's larger purchases are usually for heavy electrical and mechanical equipment and, in general, small businesses are not in a position to participate in these types of purchases. 3. Description by type of other requirements procured and the relative dollar value of each category. We regret that we cannot supply this information since TVA does not maintain detailed statistics on the many types of material and light equipment purchased from small business concerns. 4. Statements of policies applied and methods utilized to develop and encourage small business participation in TVA's procurements. Because of the wide variety of materials required by TVA in its operations, and the fact that many of these are produced or sold by small businesses, such businesses receive a sizable portion of TVA's purchase awards. Some of TVA's larger purchases are for large quantities of coal and nuclear fuel. In general, small businesses are not in a position to participate in these types of purchases and a set-aside program for such purchases would not be possible. However, TVA procures a large number of items which are available almost exclusively from small businesses. TVA's records show that about 200 different mailing lists of potential suppliers of various items are made up of small businesses only, which illustrates that although TVA does not have a formal set-aside program these items are, in effect, set aside for small business. TVA reports its purchase requirements daily to the Department of Commerce's Commerce Business Daily. This publication makes available to small businesses information concerning TVA requirements. The response by small business has been good and has resulted in awards to small businesses which normally would not have been familiar with TVA's procurement program. 84-790-68 -33 |