7:483 CONTRACT CLAUSES AND SOLICITATION PROVISIONS the Small Business Administration, that it is in the interest of maintaining or mobilizing the Nation's full productive capacity, in the interest of war or national defense programs, or in the interest of assuring that a fair proportion of the Government procurement is placed with small business concerns. Offers received from firms which are not small business concerns shall be considered nonresponsive and shall be rejected. (2) Part of this procurement, identified in the solicitation as the “labor surplus area (LSA) set-aside portion," has been further set aside for award only to one or more LSA concerns, which are also small business concerns, and, to a limited extent, to small business concerns which do not qualify as LSA concerns. Award of the LSA set- aside portion will be made after awards have been made on the non LSA set-aside portion. (b) Definitions. (1) A “small business concern” is a concern, including its affiliates, which is independently owned and operated, is not dominant in the field of operation in which it is making an offer on Government contracts, and can further qualify under the criteria set forth in the regulations of the Small Business Administration (CFR Title 13, Section 121.3–8). In addition to meeting these criteria, a manufacturer or a regular dealer submitting offers in his own name must agree to furnish in the performance of the contract, end items manufactured or produced by small business concerns; provided, that this additional requirement does not apply in connection with construction or service contracts. (2) Labor Surplus Area. The term "labor surplus area" means a geographic area which at the time of award is classified as such by the Secretary of Labor in the Department of Labor "Listing of Eligible Labor Surplus Areas Under Defense Manpower Policy 4A and Executive Order 10582". The term (3) Labor Surplus Area Concerns. "labor surplus area concern" means a concern that agrees to perform or cause to be performed a substantial proportion of a contract in labor surplus areas. A concern shall be deemed to perform a substantial proportion of a contract in labor surplus areas if the aggregate costs that will be incurred by the concern or its first tier subcontractors on account of manufacturing or production performed in labor surplus areas amount to more than 50% of the contract price. 7-2003.4 ARMED SERVICES PROCUREMENT REGULATION 7:484 CONTRACT CLAUSES AND SOLICITATION PROVISIONS (c) Procedures. (1) Determining Eligibility: (i) To be eligible to participate in the LSA set-aside portion of this procurement, a (ii) The Government reserves the right not to award to any concern submitting a (2) Determining Priority for Award: Labor surplus concerns eligible under (1) above will participate in the LSA set-aside in the following order of priority: Group I. Small business concerns which are also LSA concerns. If a quantity of the item with concerns in Group 1, the same procedure shall be followed for Group 2. (3) Determining the LSA set-aside award price: (i) General Rule. Subject to the exceptions listed in (ii) and (iii) below, awards 7-2003.4 ARMED SERVICES PROCUREMENT REGULATION 7:483 CONTRACT CLAUSES AND SOLICITATION PROVISIONS the Small Business Administration, that it is in the interest of maintaining or mobilizing the Nation's full productive capacity, in the interest of war or national defense programs, or in the interest of assuring that a fair proportion of the Government procurement is placed with small business concerns. Offers received from firms which are not small business concerns shall be considered nonresponsive and shall be rejected. (2) Part of this procurement, identified in the solicitation as the “labor surplus area (LSA) set-aside portion," has been further set aside for award only to one or more LSA concerns, which are also small business concerns, and, to a limited extent, to small business concerns which do not qualify as LSA concerns. Award of the LSA set- aside portion will be made after awards have been made on the non LSA set-aside portion. (b) Definitions. (1) A “small business concern" is a concern, including its affiliates, which is independently owned and operated, is not dominant in the field of operation in which it is making an offer on Government contracts, and can further qualify under the criteria set forth in the regulations of the Small Business Administration (CFR Title 13, Section 121.3–8). In addition to meeting these criteria, a manufacturer or a regular dealer submitting offers in his own name must agree to furnish in the performance of the contract, end items manufactured or produced by small business concerns; provided, that this additional requirement does not apply in connection with construction or service contracts. (2) Labor Surplus Area. The term "labor surplus area" means a geographic area which at the time of award is classified as such by the Secretary of Labor in the Department of Labor "Listing of Eligible Labor Surplus Areas Under Defense Manpower Policy 4A and Executive Order 10582". The term (3) Labor Surplus Area Concerns. "labor surplus area concern" means a concern that agrees to perform or cause to be performed a substantial proportion of a contract in labor surplus areas. A concern shall be deemed to perform a substantial proportion of a contract in labor surplus areas if the aggregate costs that will be incurred by the concern or its first tier subcontractors on account of manufacturing or production performed in labor surplus areas amount to more than 50% of the contract price. 7-2003.4 ARMED SERVICES PROCUREMENT REGULATION 7:484 CONTRACT CLAUSES AND SOLICITATION PROVISIONS (c) Procedures. (1) Determining Eligibility: (i) To be eligible to participate in the LSA set-aside portion of this procurement, a (ii) The Government reserves the right not to award to any concern submitting a (2) Determining Priority for Award: Labor surplus concerns eligible under (1) above will participate in the LSA set-aside in the following order of priority: Group I. Small business concerns which are also LSA concerns. If a quantity of the item with concerns in Group 1, the same procedure shall be followed for Group 2. (3) Determining the LSA set-aside award price: (i) General Rule. Subject to the exceptions listed in (ii) and (iii) below, awards 7-2003.4 ARMED SERVICES PROCUREMENT REGULATION CONTRACT CLAUSES AND SOLICITATION PROVISIONS item at higher prices, the weighted average price shall be used to determine the highest unit price for award if the highest award of the non LSA set-aside portion of an item was made on such a conditioned offer. When offers on the non LSA set-aside portion tie-in two or more items so that an award cannot be made for a quantity on one item without a concurrent award of a quantity on another item, such tie-in conditions will be disregarded and the price offered for each quantity under each item shall be considered separately. The LSA set-aside award price shall be subject to the same discount terms used in the evaluation of the highest non LSA set-aside award price. (ii) Award Price Involving Foreign End Products (see ASPR Section VI). (A) When the highest award price on the non LSA set-aside is established by an award for a foreign end product, the award price for the LSA setaside portion shall be the award price on the non LSA set-aside as adjusted in evaluating the offer submitting the foreign end product for award under applicable Buy American procedures, except for awards on the LSA set-aside to concerns offering foreign end products, in which case the general rule applies. (B) Award under the LSA set-aside to a concern offering a foreign end product, when the highest award price on the non LSA set-aside portion is established by an award to a firm offering a domestic source end product, shall be at a price which, after application of the evaluation factors used under Buy American procedures for determining eligibility of a foreign end product for award, is equal to the highest award price on the non LSA set-aside portion, adjusted to reflect transportation and other factors considered in evaluating the offers. (iii) Obtaining Offers and Processing LSA Set-aside Awards. (A) When an unaccepted low offer is not involved: if there is no unaccepted low offer meeting the criteria in (B) below, eligible concerns in the order of priority in (2) above will be requested to offer on the LSA set-aside quantity at the highest unit price awarded on the non LSA set-aside portion. Concerns may offer less than the total LSA set-aside portion. If any part of the LSA set-aside portion is not taken by eligible concerns, the partial LSA set-aside is automatically dissolved as to the unawarded portion. Such unawarded portion may be procured by advertising or negotiation, as appropriate, in accordance with existing regulations. (B) When an unaccepted low offer is involved: if(I) a responsive offer is submitted on the non LSA set-aside portion at a unit price which, when adjusted, is lower than the adjusted highest unit price awarded on the non LSA set-aside portion, but cannot be accepted (e.g., because of “all-or-none" or other quantity limitations, or because the offeror is nonresponsible), and (II) at the time of negotiation for the LSA set-aside portion, the offer could be accepted (e.g., because the LSA set-aside quantity is large enough that the quantity limitations could be complied with, or because the offeror has now become responsible), then the following procedures shall be followed. Step One. Eligible concerns (in the order of priority in (2) above) will be requested to offer at the adjusted unit price of the unaccepted offer, a quantity of the LSA set-aside portion equal to the quantity of the unaccepted offer. Step Two. If no eligible concern is willing to take the entire quantity of the unaccepted offer, then all eligible concerns (in the order of priority in (2) above) shall be requested to make offers on any lesser portion at the same price, until either the entire quantity is awarded or all eligible concerns refuse any further portions of such quantity. Step Three. Case 1. If the unaccepted offer was submitted by a concern not eligible to participate in the LSA set-aside, and if any of the quantity under Step Two is not awarded, then it and all other remaining quantities of the LSA set-aside portion must be withdrawn and resolicited. If the entire 7-2003.4 ARMED SERVICES PROCUREMENT REGULATION |