TVA follows the regulations established by War Manpower Order No. 4 which provides that preference shall be given to small business in making awards where bids are otherwise equal and uses the 12-percent factor in evaluating foreign bids when the low domestic bidder is a small business concern. TVA's needs for spare parts for its large equipment have resulted in development of small business sources for producing these parts. Small businesses are very helpful in this respect and are being used to the maximum extent possible. In all of TVA's contracts a special subcontracting clause is used to increase participation of small businesses in subcontracting of TVA business. This clause provides as follows: Subcontracting With Small Business. It is the policy of the Government as expressed by the Congress that a fair proportion of purchases by or for it be made from small business concerns. To the greatest extent found consistent with the efficient performance of this contract, contractor shall secure material and supplies required for the completion thereof from small business concerns. If the contractor does not already have a formal small business contracting program, contractor shall work, to the extent necessary, with the nearest Regional Office of the Small Business Administration in determining the availability of competent small business concerns from which such material and supplies may be secured. If you wish additional information, please let us know. Sincerely yours, AUBREY J. WAGNER, Chairman. DEPARTMENT OF TRANSPORTATION (The subcommittee's request for information follows:) SELECT COMMITTEE ON SMALL BUSINESS, Hon. ALAN S. Boyd, 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 information. 1. Statistical report for fiscal year 1967 showing small business participation by dollars and percent in the department's advertised, negotiated and set-aside procurements over $100, excluding Coast Guard, Federal Aviation Administration, and Federal Highway Administration. 2. Description by type of requirements procured in fiscal year 1967 and the relative dollar value of each category. 3. Statements of policies, practices and procedures established or contemplated to insure that a fair proportion of purchases and contracts or subcontracts for the requirements of the department and its component agencies be placed with small business, and to develop and encourage small business participation in the department's various programs at prime and subcontract levels. A response and your comments in 12 copies by November 3, 1967 will be appreciated. Sincerely yours, (The response follows:) Hon. ABRAHAM J. MULTER, Washington, D.C. ABRAHAM J. MULTER, Chairman, Procurement Subcommittee. THE SECRETARY OF TRANSPORTATION, DEAR MR. MULTER: This is in reply to your letter of October 16, 1967 in which you requested certain information regarding small business procurement within the Department. Since you have already requested this information directly from the Federal Aviation Administration, the Coast Guard and the Federal Highway Administration, I will confine this report to the remaining procurement activities of the Department in order to avoid duplication. As you know the Department has only been in existence since April 1, 1967 so that the Fiscal Year 1967 for the Department represents the final 3 months of the year. During that period all procurements for the Office of the Secretary were handled by the Federal Aviation Administration since no procurement organization was available within the Departmental staff. The statistics reported by the Federal Aviation Administration in response to subparagraphs 1 and 2 of your letter included the procurements for the Office of the Secretary. The only remaining procurement activities of any consequence not covered in the reports already submitted to you, are the Alaska Railroad and the St. Lawrence Seaway Development Corporation. Both of these activities have been requested to provide the information desired, however, because their offices are located outside the Washington area there is not sufficient time to permit a reply by the date you have requested. Their reports will be forwarded to you as soon as they are received. Procurement policies and procedures for across the board application within the Department are still in the development stage. At the present time, each of the operating administrations is largely following its previously established policies and procedures on procurement while the Departmental staff is in the process of examining them for the purpose of reconciling differences and establishing uniform Departmental policy. It is contemplated that the policy of the Department will be that stated in Federal Procurement Regulation 1-1.702, including the 13 specific policies outlined therein. The policies and procedures of the operating administrations will be periodically reviewed to insure that they are within both the letter and the spirit of the above regulation. In other words, it will be the Department's policy to foster and encourage maximum participation in the Small Business program. Sincerely, (Additional information follows:) ALAN S. BOYD. OFFICE OF THE SECRETARY OF TRANSPORTATION, Hon. ABRAHAM J. MULTER, House of Representatives, Washington, D.C. DEAR MR. MULTER: In further reply to your letter of October 16, 1967, Enclosures (1) and (2) provide the requested data for the Alaska Railroad and the St. Lawrence Seaway Development Corporation. All other information was forwarded to you directly by the administrations of the Department, and by our earlier letter of November 1, 1967. Sincerely, JAMES W. WILLIAMS, Rear Admiral, U.S. Coast Guard, Deputy. THE ALASKA RAILROAD, FEDERAL RAILROAD ADMINISTRATION, DEPARTMENT OF TRANSPORTATION 1. SMALL BUSINESS PARTICIPATION, FISCAL YEAR 1967 PROCUREMENTS A. Advertised procurements.—Small business received awards valued at $307,638, and representing 80 percent of the total advertised procurements. B. Negotiated procurements.-Small business received awards valued at $231,996, and representing 10 percent of the total negotiated procurements. C. Small business set-asides.-Small business received awards valued at $54,918, resulting from set-aside procurements. 2. TYPES OF REQUIREMENTS PROCURED IN FISCAL YEAR 1967 General supplies, $3,405,690; equipment, $269,000; commissary, $32,254. ST. LAWRENCE SEAWAY DEVELOPMENT CORPORATION, DEPARTMENT 1. SMALL BUSINESS PARTICIPATION, FISCAL YEAR 1967 PROCUREMENTS A. Advertised procurements.—Small business received awards valued at $33,747, representing 67 percent of the total advertised procurements. B. Negotiated procurements.-Small business received awards valued at $111,845, representing 87 percent of the total negotiated procurements. C. Small Business Set-Asides.-None. 2. TYPES OF REQUIREMENTS PROCURED IN FISCAL YEAR 1967 Equipment replacement, $8,000; repair service, 5,000; new items and replacement items for stockroom issue, 192,846. DEPARTMENT OF TRANSPORTATION U.S. COAST GUARD (The subcommittee's request for information follows:) SELECT COMMITTEE ON SMALL BUSINESS, Adm. WILLARD J. SMITH, The Commandant, U.S. Coast Guard, Department of Transportation, Washington, D.C. DEAR ADMIRAL SMITH: 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 Coast Guard'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 Coast Guard's procurements. A response and your comments in 12 copies by October 31 will be appreciated. Sincerely yours, (The response follows:) ABRAHAM J. MULTER, Chairman, Procurement Subcommittee. Hon. ABRAHAM J. MULTER, Chairman, Procurement Subcommittee, Washington, D.C., October 24, 1967. House of Representatives, Washington, D.C. DEAR MR. MULTER: This is in reply to your letter dated 10 October 1967. The following is a summary of small business participation by dollar and percent in the Coast Guard's advertised, negotiated and set-aside procurements over $100 during fiscal years 1964-1967: The statistical records maintained do not show a description by type of requirements and the relative dollar value of each category. Each procurement is reviewed for possible small business set-aside and justification is placed in each contract if the procurement is not set-aside. A copy of this justification is reviewed by the small business representative periodically to assist Coast Guard in developing new small business sources of supply to be used on future procurements. It is the policy of the Coast Guard to assure for small business a fair share of its procurement. It is hoped that the information furnished above will be helpful to your committee. It has been a pleasure to be of service in this matter. Sincerely yours, P. E. TRIMBLE, |