ing activity, as early as practicable, and shall cover the agency's requirements for each proposed research and development procurement involving the solicitation of proposals exceeding $10,000. To the maximum extent feasible, SBA shall be afforded a minimum of 15 workdays to provide pertinent information concerning qualified potential small business sources developed through its investigation of the capabilities of specific firms in the particular field of research and development covered by such procurements. The 15 workdays afforded SBA to recommend suggested sources may run concurrently with the usual publication notice in the Commerce Business Daily (see § 11.1003-3(a)). Full evaluation shall be given to any such information in selecting qualified sources. Sources recommended by SBA for a specific procurement shall be solicited. Exception to the policy of providing SBA a minimum of 15 workdays interval to recommend additional qualified small research and development sources for a proposed procurement will be permitted only in those instances where the head of the purchasing activity, or his designee, advises the SBA representative that such action would result in unjustifiable delay.

[35 FR 4260, Mar. 7, 1970]

§ 1-1.713 Contracts with the Small Business Administration.

§ 1-1.713-1 Authority.

In any case in which the Small Business Administration certifies to a procuring agency that SBA is competent to perform any specific contract, the contracting officer is authorized, in his discretion, to award the contract to SBA pursuant to section 8(a) of the Small Business Act (15 U.S.C. 637(a)) and this section and upon such terms and conditions consistent therewith as may be agreed upon between the SBA and the procuring agency. This authorization applies to all types of procurement contracts for personal property and nonpersonal services (including construction and research and development).

[37 FR 1037, Jan. 22, 1972]

§ 1-1.713-2 Policy.

(a) It is the policy of the Government to increase the participation of small business concerns in Government procurement by awarding procurement contracts to the Small Business Administration as authorized by section 8(a) of the Small Business Act for award of subcontracts by SBA to eligible concerns.

(b) In requesting a contract from a procuring agency for the purpose of assisting an eligible concern, the SBA will provide detailed purchase descriptions, Federal stock numbers, and other pertinent information to the fullest extent possible. However, authorized representatives of the procuring agency shall cooperate with and assist SBA representatives, as needed, in developing identifying information for the requirements being sought from the procuring agency. When practicable and feasible, the procuring agency representatives shall arrange for such additional assistance as may be required from agency procurement, technical, and supply management officials. The SBA will provide its best estimates of current and future procurement requirements so as to enable the procuring agency to evaluate its ability to render future assistance. For construction, the SBA will identify the category or categories of work, the extent of work needed, and location restrictions, if any.

(c) In addition to giving considera. tion to requests for procurement commitments received from the SBA, each procuring agency should also review other proposed procurements estimated to exceed $2,500 for the purpose of identifying other requirements which may be awarded to the SBA. The procuring agency should promptly notify the SBA of any such proposed procurements which are available for award to SBA under section 8(a). In connection with all proposed procurements which may become involved in an award to SBA, the procuring agency should furnish all available information concerning the work including, where applicable, but not limited to, quantities, required delivery schedules or time for performance, location, drawings and specifications, if any,

and current detailed Government estimates, where readily available, including quantities and unit costs; labor I costs, identified where possible with I specific items of materials to be placed or operations to be performed; facilities and equipment required, including E rental, hours, and rates; workmen's compensation and public liability insurance; overhead, general and administrative, and profit; employment taxes under FICA and FUTA; bonds; and any other readily available inforI mation which will help SBA to determine whether it will submit a request to the procuring agency for a procurement commitment.

B (d) When requested by the SBA, the contracting officers of the procuring agencies and their authorized representatives shall render all possible assistance to the SBA relative to its negotiations with eligible concerns regarding the possible award of section 8(a) subcontracts. At the SBA's reE quest, the contracting officers of the procuring agencies or their authorized representatives may conduct negotiations with eligible concerns, but any agreements which may be reached as the result of such negotiations must be approved by an authorized representative of the SBA. Procuring agency contracting officers are responsible for reviewing and evaluating section 8(a) subcontract price proposals and accompanying cost or pricing data in support of negotiations with SBA subcontractors when cost analysis is required by paragraph (a) of § 13.807-2. Procuring agency contracting officers also are responsible for arranging for any preaward or postaward contract audits required by § 1-3.809 to assist in evaluating section 8(a) subcontract proposals, related cost or pricing data, and cost submissions.

(e) Generally, section 8(a) contracts between a procuring agency and the SBA will not be considered for specific items or work after such items or work have been synopsized in the Commerce Business Daily or publicized to or solicited from industry.

[37 FR 1037, Jan. 22, 1972, as amended at 45 FR 8602, Feb. 8, 1980]

§ 1-1.713-3 Procurement of supplies, services, and research and development.

(a) Factors to be considered. When a procuring agency receives a request from SBA which involves the procurement of supplies, services, or research and development, consideration shall be given to:

(1) Estimated total requirements of the identified items planned for procurement in the current fiscal year and, to the extent possible, future fiscal years;

(2) Required monthly rates of production and delivery or performance;

(3) Items of work of similar complexity and nature if there are no known requirements for the specifically identified items;

(4) Impact if the items or work are urgent or if slippage in performance or delivery occurs; and

(5) Any other information concerning the items or work of the prospective subcontractor which is pertinent to the requested commitments, including the price range in previous or current procurements.

(b) Cost or pricing data. When required by § 1-3.807-3, the SBA shall secure from its prospective subcontractor cost or pricing data, together with any necessary supporting certificate.

(c) Notification. After completing its review of the SBA's request for a commitment, the procuring agency will notify the SBA of the extent to which a section 8(a) contract will be placed with the SBA and the time frames within which the prime and subcontract actions have to be completed in order to satisfy the procuring agency's program responsibilities. This notification represents a firm commitment by the procuring agency to award a contract to SBA under terms and conditions which are agreeable to both agencies, provided that there is no material change in requirements, availability of funds, or other pertinent factors. In the notification to the SBA, the procuring agency may also fix a time limit (generally not less than 30 workdays after receipt of the notification) within which the SBA must establish contact with the designated procuring activity of the procuring agency and initiate negotiation of the

13-131 0-83--7

section 8(a) contract. If negotiations are not completed within the time frame established by the procuring agency, the agency may notify SBA that it intends to proceed with the procurement without further regard for the section 8(a) procedures, unless additional time is requested by SBA and such additional time is granted by the procuring agency after giving due regard to the urgency of the proposed procurement.

(d) Provisions of contracts with SBA. After the SBA has completed its negotiations with an eligible concern pursuant to the procurement commitment made by the procuring agency, and after the SBA and the procuring agency have reached an agreement concerning the terms and conditions (including price) to be included in the contract to be awarded by the procuring agency to the SBA and have also mutually agreed upon the terms and conditions (including price) to be included in the subcontract to be awarded by the SBA to a small business concern, the procuring agency shall prepare two sets of contract documents as follows:

(1) Standard Form 26, Award/Contract, and Standard Form 36, Continuation Sheet, shall be prepared for execution by the SBA and the procuring agency. Authority for negotiation of the contract shall be cited as 41 U.S.C. 252 (c)(15) and 15 U.S.C. 637(a). The contract shall be prepared in the same detail as would be required for an award to a private business. It should be recognized, however, that the contract is to be executed by the SBA and the procuring agency. No requirement for the SBA to furnish payment or performance bonds shall be included in the contract. In addition to the terms and conditions which have been mutually agreed upon by the SBA and the procuring agency, Standard Form 32, General Provisions, appropriate procuring agency forms, and other appropriate provisions shall be incorporated in the contract. Unless otherwise agreed upon between the SBA and the procuring agency, the following clause (or a clause similar thereto) also shall be incorporated in the contract:

SPECIAL 8(a) CONTRACT CONDITIONS The Small Business Administration (SBA) agrees as follows:

(a) To furnish the supplies or services set forth in this contract according to the specifications and the terms and conditions hereof by subcontracting with an eligible concern pursuant to the provisions of section 8(a) of the Small Business Act, as amended (15 U.S.C. 637(a)).

(b) That in the event SBA does not award a subcontract for all or a part of the work hereunder, this contract may be terminated either in whole or in part without cost to either party.

(c) SBA hereby delegates to the (insert name of procuring agency) the responsibility for administering the subcontract to be awarded hereunder with complete authority to take any action on behalf of the Government under the terms and conditions of the subcontract: Provided, however, That the (insert name of procuring agency) shall give advance notice to the SBA before it issues a final notice terminating the right of a subcontractor to proceed with further performance, either in whole or in part, under the subcontract for default or for the convenience of the Government.

(d) Payments to be made under any subcontract awarded under this contract will be made directly to the subcontractor by the (insert name of procuring agency).

(e) That the subcontractor awarded a subcontract hereunder shall have the right of appeal from decisions of the Contracting Officer cognizable under the "Disputes" clause of said subcontract, which clause shall be identical with that set out in Article 12 of Standard Form 32. It is further understood and agreed that the subcontract to be executed between the SBA and SBA's subcontractor shall also include a clause as follows:

For the purpose of this subcontract, the reference to the "Secretary or his duly au thorized representative" in the "Disputes" clause of this subcontract (Article 12 of Standard Form 32, General Provisions) shall be deemed to mean, respectively, the (insert Secretary or Administrator) of the (insert name of procuring agency) and the Board of Contract Appeals of the (insert name of procuring agency).

(2) The original and one duplicate original copy of the contract documents shall be executed by an authorized official of the SBA and the contracting officer of the procuring agency. The original executed contract (and such additional authenticated, conformed, or reproduced copies as may be required by the procuring agency) shall be retained by the pro

curing agency and distribution shall be made in accordance with its internal regulations and procedures. The duplicate original copy of the contract (and such additional authenticated, conformed, or reproduced copies as may be required by SBA) shall be forwarded by the procuring agency to SBA for distribution in accordance with its internal regulations and procedures.

(e) Provisions of subcontracts awarded by SBA. (1) The subcontract which will be executed by SBA and its subcontractor shall be prepared by the procuring agency on Standard Form 33, Solicitation, Offer, and Award, or on Standard Form 26, Award/Contract, as appropriate, and Standard Form 36, Continuation Sheet. It shall be prepared in the same detail as would be required for a normal procurement contract awarded by the procuring agency, recognizing at the same time, however, that the subcontract is to be executed by SBA and its subcontractor. In addition to the terms and conditions, including price, delivery and performance dates, and other pertinent information which have been agreed upon and incorpoer rated in the contract between SBA and the procuring agency, and which, Din turn, have been agreed upon during the negotiations between the SBA and its subcontractor, Standard Form 32, General Provisions, and other approBpriate procuring agency forms and special provisions shall also be incorporated in the subcontract. Unless otherwise agreed upon between the SBA and the procuring agency, the following clause (or a similar clause) shall also be incorporated in the subcontract:

rel

DES

ies

SPECIAL 8(a) Subcontract CONDITIONS

(a) The Small Business Administration (SBA) has entered into Contract No. (insert number of contract) with the (insert name of procuring agency) to furnish the supplies or services as described therein. A copy of said contract is attached hereto and made a part hereof. As used in this subcontract, the reference to "the Secretary or his duly authorized representative" in the "Disputes" clause of this subcontract (Article 12 of Standard Form 32, General Provisions) shall be deemed to mean, respectively, the (insert Secretary or Administrator) of the (insert name of procuring agency) and the

Board of Contract Appeals of the (insert name of procuring agency).

(b) The (insert name of the subcontractor), hereafter referred to as the subcontractor, agrees and acknowledges as follows:

(1) That he will, for and on behalf of the SBA, fulfill and perform all of the requirements of Contract No. (insert number of contract) for the consideration stated therein and that he has read and is familiar with each and every part of said contract.

(2) That the SBA has delegated responsibility for the administration of this subcontract to the (insert name of procuring agency) with complete authority to take any action on behalf of the Government under the terms and conditions of this subcontract.

(3) That he will not subcontract the performance of any of the requirements of this subcontract to any lower tier subcontractor without the prior written approval of the SBA and the designated contracting officer of the (insert name of procuring agency).

(c) Payments, including any progress payments, under this subcontract will be made directly to the subcontractor by the (insert name of procuring agency).

(2) The original and two duplicate original copies of the subcontract shall be executed by the subcontractor and an authorized official of the SBA. The original executed subcontract and such additional authenticated, conformed, or reproduced copies as may be required by SBA shall be retained by SBA for internal distribution in accordance with its regulations and procedures. One duplicate original copy of the executed subcontract and such additional authenticated, conformed, or reproduced copies as may be required by the procuring agency shall be furnished to the procuring agency for internal distribution in accordance with its regulations and procedures. The second duplicate original copy of the executed subcontract, together with an attached copy of the contract between the SBA and the procuring agency shall be furnished to the subcontractor.

(f) Special services. The requirements set forth in §§ 1-1.713-3(d)(1) and 1-1.713-3(e)(1) concerning the terms and conditions to be included in contracts between the SBA and procuring agencies and in subcontracts between the SBA and eligible concerns may be modified as appropriate for contracts and subcontracts involving

specialized types of services such as building services, food services, and business concessions.

[37 FR 1038, Jan. 22, 1972]

§ 1-1.713-4

Procurement of construction.

(a) Information furnished by SBA. In subcontracts for construction (including maintenance, repair, and alteration), it is the policy of the Small Business Administration to award subcontracts under the section 8(a) program only to those concerns which have been approved by SBA as supporting the policy objectives of § 11.713-2. In the execution of this policy, the SBA will furnish to the procuring agency its request for a commitment showing at least the following information:

(1) The various categories of maintenance, repair, alteration, and construction work in such specific work project categories as mechanical, electrical, heating and air conditioning, demolition, building painting, paving, earth work, waterfront work, or general construction work; and

(2) The individual identification of the estimated dollar value in each category.

(b) Evaluation of SBA requests. The procuring agency will evaluate the SBA request for a commitment and determine to what extent the agency has proposed work projects for which funding is available in those requested categories. In the evaluation of the SBA request for a commitment, the matters considered shall include the following:

(1) The extent to which work projects of the type requested by SBA are planned for procurement in the current fiscal year and, to the extent known, future fiscal years; and

(2) Work projects of similar complexity and nature if there are no known work projects of the specific type requested.

(c) Lists of construction projects. In addition to specific individual requests by the SBA, the procuring agency shall furnish to the SBA, in accordance with a mutually acceptable schedule, lists of construction work projects which it deems to be suitable for subcontracting by SBA under the section 8(a) program.

(d) Cost or pricing data. When required by § 1-3.807-3, the SBA shall secure from its prospective subcontractor cost or pricing data, together with any necessary supporting certificate.

(e) Notification. After completing its review of the SBA request for a commitment, the procuring agency shall notify the SBA of the extent to which a section 8(a) contract will be placed with the SBA and the time frames within which the contract actions need to be completed in order to satisfy its program responsibilities. This notification represents a firm commitment by the procuring agency to award a contract to SBA under mutually acceptable terms and conditions, provided there is no material change in requirements, availability of funds, or other pertinent factors. The notification should contain the following information with regard to the work projects:

(1) A summary of the proposed work;

(2) Plans and specifications;

(3) Required performance schedules; (4) Any other pertinent and reasonably available data, wage determination by the Secretary of Labor, if required; and

(5) Available detailed Government cost estimates, including:

(i) Material quantities and unit costs;

(ii) Labor costs (identified with the specific item of material to be placed or operation to be performed);

(iii) Construction equipment (hours and rates);

(iv) Workmen's compensation and public liability insurance;

(v) Overhead and profit; (vi) Employment taxes under FICA and FUTA; and

(vii) Bonds.

(f) Time limitations. In the notification to the SBA, the procuring agency may also fix a time limit (generally not less than 30 days after receipt of the notification) within which the SBA must establish contact with the designated procuring activity and initiate negotiations of the section 8(a) contract. If negotiations are not completed within the time frame established by the procuring agency, the designated procuring activity may