Page images

eceipt of the documentation, notar



cer, as to proposed awards of moet $2,500, but less than $10,000.

(4) This procedure does De - where the contracting officer haul

a small business concern not to sponsible for a reason other the of capacity or credit.

(5) A determination by the comme officer that a small business center not responsible for reasons other to ficiencies in capacity or credit 6 of integrity, business ethics, or per failure to apply necessary tense

to do an acceptatie!

not whether the bidder can peric: through (v) are not followed due to conmented in the contract file. These it with and the determination that a small officer and approval by the head o mediately to the head of the procuring contracting officer shall transmit at at the time of notification make availtivity or his designee for approvai citrement, the procurement agency shall termination that a small business financial information with respect to the cern is not responsible, for reasons a small business concern Involved, includChe appropriate SBA Regional Ofici tation for bids or request for proposals.

(ii) The SBA office receiving the construed to prevent a contracting officer zentation will, within 5 workdarse

chall eligible under the procurent

contracting officer in writing whether from selecting, in the

SBA desires to submit contrary views source of supply offe tion award shall be withheld pendant concerning the determination.

competence obtainable cop- SBA issuance of a certificate

(iii) If the contracting officer is not entific approach wher of petency of the expiration of IS EL

so notified, he may conclude that SBA needed in certain neg sed days after SBA is so notified


has no objection to the determination, ments of research 947 Is earlier, subject to the following:

and he may then submit it for approval highly complex equipn ep (1) This procedure 's not mandat

to the head of the procuring activity or or professional service 1th the contracting officer certifies : his designee.

small business concern Ing, and such certificate is appare

(Iv) II SBA notifies the contracting on the basis of the his et- higher authority within his agent

officer of an intent to submit contrary obtainable or best sci the award must be made withart

views, SBA will, within 10 workdays and, prior to award, the all includes such certificate and supp

from the date of notification to the con cer determines that th Cor documentation in the contract 2

tracting officer, furnish the contracting responsible because of promptly furnishes a copy 60 SB!!

officer with such contrary views and the or credit, the certificat ral of a case to SBA or execIKA

reasons therefor, together with any ad procedure in paragra certificate of urgency shall not?

ditional factors considered which were § 1-1.708-2 is applicabl cy ferred pending investigation si

not included in the contracting officer's (d) After a contract mination of the responsibility di determination. If the SBA response is

a negative finding regar offerors.

not received at the expiration of the 10 or credit of a small bus (2) This procedure does not in

day period, the contracting officer may the SBA regional office 11 proposed awards of less than sus

forward the determination for approval shall notify the contra A (3) This procedure is options with advice that such was the case.

plans to issue a certifica in the discretion of the contract

(v) If, after consideration of SBA or to refer the applica views, the contracting officer agrees with Central Office, Washir the SBA position, the determination shall contracting officer shall be rescinded. If the contracting officer of any new or additional does not agree with the SBA position, he which have been dev shall then forward the determination to facts warrant, the co the head of the procuring activity or his

should consider a revers designee for resolution, with an explicit finding. Every effort sh indication of his views and the contrary resolve the differences b SBA position. The decision of such the contracting agency higher authority shall be final.

plete exchange of preaw (vi) The provisions

of $ 1-1.708 (e) If agreement car 2(a) (1) apply if the award must be made between the SBA region without delay. In such instance, if

contracting officer, the the procedures of 1-1.708–2(a) (5) (1)

cer shall request the SB siderations of urgency, the requirements

to suspend action and

case to the SBA Centra $ shall be complied

ington, D.C., for review

tral Office may decli business concern is not responsible for

certificate of competenc reasons other than deficiencies in capacity or credit shall be submitted im

contracting officer of th may inform the contrac

higher authority within activity or his designee for approval.

agency of the reasons (b) To assist SBA in determining the

posed affirmative action capacity and credit of small business concerns involved in a particular pro

agency shall notify th Office within 10 workda of written notification of

affirmative action wheth SBA all pertinent

peal will be made at th level. The appeal shall be

in 10 workdays after t Ing but not limited to copies of the invi

Office is notified that ar drawings, specifications, preaward sur

made or at such later veys, and abstracts of bids.

agreed upon by SBA an (c) Nothing in this section shall be

agency. Following the Associate Administrator determination relative t

whether he will perform) must te ported by substantial evidence

of responsibility are not covered certificate of competency procedure are for determination by the conta

procuring activity or his designet

(i) Prior to submission of the coming ing officer's determination of norway sibility to the head of the procura

of the documentation the

than deficiencies in capacity or crew

official 1

o the appropriate agency cerned with small business affai ccordance with agency procedures



tacts in amounts 210,00 except (1) canding all subcontr to be performed Tited States, its po In, and (2) contra 2 personal in natu IZATION OF SMAL

w It is the policy sund by the Congo tand the purchases la and services to at with small bus

W The Contractos utarimum amoun sal business concer has to be consistent Table of this con

End of Al The Small B 1 Program claus 11410-3, shall be

of competency action and his determina (See § 1-1.805 for subcontracting poli area and minority tion will be considered final.

cies with respect to labor surplus area matters.) (30 FR 9591, July 31, 1965, as amended at concerns.)

14 FR 44137, Sept. 25, 84 FR 19675, Dec. 2, 1969; 35 FR 3283, Feb. 21, 1970; 38 FR 26913, Sept. 27, 1973; 42 FR 23507,

(b) This § 1-1.710 sets forth the pro

[1-1710-3 Requi May 9, 1977)

gram for furtherance of this policy and,
together with Subpart 1-3.9, prescribes

The Utilizatic § 1-1.708–3 Conclusiveness of certifi the contract clauses and procedures for

Oncerns clause, cate of competency. use in carrying out the small business

-1.910-3, shall be As provided in the Small Business Act

subcontracting program. (15 U.S.C. 637(b) (7)), procurement

(c) As used in this Subpart 1-1.7, the agencies are required to accept SBA cer

term subcontractor includes a supplier tificates of competency as conclusive of a

and applies at any level of performance prospective contractor's responsibility as

of the contract; and the term subcon. to capacity and credit.

tract includes a purchase order.

ortbet9 10 (38 FR 26913, Sept. 27, 1973] Stub30079

(d) To carry out more effectively the

Government's policy objectives stated in $ 1–1.709 Records and reports. The paragraph (a) of this section, prime Executive agencies shall maintain rec

contractors and subcontractors having ords of the value of procurement con

small business subcontracting programs tracts placed with small business con

must be informed of (1) the Governcerns. Accordingly,


ment's evaluation of their efforts in caractivity shall, in soliciting bids, or

rying out an effective small business subproposals, request from any bidder or

contracting program, (2) any specifically offeror any information needed to deter

noted deficiencies in their small business mine whether the bidder or offeror is a

subcontracting programs, and (3) any small business concern (when Standard areas of outstanding achievement where Forms 18, 19-B, and 33 are used, this in they may have exceeded contractual reformation is available from the small

quirements. Any evaluation and remarks business representation included on

to the contractor, including areas of sugthese forms). Agencies shall summarize

gested improvement and areas where the and report such procurement data on

contractor has exceeded contractual reStandard Form 37 (Report on Procure

quirements, must be documented. ment by Civilian Executive Agencies) in (29 F.R. 10104, July 24, 1964, as amended at accordance with g 1-16.804.

36 F.R. 3117. Feb. 18, 1971) (31 F.R. 5880. Apr. 16, 1966)

§ 1-1.710_2 Small business subcontract§ 1-1.710 Subcontracting with small

ing program. business concerns.

The Government's small business sub

contracting program requires Govern§ 1-1.710–1 General.

ment prime contractors to assume an af(a) It is the policy of the Government firmative obligation with respect to to enable small business concerns to be subcontracting with small considered fairly as subcontractors and concerns. In contracts which range from suppliers to contractors performing work $10,000 to $500,000, the contractor underor rendering services as prime contrac takes the obligation of accomplishing the tors or subcontractors under Govern- maximum amount of small business subment procurement contracts, and to contracting which is consistent with the assure that prime contractors and sub efficient performance of the contract. contractors having small business sub This undertaking is set forth in the concontracting programs will consult tract clause prescribed in § 1-1.710-3(a). through the appropriate procuring In contracts which may exceed $500,000, agency with the Small Business Admin the contractor is required, pursuant to istration when requested by SBA. How the clause set forth in $ 1-1.710-3(b), ever, the Small Business Administration to undertake a number of specific reis not authorized to prescribe the ex sponsibilities designed to assure that tent to which any contractor or subcon small business concerns are considered tractor shall subcontract or specify the fairly in the subcontracting role and to concerns to which subcontracts shall be impose similar responsibilities on major granted, and is not vested with author- subcontractors. (The liaison officer reity respecting the administration of in

quired by the latter clause may also dividual prime contracts or subcontracts. serve as liaison officer for labor surplus


the documenta Hon, notis 70

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The Contracte stunet a small program which will terms to be cons meton and supply hathila connection 1) Designate a maintain a son

Hanne with the u 1. Concerns clau Contractor's hurting Program Provide ade

e concerns in all Assume that bare an equit

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mall business concerns are consid ve as liaison officer for labor supost 11Public Contracts, Property Home Chapter 1-Federal Procurement Regulations (See $ 1-1.805 for subcontract area and minority business enterprise

tion of bids, quantities, cies with respect to labor supo matters.)

delivery schedules BO ed at concerns.)

small [40 FR 44137, Sept. 25, 1975)

participation of . 21,

Where the Contractor's (b) This $ 1-1.710 sets forts ties 3507, § 1-1.710–3 Required clauses.

small business subcontra gram for furtherance of this par (a) The Utilization of Small Business

long. reasonable effort 8h together with Subpart 1-3),

all such small business -tifi. the contract clauses and procedente Concerns clause, set forth in this

portunity to compete ove $ 1-1.710–3, shall be included in all conuse in carrying out the small is

(4) Maintain records ] tracts in amounts which may exceed each prospective subcon Act subcontracting program

$10,000 except (1) contracts which, in business concern. (11) pro ent (c) As used in this Subpart 1 cluding all subcontracts thereunder, are

been adopted to comply w term subcontractor includes erto be performed entirely outside the

forth in this clause, and and applies at any level of perfor United States, its possessions, and Puerto

to the letting of any sub of the contract; and the terms Rico, and (2) contracts for services which

purchase orders) exceedin as tract includes a purchase order are personal in nature.

cion substantially as follo (d) To carry out more efecte

(A) Whether the awar UTILLATION OF SMALL BUSINESS CONCERNS small business. Government's policy objectiles sur paragraph (a) of this section : (a) It is the policy of the Government as

(B) Whether less than declared by the Congress that a falr propor.

(Wo small business firms contractors and subcontractors by tion of the purchases and contracts for sup

IC) The reason for non small business subcontracting plies and services for the Government be

business If such was the ca must be informed of (1) the lo placed with small business concerns.

(D) The reason for sm ment's evaluation of their efforts to (b) The Contractor agrees to accomplish

to receive the award if 8 the maximum amount of subcontracting to

when small business was rying out an effective small bucoes

small business concerns that the contractos contracting program, (2) any spel

The records maintained

Ands to be consistent with the eficient per
noted deficiencies in their smal's
formance of this contract.

(111) above may be in suc subcontracting programs, and

trertor may determine, a (End of Clause

shall be summarized qua areas of outstanding achleremesi

ted by the purchasing d they may have exceeded contractu

(b) The Small Business Subcontract Individual plant or divisie quirements. Any evaluation and is

ing Program clause, set forth in this tor's cognizant small bust to the contractor, including areas i 1-1.710–3, shall be included in all con.

Such quarterly summaries gested Improvement and areas ry tracts which may exceed $500.000, which

to be management recor contractor has exceeded contracu contain the clause required by $ 1-1.710-3

not be submitted routine quirements, must be documented a) and which, in the opinion of the pro

ment: however, records m

to this clause will be kep curing activity, offer substantial subcon. (29 F.R. 10104, July 24, 1964, AS ALTOS

view by tbe Government u 36 F.R. 3117. Feb. 18, 1971)

possibilities Furthermore,

of 1 year after the award prime contractors who are to be awarded § 1-1.710-2 Small business subesi

for such longer period & contracts which may not exceed $500.000, ing program.

by any other clause of t but which, in the opinion of the procur

Applicable law or regulatia Ing activity. offer substantial subcon

(5) Notify the Contrac tracting possibilities, shall be urged to

soliciting bids or quotat accept this clause.

contract (including pur


concern is to be solicited. (a) The Contractor agrees to establish and

tracting Oncer's consent cocduct a small business subcontracting

(or ratification) 18 requin program which will enable small business

tracts" clause in this cor concerns to be considered fairly as subcon.

will state the Contractor tractors and suppliers under this contract

Rolicitation of small bust In this connection, the Contractor shall

will be given at early in (1) Designate a llaison officer who will

cycle as possible Botha 11) maintain llaison with the Government on

Omcer may give SBA time small business matters. (11) supervise com

SBA a reasonable period pliance with the utilization of Small Busi

tlally qualified small ness Concerns clause, and (111) administer

through the Contracting the Contractor's "Small Business Subcon

will the procurement actic tracting Program."

to do so would, in the Con (2) Provide adequate and timely con.

delay performance under sideration of the potentialities of small busi

(6) Include the Util Dess concerns in all “make-or-buy" decisions.

Business concerns claus (3) Assure that small business concerns

which offer substantial 61 will have an equitable opportunity to com

contracting opportunities pete for subcontracte, particularly by are

(7) Cooperate with the ranging solicitations, time for the prepara

in any studies and surveys subcontracting procedures


The Government's small business
contracting program requires Gå
ment prime contractors to assumes
firmative obligation with respe
subcontracting with small be
concerns. In contracts which rana
$10,000 to $500,000, the contractor
takes the obligation of accomplisha
maximum amount of small business
contracting which is consistent i
efficient performance of the com
This undertaking is set forth in the
ract clause prescribed in § 1-1.716
n contracts which may exceed SW
ne contractor is required, pursue
ze clause set forth in $1-1.7141
· undertake a number of specife
consibilities designed to assure

irly in the subcontracting role 2? pose similar responsibilities on contractors. (The liaison officer red by the latter clause may


A summary of the
mendations norma
the contractor's ca
the contractor's pla
relred). Any deficie
ter's (or subcontrac
je brought to the
nector's designated
I request for correo
ten to the distribi
miten reports of r
ained in the contra
x. These reports
de to SBA, smal
ther contracting
procaring agencies,

6) Subcontracte
meting records mu
test offices shall E

en by SBA upor

O SBA recom
hasis of the forego
periodic reviews of
sekractor's "Sma
beeting Program,"
mmendations to
Regarding methods
business participati
wewntract award
warte agency will
the meanting level,

frem te verlews.

De of peric
protesting agencies
seas has made
traetor's "Sme
treting Program"
Al mentes, that I
puter procuring
a new and se
like contractor's
MTR. 3118, Feb. 1
11-1711 Federe

Where orders a
beply Schedule
Mize of the cont
piren schedu
Sacerns, the or
wordance with
bels set forth

the Federal Pegulations

APR. 8688, Apr 11-1712 Sma

in research ment action

NIR.4280, Mar

(10) The accuracy of the contract

each review shall be prepared India g the extent of compliance with all of ce of the contractor (or subcontos , as appropriate, shall be documents

tance of small business. The speed

Conther ponParract rns,

ded mts

to ess At

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Le to (c) Procedure for conducting in

The following factors shall be ces in the periodic review to determiz adequacy of the contractor's (imit subcontractor's) "Small Busines i contracting Program":

(1) The extent to which the 11 pursues an energetic program a le additional small business subens sources, including utilization of their ices of the contract administrated SBA, and appropriate media sude Commerce Business Dally;

(2) The contractor's efforts to I with small business concerns de ment type work likely to result bl production opportunities;

(3) The contractor's policy and p tices in providing financial

, engler technical, or managerial assister small business subcontractors;

(4) The contractor's efforts to be out components of large systems no to promote broader competida i greater opportunities for small be subcontractors;

(5) The extent to which top man ment supports the program by oral and written policy statement holding periodic training and disea meetings for personnel;

(6) The extent of contractor's pat




A summary of the findings and recom $ 1-1.712-1 Publiciz mendations normally should be sent to development proc the contractor's corporate office (or to altract small busin the contractor's plant, if a plant was in To the fullest extent volved). Any deficiencies of the contrac

cies shall publicize i tor's (or subcontractor's) program shall

and development proc be brought to the attention of the con

through use of the Co tractor's designated liaison officer with

Daily (see § 1-1.1003) a request for corrective action. In addi

vance to allow partic tion to the distribution outlined above,

priate small business written reports of reviews shall be main

procurements. Agen tained in the contract administration of consider use of other si fice. These reports shall be made avail

publicizing research able to SBA, small business specialists,

requirements to attra other contracting officers, and to other

participation in addit procuring agencies, upon request.

the Commerce Business (e) Subcontracting records. Subcon

135 FR 4260, Mar. 7, 1970) tracting records maintained by Government offices shall be made available for

§ 1-1.712-2 Expansio review by SBA upon request.

ness sources for re (1) SBA recommendations. On the

opment procureme basis of the foregoing records and the Agencies shall conti perlodic reviews of the adequacy of the and develop informa contractor's "Small Business Subcon business concerns whi tracting Program," SBA may make rec to perform research ommendations to the procuring agency The search shall inclus regarding methods for increasing small relevant data or broch business participation in the contractor's small business sources subcontract awards. SBA and the pro and development work curing agency will freely interchange, at erative effort by tec the operating level, information resulting small business specialis from the reviews.

ing officers to obtain (g) Use of periodic reviews by other

recommendations with procuring agencies. Where a procuring

potential sources. agency has made a periodic review of a

135 F.R. 4260, Mar. 7, 1970 contractor's “Small Business Subcon

§ 1-1.712-3 Selection tracting Program” within the preceding

sources for researc! 12 months, that review may be used by

procurement. another procuring agency in lieu of mak (a) Policy. Agencies ing a new and separate review of the

reasonable efforts to in same contractor's program.

ber of qualified small b 136 F.R. 3118, Feb. 18, 1971 ]

perform research and

tracts and shall encour: § 1-1.711 Federal Supply Schedule con

tion of small business

as other sources, in s Where orders are placed under Federal

actions. Supply Schedule contracts and one or

(b) Procedures-(1) more of the contractors for an item on

and use of information å given schedule are small business

sources. Contracting concerns, the orders shall be placed in

personnel, and small b accordance with the policies and proce

shall cooperatively seel dures set forth in $ 101-26.408–4(b)

formation on the tech of the Federal Property Management

of small business conc Regulations.

and development conto 132 F.R. 6568. Apr. 28, 1967)

ness specialists shall r

the attention of contra § 1-1.712 Small business participation

technical personnel in research and development procrre

brochures, and other i ment actions.

small business concer (36 F.R. 4260. Mar. 7, 1970)

parently competent to 73

pation in procurement conferences dor open house days, and similar p ings designed to provide an “open or to small companies seeking subconto



(7) The adequacy of Justificatie cluded in procurement ales for dees not to solicit small business on indi ual procurements;

(8) The extent to which the comme tor considers small business interest make-or-buy decisions;

(9) The extent to which the comme tor has taken corrective action to edy deficiencies in his program were previously called to his attente records indicating the size status als contractors; and

(11) Any unusual efforts to prom he program whether or not they were ontractual requirements. (d) Report of review. A written te


actual provisions pertaining to the eas of deficiency or superior perfor 0,

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