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GENERAL SERVICES ADMINISTRATION ACQUISITION MANUAL (GSAM)
Part 519— Small Business Programs |
“Office of Small Business Utilization staff” as used in this subpart, means the staff with responsibility for supporting small business activities. In GSA, this is the Office of Small Business Utilization, (OSBU) with personnel in central office and each region.
(a) The Associate Administrator, Office of Small Business Utilization (AA OSBU) is the Director of Small and Disadvantaged Business Utilization in GSA.
(b) The AA OSBU delegates duties to Small Business Technical Advisors (SBTAs), for each region through written appointment. All references to SBTA in this part refer to the SBTA designated to support his/her service or region, whichever is applicable.
(c) Contracting officers shall work with the designated SBTA for their region or service.
When applicable, the following procedures shall be used to promote small business through acquisition:
(a) For any acquisition that requires a GSA Form 2689 per 519.502-70, an acquisition plan shall be submitted to the SBTA. The acquisition plan shall be submitted to the SBTA for approval after the GSA Form2689 has been approved.
(b) The designated SBTA will provide the copy of the proposed acquisition package to the SBA PCR in accordance with FAR 19.202-1(e) and GSAM 519.4.
(c) When placing orders or establishing BPAs against multiple-award contracts (see FAR 2.101), small businesses should be given consideration prior to large businesses.
(a) Queries using the “Dynamic Small Business Search,” at http://dsbs.sba.gov are encouraged to locate small business sources.
(b) The designated SBTA may be contacted for assistance with identifying small business sources.
(c) The contracting officer must coordinate communications through the SBTA (see GSAM 519.4) when contacting the SBA Procurement Center Representative (PCR) in accordance with FAR 19.202-1.
If SBA determines that an offeror is not a small business concern, and there is evidence that the offeror knowingly misrepresented itself as such, contracting activities must refer the matter to the Inspector General and should also refer the matter to the Suspension and Debarment Official.
If SBA determines that an offeror is not a disadvantaged small business concern, and there is evidence that the offeror knowingly misrepresented itself as such, contracting activities must refer the matter to the Inspector General and should also refer the matter to the Suspension and Debarment Official.
If SBA determines that an offeror is not a HUBZone small business concern, and there is evidence that the offeror knowingly misrepresented itself as such, contracting activities must refer the matter to the Inspector General and should also refer the matter to the Suspension and Debarment Official.
If SBA determines that an offeror is not a service-disabled veteran-owned small business concern, and there is evidence that the offeror knowingly misrepresented itself as such, contracting activities must refer the matter to the Inspector General and should also refer the matter to the Suspension and Debarment Official.
If SBA determines that an offeror is not a women-owned small business or economically disadvantaged women-owned small business concern, and there is evidence that the offeror knowingly misrepresented itself as such, contracting activities must refer the matter to the Inspector General and should also refer the matter to the Suspension and Debarment Official.
The AAOSBU is the focal point for interfacing with SBA. Refer issues relating to small business programs through the designated SBTA.
Subpart 519.5— Set-asides for Small Business |
(a) The contracting officer may make awards under the 8(a) Business Development Program (see FAR 19.8), or set aside for the Historically Underutilized Business Zone (HUBZone) Program (see FAR 19.13, Women-Owned Small Business (WOSB) Program (see FAR 19.15), or Service-Disabled Veteran-Owned Small Business (SDVOSB) Procurement Program (see FAR 19.14).
(b) Once a contracting activity acquires a product or service successfully on the basis of a set-aside, the activity must acquire all future requirements for that product or service using set-aside procedures. If the contracting officer determines that he or she no longer can reasonably expect to receive offers from at least two responsible small business concerns and make awards at fair market prices, use the procedures in FAR 19.506 to withdraw or modify a set-aside. When market research reveals that any supplies or services from mandatory sources, such as Federal Prison Industries, Inc. and AbilityOne, that were not available at the time of the original requirement have become available, a contracting officer may discontinue setting aside a continuing requirement (see FAR 8.002 and 8.003). The contracting officer shall document the determination to discontinue setting aside a continuing requirement (see 519.502-70).
(a) General. GSA Form 2689, Small Business Analysis Record.
(1) The GSA Form 2689 is used to–
(i) Record evidence that consideration has been given to small business, service-disabled veteran-owned small business, HUBZone small business, small disadvantaged business, or women-owned small business, or 8(a) Business Development Program participants; and
(ii) Document that small businesses received maximum practicable opportunity to participate in a proposed acquisition.
(2) The GSA Form 2689 may be used in place of a “Memo to File” when documenting the requirement for market research and as a tool to assure maximum practicable small business opportunity.
(3) The contracting officer shall include all pertinent documents with the GSA Form 2689 to support the proposed acquisition strategy (i.e., Dynamic Small Business Search results, responses to Federal Business Opportunity sources sought notice, performance work statement, statement of work, sole source justification, consolidation or bundling determination, business case, etc.).
(4) The contracting officer shall record the justification and rationale for the determined acquisition strategy on the GSA Form 2689.
(b) Consolidated or Bundled Acquisitions. The GSA Form 2689 is required for acquisitions when consolidation, bundling or substantial bundling (FAR 2.101 and 7.107-4) is contemplated regardless of estimated total contract value.
(c) Orders.
(1) The GSA Form 2689 is required for orders and Blanket Purchase Agreements (BPAs), including BPA orders, against Multiple-award Contracts (see FAR 2.101) and expected to equal or exceed $6 million (see FAR 7.104(d)), unless the contract, order or BPA is set aside for one of the small business programs specified in FAR 19.203 (e.g. 8(a), HUBZone, WOSB, or SDVOSB).
(2) Orders or BPAs against Multiple-award Contracts (see FAR 2.101) that are less than $6 million do not require a GSA Form 2689, unless the acquisition is consolidation, bundling or substantial bundling.
(d) Acquisitions at or below the Simplified Acquisition Threshold (SAT).
(1) The GSA Form 2689 is not required for acquisitions at or below the SAT, unless the acquisition is consolidation, bundling or substantial bundling. However, it may be used to document market research. Contracting officers are encouraged to use the GSA Form 2689 to document any determination to not use small business under the SAT in accordance with FAR 19.502-2(a).
(2) The GSA Form 2689 does not require SBTA or SBA PCR review or signature when documenting market research.
(e) Acquisitions expected to exceed the Simplified Acquisition Threshold (SAT).The GSA Form 2689 is required for acquisitions expected to exceed the SAT when–
(1) A determination is made to set aside for small business but not one of the small business programs specified in FAR 19.203 (8(a), HUBZone, WOSB, or SDVOSB); or
(2) A determination is made to utilize full and open competition.
(f) Exceptions. The GSA Form 2689 is not required for–
(1) Acquisitions with mandatory sources (see FAR 8.002 and 8.003);
(2) Acquisitions, including contracts, orders, and BPAs, that have been set aside for a small business program specified in FAR 19.203 (e.g. 8(a), HUBZone, WOSB, or SDVOSB) unless consolidated, bundled or substantially bundled; or
(3) Orders or BPAs under $6 million, unless consolidated, bundled or substantially bundled (see paragraphs (b) and (c) of this subsection).
(g) GSA Form 2689 Requirement Conditions.
(1) General. The following table is a reference to determine when the GSA Form 2689 is required for completion and submission.
(2) Instructions. The table has an order of precedence.
(i) Review the “Contract Vehicle Conditions” column in numerical order.
(ii) Once a condition applies to the acquisition, the applicability of the form will be identified in the “GSA Form 2689 Required?” column.
(iii) Once a condition applies to the acquisition, further conditions down the table do not apply.
(h) GSA Form 2689 Concurrence and Timeframes.
(1) Use the guidance in paragraphs (c) through (g) to determine if a GSA Form 2689 is required. If a GSA Form 2689 is required, then follow the dollar value thresholds in the table below to determine the level of concurrence for the form.
(2) If the acquisition meets one of the following criteria, the contracting officer must obtain all concurrences of the GSA Form 2689 regardless of the concurrence threshold:
(i) Complex, critical to agency strategic objectives and mission, highly visible or politically sensitive.
(ii) Acquisitions that will be performed in more than one region.
(3) The SBTA is responsible to follow-up with the SBA PCR and inform the contracting officer.
(4) The SBTA must request from the contracting officer an extension if concurrence will not be met by the established timeframe as defined above in the table.
(5) If a response is not received from the SBA PCR, the SBTA must elevate within OSBU for resolution at
(6) If the contracting officer does not receive a response from the SBTA within the established timeframes and the SBTA has been unresponsive to the contracting officer’s inquiries, the contracting officer should elevate within OSBU for resolution at
(7) If a “Non-Concur” is received on the GSA Form 2689, the contracting officer is required to re-submit for concurrence. The timeframe for review is reset when the form is re-submitted.
(i) Disagreements. If a reviewing official disagrees with the contracting officer’s decision not to set aside an acquisition, the SBTA must provide the contracting officer the rationale for the disagreement or provide the contracting officer with additional small business sources that are interested in and capable of fulfilling the requirement. Review and consider any information provided by the SBTA before making a decision.
(j) Resolving disagreements. The HCA (see 502.101), as delegated, in the applicable Central Office and/or Regional Service resolves disagreements between the contracting officer and the SBTA. To resolve disagreements with the SBA PCR, see FAR 19.505.
(a) Definition. A class set-aside is an item (or service), a group of related items under a Federal Supply Class (FSC), or a whole FSC set aside for exclusive small business participation on more than a one-time basis. If the item or group of items constitute only a small portion of an FSC, this definition still applies.
(b) Determinations. If the contracting officer has procurement responsibility for the class of items or services involved, prepare the determination required by FAR 19.503. The determination can apply to either a total or partial set-aside.
If the contracting officer and the SBTA disagree over the withdrawal or modification of a set-aside, the SBTA must notify the AAOSBU at the same time the matter is referred to the SBA PCR.
519.508 Solicitation provisions and contract clauses.Insert 552.219-70, Allocation of Orders—Partially Set-Aside Items, in solicitations and requirements type supply contracts that are partially set aside for small business. |
(a) Within 5 business days after requesting the SBA Area Office to refer an intention to issue a Certificate of Competency to SBA Headquarters for review, the contracting officer shall forward the information in paragraphs (a)(1) and (a)(2) of this subsection to the AAOSBU through your designated SBTA. This period may be extended by mutual agreement.
(1) Copies of all correspondence between GSA and SBA concerning the case. Include the initial referral notice of nonresponsibility.
(2) Copies of all technical documents sent to SBA (for example, the solicitation, preaward surveys, or any abstract of offers). Include any new information and a justification of the contracting officer's decision to continue the appeal.
(b) After considering all the facts and conferring with the contracting officer, the AAOSBU will decide whether or not to file a formal appeal. Before deciding whether or not to appeal, the AAOSBU must notify the contracting officer.
(c) For decisions on cases over $25,000,000, the AAOSBU shall confer with the contracting activity before responding to SBA regarding either of the options in FAR 19.602-3(b)(1)(i) and (ii).
Subpart 519.7— The Small Business Subcontracting Program |
In addition to FAR 19.705 responsibilities, the contracting officer's preaward responsibilities include:
(a) Developing target goals for sealed bid solicitations when practicable.
(b) Following FAR 15.306, conducting discussions with individual offerors, as appropriate, concerning the subcontracting plans submitted for a negotiated solicitation.
(a) When the contracting officer calculates the applicable threshold, consider the actual or estimated value of the contract for the entire term of the contract, including any option period(s). This also applies to schedule contracts and other indefinite delivery type contracts. Consider the estimated value of all orders expected to be placed during the term plus all options.
(b) FAR 19.705-2(d) permits the contracting officer to require submission of subcontracting plans with initial offers under a negotiated acquisition. The contracting officer must require all offerors (other than small business concerns) to submit subcontracting plans with their initial offers when a negotiated acquisition meets all conditions:
(1) The contracting officer anticipates receiving individual subcontracting plans (not commercial plans).
(2) The contracting officer will award on the basis of trade-offs among cost or price and technical and/or management factors under FAR 15.101-1.
(3) The acquisition is not a commercial item acquisition.
(4) The acquisition offers more than minimal subcontracting opportunities.
(5) An offeror’s subcontracting plan is identified as an evaluation factor in the solicitation.
(c) Nothing in paragraph (b) above limits the contracting officer’s ability to request subcontracting plans with initial offers under other negotiated acquisitions when he or she decides such action is appropriate under FAR 19.705-2(d). For example, such action may be appropriate for multiple award schedules where GSA may have responsibility for negotiating commercial plans.
(d) Notify the AAOSBU after receipt of offers if the contracting officer determines that an apparent successful offeror’s proposal has no subcontracting opportunities.
(1) Coordinate the notice through the contracting officer's SBTA.
(2) Include justification documenting the rationale behind a determination of no subcontracting opportunities. The contracting officer may use the justification provided by the apparent successful offeror
(3) Obtain AAOSBU concurrence on the determination prior to contract award.
(a) If an acquisition, excluding any multiple award schedule contract, will cover two or more Regions and is estimated to exceed $50 million (including options):
(1) In addition to the SBA PCR, the contracting officer shall provide the SBTA and OSBU a reasonable period of time (approximately 10 days) to review any solicitation requiring submission of a subcontracting plan and to submit advisory findings before issuing the solicitation. The contracting officer shall ensure that evaluation criteria contained in the solicitation do not unnecessarily limit subcontracting opportunities for small, HUBZone small, small disadvantaged, women-owned small, veteran-owned, and service-disabled veteran-owned small business concerns.
(2) For a negotiated acquisition, if the contracting officer believes that the acquisition provides substantial subcontracting opportunities, consider including the offeror’s subcontracting plan as an evaluation factor for award. This may be most appropriate in acquisitions when the contracting officer expects individual plans or master plans. The contracting officer should consult with his or her SBTA or regional SBUC to obtain any needed assistance with developing subcontracting plan evaluation criteria before incorporating the plan into the solicitation as an evaluation factor.
(b) Unrealistic target goals tend to inhibit competition or increase acquisition costs if goals are too high. Target goals that offer no challenge to potential contractors reflect poorly on GSA’s commitment to ensure maximum practicable use of small, HUBZone small, small disadvantaged, women-owned small, veteran-owned, and service-disabled veteran-owned small business concerns as subcontractors.
(c) In establishing target goals for sealed bid solicitations, the contracting officer should avoid using mechanical formulas or similar approaches that may be considered arbitrary. Reviewing historical performance by contractors performing similar work is valid, but the contracting officer should consider each solicitation independently in terms of the potential for subcontracting. Use as many information sources as practical, including the contracting officer’s own knowledge of the supplies or services. Factors to consider in setting targets include:
(1) Manufacturing processes involved.
(2) Availability and location of potential subcontractors.
(3) The basis for establishing subcontracting relationships.
(4) The diversity in prevailing economic conditions in the place of contract performance.
(d) If the contracting officer cannot establish realistic target goals, do not state specific targets in the solicitation.
(1) Establishing realistic target goals is likely to be a problem in contracting for supplies because the place of contract performance may not be known prior to contract award.
(2) Even if the contracting officer can predict the area of contract performance because a particular industry is concentrated there, the diversity of manufacturing processes may affect the amount of subcontracting and how subcontracting relationships are established. For example, some manufacturers may use formal teaming arrangements or long term relationships versus nonrepetitive purchase orders.
(a) The contracting officer should provide offerors a model subcontracting plan when determined appropriate, e.g., when it may facilitate evaluation or negotiation. The contracting officer may use the model plan developed by the Office of Small Business Utilization (E) as found at https:/insite.gsa.gov/subcontracting. Include the following notice on the transmittal, if providing a model in response to a single request, or in the solicitation, if including it as an attachment:
(b) Performance under other contracts is an indicator of an offeror’s understanding of the reasons for the law and benefits of the program.
(1) If an offeror prepared a subcontracting plan for another contract, the contracting officer should contact the contracting officer responsible for administering the earlier plan to determine if the offeror met the plan’s objectives and submitted required reports in a timely manner.
(2) The contracting officer shall consider overall compliance in the evaluation, not just whether or not the offeror met the goals established in the plan.
(3) Submission of timely reports is an indication the offeror takes its responsibilities seriously.
(c) The contracting officer shall use the Subcontracting Plan Evaluation Checklist found at https:/insite.gsa.gov/subcontracting and GSAM 519.7 to evaluate an offeror's subcontracting plan.
(1) Remember that a positive goal is required to establish a gauge for measuring results and to provide an incentive for continuing efforts to increase the dollar value of subcontracts placed with small, HUBZone small, small disadvantaged, women-owned small, veteran-owned, and service-disabled veteran-owned small business concerns. Carefully scrutinize any subcontracting category (e.g., small business, HUBZone small business, etc.) where the offeror does not specify a goal and accept it only after assuring that no subcontracting opportunities exist. If any category with no goal is accepted, the contracting officer must:
(i) Document the file explaining why the goal was accepted; and
(ii) Ensure the subcontracting plan includes an assurance that the contractor will make every effort to continue seeking subcontracting opportunities in the category that lacks a goal.
(2) One measure of the adequacy of a subcontracting plan is that it provides a challenge to the offeror and then builds upon previous achievements in subsequent contracts.
(3) Include in the contract file a basis for determining the subcontracting plan’s acceptability.
(d) A contracting officer cannot tell the offeror what its goals must be. The contracting officer may tell the offeror what GSA’s national goals are. Ensure that an offeror’s subcontracting plan reflects realistic goals and provides the maximum opportunity practicable to small, HUBZone small, small disadvantaged, women-owned small, veteran-owned, and service-disabled veteran-owned small business concerns to participate as subcontractors. If necessary, obtain information from the offeror to substantiate the offeror’s proposed goals, past performance with respect to subcontracting, and the proposed good faith effort. This information may include the names of proposed subcontractors and other such data.
(e) When a contracting officer receives a subcontracting plan with initial offers, provide an opportunity for the SBTA to review the subcontracting plans of those offers in the competitive range. Allow the SBTA 5 workdays for review. Consider the SBTA’s comments in developing a negotiation strategy.
(f) For complex or large dollar value procurements, when an offeror proposes miniscule or minimally acceptable goals for small, HUBZone small, small disadvantaged, women-owned small, veteran-owned, and service-disabled veteran-owned small business concerns, the contracting officer shall ensure that the offeror has included all subcontracts that contribute to contract performance (see FAR 52.219-9(d)(1)).
(g) The contracting officer shall develop a strategy for negotiating the subcontracting plan and goals just as you would for negotiating a contract. Be forceful in negotiating the subcontracting plan and, whenever possible, offer recommendations for subcontracting potential with small, HUBZone small, small disadvantaged, women-owned small, veteran-owned, and service-disabled veteran-owned small business concerns. The contracting officer should suggest organizations the offeror may contact to identify potential sources. For example, offerors may contact any of the following:
(1) Local SBA offices. These can provide an offeror assistance in accessing the System for Award Management (SAM) (www.sam.gov) database to conduct market research and confirm the eligibility for SBA’s procurement preference programs.
(2) Department of Commerce, Minority Business Development Agencies (MBDAs) at http://www.mbda.gov.
(3) GSA SBUCs and SBTAs, as well as OSBU.
(4) State, county, and city government minority business offices.
(5) Small, minority, women-owned, and veteran business associations at www.gsa.gov/smallbusiness.
(6) Local chambers of commerce.
(7) Trade associations, professional organizations, and Procurement Technical Assistance Centers.
(8) Department of Veterans Affairs for assistance in identifying Service Disabled Veteran-Owned Small Businesses (SDVOSBs) and Veteran-Owned Small Businesses (VOSBs) at www.vetbiz.gov.
(9) Dynamic Small Business Search (DSBS) at http://dsbs.sba.gov.
(h) In developing a negotiation strategy, the contracting officer shall consider whether the offeror’s plan is realistic and does more than merely restate the elements required by FAR clause 52.219-9 and shall question aspects of the plan that do not appear to be realistic or do not demonstrate a serious attempt to address requirements.
(i) Contracting officers shall obtain from the contractor copies of any commercial plan for the company’s current fiscal year and approval document from another GSA contracting activity or another Federal agency. Incorporate these documents into the contract.
(j) If GSA is the first agency to enter into a contract with a company during the company’s fiscal year, the contracting officer must approve the commercial plan on behalf of the Federal Government, acknowledge receipt of the Summary Subcontract Report (SSR), accept or reject the SSR in the Electronic Subcontracting Reporting System (eSRS), and evaluate compliance with the approved commercial plan. If contract administration is delegated, the Administrative Contracting Officer (ACO) generally is assigned responsibility for accepting or rejecting the SSR and evaluating compliance with the approved commercial plan. Subsequent GSA contracts awarded during the company’s same fiscal year and incorporating the previously approved commercial plan will only require the submission of the Summary Subcontract Report submitted at the end of the Government’s fiscal year.
(k) If the commercial plan was approved by another agency, the first GSA contracting officer entering into a contract with the company during the company’s same fiscal year in which the plan was approved, requires the contractor to submit the SSR report and monitors receipt of the report. GSA requires no other monitoring or evaluation of this plan.
(a) Subcontracting plans requiring SBTA and SBA PCR review.
(1) For each contract that requires a subcontracting plan, the contracting officer will submit electronically the apparent successful offeror’s subcontracting plan to the SBTA who will coordinate review by the SBA PCR. When the contracting officer makes multiple awards under a solicitation, electronically submit the subcontracting plans of all apparent successful offerors.
(i) Except as noted in paragraph (b) of this section, provide the SBTA an electronic copy of the plan at least 5 workdays before the anticipated award date.
(ii) Consider any recommendations the SBTA or SBA PCR provides about whether to accept or reject a subcontracting plan. In the case of an unresolved disagreement, notify the AAOSBU and consider any subsequent advice the AAOSBU provides. Document the final decision in the contract file.
(iii) If the contracting officer does not receive review comments from the SBTA within 5 workdays, the contracting officer shall document the file and continue with the award process (see FAR 19.705-5(a)(3)).
(b) Subcontracting plans requiring AAOSBU review.
(1) The AAOSBU (through the contracting officer’s designated SBTA or Regional SBUC) will review the SBTA’s and SBA PCR's recommendations for contracts that meet either of these conditions:
(i) Contract performance will occur in two or more Regions and the estimated value of the acquisition exceeds $50 million (including options), excluding multiple award schedule contracts.
(ii) Based on political sensitivity or importance to GSA, the AAOSBU designates the procurement for review.
(2) The contracting officer shall provide the SBTA an electronic copy of the plan at least 10 days before the anticipated award date. The SBTA and SBA PCR have 5 workdays to review and comment on the plan, and the AAOSBU (through the contracting officer’s designated SBTA or Regional SBUC) has 5 workdays to review their recommendations and respond. All reviews must be completed in 10 workdays unless the contracting officer grants an extension.
(3) The contracting officer shall consider any recommendations the SBTA, SBA PCR, or AAOSBU provides about whether to accept or reject a subcontracting plan. Document the final decision in the contract file.
(4) If the contracting officer does not receive review comments from the SBTA (inclusive of AAOSBU review) within 10 workdays, the contracting officer shall document the file and continue with the award process (see FAR 19.705-5(a)(3)).
(c) Notification letter for individual subcontracting plans.
(1) The contracting officer shall approve the subcontracting plan as part of the award. After approval of an individual subcontracting plan, using FORMAT A in paragraph (c) of this section, the contracting officer shall electronically send a notification letter to the contractor confirming the subcontracting plan effective dates and when a new or updated plan will be required. The contracting officer shall also inform the contractor of the reporting requirements and due dates for submitting their Individual Subcontract Report (ISR) and Summary Subcontract Report (SSR) through the eSRS.
(2) The contracting officer shall send the letter electronically with the award package or as soon as practicable after award.
(d) Notification letter for commercial plans.
(1) The contracting officer shall approve the commercial plan as part of the award. After approval of a commercial plan, using FORMAT B in paragraph (d) of this section, electronically send a notification letter to the contractor informing them of requirements and due dates for submitting the SSR via eSRS and confirm the subcontracting plan effective dates and when a new or updated plan will be required.
(2) Send the letter with the award package or as soon as practicable after award.
In addition to responsibilities described in FAR 19.705-6, the contracting officer must give the SBA Area Director, SBTA and OSBU a copy of the notice of award and the successful offeror's subcontracting plan within five work days of contract award or contract modification when applicable. The notice of award must contain all the following:
(a) Contractor’s name, address, and phone number.
(b) Subcontracting plan administrator’s name, address, and phone number.
(c) Contract number.
(d) Place of performance.
(e) Dollar amount of contract award.
(f) Period of contract performance.
(g) Description of items/services (including FPDS Product/Service Code).
(h) Contracting Officer’s name, address, and phone number.
(i) Administrative contracting office address and phone number.
(j) Type of plan and dates that plan will cover.
(k) Approved goals stated both as percentages of total subcontracting planned and in dollars.
(l) A notation, “Awarded under the Energy Policy Act of 1992”, if the contract will be used to measure GSA achievements under Section 3021 of the Energy Policy Act of 1992.
(a) Initial assessment. The contracting officer shall provide the SBTA an information copy of his or her initial assessment that the contractor did not make a good faith effort to comply with the plan.
(b) Final decision. Before making a final decision, the contracting officer shall consider all pertinent available information including the contractor’s response, if any, to the contracting officer’s notification letter required by FAR 19.705-7 that the contractor did not comply with the plan. Document the contracting officer’s decision in a “final decision”, which is appealable by the contractor under the “Disputes” clause of the contract. Provide the SBTA a copy of the contracting officer’s final decision assessing liquidated damages. In addition to the FAR provisions, include in the final decision letter:
(1) A description of the contractor’s failure.
(2) Reference to the appropriate contract terms.
(3) A statement of the factual areas of agreement and disagreement.
(4) A statement of the contracting officer’s decision with supporting rationale.
(5) A demand for liquidated damages.
(6) An explanation of the contractor’s appeal rights.
(c) Funds withheld from payments. If funds to collect liquidated damages are withheld from payments due, the funds may be returned to the applicable GSA account along with other funds that were obligated but not expended. If a commercial plan is involved, or if all payments have been made under a contract with an individual contract plan, instruct the contractor to submit a check to GSA. The GSA Office of Finance will transfer the funds to the Treasury Department for deposit in the general receipts account.
(d) The contracting officer shall submit to the SBTA his or her final decision assessing liquidated damages.
(a) If an ACO administers a contract with an individual subcontracting plan, the ACO must also monitor receipt of and accept or reject the ISRs in eSRS.
(b) On all contracts with a subcontracting plan (individual or commercial), the ACO must monitor receipt of the SSRs. ACO must monitor receipt of the SSR in eSRS, and the, Contracting Officers will review the reports to ensure they are submitted timely and accurately.
(c) Contracting officers shall review reports for progress in meeting subcontracting goals by comparing the applicable report with the approved plan. If percentage goals are not met, the contracting officer shall require the contractor to explain the shortfall in the “Remarks” block of the subcontracting report. The ACO may also require the contractor to submit evidence of its outreach efforts to locate and provide subcontracting opportunities to small business, HUBZone small business, small disadvantaged business, women-owned small, veteran-owned small, and service-disabled veteran-owned small business concerns.
(d) If the ISR or SSR has not been received by the due date, the contracting officer shall contact the contractor and request that the report be submitted immediately. For contracts with individual subcontracting plans, the contracting officer shall pay particular attention to the final ISR required at contract completion. Contracting officers shall issue to contractors who do not respond to the first notice a second notice by certified mail indicating that:
(1) The named report has not been received.
(2) The contractor’s failure to submit the report is a material breach of its contract (see FAR 52.219-9, Small Business Subcontracting Plan).
(3) If the report is not received within 10 days from the date of the notice, the ACO will consider withholding payments until the report is received or terminating the contract for default. To ensure that the facts support a termination for default, the notice shall provide the contractor with the opportunity to show cause why the contract should not be terminated for default.
Note: These statements do not apply to leases of real property, unless the terms of the lease expressly provide for withholding of payment or termination under this circumstance.
(4) Failure to submit the report may affect the contractor’s ability to receive future awards from GSA (see FAR 9.104-3(b) and willful failure to perform or a history of failure to perform may result in debarment from future contracting with the Government for a period of time (see FAR 9.406-2(b)).
(5) The ISR and SSR shall be submitted through eSRS.
519.708 Contract clauses.519.708-70 Solicitation provisions.Insert the following provisions as directed: (a) 552.219-71, Notice to Offerors of Subcontracting Plan Requirements, on the cover page of solicitations containing the clause at FAR 52.219-9, Small Business Subcontracting Plan. (b) 552.219-72, Preparation, Submission, and Negotiation of Subcontracting Plans, in solicitations requiring submission of the subcontracting plan with initial offers. |
(c) 552.219-73, Goals for Subcontracting Plan as follows: (1) Use the basic provision in sealed bid solicitations containing FAR 52.219-9 if you are able to establish realistic target goals. (2) Use Alternate I in: (i) Sealed bid solicitations if you cannot establish target goals. (ii) Negotiated solicitations that include FAR 52.219-9, but do not include 552.219-72. |
(a) If the contracting officer disagrees with a recommendation by the AAOSBU or the SBTA to set aside a procurement for award under the 8(a) program, discuss the matter with the official who made the recommendation.
(b) If the contracting officer decides not to award the contract under the 8(a) program, forward a copy of the documentation required by FAR 19.202-1(e)(4) to the SBTA within 10 working days.
(c) Once a contracting activity acquires a product or service successfully on the basis of an 8(a) set-aside, the activity must acquire all future requirements for that product or service using 8(a) set-aside procedures.
(1) However, the availability of Federal Prison Industries, Inc. and Nonprofit Agencies Employing People Who Are Blind or Severely Disabled (AbilityOne), and other mandatory sources, which may not have existed at the time of the original requirement are sufficient reason to discontinue setting aside a continuing requirement.
(2) If the contracting officer determines that acquiring the product or service as an 8(a) set-aside is no longer in the Government’s best interest, use the procedures in FAR 19.506 to withdraw a repetitive set-aside.
If the contracting officer and the SBTA disagree over the withdrawal or modification of a set-aside, the SBTA must notify the AAOSBU at the same time the matter is referred to the SBA PCR.
519.870 Direct 8(a) contracting. |
(a) In accordance with FAR 19.800(f), GSA obtained a delegation from SBA permitting direct 8(a) contracting as documented through GSA’s Partnership Agreement. The current Partnership Agreement is located on the GSA internal website at https://insite.gsa.gov/portal/category/529822. The Partnership Agreement includes the current terms and conditions.
(b) This authority applies to all 8(a) acquisitions conducted by GSA. It does not apply to the multiple award schedule program.
519.870-8 Contract clauses.(a) Insert the following clauses in solicitations, contracts, and orders issued under the MOU: (1) Insert the clause at 552.219-74, Section 8(a) Direct Award. (2) Insert the clause at FAR 52.219-14, Limitation on Subcontracting. (3) Insert the clause at FAR 52.219-18, Notification of Competition Limited to Eligible 8(a) Concerns. Substitute the paragraph below for paragraph (c) of the clause. Add the word “Deviation” at the end of the clause title. “(c) Any award resulting from this solicitation will be made directly by the Contracting Officer to the successful 8(a) offeror selected through the evaluation criteria set forth in this solicitation.” |
(b) Do not use the clauses at FAR 52.219-11, Special 8(a) Contract Conditions, FAR 52.219-12, Special 8(a) Subcontract Conditions, or FAR 52.219-17, Section 8(a) Award. |
Subpart 519.12— Small Disadvantaged Business Participation Program |
A solicitation may separately contain source selection evaluation factors or subfactors for small and women-owned small business concerns. However, any factor or subfactor for SDB concerns must comply with FAR 19.12 and this subpart.
An offeror may receive credit under the evaluation factor only for proposed SDB participation by a prime contractor, joint venture partner, teaming arrangement member, or subcontractor in the authorized North American Industry Classification System (NAICS) Industry Subsectors.
(a) To include monetary incentives in a contract under FAR 19.1203, you must have funds available for the incentives and obligate these at the time of contract award.
(b) Do not provide for monetary incentives under FAR 19.1203 in a contract that includes an award fee.
Subpart 519.70— GSA Mentor-Protégé Program |
519.7003 General Policy.(a) A large business prime contractor that meets the requirements at section 519.7006, and is approved as a mentor firm by the Mentor-Protégé Program Manager, may enter into an Agreement with a small business concern, small disadvantaged business concern, women-owned small business concern, veteran-owned small business concern, service-disabled veteran-owned small business concern or HUBZone small business concern that meets the requirements for being a protégé (see 519.7007) in order to provide appropriate developmental assistance to enhance the capabilities of the protégé to perform successfully as a subcontractor and supplier. (b) A small business prime contractor that is capable of providing developmental assistance to protégés, may also be approved as a mentor. (c) An active mentor-protégé arrangement requires the protégé to either be a current or newly selected subcontractor under the mentor’s prime contract with GSA. (d) A small business concern’s status as a protégé under a GSA contract shall not have an effect on its ability to seek other prime contracts or subcontracts. (e) Potential Mentors may submit an application for admittance to the Mentor-Protégé Program at any time as long as the requirements at section 519.7006 are met. (f) The determination of affiliation is a function of the SBA. 519.7004 Incentives for prime contractors.(a) Under the Small Business Act, 15 U.S.C. 637(d)(4)(E), the GSA is authorized to provide appropriate incentives to prime contractors in order to encourage subcontracting opportunities for small business concerns consistent with the efficient and economical performance of the contract. This authority is limited to negotiated procurements, including the GSA Multiple Award Schedule contracts and the GSA Governmentwide Acquisition Contracts. It does not include orders under any GSA contracts. (b) Costs incurred by a mentor to provide developmental assistance, as described in section 519.7012 to fulfill the terms of their agreement(s) with a protégé firm(s), are not reimbursable as a direct cost under a GSA contract. If GSA is the mentor’s responsible audit agency under FAR 42.703-1, GSA will consider these costs in determining indirect cost rates. If GSA is not the responsible audit agency, mentors are encouraged to enter into an advance agreement with their responsible audit agency on the treatment of such costs when determining indirect cost rates. (c) In addition to paragraph (b) of this section, contracting officers may give mentors evaluation credit during the source selection process for subcontracts awarded under their subcontracting plans pursuant to their Mentor-Protégé Agreements. (See FAR 15.101-1). Therefore: |
519.7007 Protégé firms.(a) For selection as a protégé, a firm must be: (1) A small business concern, small disadvantaged business concern, veteran-owned small business concern, service-disabled veteran-owned small business concern, HUBZone small business concern, or women-owned small business concern; (2) Small for the NAICS code the prime contractor/mentor assigns to the subcontract; and (3) Eligible (not listed as an exclusion in the SAM) for U.S. Government contracts and not excluded from the Mentor-Protégé Program under section 519.7014(b) . (b) A protégé firm may self-represent to a mentor firm that it meets the requirements set forth in paragraph (a) of this section. Mentors may check the SAM at www.sam.gov to verify that the self-representation of the potential protégé meets the specified small business and socioeconomic category eligibility requirements (see FAR 19.703(b) and (d)). HUBZone and small disadvantaged business status eligibility and documentation requirements are determined according to 13 CFR Parts 124 and 126. (c) A protégé firm must not have another formal, active mentor-protégé relationship under GSA’s Mentor-Protégé Program but may have an active mentor-protégé relationship under another agency’s program. |
(5) Information on the proposed types of developmental assistance. For each proposed mentor-protégé relationship include information on the company’s ability to provide developmental assistance to the identified protégé firm and how that assistance will potentially increase subcontracting opportunities for the protégé firm, including subcontracting opportunities in industry categories where these entities are not dominant in the company’s current subcontractor base; and (6) Agreement information as listed in 519.7010. |
519.7010 Agreement contents.The contents of the Agreement must contain: (a) Names, addresses (including facsimile, e-mail, and homepage) and telephone numbers of mentor and protégé firms and the name, telephone number, and position title within both firms of the person who will oversee the Agreement. (b) An eligibility statement from the protégé stating that it is a small business, its primary NAICS code, and when applicable the type of small business (small disadvantaged business concern, HUBZone small business concern, women-owned small business concern, veteran-owned small business concern, or service-disabled veteran-owned small business concern). (c) A description of the type of developmental assistance that will be provided by the mentor firm to the protégé firm (see 519.7012). (d) Milestones for providing the identified developmental assistance. (e) Factors to assess the protégé firm’s developmental progress under the Program. (f) The anticipated dollar value and type of subcontracts that may be awarded to the protégé firm consistent with the extent and nature of mentor firm’s business, and the period of time over which they may be awarded. (g) Program participation term: State the period of time over which the developmental assistance will be performed. (h) Mentor termination procedures: Describe the procedures applicable to the mentor firm when notifying the Protégé firm, in writing and at least 30 days in advance, of the mentor firm’s intent to voluntarily withdraw its participation in the Program, or to terminate the Agreement. (i) Protégé termination procedures: Describe the procedures applicable to the protégé firm when notifying the mentor firm, in writing at least 30 days in advance, of the protégé firm’s intent to terminate the Mentor-Protégé Agreement. |
(j) Plan for accomplishing contract work should the Mentor-Protégé Agreement be terminated or a party excluded under 519.7014(b) . The mentor’s prime contract with GSA continues even if the Mentor-Protégé Agreement or the Mentor-Protégé Program is discontinued. (k) The protégé must agree to provide input into the mentor firm’s semi-annual reports (see 519.7015). The protégé must submit a “Lessons Learned” evaluation along with the mentor firm at the conclusion of the Mentor-Protégé agreement. (1) Other terms and conditions as specified by the Mentor-Protégé Manager on a case-by-case basis. |
519.7011 Application review.(a) The Mentor-Protégé Program Manager will review the information specified in section 519.7009(b) and 519.7010 to establish the Mentor’s and Protégé’s eligibility and to ensure all necessary information is included. If the application relates to a specific contract, then the Mentor-Protégé Program Manager will consult with the applicable contracting officer regarding the adequacy of the proposed Agreement, as appropriate. The Mentor-Protégé Program Manager will complete its review no later than 30 days after receipt of the application. The contracting officer must provide feedback to the Program Manager no later than 10 days after receipt of the application. (b) After the Mentor-Protégé Program Manager completes its review and provides written approval, the Mentor may execute the Agreement and implement the developmental assistance as provided under the Agreement. The Mentor-Protégé Program Manager will provide a copy of the Mentor-Protégé Agreement to the GSA contracting officer for any GSA contracts affected by the Agreement. (c) The Agreement defines the relationship between the Mentor and the Protégé firms only. The Agreement itself does not create any privity of contract or contractual relationship between the Mentor and GSA nor the Protégé and GSA. (d) If the Agreement is disapproved, the Mentor may provide additional information for reconsideration. The Mentor-Protégé Program Manager will complete the review of any supplemental information no later than 30 days after its receipt. Upon finding deficiencies that GSA considers correctable, the Mentor-Protégé Program Manager will notify the Mentor and Protégé and request correction of the deficiencies to be provided within 15 days. |
519.7013 Obligation.(a) The mentor or protégé may terminate the Agreement in accordance with 519.7010. The mentor will notify the Mentor-Protégé Program Manager and the contracting officer, in writing, at least 30 days in advance of the mentor firm’s intent to voluntarily withdraw from the Program or to terminate the Agreement, or upon receipt of a protégé’s notice to withdraw from the Program. (b) Mentor and protégé firms will submit a “Lessons Learned” evaluation to the GSA Mentor-Protégé Program Manager at the conclusion or termination of each Mentor-Protégé Agreement or withdrawal from the Mentor-Protégé program. 519.7014 Internal controls.(a) The GSA Mentor-Protégé Program Manager will manage the Program. Internal controls will be established by the Mentor-Protégé Program Manager to achieve the stated Program objectives (by serving as checks and balances against undesired actions or consequences) such as: (1) Reviewing and evaluating mentor Applications for realism, validity and accuracy of provided information; (2) Monitoring each Mentor-Protégé Agreement by reviewing semi-annual progress reports submitted by mentors and protégés on protégé development to measure protégé progress against the master plan contained in the approved Agreement; (3) Monitoring milestones in the Agreement (see 519.7010); and (4) Evaluating “Lessons Learned” submitted by the Mentor and the Protégé as required by section 519.7013 to improve the GSA Mentor-Protégé Program. (b) (1) GSA has the authority to exclude mentor or protégé firms from participating in the GSA Program. |
519.7015 Reports.(a) Semi-annual reports shall be submitted by the mentor to the GSA Mentor-Protégé Program manager to include information as outlined in section 552.219-76(c). (b) Protégés must agree to provide input into the mentor firm’s semi-annual reports detailing the assistance provided and goals achieved since agreement inception. However, for cost reimbursable contracts, costs associated with the preparation of these reports are unallowable costs under these Government contracts and will not be reimbursed by the Government. (c) The GSA contracting officer, or if applicable the technical program manager, shall include an assessment of the prime contractor’s (mentor’s) performance in the Mentor-Pro |
tégé Program in a quarterly “Strengths and Weaknesses” evaluation report. A copy of this assessment will be provided to the Mentor-Protégé Program Manager and to the mentor and protégé.
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519.7016 Program review.At the conclusion of each year in the Mentor-Protégé Program (anniversary date of the Mentor-Protégé Program), the prime contractor and protégé, as appropriate, will formally brief the GSA Mentor-Protégé Program Manager, the technical program manager, and the contracting officer regarding Mentor-Protégé Program accomplishments pertaining to the approved Agreement. 519.7017 Contract clauses.(a) The contracting officer shall insert the clause at 552.219-75, GSA Mentor-Protégé Program, in all unrestricted solicitations (not set aside) and contracts that exceed the simplified acquisition threshold that offer subcontracting opportunities or in the case of a small business, that can offer developmental assistance to a small business protégé. (b) The contracting officer shall insert the clause at 552.219-76, Mentor Requirements and Evaluation, in contracts anticipated to exceed the simplified acquisition threshold where the prime contractor has signed a Mentor-Protégé Agreement with GSA. |
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