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Awarding SBIR Phase 1 as a Supply?


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Hello all and thanks in advance for the responses:

My office is in the process of awarding four SBIR Phase 1's for a couple research and development efforts. The consensus from the top is they want them awarded as supply, however I dont see how this can work. Here is my rationale:

-I started in the FAR and researched the definition of a service contract. Research and Development is listed as appropriate for a service contract.

-Next I proceed to FAR part 35. A bit of backstory-- the rationale is since we are getting an end-product (a lengthy technical report at the end of 12 months) that constitutes a supply. However, in FAR 35.010(a) R&D contracts shall require contractors to furnish scientific and technical reports, consistent with the objectives of the effort involved, as a permanent RECORD of the work accomplished under the contract. I find it especially interesting the FAR says the final report is a record of the work and not the work itself. I believe this is key.

-I also did a web search and looked at what other bases have done, both Air Force and Navy, and I cant find a single one without a service NAICS/PSC code combination (54--- etc etc). This would lead me to believe they have all been awarded as services.

- We also queried the individual contractors to provide us with NAICS code information for the SBIRs. They all provided us with NAICS codes for R/D Services (54--- etc).

If we were to award these as supplies, wouldnt I have to find a NAICS code/FSC code that provided for procuring a manual? :) I'm being somewhat facetious but serious at the same time. I'm not sure how we can "shove" these through as supplies.

Thanks again.

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Typically, the only deliverable in a SBIR phase I is a report or series of reports. A report is not an item of supply. Per FAR 2.101, "?Supplies? means all property except land or interest in land. It includes (but is not limited to) public works, buildings, and facilities; ships, floating equipment, and vessels of every character, type, and description, together with parts and accessories; aircraft and aircraft parts, accessories, and equipment; machine tools; and the alteration or installation of any of the foregoing."

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Why the need to call R&D a supply? What is your office trying to avoid? Usually an agency resorts to illogical classification to avoid an undesirable requirement. For example, the Navy calls ship repair a supply so they don't have to deal with the Davis-Bacon Act.

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Precisely. In a meeting with my Division Chief this morning I asked if maybe there wasnt something undesirable "someone" was trying to avoid. I did suspect that and I still do. Thank you both for the reply.

And Don, we still miss you from CON 90. Do you still have your tshirt? I still have mine. :)

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Typically, the only deliverable in a SBIR phase I is a report or series of reports. A report is not an item of supply. Per FAR 2.101, "?Supplies? means all property except land or interest in land. It includes (but is not limited to) public works, buildings, and facilities; ships, floating equipment, and vessels of every character, type, and description, together with parts and accessories; aircraft and aircraft parts, accessories, and equipment; machine tools; and the alteration or installation of any of the foregoing."

A report wouldnt fit the definition of "property" as per this definition?

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Precisely. In a meeting with my Division Chief this morning I asked if maybe there wasnt something undesirable "someone" was trying to avoid. I did suspect that and I still do. Thank you both for the reply.

And Don, we still miss you from CON 90. Do you still have your tshirt? I still have mine. :)

Yes, I do. In fact, I wore it over the weekend. Tell everyone I said hello.

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