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BoomerMan

FAR Authority for specific Set-Aside Procedure

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Myself and another Contract Specialist have been unable to find a FAR source for the following..."Once a product or service has been acquired successfully on the basis of a set-aside, the CO shall make every effort to ensure that future purchases for that product or service are acquired using set-aside procedures." Is there a reference?

Thanks All.

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The language you are looking for once appeared in FAR 19.501(g):

(g) Once a product or service has been acquired successfully by a contracting office on the basis of a small business set-aside, all future requirements of that office for that particular product or service not subject to simplified small purchase procedures shall, if required by agency regulations, be acquired on the basis of a repetitive set-aside. This procedure will be followed unless the contracting officer determines that there is not a reasonable expectation that

(1) offers will be obtained from at least two responsible small business concerns offering the products of different small business concerns and

(2) Awards will be made at fair market prices. Withdrawal of a repetitive set-aside will be in accordance with 19.506.

That is from a 1994 edition of the FAR. By 1995 that language was gone from FAR 19.501, and I do not believe that it appears in FAR at present. In any case, I have not been able to find it. I do not know why it was deleted, and I have been unable to pin down the Federal Acquisition Circular that deleted it. If I get a chance I'll research it.

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It looks like the language in question was deleted by FAC 90-26, 60 FR 34732, 34757, July 3, 1995, an interim rule. The rule was finalized by FAC 90-40, 61 FR 39186, 39189, July 26, 1996. I could find no explanation for the deletion.

It seems to me that we have discussed this in the past at Wifcon Forum. If so, there might be an explanation in the Wifcon archives.

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Thanks Vern! Myself and my colleague, both graduates of different contract internship programs, have heard this in our seperate training but we were unable to find it referenced. It is still being taught. I will search the archives as you suggest. Thanks for your help!

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Tell whoever is still teaching it to show it to you in the regulation. They are probably going on memory, but maybe they know something we don't.

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A variation of the language is still in the GSAM (at least the one linked on Acquisition.Gov) if you're with GSA. May still be in other agency supplements as well

519.502-1 Requirements for setting aside acquisitions.

(a) You 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 you determine that you 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 a repetitive set-aside. However, the availability of Federal Prison Industries, Inc. and Nonprofit Agencies Employing People Who Are Blind or Severely Disabled (JWOD) mandatory sources which may not have existed at the time of the original requirement are sufficient reason to discontinue setting aside a continuing requirement

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Although belated, I want to thank Vern and Woops85 for the help on this subject. I appreciate you sharing your knowledge and history on these topics. It is invaluable for those of us learning today. Thanks!

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The only FAR reference that I am aware of is specific to the 8(a) Program at 19.203( c ) where the SBA had previously accepted a requirement into the program and it must remain in the 8(a) program until released. I have relied on this in the past for service contracts with 8(a) firms which were recompeted after the base plus four option periods completed, etc.

19.203 -- Relationship Among Small Business Programs.

( a ) There is no order of precedence among the 8(a) Program (subpart 19.8), HUBZone Program (subpart 19.13), Service-Disabled Veteran-Owned Small Business (SDVOSB) Procurement Program (subpart 19.14), or the Women-Owned Small Business (WOSB) Program (subpart 19.15).

( b ) At or below the simplified acquisition threshold. For acquisitions of supplies or services that have an anticipated dollar value exceeding $3,000 ($15,000 for acquisitions as described in 13.201(g)(1)), but not exceeding $150,000 ($300,000 for acquisitions described in paragraph (1) of the simplified acquisition threshold definition at 2.101), the requirement at 19.502-2(a) to exclusively reserve acquisitions for small business concerns does not preclude the contracting officer from awarding a contract to a small business under the 8(a) Program, HUBZone Program, SDVOSB Program, or WOSB Program.

( c ) Above the simplified acquisition threshold. For acquisitions of supplies or services that have an anticipated dollar value exceeding the simplified acquisition threshold definition at 2.101, the contracting officer shall first consider an acquisition for the small business socioeconomic contracting programs (i.e., 8(a), HUBZone, SDVOSB, or WOSB programs) before considering a small business set-aside (see 19.502-2( b ). However, if a requirement has been accepted by the SBA under the 8(a) Program, it must remain in the 8(a) Program unless SBA agrees to its release in accordance with 13 CFR parts 124, 125 and 126.

( d ) In determining which socioeconomic program to use for an acquisition, the contracting officer should consider, at a minimum—

(1) Results of market research that was done to determine if there are socioeconomic firms capable of satisfying the agency’s requirement; and

(2) Agency progress in fulfilling its small business goals.

( e ) Small business set-asides have priority over acquisitions using full and open competition. See requirements for establishing a small business set-aside at subpart 19.5.

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I just received my first commerical-item SAP. While conducting market research, one of mysuggested sources asked if I would be setting aside any work for SDVOSBs. I said no as the work is already reserved for SBs above $3k but not exceeding $150k. (Our IGCE estimates the services at approx. $50K). The same source then asked if he could subcontract work under the purchase order. Common sense tells me no but I want to respond with a FAR reference as to why not. Any ideas? FAR 52.219-14 Limitations on Subcontracting refers to offers/contracts versus quotes/purchase orders.

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I just received my first commerical-item SAP. While conducting market research, one of mysuggested sources asked if I would be setting aside any work for SDVOSBs. I said no as the work is already reserved for SBs above $3k but not exceeding $150k. (Our IGCE estimates the services at approx. $50K). The same source then asked if he could subcontract work under the purchase order. Common sense tells me no but I want to respond with a FAR reference as to why not. Any ideas? FAR 52.219-14 Limitations on Subcontracting refers to offers/contracts versus quotes/purchase orders.

You can do a SDVOSB set aside if you wish. See FAR 13.003(b )(2).

There is no FAR barrier to subcontracting the work.

BTW, you would not use 52.219-14 under $150k. See FAR 19.508(e ). Also, subcontracting plans are not required from small businesses. See FAR 19.702(b )(1).

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