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Rule of Two only applies to Supplies?


Sam101

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Hi, where in the FAR does it state that a general small business set aside can be done for services? I'm looking at 19.502-2(b) and I'm reading it as only applying to products and not services. I'm trying to find where exactly in the FAR it says that general small business set asides can be done for service acquisitions and I don't see it anywhere in part 19. Thanks.

 

Edited by Sam101
Grammer
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I see where FAR 19.502-2(b)(1) could be read to limit the application of 19.502-2(b) to "products" but (a) and (c) both refer to services and 19.502-2(b) refers you to both 19.502-2(c) which explains why "products" bears special mention (i.e. nonmanufacturer rule) and to 19.203(c) which says "For acquisitions of supplies or services that have an anticipated dollar value exceeding the simplified acquisition threshold […]" so it would seem like a stretch to me to read 19.502-2(b)(1) to limit application to supplies only, when set-asides for services are mentioned so often elsewhere and there is a reasonable explanation (need to explain nonmanufacturer rule) for why products are specifically called out.

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So, ok, I now see that according to 19.203(c) that a CO may set aside a service acquisition for general small businesses if the IGCE is above the SAT, but I do not believe that it is mandatory to do so. I only believe that it is mandatory to do so for products when the conditions at 19.502-2(b) are met. Is it mandatory for services? Does the government really want every single open market acquisition to be a set aside? I see that in 13 CFR it says every acquisition above the SAT must be set aside for small businesses if the rule of two is met, but the FAR is at 48 CFR and its rule of two is at 19.502-2(b) talking about products. Thanks.

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