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JTAYLOR

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  1. They discussed this a little bit in the background section. G. Definition of Term ‘‘Shall First Consider’’ Comment: A few respondents commented that the interim rule requires that contracting officers ‘‘shall first consider’’ socioeconomic programs; however, the rule does not define what constitutes consideration. Response: FAR 19.203(d) was added to include language consistent with 13CFR 125.2(f)(2)(ii) regarding the minimum elements a contracting officer should examine when choosing a socioeconomic program: The results of market research and progress in fulfilling agency small business goals. The referenced section of 13CFR provides the answer as follows: (2) Acquisitions Valued Above the Simplified Acquisition Threshold. (i) The contracting officer shall set aside any acquisition with an anticipated dollar value exceeding the Simplified Acquisition Threshold (defined in the FAR at 48 CFR 2.101) for small business concerns when there is a reasonable expectation that offers will be obtained from at least two small business concerns that are competitive in terms of quality and delivery and award will be made at fair market prices. However, after conducting market research, the contracting officer shall first consider a set-aside or sole source award (if the sole source award is permitted by statute or regulation) under the 8(a) BD, HUBZone, SDVO SBC or WOSB programs before setting aside the requirement as a small business set-aside. There is no order of precedence among the 8(a) BD, HUBZone, SDVO SBC or WOSB programs. The contracting officer must document the contract file with the rationale used to support the specific set-aside, including the type and extent of market research conducted. In addition, the contracting officer must document the contract file showing that the apparent successful offeror's ORCA certifications and associated representations were reviewed.
  2. I'm with Seeker. It sounds to me like the offeror is graciously willing to accept 100% payment for 100% performance of the contract requirements. In other words, it's a FFP contract.
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