FAR Part 19 Flashcards
Small Business Programs
Part 19
Small Business Programs
FAR Part 19: Small Business Programs
Overview of FAR Part 19 - Small Business Programs
Purpose: Encourages the use of small businesses in federal contracting to promote economic development and wealth distribution
Key Sections
- 19.1 Size Standards
- 19.2 Policies
- 19.3 Determination of Small Business Status for Small Business Programs
- 19.4 Cooperation with the Small Business Administration
- 19.5 Small Business Total Set-Asides, Partial Set-Asides, and Reserves
- 19.6 Certificates of Competency and Determinations of Responsibility
- 19.7 The Small Business Subcontracting Program
- 19.8 Contracting with the Small Business Administration (The 8(a) Program)
- 19.13 Historically Underutilized Business Zone (HUBZone) Program
- 19.14 Service-Disabled Veteran-Owned Small Business Procurement Program
- 19.15 Women-Owned Small Business Program
FAR Part 19: Small Business Programs
Slide 2: Subpart 19.1 - Size Standards
Purpose: Defines the criteria for qualifying as a small business (FAR 19.101).
Key Features:
- Size standards based on industry classifications (FAR 19.102).
- Procedures for calculating business size (FAR 19.103).
FAR Part 19: Small Business Programs
Subpart 19.2 - Policies and 19.3 - Determination of Small Business Status for Small Business Programs
Purpose: Establishes policies for small business participation and determination of status (FAR 19.201).
Key Features:
Policies promoting small business participation in federal procurement (FAR 19.202).
Procedures for determining small business status (FAR 19.301).
FAR Part 19: Small Business Programs
Subpart 19.4 - Cooperation with the Small Business Administration and 19.5 - Small Business Total Set-Asides, Partial Set-Asides, and Reserves
Purpose: Details cooperation with the SBA and set-aside programs (FAR 19.401).
Key Features:
Cooperation with the SBA to maximize small business participation (FAR 19.402).
Use of set-asides and reserves to ensure small businesses receive contract opportunities (FAR 19.501).
FAR Part 19: Small Business Programs
Subpart 19.6 - Certificates of Competency and Determinations of Responsibility and 19.7 - The Small Business Subcontracting Program
Purpose:Ensures small businesses are competent and responsible (FAR 19.601).
KeyFeatures:
SBA-issued certificates of competency for qualified small businesses (FAR 19.602).
Subcontracting plans for large contractors to include small businesses (FAR 19.701).
FAR Part 19: Small Business Programs
Subpart 19.8 - Contracting with the Small Business Administration (The 8(a) Program)
Purpose: Supports socially and economically disadvantaged businesses (FAR 19.800).
KeyFeatures:
The 8(a) program provides opportunities for disadvantaged businesses (FAR 19.801).
Procedures for 8(a) contract awards (FAR 19.802).
FAR Part 19: Small Business Programs
Subpart 19.13 - Historically Underutilized Business Zone (HUBZone) Program and 19.14 - Service-Disabled Veteran-Owned Small Business Procurement Program
Purpose: Promotes economic development in underutilized areas and supports veteran-owned businesses (FAR 19.1300).
KeyFeatures:
HUBZone program incentives for businesses in underutilized areas (FAR 19.1301).
Service-disabled veteran-owned small business set-asides (FAR 19.1401).
FAR Part 19: Small Business Programs
Subpart 19.15 - Women-Owned Small Business Program
Purpose: Supports women-owned small businesses in federal contracting
(FAR 19.1500).
Key Features:
Set-asides for women-owned small businesses in eligible industries (FAR 19.1501).
Certification requirements and procedures (FAR 19.1502).
The Small Business Administration
Created by the Small Business Act of 1953
An independent agency of the federal government
Aids, counsels, assist and protects the interests of small business
concerns
FAR Part 19 implements acquisition-related sections of the Small Business Act, applicable sections of the Armed Services Procurement Act, and Executive Order 12138.
Size Standards
NAICS codes are updated by the Office of Management and Budget through its Economic Classification Policy Commitee.
North American Industry Classification System
NAICS Manual groups different businesses into industries
Each industry receives a six digit code
Each digit of the NAICS code categorizes the industry more specifically.
Each digit of the NAICS code categorizes the industry more specifically.
459210
45 Economic sector
9 Economic subsector
2 Industry group
1 North American Industry
0 National Industry
North American Industry Classification System
http://www.census.gov/eos/www/naics/
Table of Size Standards
https://www.sba.gov/document/support-table- size-standards
AICS Codes
445291 445292 445298 445320
NAICS Industry Description
Baked Goods Retailers Confectionery and Nut Retailers Al Other Specialty Food Retailers Beer, Wine, and Liquor Retailers
Size standards ni millions of dollars
16, 19, 20
Size starndards in number of employees
Size Standards
Updated every five years
New NAICS codes are not
available until the SBA publishes a
corresponding industry size standard
Agencies apply size standards by:
Classifying the product or service by its industry ni the NAICS Manual
Identifying the size standard established for that industry *
Specifying the size standard in the solicitation so that offerors can appropriately represent themselves as small or large
For size standard purposes, a product or service shall be classified ni only one industry, whose definition best describes its principal nature.
If a product or service could be
classified ni multiple industries with different size standards, the size standard for the industry accounting for the greatest percentage of the contract price applies.
Size Standards
In solicitations for more than one item:
If offers may be submitted on any or al of the items, an offeror must meet the size standard for each item ti offers to furnish.
If offers must be submitted on all or none of the items, an offeror may
qualify as a smal business by meeting the size standard for the item accounting for the greatest percentage of the total contract price.
Small Business Contracting Policy
The contracting officer must, to the extent practicable, provide maximum participation opportunity to:
Veteran-owned small business
Service-disabled veteran- owned small business
Small disadvantaged business
Women-owned small business
Small Business Contracting Policy
Each agency must
establish an Office of Small and Disadvantaged Business Utilization.
SmallBusinessContractingPolicy
The contracting officer must, to the extent practicable:
Plan acquisitions such that, fi
practicable, more than one small
business concern may perform the work
Publicize solicitations and contract awards through the
governmentwide point of entry; NCMA
Preparing solicitations that allow the maximum time practical for response
Divide proposed acquisitions of into smaller lots to permit offers on
quantities less than the total requirement
Ensure that delivery schedules are established o n a realistic basis that
will encourage small business participation
Small Business Contracting Policy
There is no order of precedence among the
8(a) Program, HUBZone Program, Service- Disabled Veteran-Owned Small Business
Procurement Program, or Women-Owned Small Business Program.
Offeror’s Representation of Size Status
The offeror must represent itself in good faith as a small business to be eligible for award.
The contracting officer shall accept the offeror’s representation
…unless the offeror’s representation as a small business is challenged.
Protest of a Size Representation
An offeror may represent that it is a small business for a solicitation if:
* It meets the applicable definition, and
* SBA has not determined it a s other than small
A contracting officer who receives a protest, ! or who wishes to protest the small business representation of an offeror, shall forward the protest to the SBA area office where the
concern in question is located
To be timely, a protest must be received by the contracting officer within five days of bid opening (for sealed bids) or receipt of notification of the apparently successful offeror (in negotiated acquisitions).
The SBA will review evidence of the small business status of the offeror and make a decision within 15 days.
Cooperation with the SBA
Under the Small Business Act, the SBA and agencies consult and
cooperate to form policies favorable to small business or
small disadvantaged business concerns.
SBA representatives review proposed acquisitions for the
purpose of recommending set- sources, and asides, new component breakout.
Set-Asides for Small Business
For acquisitions above the simplified acquisition threshold, the priority shall be:
- 8(a), HUBZone, Service-Disabled Veteran-Owned Small Business, or Women-Owned Small Business
- Small business set-aside
- Acquisition using full and open competition
Exceeding Micropurchase Not exceeding SAT
Automatically reserved exclusively for small business concerns
Shall be set aside for small business
Exceeding SAT
Should be set-aside for small business if there is a reasonable expectation of at least two small business offerors.
Certificate of Competency
The certificate issued by the Small Business Administration stating that the holder is responsible (with respect to all elements of responsibility) for the purpose of
receiving and performing a specific government contract
If an apparent successful small business is determined to be nonresponsible, the contracting officer shall:
* Withhold contract award, and
* Notify the cognizant SBA area office
Within 15 business days of receiving this notification, the SBA office shall:
* Notify the oferor of the COs’ decision, and 15
* Provide the small business an opportunity ot apply for a COC
Upon timely receipt of an application, the SBA shall:
* Review the offeror’s responsibility,
* Determine whether to issue a COC, and
* Notify the offeror and the contracting officer of the decision
If a COC si issued, the CO shal l award the contract to the offeror.
fI the SBA does not issue a COC within 51 days, award is made to another responsible and appropriately selected offeror.
In a disagreement about a concern’s ability to perform:
The contracting officer and the SBA area office are charged
with reaching a resolution
fI they fail, refer to the SBA associate administrator for government contracting for final determination
Statutory Requirements and Subcontracting
Any contract that exceeds the simplified acquisition threshold requires the prime contractor to agree that small business concerns shall have the maximum practicable opportunity to participate in contract performance.
Eligibility for Subcontractors
An offeror may be eligible for a subcontract under the small business
program fi:
* It represents itself as an eligible small
business,
* It meets the applicable definition, and
SBA has not determined it as other than small
A subcontracting plan may be required.