January 22, 2002
PURPOSE: To provide guidance on subcontracting opportunities in small business set-aside procurements.
BACKGROUND: 15 U.S.C. 637(d), commonly known as Section 8(d) of the Small Business Act, stipulates that subcontracting plans (as defined in FAR 19.702(a)), are not required from small business concerns.
A number of procurements are being identified as eligible for set aside to small business concerns. Many of these procurements contain significant subcontracting opportunities. FAR clause 52.219-8, Utilization of Small Business Concerns, tasks contractors with providing the maximum practicable opportunities for all small business concerns (including small business, veteran-owned small business, service-disabled veteran-owned small business, HUBZone small business, small disadvantaged business, and women-owned small business concerns) to participate in federal contracts and subcontracts.
GUIDANCE: Contracting officers may develop solicitation language which provides historical data on previous subcontracting opportunities for similar effort as it relates to the implementation of the 52.219-8 clause.
Previous subcontracting opportunities for similar effort may be included in the solicitation language as a point of reference only. The solicitation language should clearly state that any opportunities contained in the document are solely for reference purposes and are not requirements. Sample solicitation language is enclosed.
EFFECTIVE DATE: This PIC is effective as dated and shall remain in effect until canceled or superseded.
HEADQUARTERS CONTACT: Yolande Harden, Code HK, (202) 358-1279, e-mail: email@example.com
R. Scott Thompson
Director, Contract Management Division
Sample Solicitation Language for set-aside procurements:
FAR clause 52.219-8, Utilization of Small Business Concerns, requires contractors to implement the Government’s policy to provide all categories of small business concerns with “the maximum practicable opportunity to participate in performing contracts let by any Federal agency, including contracts and subcontracts for subsystems, assemblies, components, and related services for major systems”. In order to accomplish this task to the fullest extent consistent with efficient performance of the required effort, historical data on subcontracting opportunities for the current contract effort are provided for reference purposes.
The current contract effort contains the following historical small business subcontracting opportunities for the stated requirements:
Small Business – x% of the contract value
Small Disadvantaged Business – y% of the contract value
Women-Owned Small Business - z% of the contract value
(If this is a new effort, historical data on subcontracting opportunities for similar effort may be provided.)