Superseded by PIC 98-6

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98-2

PROCUREMENT INFORMATION CIRCULAR


January 14, 1998

SET-ASIDES UNDER THE SMALL BUSINESS COMPETITIVENESS DEMONSTRATION PROGRAM

PURPOSE: To provide guidance regarding small business set-asides under the Small Business Competitiveness Demonstration Program.

BACKGROUND: The Small Business Competitiveness Demonstration Program requires NASA to use full and open competition for all procurements in each of four designated industry groups so long as quarterly reviews show that small business has received 40 percent of awards in the construction, refuse systems and related services, and non-nuclear ship repair groups, or 35 percent of awards in the Architect-Engineer (A-E) services group. If NASA does not meet the 40 percent or 35 percent goal for any group, the agency is required to use small business set-asides until the goal is met. In addition, if awards to small business fall below 35 percent for any individual SIC code or FPDS service code within the construction, Architect-Engineer services, or non-nuclear ship repair industry groups, the Agency must reinstitute set-asides for that individual code at those Centers that failed to meet the goal, even if the goal for the industry group as a whole is attained. By the same token, full and open competition must be reinstituted once the 35 percent or 40 percent goals are achieved.

The review for the period ending September 30, 1997, revealed that NASA's awards to small business continued to remain below 35 percent in individual construction SIC codes 1742, 1791, and 1799 and fell below 35 percent in SIC 1541. Accordingly, set-asides, as described below are hereby continued or instituted. In SIC 1771, which achieved the 35 percent goal, full and open competition is re-instituted for all Centers. Awards to small business in the A-E industry group exceeded the 35 percent threshold, thus the overall A-E set-aside is removed. However, individual Centers did not meet the goals in certain Product/Service Codes (PSC); as a result, set-asides at select Centers and in certain SIC and PSC codes will be implemented. Accordingly, the following guidance is provided.

GUIDANCE: The following contracts are to be set aside for small business:

o Architect-engineer awards in SIC codes 8711, 8712 & 8713 for five Product/Service Codes (PSC) as follows and at the listed installations:

1) PSC C211 - at Ames Research Center, Johnson Space Center, Marshall Space Flight Flight Center and Stennis Space Center

2) PSC C212 - at Langley Research Center

3) PSC C214 - at Johnson Space Center

4) PSC C215 - at Ames Research Center

5) PSC C219 - at the Headquarters Operations Office at Goddard Space Flight Center, Kennedy Space Center and Marshall Space Flight Center.

o All construction contracts in SIC code1541 (Industrial Building and Warehousing) at Goddard Space Flight Center (excludes Headquarters Operations Office ), Johnson Space Center, Langley Research Center and Marshall Space Flight Center.

o All construction contracts in SIC code 1742 (Plastering, Drywall, Acoustical and Insulation Work) at Ames Research Center and Headquarters Operations Office at Goddard Space Flight Center.

o All construction contracts in SIC code 1791 (Structural Steel Erection) at Goddard Space Flight Center (excludes Headquarters Operations Office) and Ames Research Center.

o All construction contracts in SIC code 1799 (Special Trade Contractors, N.E.C.) at Ames Research Center.

These requirements do not apply in the case of contracts reserved for emerging small business, 8(a) awards, or sole source awards.

If it is determined that any procurement under the Small Business Competitiveness Demonstration Program cannot be set aside as required, the individual contract file shall contain a written justification concurred in by the procurement officer.

CANCELLATION: This PIC supersedes PIC 97-7, dated October 9, 1997.

EFFECTIVE DATE: This PIC is effective as dated, and automatically expires April 1, 1998, unless extended, superseded or canceled.

HEADQUARTERS CONTACT: Chris Jedrey, Code HK, (202) 358-0476; or Tony Diamond, Code K, (202) 358-2088.

Ken Sateriale,

Acting Director, Contract Management Division