PIC 99-11

Procurement Information Circular

June 28, 1999


PURPOSE: To provide guidance on specifying subcontracting goals in solicitations.

BACKGROUND: Federal Acquisition Circular (FAC) 97-07 established a new requirement to evaluate small disadvantaged business (SDB) participation in certain negotiated acquisitions. This specific requirement and its limitations are described in FAR 15.304(c) and 19.12. (PN 97-31 effected the appropriate NFS implementing revisions.) When the FAR requirement applies, offerors must propose "target" dollars and percentages for contract participation by SDBs in SIC Major Groups designated by the Department of Commerce. Other than the alternative price evaluation adjustment for SDB prime offerors described in 52.219-23, agency evaluation of the targeted participation is the only allowable mechanism to provide evaluation credit specifically for SDB participation. The previous NASA procedure of crediting proposed SBD participation under a subcontracting plan evaluation is no longer permitted.

GUIDANCE: The FAR changes on SDB participation affect how NASA structures solicitations and evaluates proposals, and centers shall comply with the following procedures:

1. In solicitations that require the submission of a subcontracting plan under 52.219-9, NASA estimated goals should be specified for each small business category. When the proposed goals are evaluated in competitive negotiated acquisitions (e.g., under a Mission Suitability Management subfactor), the proposed SDB subcontracting goal shall not be discretely evaluated, but should be included in the evaluation of the cumulative goal for all the small business categories identified in the plan.

2. In solicitations that include the FAR 19.12 evaluation of participation of SDBs in the designated Department of Commerce SIC Major Groups, NASA estimated targets should not be specified for the expected participation. Proposed SDB participation levels shall be evaluated based on a standard of reasonableness relative to the offeror's proposed effort. Undisclosed estimated targets shall not be used for evaluation.

EFFECTIVE DATE: This PIC is effective as dated and shall remain in effect until canceled or superseded.

HEADQUARTERS CONTACT: Tom O'Toole, 202-358-0478, email:


R. Scott Thompson
Director, Contract Management Division