Overview
FAR 19.201 establishes the federal policy to provide "maximum practicable opportunities" for small businesses to participate in government acquisitions as both prime contractors and subcontractors. It mandates the creation of specialized agency offices (OSDBU/OSBP) and roles to oversee, advocate for, and implement small business programs across the executive branch.
Key Rules
- Target Categories: Policy applies to Small Business (SB), Veteran-Owned (VOSB), Service-Disabled Veteran-Owned (SDVOSB), HUBZone, Small Disadvantaged Business (SDB), and Women-Owned (WOSB/EDWOSB) concerns.
- Organizational Mandate: Each agency must establish an Office of Small and Disadvantaged Business Utilization (OSDBU), or for the DoD, an Office of Small Business Programs (OSBP), whose Director reports directly to the Agency Head or Deputy.
- Director Responsibilities: The Director is tasked with recommending set-asides, reviewing subcontracting plans, assisting small businesses with payment issues, and assessing the impact of contract bundling/consolidation.
- Early Coordination: Small Business Specialists must be involved in the acquisition planning process as early as practicable, generally no later than 30 days before a solicitation is issued.
- Reporting and Oversight: Agencies must conduct annual reviews to evaluate whether small businesses are receiving a "fair share" of contracts and to justify any necessary contract bundling.
- Solicitation Review: The OSDBU Director has the authority to submit notifications to Contracting Officers if a solicitation is found to be unduly restrictive to small business competition.
Practical Implications
- Increased Scrutiny on Bundling: Agencies face significant administrative hurdles and must provide robust justifications when consolidating requirements in a way that might exclude small business participation.
- Mandatory Advocacy: Contracting Officers cannot operate in a vacuum; they must actively collaborate with Small Business Specialists and the SBA to ensure set-aside opportunities are fully explored before a solicitation goes public.