Overview
FAR 19.202 outlines mandatory procedures and proactive strategies that contracting officers (COs) must implement to maximize opportunities for small business concerns. It establishes a framework for inter-agency coordination with Small Business Professionals and sets specific requirements for solicitation structure, source identification, and data reporting.
Key Rules
- Consultation and Documentation: COs must consider recommendations from the agency’s Director of the Office of Small and Disadvantaged Business Utilization (OSDBU) regarding set-asides. If a CO rejects these recommendations, they must formally document the contract file.
- Acquisition Design: To encourage participation, COs are required to:
- Divide requirements into "reasonably small lots" (except for construction).
- Set realistic delivery schedules based on actual government needs.
- Plan acquisitions to allow multiple small businesses to perform work if the value exceeds SBA surety bond guarantees.
- SBA PCR Notification: COs must provide a 30-day notice and the acquisition package to the SBA Procurement Center Representative (PCR) for bundled or consolidated requirements, or for acquisitions where the magnitude makes small business prime participation unlikely.
- Tie-Breaking for Equal Low Bids: In the event of equal low bids, the order of precedence for award is: (1) Small business concerns in labor surplus areas, then (2) Other small business concerns.
- Solicitation Practices: COs must allow maximum practicable time for offer submission and provide small businesses with contact information for agency specialists and citations to relevant federal laws.
- Re-representation: Agencies must require contractors to re-represent their size and socioeconomic status under specific conditions (e.g., following a merger or long-term contract milestones) to ensure accurate data reporting.
- Fair Market Price: Awards made under small business programs (Set-asides, 8(a), HUBZone, SDVOSB, WOSB) must be made at a fair market price determined in accordance with FAR 15.404-1(b).
Practical Implications
- Administrative Burden of Proof: The regulation places the "burden of proof" on the CO; if they choose not to break down a large requirement or ignore an SBA PCR's recommendation, they must provide a detailed written justification for why the acquisition could not be structured for small business participation.
- Market Research Mandate: This section effectively makes proactive market research—including contacting small business specialists and publicizing through the Governmentwide Point of Entry (GPE)—a prerequisite for issuing solicitations to ensure maximum competition.