Overview
FAR 19.506 establishes the requirements for Contracting Officers to provide written justification and rationale when small business set-aside authorities are not utilized for acquisitions.
Key Rules
- Total Set-Aside Justification: Contracting officers must document the specific rationale when a contract is not totally set aside for small businesses under the "Rule of Two" (19.502-2).
- Multiple-Award Contracts: Documentation is required if a multiple-award contract does not include a partial set-aside, a reserve, or provisions for setting aside orders when those authorities were available for use.
- Small Business Advocate Non-Concurrence: If a Contracting Officer rejects a recommendation from the agency’s Office of Small and Disadvantaged Business Utilization (OSDBU) or the Department of Defense Office of Small Business Programs, they must document the rationale for the disagreement.
- Exemptions: Formal documentation under this section is not required if the anticipated award will be made to a small business concern through any of the specific set-aside or sole-source programs (e.g., 8(a), HUBZone, SDVOSB, or WOSB).
Practical Implications
- Administrative Burden of Proof: These requirements place the burden of proof on the Contracting Officer to justify "full and open" competition, effectively creating a regulatory preference for small business participation.
- Oversight and Accountability: The required documentation provides a paper trail for Small Business Administration (SBA) Procurement Center Representatives and agency advocates to review and challenge acquisition strategies that may unnecessarily exclude small businesses.