DFARS Part 19

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TABLE OF CONTENTS

219.000 Scope of part.
219.001 Definitions.

SUBPART 219.2--POLICIES
219.201 General policy.
219.202 Specific policies.
219.202-1 Encouraging small business participation in acquisitions.
219.202-5 Data collection and reporting requirements.

SUBPART 219.3--DETERMINATION OF STATUS AS A SMALL BUSINESS CONCERN
219.301 Representation by the offeror.
219.302 Protesting a small business representation.
219.302-70 Protesting a small disadvantaged business representation.
219.304 Solicitation provisions.

SUBPART 219.4--COOPERATION WITH THE SMALL BUSINESS ADMINISTRATION
219.401 General.

SUBPART 219.5--SET-ASIDES FOR SMALL BUSINESS
219.501 General.
219.502 Setting aside acquisitions.
219.502-1 Requirements for setting aside acquisitions.
219.502-2 Total set-asides.
219.502-2-70 Total set-asides for small disadvantaged business concerns.
219.502-3 Partial set-asides.
219.502-4 Methods of conducting set-asides.
219.504 Set aside program order of precedence.
219.505 Rejecting Small Business Administration recommendations.
219.506 Withdrawing or modifying set-asides.
219.508 Solicitation provisions and contract clauses.
219.508-70 Solicitation provisions and contract clauses.

SUBPART 219.6--CERTIFICATES OF COMPETENCY
219.602 Procedures.
219.602-1 Referral.
219.602-3 Resolving differences between the agency and the Small Business Administration.

SUBPART 219.7--SUBCONTRACTING WITH SMALL BUSINESS, SMALL DISADVANTAGED BUSINESS AND WOMEN-OWNED SMALL BUSINESS CONCERNS
219.702 Statutory requirements.
219.703 Eligibility requirements for participating in the program.
219.704 Subcontracting plan requirements.
219.705 Responsibilities of the contracting officer under the subcontracting assistance program.

219.705-2 Determining the need for a subcontracting plan.
219.705-4 Reviewing the subcontracting plan.
219.706 Responsibilities of the cognizant administrative contracting officer.
219.708 Solicitation provisions and contract clauses.

SUBPART 219.8--CONTRACTING WITH THE SMALL BUSINESS ADMINISTRATION (THE 8(a) PROGRAM)
[added per DL 98-015, DFARS Case 98-D011 dated/effective, June 19,1998]
[219.800 General.]
219.803 Selecting acquisitions for the 8(a) Program.
219.804 Evaluation, offering, and acceptance.
219.804-1 Agency evaluation.

SUBPART 219.10--SMALL BUSINESS COMPETITIVENESS DEMONSTRATION PROGRAM
219.1005 Applicability.
219.1006 Procedures.
219.1007 Solicitation provisions.

SUBPART 219.70--EVALUATION PREFERENCE FOR SMALL DISADVANTAGED BUSINESS (SDB) CONCERNS
219.7000 Policy.
219.7001 Applicability.
219.7002 Procedures.
219.7003 Solicitation provisions and contract clauses.

SUBPART 219.71--PILOT MENTOR-PROTEGE PROGRAM
219.7100 Scope.
219.7101 Policy.
219.7102 General.
219.7103 Procedures.
219.7103-1 General.
219.7103-2 Contracting officer responsibilities.
219.7104 Developmental assistance costs eligible for reimbursement or credit.
219.7105 Reporting.

SUBPART 219.72--EVALUATION PREFERENCE FOR SMALL DISADVANTAGED BUSINESS (SDB) CONCERNS IN CONSTRUCTION ACQUISITION--TEST PROGRAM
219.7200 Policy
219.7201 Administration of the test program.
219.7202 Applicability.
219.7203 Procedures.
219.7204 Contract clause.

PART 219 SMALL BUSINESS PROGRAMS
219.000 Scope of part.
This part also implements 10 U.S.C. 2323, which sets a goal for DoD for each of fiscal years 1987 through 2000 to--

219.001 Definitions.
The definition of "small disadvantaged business concern" to be used for DoD contracts is in the provision at 252.219-7000 and is more restrictive than the definition in FAR 19.001.

SUBPART 219.2--POLICIES

219.201 General policy.

219.202 Specific policies.

219.202-1 Encouraging small business participation in acquisitions.
The DoD will maximize the use of small business concerns as planned producers in the Industrial Readiness Planning Program.

219.202-5 Data collection and reporting requirements.
Determine the premium percentage to be entered in Item D4E of the Individual Contract Action Report (DD Form 350), (see 253.204-70), as follows --

SUBPART 219.3--DETERMINATION OF STATUS AS A SMALL BUSINESS CONCERN

219.301 Representation by the offeror.

219.302 Protesting a small business representation.

219.302-70 Protesting a small disadvantaged business representation.
This section applies to protests of a small business concern's status as socially and economically disadvantaged. Protests of a concern's size are processed under FAR 19.302. Any offeror, the contracting officer, or the Small Business Administration (SBA) may protest a concern's representation of disadvantaged status.

219.304 Solicitation provisions.

SUBPART 219.4--COOPERATION WITH THE SMALL BUSINESS ADMINISTRATION

219.401 General.

SUBPART 219.5--SET-ASIDES FOR SMALL BUSINESS

219.501 General.

[See AFAC 92-50, B1]

219.502 Setting aside acquisitions.

219.502-1 Requirements for setting aside acquisitions.
Do not set aside acquisitions for--

219.502-2 Total set-asides.

[See AFAC 92-50, B1]
219.502-2-70 Total set-asides for small disadvantaged business concerns.

219.502-3 Partial set-asides.
When a portion of an acquisition is to be set aside for small business concerns, except acquisitions for commissary or exchange resale, the contracting officer shall give small disadvantaged business concerns preferential consideration by using the procedures in 252.219-7001, Notice of Partial Small Business Set-Aside with Preferential Consideration for Small Disadvantaged Business (SDB) Concerns.

[See AFAC 92-50, B1]
219.502-4 Methods of conducting set-asides.

219.504 Set-aside order of precedence.

[See AFAC 92-50, B1]

219.505 Rejecting Small Business Administration recommendations.

[See AFAC 92-50, B1]
219.506 Withdrawing or modifying set-asides.

219.508 Solicitation provisions and contract clauses.

[See AFAC 92-50, B1]

[See AFAC 92-50, B1]
219.508-70 Solicitation provisions and contract clauses.
Use the clause at 252.219-7002, Notice of Small Disadvantaged Business Set-Aside, in solicitations and contracts for small disadvantaged business set-asides. Use the clause with its Alternate I when the contracting officer determines that there are no small disadvantaged business manufacturers that can meet the requirements of the solicitation.

SUBPART 219.6--CERTIFICATES OF COMPETENCY

219.602 Procedures.

219.602-1 Referral.
When making a nonresponsibility determination on a small business concern, the contracting officer shall notify the contracting activity's small business specialist.

219.602-3 Resolving differences between the agency and the Small Business Administration.

SUBPART 219.7--SUBCONTRACTING WITH SMALL BUSINESS, SMALL
DISADVANTAGED BUSINESS AND WOMEN-OWNED
SMALL BUSINESS CONCERNS

[Revised per DL 98-006, DFARS case 97-D323, Effective 26 Mar]
219.702 Statutory requirements.

219.703 Eligibility requirements for participating in the program.

219.704 Subcontracting plan requirements.

219.705 Responsibilities of the contracting officer under the subcontracting assistance program.

219.705-2 Determining the need for a subcontracting plan.

219.705-4 Reviewing the subcontracting plan.

219.706 Responsibilities of the cognizant administrative contracting officer.

219.708 Solicitation provisions and contract clauses.

SUBPART 219.8--CONTRACTING WITH THE SMALL BUSINESS ADMINISTRATION
(THE 8(a) PROGRAM)
[added per DL 98-015, DFARS Case 98-D011 dated/effective, June 19,1998]
[
219.800 General.
(a) By Memorandum of Understanding (MOU) dated May 6, 1998, between the Small Business Administration (SBA) and the Department of Defense (DoD), the SBA delegated to the Under Secretary of Defense for Acquisition and Technology its authority under paragraph 8(a)(1)(A) of the Small Business Act (5 U.S.C. 637(a)) to enter into 8(a) prime contracts, and its authority under paragraph 8(a)(1)(B) of the Small Business Act to award the performance of those contracts to eligible 8(a) Program participants. Consistent with the provisions of this subpart, this authority is hereby redelegated to DoD contracting officers within the United States, its territories and possessions, Puerto Rico, the Trust Territory of the Pacific Islands, and the District of Columbia, to the extent that it is consistent with any dollar or other restrictions established in individual warrants. This authority is being delegated and redelegated on a pilot test basis and shall expire on May 5, 2001. Notwithstanding this MOU, contracting officers may elect to award the contract pursuant to the provisions of FAR subpart 19.8.

219.803 Selecting acquisitions for the 8(a) Program.

219.804 Evaluation, offering, and acceptance.

219.804-1 Agency evaluation.
When SBA asks for a requirement for the 8(a) Program, offer the requirement if appropriate, and do not use the small disadvantaged business set-aside procedure. If an acquisition, other than a repetitive acquisition (as described in FAR 19.804-4), was synopsized using either of the notices in 205.207(d)(i) or (ii) before receipt of the SBA request, the request does not have to be honored.

[added per DL 98-015, DFARS Case 98-D011 dated/effective, June 19,1998]
[
219.804-2 Agency offering.
(1) For requirements processed under the MOU cited in 219.80 (but see paragraph (2) of this subsection for procedures related to purchase orders that do not exceed the simplified acquisition threshold), the notification to the SBA shall clearly indicate that the requirement is being processed under the MOU. All notifications should be submitted in writing, using facsimile or electronic mail, when possible, and shall specify that--

(B) For competitive requirements, upon acceptance, the contracting officer will solicit offers, conduct source selection, and, upon receipt of an eligibility verification, award a contract directly to the selected 8(a) firm.
(2) Under the MOU cited in 219.800, no separate agency offering or SBA acceptance is needed for requirements that are issued under purchase orders that do not exceed the simplified acquisition threshold. After an 8(a) contractor has been identified, the contracting officer shall establish the prices, terms, and conditions with the 8(a) contractor and shall prepare a purchase order consistent with the procedures in part 213 and FAR part 13, including the applicable clauses required by this subpart. No later than the day that the purchase order is provided to the 8(a) contractor, the contracting officer shall provide to the cognizant SBA Business Opportunity Specialist, using facsimile or electronic mail--

219.804-3 SBA acceptance.
For requirements processed under the MOU cited in 219.800, SBA's acceptance is required within 5 working days (but see 219.804-2(2) for purchase orders that do not exceed the simplified acquisition threshold).

219.805 Competitive 8(a).

219.805-2 Procedures.
(c) For requirements processed under the MOU cited in 219.800--

219.806 Pricing the 8(a) contract.
For requirements processed under the MOU cited in 219.800--
(1) The contracting officer shall obtain cost or pricing data from the 8(a) contractor, if required by FAR subpart 15.4; and
(2) SBA concurrence in the negotiated price is not required. However, except for purchase orders not exceeding the simplified acquisition threshold, the contracting officer shall notify the SBA prior to withdrawing a requirement from the 8(a) Program due to failure to agree on price or other terms and conditions.

219.808 Contract negotiations.

219.808-1 Sole source.
For requirements processed under the MOU cited in 219.800--
(1) The agency may negotiate directly with the 8(a) contractor. The contracting officer is responsible for initiating negotiations;
(2) The 8(a) contractor is responsible for negotiating within the time established by the contracting officer;
(3) If the 8(a) contractor does not negotiate within the established time and the agency cannot allow additional time, the contracting officer may, after notifying the SBA, proceed with the acquisition from other sources;
(4) If requested by the 8(a) contractor, the SBA may participate in negotiations; and
(5) SBA approval of the contract is not required.

219.811 Preparing the contracts.

219.811-1 Sole source.

(a) Awards under the MOU cited in 219.800 may be made directly to the 8(a) contractor and, except as provided in paragraph (b) of this subsection and in 219.811-3, award documents shall be prepared in accordance with procedures established for non-8(a) contracts, using any otherwise authorized award forms. The ``Issued by'' block shall identify the awarding DoD contracting office. The contractor's name and address shall be that of the 8(a) participant.
(b) Use the following alternative procedures for direct awards made under the MOU cited in 219.800:

219.811-2 Competitive.
Awards made under the MOU cited in 219.800 shall be prepared in accordance with 219.811-1.

219.811-3 Contract clauses.
(1) Use the clause at 252.219-7009, Section 8(a) Direct Award, instead of the clauses at FAR 52.219-11, Special 8(a) Contract Conditions, FAR 52.219-12, Special 8(a) Subcontract Conditions, and FAR 52.219-17, Section 8(a) Award, in solicitations and contracts processed in accordance with the MOU cited in 219.800.
(2) Use the clause at FAR 52.219-18, Notification of Competition Limited to Eligible 8(a) Concerns, with 252.219-7010, Alternate A, in solicitations and contracts processed in accordance with the MOU cited in 219.800.
(3) Use the clause at 252.219-7011, Notification to Delay Performance, in solicitations and purchase orders issued in accordance with 219.804-2(2).

219.812 Contract administration.
(d) Awards under the MOU cited in 219.800 are subject to Section 407 of Pub. L. 100-656. These contracts include the clause at 252.219- 7009, Section 8(a) Direct Award, which requires the 8(a) contractor to notify the SBA and the contracting officer when ownership of the firm is being transferred.]

SUBPART 219.10--SMALL BUSINESS COMPETITIVENESS
DEMONSTRATION PROGRAM

219.1005 Applicability.

219.1006 Procedures.

219.1007 Solicitation provisions.
Do not use the clause at 252.219-7006, Notice of Evaluation Preference for Small Disadvantaged Business Concerns, in solicitations or contracts for the four designated industry groups.

SUBPART 219.70--EVALUATION PREFERENCE FOR SMALL
DISADVANTAGED BUSINESS (SDB) CONCERNS

219.7000 Policy.
Offers from small disadvantaged business concerns shall be given an evaluation preference in accordance with this subpart.

219.7001 Applicability.

219.7002 Procedures.

219.7003 Solicitation provisions and contract clauses.
Use the clause at 252.219-7006, Notice of Evaluation Preference for Small Disadvantaged Business Concerns, in solicitations and contracts involving the evaluation preference, except those which include the clause at 252.219-7001, Notice of Partial Small Business Set-Aside with Preferential Consideration for Small Disadvantaged Business Concerns. Use the clause with its Alternate I when the contracting officer determines that there are no small disadvantaged business manufacturers that can meet the requirements of the solicitation.

SUBPART 219.71--PILOT MENTOR-PROTEGE PROGRAM

219.7100 Scope.
This subpart implements the Pilot Mentor-Protege Program established under section 831 of the National Defense Authorization Act for Fiscal Year 1991, Public Law 101-510, as amended. The purpose of the Program is to provide incentives for DoD contractors to assist small disadvantaged businesses in enhancing their capabilities and to increase participation of such firms in Government and commercial contracts. Qualified organizations employing the severely disabled, as defined in section 8064A of Public Law 102-172, are also eligible to participate as protege firms.

219.7101 Policy.
Dod policy and procedures for implementation of the Program are contained in Appendix I, Policy and Procedures for the DoD Pilot Mentor-Protege Program.

219.7102 General.
The program includes--

219.7103 Procedures.

219.7103-1 General.
The procedures for application, acceptance, and participation in the program are in Appendix I, Policy and Procedures for the DoD Pilot Mentor-Protege Program. The Director of Small and Disadvantaged Business Utilization, Office of the Under Secretary of Defense (Acquisition and Technology) approves contractors as mentor firms, approves mentor-protege agreements, and forwards approved mentor-protege agreements to the contracting officer when program funding is available through a DoD Program Manager.

219.7103-2 Contracting officer responsibilities.
Contracting officers shall--

219.7104 Developmental assistance costs eligible for reimbursement or credit.

219.7105 Reporting.
Mentor firms shall report on the progress made under active mentor-protege agreements semi-annually as indicated in Section I-III of Appendix I.

SUBPART 219.72--EVALUATION PREFERENCE FOR SMALL DISADVANTAGED
BUSINESS (SDB) CONCERNS IN CONSTRUCTION
ACQUISITIONS--TEST PROGRAM

219.7200 Policy.
DoD policy is to ensure that, during this test program, offers from small disadvantaged business (SDB) concerns shall be given an evaluation preference in construction acquisitions.

219.7201 Administration of the test program.
The test program will be conducted over a 36-month period. The test program will be conducted by all DoD contracting activities that award construction contracts. The focal point for the test program is the Director, Small and Disadvantaged Business Utilization (SADBU), Office of the Deputy Under Secretary of Defense (International and Commercial Programs). The military departments and defense agencies shall submit status reports to the Director, SADBU. The first status report shall be submitted 18 months after initiation of the test program; the second status report shall be submitted 36 months after initiation of the test program. These reports shall specify the impact of the evaluation preference over each of the reporting periods of the test program, and shall provide recommendations with respect to continuation and/or modification of the evaluation preference.

219.7202 Applicability.

219.7203 Procedures.

219.7204 Contract clause.
Use the clause at 252.219-7008, Notice of Evaluation Preference for Small Disadvantaged Business Concerns--Construction Acquisitions--Test Program, in all solicitations--

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