19.1505 Set-aside procedures
Source: FAR 19.1505 on acquisition.gov
FAR 19.1505 establishes strict procedures for setting aside contracts for WOSB and EDWOSB concerns, requiring certification verification and clear documentation to ensure only eligible firms receive awards.
Overview
FAR 19.1505 outlines the procedures for setting aside federal contracts for Women-Owned Small Business (WOSB) and Economically Disadvantaged Women-Owned Small Business (EDWOSB) concerns under the WOSB Program. It details when and how contracting officers may restrict competition to these businesses, the eligibility and certification requirements for offerors, and the steps for verifying and awarding contracts. The section also addresses the process for handling recommendations and appeals from SBA Procurement Center Representatives (PCRs).
Key Rules
- Pre-Set-Aside Compliance
- Contracting officers must comply with FAR 19.203 before setting aside acquisitions under the WOSB Program.
- Set-Aside Eligibility
- Acquisitions above the micro-purchase threshold may be set aside for EDWOSB or WOSB concerns based on NAICS codes designated by SBA as underrepresented or substantially underrepresented.
- Market Research Requirement
- Set-asides require a reasonable expectation, based on market research, that at least two eligible concerns will submit offers and that award can be made at a fair and reasonable price.
- Offeror Eligibility and Certification
- Offerors must qualify as small businesses under the assigned NAICS code and be certified (or have a pending application) as EDWOSB or WOSB in SAM or DSBS.
- Verification and Award Procedures
- Contracting officers must verify certification status before award and notify SBA if the status is pending. SBA has 15 days to determine eligibility.
- Award and Withdrawal Procedures
- Awards may be made with only one acceptable offer. If no acceptable offers are received, the set-aside is withdrawn and reconsidered under other set-aside rules.
- SBA PCR Recommendations and Appeals
- Procedures are provided for handling and appealing PCR recommendations regarding use of the WOSB Program.
Responsibilities
- Contracting Officers: Must follow set-aside procedures, verify eligibility and certification, handle SBA notifications, and document decisions.
- Contractors: Must ensure proper certification and eligibility status in SAM or DSBS before submitting offers.
- Agencies: Must respond to SBA appeals and document decisions regarding set-aside recommendations.
Practical Implications
- Ensures only eligible, certified WOSB/EDWOSB concerns compete for designated set-asides.
- Requires diligent market research and documentation by contracting officers.
- Contractors must maintain up-to-date certification to avoid disqualification.
- Delays may occur if SBA status determinations are pending, impacting award timelines.
(a) The contracting officer-
(1) Shall comply with 19.203 before deciding to set aside an acquisition under the WOSB Program;
(2)
(i) May set aside acquisitions exceeding the micro-purchase threshold for competition restricted to EDWOSB concerns when the acquisition is assigned a NAICS code in which SBA has determined that WOSB concerns are underrepresented in Federal procurement; or
(ii) Is assigned a NAICS code in which SBA has determined that WOSB concerns are substantially underrepresented in Federal procurement, as specified on SBA’s Web site at http://www.sba.gov/WOSB" target="_blank">http://www.sba.gov/WOSB.
(b) For requirements in NAICS codes designated by SBA as underrepresented, a contracting officer may restrict competition to EDWOSB concerns if the contracting officer has a reasonable expectation based on market research that-
(1) Two or more EDWOSB concerns will submit offers for the contract and;
(2) Contract award will be made at a fair and reasonable price.
(c) A contracting officer may restrict competition to WOSB concerns eligible under the WOSB Program (including EDWOSB concerns), for requirements in NAICS codes designated by SBA as substantially underrepresented if there is a reasonable expectation based on market research that-
(1) Two or more WOSB concerns eligible under the WOSB Program (including EDWOSB concerns), will submit offers and;
(2) Contract award may be made at a fair and reasonable price.
(d) An EDWOSB or WOSB concern may submit an offer under an EDWOSB or WOSB set-aside when the offeror—
(1) Qualifies as a small business concern under the size standard corresponding to the NAICS code assigned to the contract; and
(2)
(i) For an EDWOSB set-aside, is certified pursuant to https://www.ecfr.gov/current/title-13/section-127.300" target="_blank">13 CFR 127.300 as an EDWOSB or has a pending application for EDWOSB certification in the DSBS (see https://www.ecfr.gov/current/title-13/section-127.504#p-127.504(a)" target="_blank">13 CFR 127.504(a)); or
(ii) For a WOSB set-aside, is certified pursuant to https://www.ecfr.gov/current/title-13/section-127.300" target="_blank">13 CFR 127.300 as an EDWOSB or WOSB, or has a pending application for EDWOSB or WOSB certification in the DSBS (see https://www.ecfr.gov/current/title-13/section-127.504#p-127.504(a)" target="_blank">13 CFR 127.504(a)).
(e) The contracting officer shall verify that offers received are eligible for consideration for award by checking SAM to see if the EDWOSB or WOSB concern is designated as a certified concern or checking DSBS for a pending application for certification.
(1) If the offeror is designated as certified in SAM or has a pending application for certification in DSBS, proceed with the offer evaluation.
(2) Unless the offeror is designated as certified in SAM or has a pending application for certification in DSBS, the offer is not eligible for award and shall be removed from consideration.
(f) Prior to award, the contracting officer shall verify the apparently successful offeror is certified in SAM, or has a pending application for certification in DSBS. If the apparently successful offeror's EDWOSB or WOSB certification is pending in DSBS, the contracting officer shall notify SBA's Director/Government Contracting by email at WOSBpendingcertification@sba.gov, and request SBA's status determination. The contracting officer shall provide SBA with the offeror's name, unique entity identifier, type of set-aside, NAICS code, and solicitation number.
(1) Within 15 calendar days from the date of the contracting officer's notification, SBA will make a determination regarding the offeror's status as an EDWOSB or WOSB eligible under the WOSB program.
(2) If the contracting officer does not receive a determination from SBA within 15 calendar days, the contracting officer at their discretion, may provide SBA additional time to make a determination, or may proceed with award to the next highest evaluated offeror.
(3) The contracting officer shall not make award to an offeror who is not a certified EDWOSB or WOSB concern eligible under the WOSB program.
(g) The contracting officer may make an award, if only one acceptable offer is received from a qualified EDWOSB concern or WOSB concern eligible under the WOSB Program.
(h) If no acceptable offers are received from an EDWOSB concern or WOSB concern eligible under the WOSB Program, the set-aside shall be withdrawn and the requirement, if still valid, must be considered for set aside in accordance with 19.203 and subpart 19.5.
(i) The SBA procurement center representative (PCR) may recommend use of the WOSB Program. If the contracting officer rejects a recommendation by SBA's PCR—
(1) The contracting officer shall notify the PCR as soon as practicable;
(2) SBA shall notify the contracting officer of its intent to appeal the contracting officer’s decision no later than five business days after receiving notice of the contracting officer’s decision;
(3) The contracting officer shall suspend further action regarding the procurement until the head of the agency issues a written decision on the appeal, unless the head of the agency makes a written determination that urgent and compelling circumstances which significantly affect the interests of the United States compel award of the contract;
(4) Within 15 business days of SBA’s notification to the head of the contracting activity, SBA shall file a formal appeal to the head of the agency, or the appeal will be determined withdrawn; and
(5) The head of the agency, or designee, shall specify in writing the reasons for a denial of an appeal brought under this section.