19.202-1
Encouraging small business participation in acquisitions
Contracting officers must proactively structure acquisitions and provide justifications to ensure small businesses have equitable opportunities to compete for federal contracts.
Overview
FAR 19.202-1 establishes requirements for contracting officers to ensure small business concerns have a fair opportunity to participate in federal acquisitions. The regulation mandates proactive steps to break down acquisitions, set realistic delivery schedules, and encourage subcontracting, all to maximize small business involvement. It also outlines specific notification and justification procedures when acquisitions may limit small business participation, especially in cases of consolidation or bundling.
Key Rules
- Dividing Acquisitions
- Contracting officers must divide acquisitions into smaller lots when feasible, allowing small businesses to compete for portions of the work.
- Planning for Multiple Small Businesses
- Acquisitions should be structured so that more than one small business can participate, particularly when contract values exceed SBA surety limits.
- Realistic Delivery Schedules
- Delivery schedules must be set to encourage small business participation, consistent with government needs.
- Encouraging Subcontracting
- Prime contractors should be encouraged to subcontract with small businesses.
- Notification and Justification
- For acquisitions likely to exclude small businesses, contracting officers must notify the SBA Procurement Center Representative (PCR) and provide justifications if the acquisition cannot be structured to allow small business participation.
- Documentation of PCR Recommendations
- If a PCR’s recommendation is rejected, the contracting officer must document the rationale and notify the PCR.
Responsibilities
- Contracting Officers: Must structure acquisitions to maximize small business participation, provide required notifications and justifications, and document decisions regarding PCR recommendations.
- Contractors: Should seek subcontracting opportunities with small businesses and be aware of how acquisitions may be divided or scheduled.
- Agencies: Must support oversight and reporting, especially regarding consolidation, bundling, and PCR engagement.
Practical Implications
- This section ensures small businesses are not unfairly excluded from federal contracts by requiring thoughtful acquisition planning and transparency. Failure to comply can result in missed opportunities for small businesses and potential challenges from oversight bodies. Common pitfalls include inadequate market research, insufficient notification to the SBA, and poor documentation of decisions.