19.502-10
Automatic dissolution of a small business set-aside
If a small business set-aside is not awarded, the set-aside is automatically dissolved for the unawarded portion, allowing the government to re-procure those items using other methods.
Overview
FAR 19.502-10 addresses what happens when a small business set-aside acquisition, or a portion of it, is not awarded. In such cases, the set-aside determination for the unawarded portion is automatically dissolved, allowing the government to procure the required supplies or services through other means, such as sealed bidding or negotiation. Before reissuing a solicitation for these items, the contracting officer must ensure that the delivery schedule is realistic, taking into account the capabilities of small business concerns and other relevant factors. This provision ensures that procurement needs are met efficiently while still considering small business participation where feasible.
Key Rules
- Automatic Dissolution of Set-Aside
- If no award is made under a small business set-aside, the set-aside for the unawarded portion is automatically dissolved, and the acquisition may proceed using other procurement methods.
- Realistic Delivery Schedule Requirement
- Before reissuing a solicitation for dissolved set-aside items, the contracting officer must confirm that the delivery schedule is realistic, considering small business capabilities and other relevant factors.
Responsibilities
- Contracting Officers: Must recognize when a set-aside is dissolved, select an appropriate procurement method, and ensure delivery schedules are realistic for any re-solicitation.
- Contractors: Should be aware that unawarded set-aside portions may be re-solicited under different terms and should monitor for new opportunities.
- Agencies: Must ensure compliance with dissolution procedures and proper documentation of procurement decisions.
Practical Implications
- This section ensures that unmet procurement needs are not delayed by unsuccessful set-asides and that future solicitations remain accessible to small businesses where possible.
- Contracting officers must carefully assess delivery schedules to avoid unrealistic requirements that could exclude small business participation.
- Contractors should stay alert for re-solicitations of previously set-aside requirements, as they may be open to broader competition.