19.504
Orders under multiple-award contracts
FAR 19.504 gives contracting officers flexibility to set aside orders under multiple-award contracts for small businesses, but requires strict adherence to eligibility and documentation rules.
Overview
FAR 19.504 outlines the rules and procedures for setting aside orders under multiple-award contracts for small business concerns. It provides contracting officers with the discretion to set aside orders for various small business programs (including 8(a), HUBZone, SDVOSB, and WOSB) and details when such set-asides are discretionary or mandatory. The section also addresses how orders are handled under total and partial set-aside contracts, as well as under reserves, ensuring that small businesses have fair opportunities to compete for orders issued under multiple-award contracts.
Key Rules
- Discretionary and Mandatory Set-Asides
- Contracting officers may set aside orders for small business concerns and must state in the solicitation and contract whether set-asides are discretionary or mandatory.
- Order Thresholds
- Orders at or below the simplified acquisition threshold can be set aside for any small business concern; above the threshold, socioeconomic programs must be considered first.
- Program Eligibility
- Officers must comply with specific program eligibility requirements and applicable ordering procedures for multiple-award contracts.
- Orders Under Set-Aside Contracts
- Only eligible small businesses may compete for orders under set-aside portions; small businesses may also compete for non-set-aside portions if awarded.
- Orders Under Reserves
- Orders may be set aside if there are two or more awards to a small business type, or issued directly if only one award exists.
Responsibilities
- Contracting Officers: Must determine and document set-aside status, follow eligibility and ordering procedures, and ensure compliance with program requirements.
- Contractors: Must meet eligibility requirements for the applicable small business program and compete only for orders they are eligible for.
- Agencies: Oversee compliance with small business set-aside rules and maintain proper documentation.
Practical Implications
- This section ensures small businesses have access to opportunities under multiple-award contracts.
- Contractors must understand eligibility and competition rules for set-aside and reserve orders.
- Common pitfalls include failing to document set-aside decisions or misunderstanding eligibility requirements.