19.504 Orders under multiple-award contracts
Source: FAR 19.504 on acquisition.gov
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.
(a) General. In accordance with section 1331 of the Small Business Jobs Act of 2010 ( https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title15-section644&num=0&edition=prelim" target="_blank">15 U.S.C. 644(r)(2)), contracting officers may, at their discretion, set aside orders placed under multiple-award contracts for any of the small business concerns identified in 19.000(a)(3).
(1) The contracting officer shall state in the solicitation and resulting contract whether order set-asides will be discretionary or mandatory when the conditions in 19.502-2 are met at the time of order set-aside, and the specific program eligibility requirements, as applicable, are also then met.
(2) When setting aside an order at or below the simplified acquisition threshold, the contracting officer may set aside the order for any of the small business concerns identified in 19.000(a)(3).
(3) When setting aside an order above the simplified acquisition threshold, the contracting officer shall first consider setting aside the order for the small business socioeconomic contracting programs (i.e., 8(a), HUBZone, service-disabled veteran-owned small business, and women-owned small business) before considering a small business set-aside.
(4) The contracting officer shall comply with the specific program eligibility requirements identified in this part in addition to the ordering procedures for a multiple-award contract (for orders placed under the Federal Supply Schedules Program, see 8.405-5; for orders placed under all other multiple-award contracts, see 16.505).
(b) Orders under set-aside contracts—
(1) Orders under total set-aside contracts. Under a total small business set-aside, contracting officers may at their discretion set aside orders for any of the small business socioeconomic concerns identified in 19.000(a)(3) provided that the requirements at paragraph (a) of this section, 19.502-2(b), and the specific program eligibility requirements are met.
(2) Orders under partial set-aside contracts.
(i) Only small business concerns awarded contracts for the portion(s) that were set aside under the solicitation for the multiple-award contract may compete for orders issued under those portion(s).
(ii) Small business awardees may compete against other than small business awardees for an order issued under the portion of the multiple-award contract that was not set aside, if the small business received a contract award for the non-set-aside portion.
(c) Orders under reserves.
(1) The contracting officer may—
(i) Set aside orders for any of the small business concerns identified in 19.000(a)(3) when there are two or more contract awards for that type of small business concern; or
(ii) Issue orders directly to one small business concern for work that it can perform when there is only one contract award to any one type of small business concern identified in 19.000(a)(3).
(2) Small business awardees may compete against other than small business awardees for an order that is not set aside if the small business received a contract award for the supplies or services being ordered.