19.507 Solicitation provisions and contract clauses
Source: FAR 19.507 on acquisition.gov
FAR 19.507 mandates the inclusion of specific clauses and provisions in solicitations and contracts to ensure proper implementation and enforcement of small business set-aside requirements.
Overview
FAR 19.507 prescribes the specific solicitation provisions and contract clauses that contracting officers must include in solicitations and contracts involving small business set-asides, partial set-asides, and reserves. It details when to use clauses such as Notice of Total Small Business Set-Aside (52.219-6), Notice of Partial Small Business Set-Aside (52.219-7), Limitations on Subcontracting (52.219-14), Notice of Set-Aside of Orders (52.219-13), Notice of Small Business Reserve (52.219-31), Orders Issued Directly Under Small Business Reserves (52.219-32), and the Nonmanufacturer Rule (52.219-33). The section also addresses the use of these clauses in multiple-award contracts, the inclusion of Federal Prison Industries (FPI) in competitions, and exceptions such as SBA waivers of the nonmanufacturer rule. The requirements ensure that small business participation is properly structured and enforced in federal contracting.
Key Rules
- Total Small Business Set-Asides (52.219-6)
- Must be included in solicitations/contracts for total small business set-asides, including certain multiple-award contracts. Alternate I is used when FPI is included.
- Partial Small Business Set-Asides (52.219-7)
- Required for partial set-asides, including parts of multiple-award contracts. Alternate I applies when FPI is included.
- Limitations on Subcontracting (52.219-14)
- Inserted for set-asides above the simplified acquisition threshold and for certain sole-source awards, with specific instructions for contract/order level compliance.
- Notice of Set-Aside of Orders (52.219-13)
- Used in multiple-award contracts where orders may be set aside for small businesses, with Alternate I for full and open competitions under certain conditions.
- Small Business Reserves (52.219-31, 52.219-32)
- Provisions and clauses for contracts with small business reserves.
- Nonmanufacturer Rule (52.219-33)
- Required for supply contracts with manufacturing/supply NAICS codes under certain set-aside or HUBZone preference conditions, unless SBA has waived the rule.
Responsibilities
- Contracting Officers: Must ensure the correct clauses and provisions are included in solicitations and contracts based on the type of set-aside, contract value, and business program involved. Must indicate compliance requirements and exceptions as specified.
- Contractors: Must comply with the requirements of the inserted clauses, such as limitations on subcontracting and the nonmanufacturer rule, as applicable to their contract.
- Agencies: Oversee compliance with small business set-aside requirements and ensure proper clause usage and documentation.
Practical Implications
- This section ensures that small business set-aside requirements are clearly communicated and enforceable through contract clauses. It impacts daily contracting by mandating specific language in solicitations and contracts, which can affect eligibility, compliance, and performance obligations. Common pitfalls include failing to include the correct clauses, misunderstanding when alternates or exceptions apply, or not properly documenting set-aside decisions.
(a) [Reserved]
(b) [Reserved]
(c) The contracting officer shall insert the clause at 52.219-6, Notice of Total Small Business Set-Aside, in solicitations and contracts involving total small business set-asides. This includes multiple-award contracts when orders may be set aside for any of the small business concerns identified in 19.000(a)(3), as described in 8.405-5 and 16.505(b)(2)(i)(F). Use the clause at 52.219-6 with its Alternate I when including FPI in the competition in accordance with 19.502-7.
(d) The contracting officer shall insert the clause at 52.219-7, Notice of Partial Small Business Set-Aside, in solicitations and contracts involving partial small business set-asides. This includes part or parts of multiple-award contracts, including those described in 38.101. Use the clause at 52.219-7 with its Alternate I when including FPI in the competition in accordance with 19.502-7.
(e) The contracting officer shall insert the clause at 52.219-14, Limitations on Subcontracting, in solicitations and contracts—
(1)For supplies, services, and construction, if any portion of the requirement is to be set aside for small business and the contract amount is expected to exceed the simplified acquisition threshold, and in any solicitations and contracts that are set aside or awarded on a sole-source basis in accordance with subparts 19.8, 19.13, 19.14, or 19.15, regardless of dollar value. This includes multiple-award contracts when orders may be set aside for small business concerns, as described in 8.405-5 and 16.505(b)(2)(i)(F), and when orders may be issued directly to a small business concern as described in 19.504(c)(1)(ii). For contracts that are set aside, the contracting officer shall indicate in paragraph (f) of the clause whether compliance with the limitations on subcontracting is required at the contract or order level;
(2) Using the HUBZone price evaluation preference. However, if the prospective contractor waived the use of the price evaluation preference, or is an other than small business, do not insert the clause in the resultant contract.
(f)
(1) The contracting officer shall insert the clause at 52.219-13, Notice of Set-Aside of Orders, in all solicitations for multiple-award contracts under which orders may be set aside for any of the small business concerns identified in 19.000(a)(3), and all contracts awarded from such solicitations.
(2) The contracting officer shall insert the clause at 52.219-13 with its Alternate I in all full and open solicitations and contracts for multiple-award contracts under which orders will be set aside for any of the small business concerns identified in 19.000(a)(3) if 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.
(g)
(1) The contracting officer shall insert the provision at 52.219-31, Notice of Small Business Reserve, in solicitations for multiple-award contracts that have reserves.
(2) The contracting officer shall insert the clause at 52.219-32 Orders Issued Directly Under Small Business Reserves, in solicitations and the resulting multiple-award contracts that have reserves.
(h)
(1) The contracting officer shall insert the clause at 52.219-33, Nonmanufacturer Rule, in solicitations and contracts, including multiple-award contracts, when orders may be set aside for small business concerns as described in 8.405-5 and 16.505(b)(2)(i)(F), and when orders may be issued directly to a small business concern as described in 19.504(c)(1)(ii)), when—
(i)the item being acquired has been assigned a manufacturing or supply NAICS code, and–
(ii)
(A)Any portion of the requirement is to be–
(1)Set aside for small business and is expected to exceed the simplified acquisition threshold; or
(2)Set aside or awarded on a sole-source basis in accordance with subparts 19.8, 19.13, 19.14, or 19.15, regardless of dollar value; or
(B) Using the HUBZone price evaluation preference. However, if the prospective contractor waived the use of the price evaluation preference, or is an other than small business, do not insert the clause in the resultant contract.
(2)The contracting officer shall not insert the clause at 52.219-33 when the Small Business Administration has waived the nonmanufacturer rule (see 19.505(c)(4)).