Solicitation provisions and contract clauses
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.