52.219-32 Orders Issued Directly Under Small Business Reserves
Source: FAR 52.219-32 on acquisition.gov
When only one contract is awarded to a specific type of small business under a reserve, the contracting officer may issue orders directly to that business without further competition.
Overview
- FAR 52.219-32 establishes the rules for issuing orders directly under contracts reserved for specific small business concerns. It clarifies when a contracting officer may place orders directly with a small business under a small business reserve, as identified in FAR 19.000(a)(3).
Key Rules
- Applicability to Small Business Reserves
- This clause only applies to contracts that have been reserved for small business concerns as defined in FAR 19.000(a)(3), which includes categories like 8(a), HUBZone, SDVOSB, and WOSB.
- Direct Order Authority
- If only one contract is awarded to a single type of small business concern under the reserve, the contracting officer is permitted to issue orders directly to that concern without further competition.
Responsibilities
- Contracting Officers: Must ensure the contract is properly reserved for a qualifying small business and may issue direct orders if only one award is made to a single type of small business concern.
- Contractors: Must confirm their eligibility and status as the designated small business concern under the reserve.
- Agencies: Should monitor compliance with small business reserve requirements and ensure proper documentation.
Practical Implications
- This clause streamlines order placement when only one small business of a specific type receives a contract under a reserve, reducing administrative burden and expediting procurement. Contractors should be aware that direct orders may be issued without further competition in these circumstances. Common pitfalls include misunderstanding eligibility or misapplying the clause to contracts not properly reserved for small business concerns.
As prescribed in 19.507(g)(2), insert the following clause:
Orders Issued Directly Under Small Business Reserves (Mar 2020)
(a) Applicability. This clause applies only to contracts that were reserved for any of the small business concerns identified at 19.000(a)(3).
(b) If there is only one contract award to any one type of small business concern identified in 19.000(a)(3) as a result of the reserve, the Contracting Officer may issue an order or orders directly to the concern.
(End of clause)