52.219-7
Notice of Partial Small Business Set-Aside
This clause ensures that only eligible small businesses can compete for the set-aside portion of a contract, while allowing them to also compete for the non-set-aside portion if desired.
Overview
FAR 52.219-7, Notice of Partial Small Business Set-Aside, outlines the requirements and procedures for solicitations and contracts where only a portion of the requirement is set aside exclusively for small business concerns. This clause defines what constitutes a small business, explains how offers are to be submitted for set-aside and non-set-aside portions, and clarifies competition rules for multiple-award contracts. It also provides an alternate provision for including Federal Prison Industries, Inc. in both portions of the requirement.
Key Rules
- Definition of Small Business Concern
- A small business must be independently owned, not dominant in its field, and meet the size standards in the solicitation. Affiliation rules are determined by SBA regulations.
- Applicability
- The clause applies only to contracts partially set aside for small businesses.
- Offer Submission
- Small businesses may compete for both set-aside and non-set-aside portions. The solicitation will specify if separate or combined offers are required.
- Nonresponsive Offers
- Offers from non-small businesses for the set-aside portion are nonresponsive and will be rejected.
- Multiple-Award Contracts
- Small businesses compete only among themselves for set-aside orders, but may also compete for non-set-aside orders if awarded that portion.
- Alternate I
- Allows Federal Prison Industries, Inc. to compete for both portions if included by the contracting officer.
Responsibilities
- Contracting Officers: Must specify offer submission requirements and ensure compliance with set-aside rules.
- Contractors: Must determine eligibility, submit offers as required, and comply with size standards and affiliation rules.
- Agencies: Oversee set-aside compliance and ensure proper application of the clause.
Practical Implications
- Ensures small businesses have exclusive opportunities for part of a contract while allowing open competition for the remainder.
- Contractors must carefully review solicitation instructions to avoid nonresponsive offers.
- Misunderstanding eligibility or offer requirements can lead to disqualification.