CLM 059

Procurement Technical Assistance Centers (PTACs)PTACs serve as a resource for businesses pursuing and performing under federal, state, and local Government contracts, and with other-than-small-business contractors. They are also a resource to Government agencies providing assistance with locating qualified companies.

Small Business Development Centers (SBDCs)SBDCs provide a vast array of technical assistance to small businesses and aspiring entrepreneurs. SBDCs provide services such as procurement and contracting aid and market research services to small businesses and Government agencies.https://www.sba.gov/tools/local-assistance/sbdc

After the solicitation is issued, open communications with industry must stop and dialogue is tightly controlled by the Contracting Officer. This action is taken to preserve the integrity of the overall source selection process which continues until the contract(s) award is made. FAR Part 15, DFARS Part 215, and DoD Source Selection Procedures apply to competitively negotiated acquisitions and must be strictly adhered to throughout the Solicitation-Award Phase. The estimated acquisition value will determine who is appointed to be the Source Selection Advisor (SSA) (acquisition decision maker). For DoD acquisitions at or above $100M, the agency head will appoint the SSA in writing. Component and local source selection policies are established for appointment of SSAs below $100M.Program Managers and/or Product Support Managers, for acquisitions where a Program Manager (PM) is assigned, provide a key leadership role in the source selection process. Contracting Officers are business advisors on the Source Selection Team (SST) and may also serve as SSA consistent with Component and local policies. They ensure proposals are evaluated based on factors and sub-factors contained in the solicitation, and the selected source or sources proposal represents the best value to the Government. The proper conduct of the source selection is vital to assessing maximum utilization of small business in acquisitions.

Small business proposals may include contractor teaming arrangements (See FAR 9.601) in the form of Joint Ventures or prime/subcontractor arrangements. Subcontract Plans do not apply to small business concerns (FAR 19.702(b)(1)). Select Contractor Teaming Arrangements - Joint Ventures for more information.

SB Advocacy and Outreach SBP's perform small business policy analysis to review, influence, and develop policies related to small business utilization in acquisitions as well as create legislative proposals.

Socioeconomic Program Management Given the complexities of DoD acquisitions, SBPs may be assigned specialized program management or oversight duties to enhance utilization of socioeconomic small business programs within the agency.

Solicitation-Award Phase begins with a recommended acquisition strategy (AS) that supports team development of written acquisition plan (AP), solicitation, and model contract Phase ends when competitively negotiated contract(s) is awarded

Solicitation (RFQ, IFB, RFP)In the Solicitation step, the solicitation is developed based on the clearly defined acquisition strategy/plan which were outputs from the Acquisition Strategy step of the Presolicitation Phase. Recall that the acquisition strategy/plan may not be approved, but they should be solid/stable enough to develop/finalize a corresponding source selection plan and solicitation.

Your team will work collaboratively for months and months to accomplish all of the requirements. You will need to work closely with your local Small Business Professionals during the early acquisition planning stages to ensure pertinent small business considerations are identified early and addressed in your market research.

Step Three in the Service Acquisition process, Market Research, is a cross functional responsibility. It identifies providers of the type of service to acquire. This can inform you of how other organizations, both public and private, define and acquire these services. Good Market Research builds a solid foundation for your acquisition strategy and will help shape how you structure your performance requirement. Service methods and providers are always changing; therefore, Market Research is a continuous process. The following are key outcomes of Market Research: Identify market trends that affect your service Identify how other activities are acquiring services similar to yours Identify what leverage you may have in the market Identify the extent of competition and small business opportunities Determine whether this service can be obtained as a Commercial service Capture all your analysis in a Market Research Report that will support your requirements packaging and acquisition strategy

Federal Business Opportunities (FedBizOpps) or (FBO)FBO is the Government Point of Entry specified by FAR 5.101 where Federal agencies must disseminate information on proposed contract actions to industry. This makes it a good resource for seeing what other agencies are procuring and the firms that respond to those opportunities

System for Award Management (SAM) SAM consolidates information from federal procurement systems. Companies that want to do business with the federal Government must register a business profile in SAM. This allows agencies to search based on a variety of factors including capabilities, size, location, and ownership

Strategic Market Research - Surveillance Strategic market research involves activities that result in broad understanding of markets, technologies, business developments, and products or services of interest. Strategic market research is used to understand an industry and is often called market surveillance because it is ongoing and broadly focused. The objective is to become knowledgeable about the market area of interest as it relates to the products and services your agency seeks in both the short and long term. This type of market research is done continuously to maintain awareness of overall market developments and attempts to answer questions about: Technological advances Process improvements Business trends Available sources for products and services, including small businesses Commercial business practices Supply chain information Market forecasting Acquisition team members, including Small Business Professionals, conduct strategic market research.

Tactical Market Research Tactical market research involves in-depth investigation of the marketplace for a specific acquisition or identified need. The goal of tactical market research is to answer specific questions to gather data about the market, suppliers, pricing, products, services, and so on and use the information to define requirements and help shape an acquisition strategy. Many electronic business systems are used to conduct tactical market research. They help to identify the small businesses with relevant capabilities in the designated NAICS code markets and reflects those that have been awarded federal contracts for similar purchases. This type of tactical market intelligence is an initial indicator of existing small business capabilities. It should be used as a starting point in devising a market research plan and strategy. The acquisition team may need to acquire additional industry information to ultimately determine the feasibility of set-asides and how to maximize small business utilization. The Request for Information (RFI) is a tool that is frequently used to define a requirement or develop an acquisition strategy. RFIs are notices published on FedBizOpps to solicit industry input to assist the Government in understanding unknowns or obtaining information that clarifies specifics about current or anticipated products or services in an industry.

In accordance with FAR 19.303, the Contracting Officer shall select the NAICS code that best describes the principal purpose of the product or service being acquired. In selecting the NAICS code, the Contracting Officer may have some issues to consider.

The Acquisition Involves More than One Type of Industry If an acquisition involves more than one type of industry, usually the NAICS code to use is the one that accounts for the greatest percentage of contract value. For example, a large Engineering Services acquisition may also include other services such as training, financial and administrative support, transportation, and facilities. Each of these has its own unique NAICS code. However, since most of the contract is for Engineering Services, that is the most appropriate NAICS code to use.

Formal small business coordination is required and should be obtained prior to any DoD or Component preaward peer review for authorization to release the solicitation (FAR Part 5) when applicable. In accordance with FAR 19.201(c)(10), SBPs shall make recommendations as to whether a particular acquisition should be awarded as a set-aside. DFARS 219.201(c)(10) requires the Small Business Professional to review and make recommendations for all acquisitions (including orders placed against Federal Supply Schedule contracts) over $10,000, except those under the simplified acquisition threshold totally set-aside for small business concerns in accordance with FAR 19.502-2.The review and recommendation shall be made before issuance of a solicitation or certain contract modifications and documented on DD Form 2579, Small Business Coordination Record. It's important to note that although review is not required for acquisitions under the simplified acquisition threshold that are totally set-aside for small business concerns, review is not prohibited (DFARS PGI 219.201(c)(10)).

The Contracting Officer is responsible for: Preparing the DD Form 2579, Small Business Coordination Record Ensuring the completed DD Form 2579 is accompanied by the proposed solicitation and supporting documentation (market research report, acquisition strategy or plan, other relevant documents) to support the Contracting Officer's recommendation Coordinating his/her recommendations on a particular acquisition with the local SBP Coordinating his/her recommendations on a particular acquisition with the Small Business Administration (SBA) Procurement Center Representatives (PCRs) when the acquisition exceeds the SAT and the Contracting Officer will recommend NOT setting the acquisition aside The DD Form 2579 Small Business Coordination Record serves as a means to confirm the acquisition team's acquisition strategy is consistent with the Contracting Officer's recommendations in consideration of small and small disadvantaged business concerns.

The Post Award Phase begins at contract award, which is the culmination of the activities conducted during the Presolicitation and Solicitation-Award phases of the contracting process. Program Managers and Product Support Managers will lead the acquisition team in shifting the focus towards effective management of the acquisition program to ensure timely delivery of goods and services for the warfighter. Monitoring contract compliance is essential, inclusive of small business requirements. Whether monitoring small business participation, subcontracting plan requirements, or accomplishing small business performance assessments, evaluating contractor performance is paramount to ensuring that small businesses are providing goods and services to the warfighter as expected. Contract performance is where you will see the innovation, agility, and responsiveness of small businesses at work!

The Contracting Officer is the overall business advisor to the acquisition team.

Market research needs vary based on the individual requirements and the type of acquisition: major system, services, business systems or other contracting areas (operational). Select Suzanne and Paul, to learn more about market research during the acquisition of a DoDI 5000.02 governed system. See the Defense Acquisition Guidebook (DAG), Chapter 1, Figure 14 extract to compare the acquisition life cycle and the contracting process. When finished, select Next to continue.

The Defense Acquisition Management System is an event-driven process. Acquisition programs proceed through a series of milestone reviews and other life cycle decision points. These types of acquisitions are complex and have many supporting documentation requirements depending on where your acquisition falls within the acquisition life cycle. The Milestone Document Identification (MDID) tool assists acquisition personnel filter through statutory and regulatory document requirements as identified in DoDI 5000.02.Don't be alarmed if you have never worked these types of acquisitions. Acquisition 101 will be a great start to learn more, but for now our focus is to look at small business considerations within the acquisition framework.

the Contracting Officer may set the acquisition aside for WOSBs.

The DoD Pilot Mentor-Protégé Program (MPP) was established in November 1990 (Public Law 101-510 ) as an effort to respond to concerns, raised by DoD large business prime contractors, that many small disadvantaged businesses (SBDs) did not have the technical capabilities to perform DoD subcontract requirements. This lack of technical capability made it difficult for these prime contractors to achieve their SDB subcontracting goals. The FY17 National Defense Authorization Act (NDAA SEC. 1823 (2)) modified the DoD Mentor Protégé Program by adding a definition for the word "affiliation" (121.103) and states that "A mentor firm may not enter into an agreement with a protégé firm if the Administrator of the Small Business Administration has made a determination finding affiliation between the mentor firm and the protégé firm." This means that the mentor and protégé transaction should be at "arm's length" and the two entities cannot be related.

Small business strategy considerations will be different for each acquisition because they must be uniquely crafted around the circumstances of each acquisition. The differing types of acquisitions, types of goods and services, and complexities associated with acquisition requirements will affect how you devise the small business acquisition strategies. See the attached Small Business Considerations Checklist. It is not all inclusive, but your local SBP can help fill in the blanks and assist you throughout the acquisition life cycle. Issues that may Impact Small Business Participation.

The Market Research Report states there are no small businesses that provide the needed products in the categories of listed for the NAICS code 334511.

Sole SourceFAR 2.101 defines sole source as: A contract for the purchase of supplies or services that is entered into after soliciting and negotiating with only one source.

The Small Business Act was amended by Public Law 95-507 (1978) to require that certain purchases be reserved exclusively for small business concerns, that is they should be "set-aside." The rules for set-asides depend on the dollar value of the acquisition.

The FAR states that the Program Manager has overall responsibility for development of the acquisition strategy. FAR 7.104

The Small Business Professional is employed by his or her agency (not by the Small Business Administration) and serves as their agency's principle advisor and advocate for meeting mission requirements using small businesses to the maximum extent possible.

The Solicitation Is Above the Micro-Purchase ThresholdEvery solicitation for an acquisition above the micro purchase threshold must include a six digit NAICS code and corresponding size standard. A size standard is the largest a concern can be and still qualify as a small business for Federal Government programs. The size standards are defined based on number of employees or average annual receipts. The average annual receipts are an average over the 3 preceding fiscal years.

The acquisition team, inclusive of the Small Business Professional, advises and assists the Contracting Officer in determining the correct NAICS code. Selecting the correct code is important because it establishes the small business size standard that will apply for the acquisition. It is critical to provide this information to industry as soon as possible so they can make their business decisions regarding participation and interest in a specific acquisition. Because each NAICS code has an associated product or service size standard, companies may be considered a small business concern in one acquisition while being an other than small business concern in a different acquisition. The NAICS code helps both the Government and industry in making critical business decisions about small business utilization strategies.

Past performance evaluations for DoD acquisitions are required based on the thresholds shown at DFARS 242.1502.

The eSRS provides transparency in the access to subcontracting data in order to assess contractors' subcontracting achievements against their proposed goals via the ISR (or SF 294, if required).

Now that all offeror proposals have been evaluated in accordance with the SSP and solicitation, the apparently successful offeror(s) will be evident to the Contracting Officer. This will enable completion of the last step of the competitive negotiations-- determining subcontracting plan acceptability. The Contracting Officer must review the subcontracting plan for adequacy, ensuring that the required information, goals, and assurances are included as stipulated in FAR 19.704, Subcontracting Plan Requirements, FAR 52.219-9, Small Business Subcontracting Plan, and for DoD solicitations, the additional requirements of DFARS 252.219-7003. The Contracting Officer must consider each plan in terms of the circumstances of the particular acquisition. To determine the acceptability of the subcontracting plan, in some instances the Contracting Officer needs to: 1) for sealed bidding acquisitions, require submission of a revised plan, and 2) for negotiated acquisitions, negotiate each or some of the 11 elements of the plan.SBPs may help in assessing the apparently successful offeror's proposed small business subcontracting plans to ensure subcontracting opportunities are maximized and that any overlapping content with the offeror's proposed SBPCDs is consistent. Specific guidance for reviewing subcontracting plans is found at FAR 19.705-4.Once the Contracting Officer determines the subcontracting plan to be acceptable, it must be incorporated into the resulting contract as a materiel part of the contract. Conversely, subcontracting plans that are not acceptable, may make an otherwise apparently successful offeror ineligible for award.

There are areas where the subcontracting plan and Small Business Participation Commitment Document (SBPCD) are complimentary. For example, the planned subcontracting goals of the subcontracting plan should be the same as the quantitative level of participation in the SBPCD. Moreover, the type of effort to be subcontracted should be the same as that described in the SBPCD. The provisions of the subcontracting plan should be consistent with the contents of the SBPCD. A significant difference between the subcontracting plan and SBPCD is in the Contracting Officer's ability to administer them. A subcontracting plan is contractual and subject to the assessment of liquidated damages (see FAR 19.705-7) based upon a contractor's good faith efforts. However, the determination of good faith effort and potential assessment of liquidated damages doesn't occur until the end of the contract. A SBPCD is also contractual, but failure to comply with it can be determined to be a breach of contract at any time during contract performance. To ensure enforceability, the Contracting Officer should require periodic reporting of performance in accordance with the SBPCD by the contractor, and the Government should monitor contractor performance.

While there are many instructions that must be included in Section L, Instructions and Notices, of the solicitation, this lesson focuses on small business strategies for unrestricted solicitations where the evaluation of small business participation is required. There are no existing FAR or DFARS clauses to capture these small business strategies and requirements; therefore, these must be explicitly communicated in Section L of the solicitation

There are many existing FAR and DFARS small business solicitation provisions and contract clauses. Some are mandated based on the types of set-aside strategies utilized, some are required when applicable in small business acquisitions, and others are required in all acquisitions. One in particular that is required in all acquisitions over the simplified acquisition threshold (SAT) (except personal services and overseas performance) is FAR 52.219-8, Utilization of Small Business Concerns. When there is no existing FAR or DFARS solicitation provision or contract clause to communicate your small business strategies in a solicitation and model contract, you may need to develop unique solicitation instructions/notices as well as corresponding special contract requirements which are within Section H of the uniform contract format (FAR 15.204-1). Generally this will be done when you incorporate contractually binding small business participation requirements.

During the solicitation step (prior to solicitation release), the acquisition team may communicate openly with industry about the acquisition (FAR 15.201(f)). Potential offerors may also ask questions about the acquisition while the team is busy trying to develop the solicitation. Alberto, the Small Business Professional (SBP), receives numerous inquiries from interested companies. Because you want to ensure you share the same information with all interested industry participants, these responses reflect what has already been posted on Fed Biz Ops (FBO.gov) based on prior industry inquiries and written Government responses). Select each question to view Alberto's response.

This step of the Solicitation-Award Phase culminates in obtaining authority to issue the solicitation and includes issuance of the solicitation on the official FedBizOps website. Since our lesson focus is competitive solicitations, this means the acquisition team cleared their peer reviews, small business coordination (DD Form 2579), and obtained approvals on the acquisition strategy, acquisition plan (if required), and source selection plan. The team's next major milestone will be receipt of industry proposals.

The Federal Procurement Data System - Next Generation (FPDS-NG) provides a comprehensive web-based tool for agencies to report contract actions. The Contract Action Report (CAR) contains contract action data required to be entered into the FPDS. The contract writing system generates the CAR based on information input during the solicitation-award document creation process and generates the CAR at the time the award instrument is issued. The SF 279, Individual Contract Action Report, is embedded in the contract writing system. According to FAR 4.604(b), the Contracting Officer who awarded the contract action is responsible for the completion and accuracy of the CAR. Refer to DFARS/PGI 204.6 for DoD contract reporting requirements and procedures. The FPDS-NG system does require specific information be entered from small business contracts to ensure the CAR is complete. See the FPDS NG Integration Quick Reference Guide for additional information. This is only applicable for agency contracting personnel using the automated contract writing system known as the Standard Procurement System (SPS) (also called Procurement Desktop-Defense (PD2).

Three areas relative to small business that are subject to protest or appeal are: Selection of the North American Industry Classification System (NAICS) Code Small Business Size/Socioeconomic Status Set-aside Determination

Closeout When contract performance is complete and all contract administration functions have been completed, the Contracting Officer and/or the designated CAO if applicable, will close out the contract. For more complex major acquisition system contracts, the closeout process may take years to properly disposition Government property and audit/negotiate final direct/indirect rates.

To facilitate good contract performance, it is wise to hold a Post Award Conference. The Post Award Conference provides the acquisition team with the opportunity to sit down with the contractor's team to review the contract, share expectations, and address concerns. It is important to ensure the contractor has a complete understanding of what constitutes satisfactory contract performance. Contracting Officers may appoint a Contracting Officer's Representative in accordance with FAR 1.602-2(d) who has primary responsibility for monitoring contractor performance from a technical perspective. However, there are business aspects such as: Providing assistance to small businesses Documenting contractor performance Monitoring contractor compliance with the subcontracting plan Monitoring contractor compliance with the small business participation commitment document that are the responsibility of the Contracting Officer, with support from Small Business Professionals

Our new contractor-- NavAir, Inc. recently outgrew the small business size standard for this acquisition's assigned NAICS code. Sharon, the Contracting Officer, appoints a Contracting Officer Representative (COR) to assist her in monitoring contract performance, including receiving, inspecting, and accepting deliverables, and documenting performance. The COR also reviews and approves invoices and ensures prompt payments. The COR notifies Sharon when he needs to get in touch with Alberto for assistance. Since NavAir Inc. is a new OTSB and a small business success story having recently graduated from the SBA's 8(a) business development program, Alberto helps Sharon with two issues. Select each issue to review what Alberto did.

Whether a small business is the prime contractor or the subcontractor, there may come a time during contract performance when they call upon the Contracting Officer for assistance. FAR 42.1601 requires the Contracting Officer to make every reasonable effort to respond to small business concerns regarding contract administration matters. One area where assistance is often needed is prompt payment. Timely payments affect cash flow, which is the bloodline of a small business whether as prime contractor or subcontractor. FAR 19.702 emphasizes it is Government policy that its prime contractors establish procedures to ensure timely payments to their small business subcontractors. While the Contracting Officer does not have privity of contract with subcontractors, you can engage with the prime contractor on behalf of a small business when it relates to prompt payment matters.

What should be evaluated for small business past performance?Examples of elements of small business utilization in past performance (compliance with FAR 52.219-8) to evaluate include: Actual prior use of small businesses Use of small businesses in the socioeconomic categories Types of work performed by small businesses Complexity of the work performed by small businesses Reporting of small business performance in the CPARS History of prompt payments to small businesses

While source selection procedures apply through award of the contract(s), the evaluation of proposals is a subset of the Solicitation-Award Phase for our generalized contracting process. The Small Business Team (SBT) evaluates SBPCDs for both small businesses and other than small businesses (OTSBs), and may assist the past performance team in evaluating small business past performance. In conducting the proposal evaluations, the acquisition team must follow their source selection plan (SSP) and conduct evaluations per solicitation requirements.

As you learned earlier in this lesson, information gathered from market research will help the acquisition team in making informed decisions to devise a sound acquisition strategy. How the acquisition team utilizes market research is listed at FAR 10.001(a)(3), FAR 19.502, and DFARS 210.001(a)(ii).The acquisition team can use a variety of market research techniques and tools.(See DAU Tools, Market Research Methods)For acquisitions over the simplified threshold, the Contracting Officer must publicize contract actions on FBO.gov to assist small businesses, veteran-owned small businesses, service-disabled veteran-owned small businesses, HUBZone small businesses, small disadvantaged businesses, and women-owned small businesses obtain contracts and subcontracts (FAR 5.002).

You previously learned that there are small business set-aside and sole source authorities that can be used when acquiring goods and services via contractual methods. Market research is required to determine which is appropriate based on the Rule of Two. You must provide industry sufficient information via FBO.gov: Indicate you are seeking small business capabilities to determine feasibility of set-asides; Establish a public technical information library for industry-wide accessibility (best practice to ensure maximum competition and small business utilization); Provide the designated NAICS code and small business size standard Generally, a sources sought synopsis is posted on FBO.gov to communicate this type of information. You will work with your technical team to derive a set of capabilities that small businesses must demonstrate they can meet, inclusive of any small business teaming arrangements. Keep in mind, this is pre-proposal information. Your team is merely trying to assess whether small business capabilities exist, and to what degree they can meet your requirements (i.e., sole source; total set-aside; partial set-aside).Be sure to work with your local Small Business Professional (SBP) when developing sources sought synopses to ensure messaging to industry is not unduly restrictive.

A primary overarching objective for the 2017 fiscal year of the Department regarding small business is to access innovations and realize efficiencies that will result in improved support of the warfighter. To achieve this objective, DoD's OSBP strives to increase small business utilization in DoD acquisitions. One measure of success of increased small business utilization is to achieve or exceed the department's small business and socioeconomic program goals.

overarching objective: access innovation, realize efficiencies and improve support to the warfighter accomplished by: increased small business utilization in DoD acquisitions measured By: DoD Prime contracting goals and DoD Subcontracting goals

Demonstration of Good-Faith Effort Regardless of the reasoning, the contractor should demonstrate that it has made a good-faith effort to achieve the goals as well as to comply with the other terms of the plan. The contractor must provide a comment in the "Remarks" section of the ISR when not meeting goals or reporting $0 in any socioeconomic category.

Accurate and Timely eSRS Reporting The reports may not have been completed accurately. For example, the contractor has not stated the goals as contained in the small business subcontracting plan. The reports may not have been submitted in timely fashion. The contractor may have forgotten to submit a report altogether. However, note the contractor may not have been able to submit the ISR. In order to submit the ISR, the Individual Contract Action Report (CAR) for the contract must be coded correctly in the Federal Procurement Data System (FPDS). For contracts awarded after May 2014, contracts will show the type of subcontract plan ("Individual Subcontract Plan," "Commercial Subcontract Plan," or "DoD CSP") or "Plan Not Required." Prior to May 2014, the contract will show "Subcontract Plan Required, Incentives Included," "Subcontract Plan Required, Incentives Not Included," or "Plan Not Required." If the CAR is not coded correctly, FPDS will not allow the contract to "flow" into eSRS, and the contractor will not be able to submit the ISR.

In DoD solicitations where evaluation of small business participation is required, the DoD Source Selection Procedures specify that the evaluation may be accomplished in one of the following ways: Establishing a separate small business participation evaluation factor; Establishing a small business participation subfactor under the technical factor; or Considering small business participation within the evaluation of one of the technical subfactors. The SST's Small Business Team (SBT) is comprised of Small Business Professionals. Since the SBT is a part of the Source Selection Evaluation Board (SSEB), the SBPs will evaluate SBPCDs for both small business concerns and other than small businesses (OTSBs). Depending on how the SST is structured, SBPs may evaluate small business past performance and/or assist the Past Performance Team (PPT) in doing so. For larger acquisitions, Command and/or Component SBPs may serve on the SSAC. In addition to the above SSEB and SSAC roles, SBPs also help the Contracting Officer in assessing the apparently successful offeror's subcontracting plan and participate in debriefings. In case you didn't save the Summary Overview, you may want to bookmark it for future reference.

Although it is permissible to evaluate small business participation at a "subfactor" or lower level, evaluating it at the "factor" level provides greater insight and increased opportunity to maximize small business participation. The solicitation establishes the evaluation criteria in Section M, which must be used in evaluating proposals. What should be considered when developing good small business participation evaluation criteria? Select the Small Business Subcontracting Plan graphic to view some considerations to keep in mind when devising Small Business Participation Evaluation Criteria.

FAR 7.104 requires the planner (Program Manager) to coordinate with and secure the concurrence of the Contracting Officer and other key team members in all acquisition planning. Additionally, when substantial bundling (FAR 7.107-4) exists, there are additional requirements that must be followed.

Although the Program Manager has overall responsibility for the acquisition strategy, other members of the team have a significant role to play in its development. FAR 7.104 requires the planner (Program Manager) to coordinate with and secure the concurrence of the Contracting Officer in all acquisition planning; however, a DoD best practice is to include all key acquisition team members. In addition to adhering to the requirements of the various governance frameworks for the differing types of acquisitions, the acquisition team must also adhere to Component and/or local policies and procedures for formal review, coordination and approval of recommended acquisition strategies. The Program Manager, Product Support Manager, Contracting Officer and Small Business Professional must ensure that acquisition strategies are designed to create maximum small business utilization outcomes suitable for the acquisition circumstances.

While the FAR states the Contracting Office determines the NAICS code and related size standard, devising acquisition strategies is a team effort. Team members will collaborate and should agree on the selection of the appropriate NAICS code and related size standard for the acquisition. A prospective offeror may appeal the NAICS code selection to the SBA Office of Hearings and Appeals. FAR 19.303 governs the process and Contracting Officer responsibilities for NAICS code appeals. SBA Office of Hearings and Appeals decisions are final.

An offeror, the SBA, or other interested party may protest the small business representation of an offeror for a specific procurement. However, for competitive 8(a) contracts, the filing of a protest is limited to an offeror, the Contracting Officer, or the SBA (i.e., no other parties). Any time after offers are opened, the Contracting Officer can question the small business representation of any offeror by filing a Contracting Officer's protest. FAR 19.302 governs the process and responsibilities. Each socioeconomic status category can be protested. Details on the process and the Contracting Officer's responsibilities are governed by the following sections in FAR subpart 19.3:FAR 19.305 - for Small Disadvantaged Business (SDB)FAR 19.306 - for Historically Underutilized Business Zones (HUBZone)FAR 19.307 - for Service-Disabled Veteran-Owned (SDVOSB)FAR 19.308 - for Economically Disadvantaged Women-owned Small Business (EDWOSB) concerns or Women-owned Small Business (WOSB) concerns eligible under the WOSB Program

Dynamic Small Business System DSBS is a database of all small businesses registered with the Small Business Administration. It is a robust database that allows you to search using a variety of search criteria such as the NAICS code, socioeconomic status, geographical location, and key words to find potential small business contractors.https://dsbs.sba.gov/dsbs/search/dsp_dsbs.cfm

Chambers of Commerce A chamber of commerce is an organization of businesses seeking to further their collective interests, while advancing their community, region, state, or nation. Business owners in towns, cities, and other territories voluntarily form these local societies/networks to advocate on behalf of the community at large.https://uschamber.com

Sponsoring, participating in and/or conducting outreach events with industry is another means for collecting market research information. Industry Outreach can occur in a variety of ways.

Conferences and Industry Engagements Conferences and other industry forums provide Government personnel (Small Business Professionals, Program Managers, Contracting Officers) an opportunity to engage small businesses to learn of their capabilities. Some examples include: One-on-one meetings with industry representatives Industry Days focused on specific market sectors that raise awareness of small business capabilities Trade shows Matchmaking events (i.e., structured events to facilitate small business one-on-one meetings with government requirements personnel and/or OTSB primes with the objective being to find small business capabilities to meet customer needs) Local civic events, such as Chamber of Commerce meetings Presolicitation conferences Procurement conferences sponsored by other agencies

As we stated previously, some contracts may require reporting for compliance with small business participation requirements in addition to reporting in eSRS and FSRS. Small business participation reporting requirements were established in the solicitation-award phase and may have included things such as: Names of subcontractors and products and services they will supply Type and complexity of products/services to be provided Extent of utilization quantitatively Other requirements, as applicable, such as efforts taken to leverage Small Business Innovation Research / Small Business Technology Transfer (SBIR/STTR) investments to meet mission requirements, or Mentor-Protégé.

Contract closeout is the final stage of the Government contracting process. It can begin when the contract has been physically completed, and is not finished until final payment is made, any disputes settled, and all administrative actions required by the Federal Acquisition Regulation and specific agency procedures accomplished. Once the procuring or administrative Contracting Officer confirms that all receivables have been delivered/completed (often with the assistance of a Contracting Officer representative), the Contracting Officer begins the closeout process. Per FAR 4.804-4, a contract is physically complete when: The contractor has completed the required deliveries and the Government has inspected and accepted the supplies; The contractor has performed all services and the Government has accepted these services; and All option provisions, if any, have expired; or The Government has given the contractor a notice of complete contract termination.

Inspector General Recommendations Inspector General officials, who audit and investigate DoD programs and operations, make recommendations that are enacted through regulations and policies.

Court Decisions Rulings from judicial officials can result in changes to regulations and policies.

Market Research The acquisition team conducts market research to determine the ability of the marketplace to satisfy customer needs and to ensure maximum opportunities for small business utilization.

Define Requirement (PWS/SOW/SOO)Based on the market research results, the acquisition team defines/refines the requirements documents as appropriate for the acquisition, including documents such as Statement of Work (SOW), Performance Work Statement (PWS), or Statement of Objectives (SOO). The type and complexity of the acquisition and the governance framework/procedures will drive the types/variety of requirements documents. RED FLAGS: As Acquisition Professionals, you must ensure the requirements documents are not written with unduly restrictive language such that incumbents have an advantage, competition is unnecessarily hindered, or unwarranted barriers to entry are created for new entrants to DoD acquisitions and/or small businesses. Your local Small Business Professional (SBP) and SBA PCR should advise and assist you to ensure these types of issues are addressed early and properly through your market research plans/strategies. Use of draft SOW/PWS and other draft requirements documents are great ways to solicit early industry review/feedback and help you identify/refine requirements within an acceptable range of risk for increased competition and maximum small business utilization.

In competitive acquisitions, the negotiation is not really complete until the contracts are awarded. All efforts to prepare the contract(s) for award are still under the strict source selection rules which prohibit discussions with anyone except those that are members of the SST (see FAR 3.104). For teaching purposes, since there are a few administrative actions to prepare for the contract awards, you will look at those as a separate Award Step in this Solicitation-Award phase. In wrapping up this step, it is important to understand the difference between evaluation of small business participation and assessing acceptability of subcontracting plans. Your understanding will be critical to your ability to devise evaluation criteria that will be effective in evaluating small business participation in source selections. The distinctions and requirements for each must be sufficiently communicated to industry to facilitate submission of offers that are responsive relative to the small business requirements of the solicitation and effectively drive desired behaviors during contract performance period.

During source selection you will get to a point when the SSA renders a decision relative to contract award. You are still in the midst of source selection, but there is much to do before you can proceed with the competitive contract award.In this step of the Solicitation-Award phase, the Contracting Officer and Contract Specialists will initiate and complete final administrative actions to facilitate execution of the SSA's contract award decision, including: Determination of Responsibility Notification to Unsuccessful Offerors (preaward) Contract Action Report (CAR) Protest and Appeal Contract Distribution *

Award The Contracting Officer issues the award announcement(s), resultant contract(s) and serves as the chair for all debriefings. Acquisition team members, including the local SBP, will support the Contracting Officer in debriefings.

During this Solicitation step, you will learn about solicitation development, source selection planning and solicitation issuance. Let's get started. As defined in FAR part 2, "Solicitation" means any request to submit offers or quotations to the Government. Solicitations under simplified acquisition procedures (FAR Part 13) are generally called requests for quotations (RFQs). Solicitations under sealed bid procedures (FAR Part 14) are called invitations for bids (IFBs). Solicitations under negotiated procedures (FAR Part 15) are called requests for proposals (RFPs). When developing solicitations, you must use the respective FAR, DFARS, and component procedures, as applicable, for the type of solicitation required. Authority to release a solicitation is governed by the agency, component and local policies (see DFARS PGI 201.170-2, Preaward Peer Reviews). For competitive acquisitions, preaward peer reviews must occur three times: 1) prior to solicitation issuance, 2) prior to request for final proposals (if applicable), and 3) prior to contract award. When you are ready to request the initial preaward peer review (solicitation issuance), there are many supporting acquisition documents that must accompany your proposed solicitation (see DFARS PGI 201.170-4). The purpose of these mandatory, independent DoD and/or Component peer reviews is to: ensure that DoD Contracting Officers are implementing policy and regulations in a consistent and appropriate manner; continue to improve the quality of contracting processes throughout DoD; and facilitate cross-sharing of best practices and lessons learned throughout DoD.

The Small Business Administration (SBA) assigns small business size standards based on the NAICS code. Recall that a size standard is the largest a concern can be and still qualify as a small business. Here are some examples of size standards. Manufacturing NAICS codes generally have a size standard based on number of employees. Services generally have a size standard based on average annual receipts and a few are based on numbers of employees. Construction services always have average annual receipts as the size standard.

Each NAICS code has a description, but the descriptions are ambiguous sometimes, and often several different NAICS codes could apply to an acquisition. In some cases, you can enable more businesses to qualify as small businesses for an acquisition by selecting a NAICS code with a larger size standard. However, in all cases the NAICS code should be selected based on the code that best fits the principal purpose of the product or service being acquired (FAR 19.303(a)(2)). As an acquisition team member you may get perplexed in trying to determine and recommend the most appropriate NAICS code at times.

To take full advantage of small business participation in acquisitions, the Contracting Officer must ensure that the content of the solicitation includes appropriate small business components. This is a team effort during the Presolicitation Phase, but ultimately the Contracting Officer will be the one signing the solicitation and resultant contract and must ensure the team's integrated, acquisition strategy documentation implements policy and regulations in a consistent and appropriate manner. The Small Business Professional (SBP) assists with developing small business-related solicitation language and reviews the solicitation for unduly restrictive language that may limit small business participation in the acquisition.

FAR Part 11, Describing Agency Needs, establishes policy for defining customer needs in requirements documents such as performance work statements (PWS), statements of work (SOW), and statements of objectives (SOO). For major systems acquisitions (DoDI 5000.02), requirements are also governed by the Joint Capabilities Integration and Development System (JCIDS). When developing requirements documentation, PMs and PSMs must communicate regularly with customers to determine how well the requirements document(s) reflects the customer's needs and to make adjustments where needed. Requirements must reflect the Government's minimum requirements and should not be overly restrictive. Draft requirements documents should be provided to industry, as appropriate during market research, to obtain feedback and make adjustments where feasible (FAR 15.201). This will ensure a competitive environment for increased competition and small business participation.

Federal procurement law and regulations require that market research be conducted. Select FAR part 2 to learn how market research is defined, FAR part 10 to understand the Federal Government's policy regarding when market research is required, and DFARS part 210 for DoD implementation guidance

FAR, part 2, Definitions Market research means collecting and analyzing information about capabilities within the market to satisfy agency needs.

Market research methods for these types of supplies and services are the same and must be adapted, as necessary, for the circumstances of the acquisition. Some requirements, such as A&E services, are governed by unique FAR and DFARS requirements that will impact your acquisition planning and competitive source selection methodology. For example, the process for acquiring A&E Services is different and not subject to procedures in FAR Parts 13, 14, and 15. A&E competition and selection procedures are largely controlled by the applicability of the Brooks A&E Act (40 U.S.C. chapter 11) (FAR Subpart 36.6). The Brooks Act requires a different methodology altogether, which requires evaluation and selection of the most highly qualified firms, based on their demonstrated competence and professional qualifications; the selection is generally made by a registered or licensed architect or engineer. See FAR 36.601-3 as there are some situations where this can differ.

Federal Procurement Data System-Next Generation (FPDS-NG)FPDS-NG is a repository of information on federal contracts over $25,000. Use it to find out which agencies have contracts and with whom, what products and services agencies buy, and to identify the contractors with contracts.

When the Contracting Officer is reviewing a contractor's small business subcontracting plan performance, they are looking for compliance in three main areas.

Goals Achievement: The contractor negotiated a small business subcontracting plan that has subcontracting goals. The expectation is that those goals will be met or exceeded. If the contractor is meeting or exceeding the goals, everyone is happy. However, if they are not, there may be a good reason for this; for example, perhaps once work began, the requirements changed and the services to be performed by the small business have been reduced.

Conclusions: Describe the implications of the research findings At a minimum: Commerciality determination Use of small businesses Recommendations Other: Report should be signed by appropriate parties List attachments and include supporting documents Request for Information/Sources Sought/Notices/Questionnaire Query results such as FPDS-NG/DSBS/GSA/ThomasNet

Here are some tools to assist you in documenting your market research results: The Service Acquisition Mall (SAM) provides videos and downloadable documents to assist you with conducting market research. The Market Research Report Guide for Improving the Tradecraft in Services Acquisition (March 2017) can be used to assist teams in preparing market research supporting the acquisition of services.

To adequately evaluate small business participation as a factor/subfactor, offerors should be required to submit a SBPCD. In the SBPCD, the offeror delineates all of its intentions and commitments to be in compliance with the factor/subfactor to be evaluated for small business participation. The SBPCD may: List by name the subcontractors to be utilized and the products/services they are to provide Describe the type and complexity of supplies/services to be provided by small businesses State quantitatively the extent small businesses will be utilized in terms of the total value of the acquisition along with support explanations or documentation Provide evidence of their level of commitment, e.g. letters of intent, actual teaming agreements Provide evidence of their past performance in small business utilization, e.g. Electronic Subcontract Reporting System (eSRS) reports and/or SF 294s and 295s, Contractor Performance Assessment Report System (CPARS) reports

In accordance with DFARS 215.305, when a past performance evaluation is required by FAR 15.304, the evaluation factors shall include the past performance of offerors in complying with requirements of the following clauses if they are included in the solicitation: FAR 52.219-8, Utilization of Small Business Concerns FAR 52.219-9 DEVIATION 2016-O0009, Small Business Subcontracting Plan Evaluation of past performance in compliance with these clauses is evaluation of small business past performance. The goal of the evaluation is to assess the relevancy and degree of confidence the Government has in the offeror's ability to satisfy its proposed requirements to maximizing small business participation in its contracts.Sources from which to obtain past performance information for evaluation include: The offerors themselves Questionnaires tailored to the circumstances of the acquisition Reporting of small business performance in Past Performance Information Retrieval System (PPIRS) Federal Awardee Performance and Integrity Information System Electronic Subcontracting Reporting System Defense Contract Management Agency Program managers, Contracting Officers, and Fee Determining Officials Any other sources available to the Government

There are three types of reports for subcontracting: Individual Subcontracting Reports (ISR) (or SF 294, if required); Summary Subcontracting Reports (SSR); and Reporting Executive Compensation and First-Tier Subcontract Awards. The ISR and the SSR reports are submitted in the Electronic Subcontracting Reporting System (eSRS). The eSRS provides transparency in the access to subcontracting data in order to assess contractors' subcontracting achievements against their proposed goals via the ISR. The data are also used to report subcontracting achievements of the Federal agencies via the SSR. The third report is for contracts that contain the FAR clause 52.204-10, Reporting Executive Compensation and First-Tier Subcontract Awards. First-tier subcontract awards for subcontracts greater than or equal to $30K are reported in the Federal Subaward Reporting System (FSRS). This reporting is required for both other-than-small businesses and small businesses. The purpose of this reporting is to verify consistency with the contract information.

Information flows from the Federal Procurement Data System - Next Generation (FPDS-NG) into eSRS. The Contracting Officer enters an Individual Contract Action Report (CAR) into FPDS. Contract and contractor information in the ISR is populated with information from the CAR. The CAR must be coded correctly ("Subcontract Plan Required" or "Individual Subcontract Plan," "Commercial Subcontract Plan," or "DoD Comprehensive Subcontract Plan") so that the contractor can submit the ISR. Note: The contractor cannot change or correct any of the data that come from FPDS into the related ISR, such as contracting offices and $ related to the contract.

Presolicitation Phase begins with valid acquisition need driving initial planning and team formation Phase ends with a recommended acquisition strategy (AS) that supports team development of written acquisition plan (AP), solicitation, and model contract Solicitation-Award Phase begins with a recommended acquisition strategy (AS) that supports team development of written acquisition plan (AP), solicitation, and model contract Phase ends when competitively negotiated contract(s) is awarded Post Award Phase begins after competitively negotiated contract(s) is awarded Phase ends when all contract performance is complete and contract(s) close out is complete

Initial Planning/Form the Team The contracting process begins with initial planning and forming the team. The Acquisition Team is composed of many different participants who work together to navigate through the contracting process. The team must understand the applicable statutes regarding small business utilization and more importantly, embrace the benefits of contracting with small businesses. Doing so will help the agency's objective of increasing the participation of small businesses and ensure that a fair portion of contracts for supplies and services are placed with small businesses. Regardless of the requirements and acquisition governance framework, the team should include at a minimum: Program Manager Contracting Officer Small Business Professional (SBP) Small Business Administration (SBA) Procurement Center Representative (PCR)

For an interactive experience in learning more about the Market Research step, visit the Services Acquisition Mall (SAM). SAM is a comprehensive website with many self-help tools in the KIOSKS menu tab such as market research templates and other templates and training for all seven steps of this Services Acquisition process. If you work Service Acquisitions, you should receive just-in-time training which is referred to as a Services Acquisition Workshops (SAW). SAWs are facilitated workshops. Senior subject matter experts facilitate the SAWs and work with the acquisition team to provide just-in-time training as the team goes through the 7 Steps of the services acquisition process. For the SAW to be effective all key members of the acquisition team-- Program Manager, Contracting Officer, Contract Specialists, Small Business Professionals, and CORs MUST attend the complete workshop. It should also be scheduled and conducted early in the acquisition process before a requirement and acquisition strategy has been finalized.

Installation commanders have unique needs that generally fall outside of the governance framework for the types of acquisitions previously discussed (DoDIs 5000.02 (Major Systems), 5000.74 (Defense Services), 5000.75 (Business Systems). While some Installation services may meet the $1 billion threshold for governance by DoDI 5000.74, many fall below this threshold and are primarily subject to respective DoD Component services acquisition policies and corresponding FAR/DFARS requirements. Operational contracting requirements include both supplies and services. These types of requirements are diverse and for a variety of customer needs such as office furniture, operating supplies and equipment, information technology (IT), assistance and advisory services such as financial management and IT services, construction, architecture and engineering (A&E) services, grounds maintenance, and janitorial or custodial services.

The results of the market research will be used to determine whether the Rule of Two applies. The SBP and Small Business Administration (SBA) Procurement Center Representatives (PCRs) should be fully engaged in market research and supportive of the acquisition team position on set-aside decisions based on market research results. In cases where disagreements arise, the team should work collaboratively to determine whether the market research is sufficient or whether additional information is needed to make the set-aside determination(s). It is better to work out disagreements early, during the market research period to gain necessary market information for team consensus. If market research results support a set-aside, and the Contracting Officer determines it is inappropriate for the acquisition, the Contracting Officer must include a written determination of this decision in the contract file (FAR 19.501(c)). These types of actions are generally looked at during Post Award compliance inspections such as agency Inspector General (IG) reviews and SBA Surveillance Reviews of agency contracting activities

Market research gets more complex when working with MAC strategies. You need to consider the details for competition and source selection at the IDIQ contract level (basic awards) as well as at the delivery or task order level throughout the entire delivery or performance period.Some of the key considerations include identifying: How many contracts are needed What the contract ceiling amount should be How you will achieve and maintain maximum competition and small business utilization throughout the delivery or performance period

Contracting Officer The Contracting Officer wants to ensure market research adequately supports the recommended acquisition strategy, inclusive of requirements, business strategies, small business strategies, source selection strategies, solicitation requirements and contemplated terms and conditions of the resultant contract(s).

Market research is conducted early in the Presolicitation Phase of an acquisition. FAR 10.001 specifies that agencies must conduct market research appropriate for the acquisition in the following circumstances: Before developing new requirements documents for an acquisition by that agency Before soliciting offers for acquisitions with an estimated value over the simplified acquisition threshold Before soliciting offers for acquisitions with an estimated value less than the simplified acquisition threshold when adequate information is not available and the circumstances justify its cost Before soliciting offers for acquisitions that could lead to a bundled contract Before awarding a task or delivery order under an indefinite-delivery/indefinite-quantity (ID/IQ) contract for a noncommercial item in excess of the simplified acquisition threshold

Evaluation The evaluation step in the contracting process is more commonly known as source selection. The source selection process begins once offers are received. In competitive acquisitions, when offerors respond to the solicitation, the acquisition team evaluates all offers based on the solicitation's established evaluation criteria.

Negotiation In competitive procedures, negotiations occur in adherence to FAR Part 15 and DFARS Part 215 and the solicitation requirements. This should match the approved Source Selection Plan and comply with the DoD Source Selection Procedures. After determining the apparently successful offeror(s), the Contracting Officer will then assess the apparently successful offeror(s) small business subcontracting plan to determine acceptability, if applicable. Subcontracting Plan elements may need to be negotiated to determine acceptability.

Once a contract is awarded, contractors are expected to perform the work required by the contract in accordance with its terms and conditions. To document contractor performance, agencies are required to monitor contract compliance and record it using the Contractor Performance Assessment Reporting System (CPARS) metric tool. Current contract performance becomes past performance information for use in source selections. Acquisitions for DoD require performance evaluation and reporting in accordance with the thresholds in the FAR deviation at DFARS 242.1502. Evaluations shall be prepared at least annually and when the work under a contract or order is completed. Evaluations are to be reported into CPARS. Instructions for submitting evaluations are available at the CPARS website. The evaluations are generally for the entity, division, or unit that performed the contract or order. The evaluations are prepared for prime contracts, including those awarded to small businesses. If the contract was awarded to an other-than-small business and a subcontracting plan is part of the contract, the evaluation must include an evaluation of compliance with the subcontracting plan according to the criteria in FAR 42.1503, Table 42-2. For DoD acquisitions, the Contracting Officer is responsible for ensuring the evaluations are completed and reported.

Once a contract is awarded, contractors are expected to perform the work required by the contract in accordance with its terms and conditions. To document contractor performance, agencies are required to monitor contract compliance and record it using the Contractor Performance Assessment Reporting System (CPARS) metric tool. Current contract performance becomes past performance information for use in source selections. Acquisitions for DoD require performance evaluation and reporting in accordance with the thresholds in the FAR deviation at DFARS 242.1502. Evaluations shall be prepared at least annually and when the work under a contract or order is completed. Evaluations are to be reported into CPARS. Instructions for submitting evaluations are available at the CPARS website. The evaluations are generally for the entity, division, or unit that performed the contract or order. The evaluations are prepared for prime contracts, including those awarded to small businesses. If the contract was awarded to an other-than-small business and a subcontracting plan is part of the contract, the evaluation must include an evaluation of compliance with the subcontracting plan according to the criteria in FAR 42.1503, Table 42-2. For DoD acquisitions, the Contracting Officer is responsible for ensuring the evaluations are completed and reported.

Other Market Research Sources Other sources you may find useful for information in electronic or hard copy form include: Catalogs and product literature Local newspapers Published price lists Results from searches for similar requirements Technical, scientific, and business publications Yellow pages

Other Internet Sources Other potential sources of information on the internet include: Department of Veterans Affairs vendor database Veterans Business Network Business Directory ThomasNet (for information on products) Where in Federal Contracting?

Deliverables Inspection/Acceptance and Contractor Performance Assessments. The Contracting Officer and/or their designated representatives if contract administration functions have been delegated to a CAO and/or COR, will inspect/accept contract deliverables in accordance with contract requirements. This includes evaluating the small business contractor's performance in meeting their small business participation requirements which are unique for each acquisition and may only be reported through use of CDRL deliverables.

Payments Review/Approve Invoices, Prompt Payments. The Contracting Officer and/or the designated CAO, if applicable, should ensure that small businesses are paid promptly. The local Small Business Professional (SBP) often is called on by small business contractors to assist them when payment issues arise. The local SBP promptly engages the Contracting Officer and/or Program Manager, as necessary, when these types of concerns arise to assist in remedying the situation promptly.

Acquisitions not unilaterally set-aside by the Contracting Officer are subject to review by the Small Business Administration (SBA) Procurement Center Representative (PCR) for his or her recommendation. The Contracting Officer's formal rejection of PCR's recommendation (or other SBA official in lieu of a PCR being assigned) begins the set-aside appeal process. FAR 19.505 governs the process and the Contracting Officer's responsibilities for set-aside appeals.

Per FAR 4.201, Contracting Officers shall distribute copies of contracts or modifications within 10 working days after execution by all parties. All parties include: Contractor and the paying office Contract Administration Office assigned the contract with a copy of the contract distribution list Accounting and finance office funding the contract Cognizant Administrative Contracting Officer (If the contract contains a Cost Accounting Standards clause) Field audit office listed in the "Directory of Federal Contract Audit Offices" Organizations required to perform contract administration support functions

Before making a purchase or awarding a contract, FAR 9.103 requires the Contracting Officer to make an affirmative determination that a prospective contractor is responsible. FAR 9.104, Standards, identifies the criteria for contractor responsibility. If the prospective contractor is a small business and the company is deemed non-responsible, the company must be given the opportunity to apply for a Certificate of Competency (COC) with the SBA. The SBA issues a COC to assert that the holder is responsible. The SBA is empowered to certify to Government Contracting Officers regarding all elements of responsibility for any small business to receive and perform on a specific Government contract. The COC program is applicable to all Government acquisitions. Contracting Officers, including those located overseas, are required to comply with the requirements for the COC program for U.S. small business concerns. Contracting Officers should pay particular attention to FAR 19.602 (except see FAR subpart 19.8 for 8(a) firms) when determining a small business concern to be non-responsible. When making a non-responsibility determination, DFARS PGI 219.602 requires the Contracting Officer to consult with the Small Business Professional for assistance.

Preaward: In accordance with FAR 15.503(a)(1), "the Contracting Officer shall notify offerors promptly, in writing, when their proposals are excluded from the competitive range or otherwise eliminated from the competition. The notice shall state the basis for the determination and that a proposal revision will not be considered." Preaward - Small Business Programs: In addition to the above notice, FAR 15.503(a)(2)(i) mandates notifying small business concerns prior to award and upon completion of negotiations and determinations of responsibility for acquisitions that are set-aside to small businesses, including socioeconomic programs. The notice must indicate the name and address of the apparently successful offeror and indicate that the Government will not be requesting any proposal revisions. The notice must also indicate that no responses are required unless one of the unsuccessful offerors has a basis to challenge the status or size of the apparently successful offeror.

In competitive acquisitions, you have now made all preparations and are ready for contract award, but you are still in source selection until the contract is awarded and associated administrative actions are completed. The Contracting Officer will work closely with the SST and the SSA to affirm that all contract award preparations are complete, but must wait for the SSA's decision to 'issue the contract(s)'.Issuance of the contract(s) concludes the Solicitation-Award Phase of our generalized contracting process.

Preparation of the solicitation is a very important step in the contracting process. The solicitation is the document that requests offers or quotes to the Government and it communicates to industry the requirements and anticipated terms and conditions needed by the Government, while also indicating if the acquisition is a set-aside. The conduct of the source selection is as significant as the solicitation. An accurate source selection is critical. Successful contract award depends on it. Awarding the contract is not as simple as just notifying the apparent successful offeror. The apparent successful offer must be determined responsible and unsuccessful offerors must be notified. Contract actions must be documented in FPDS-NG and contracts distributed within 10 days of award.

Small Business Professionals (SBPs) are members in the new AT&L Acquisition Workforce Small Business Career Field. SBPs assist teams in developing market research plans and strategies and in conducting market research necessary to develop appropriate small business prime contract and subcontracting acquisition strategies.

Procurement Center Representative PCRs will work collaboratively with SBPs and the acquisition team to develop and execute a sound market research strategy that will result in maximum utilization of small businesses.

It's important to understand that market research is a team effort. Different members of the acquisition team have different roles and responsibilities and different interests regarding what information to collect, but each is interested in information that will help define requirements documents and determine the acquisition strategy. Depending on the complexity of the procurement and its stage in the acquisition process, the team members may vary, but the core usually consists of the Program Manager, the Contracting Officer, the Small Business Professional, and the Procurement Center Representative

Program Manager (PM)The PM's primary focus in accomplishing market research is to survey the market to understand the capabilities of industry to meet mission requirements. PM's know how critical market research is in developing sound acquisition strategies, inclusive of maximizing small business utilization. Their key responsibilities span four principal areas: Acquisition Management, Technical Management, Business Management, and Executive Leadership. For more information on the role of PMs and PSMs see Defense Acquisition Guidebook (DAG), CH 1-3.3.2.1 Roles, Actions, and Activities of a PM, and DAG CH 4, Life Cycle Sustainment.

Outreach Opportunities Outreach provides small businesses with information on procurement opportunities, but also assists the Government with obtaining information for market research purposes. Examples of outreach opportunities include: FedBizOpps Request for Information (RFIs) Sources Sought Notices Notices of Contract Actions Forecasts Site visits

Publicity can be an effective outreach mechanism to reach small businesses to increase the market surveillance information you can collect. Publicity activities can include: Providing information such as small business office points of contact Providing mission support contracts lists Marketing brochures or materials on your agency's small business program Publicizing what your organization does in local and installation newspapers, and industry magazines Establishing an agency small business Web site with links to other valuable sites You should note that some of the above will require working with your Public Affairs Office.

Procuring Contracting Officer (PCO) Responsibilities: After a contract or contract modification containing a subcontracting plan is awarded, the Procuring Contracting Officer who approved the subcontracting plan is responsible for meeting requirements in FAR 19.705-6.Contract Administration Office (CAO) Responsibilities: The Administrative Contracting Officer is responsible for monitoring, evaluating, and documenting contractor performance under any subcontracting plan included in the contract (FAR 19.706) and is an employee of the Contract Administration Office (CAO).

Recall that in certain circumstances an evaluation of small business participation is required. In such cases, it is in the best interest of the Government to capture the level of participation in a Small Business Participation Commitment Document (SBPCD), which becomes a part of the contract. As a means to monitor small business participation in particular and subcontracting overall, it is advisable to require the contractor to periodically report its efforts and achievements. Doing so strengthens the Government's ability to ensure that the contractor provides opportunities for small businesses that are stated in the SBPCD; documents good faith efforts consistent with making liquidated damages assessment determinations when necessary; and supports accomplishing contractor performance assessments. Some contracts may require reporting for compliance with small business participation requirements in addition to reporting in eSRS and FSRS. The small business participation reporting requirements should have been stated in the solicitation and may be captured in the contract in one of three ways as follows. If you are working with IDIQ contracts in a post award environment and negotiating and awarding task or delivery orders, these will likely be required on an order-by-order basis consistent with the terms and conditions of the basic IDIQ contract. Include small business participation reporting requirements in a Special Contract Requirements clause (Section H) Include small business participation reporting requirements in an Attachment to the contract (i.e., relevant portions of the Small Business Participation Commitment Document) Include small business participation reporting requirements in the Contract Data Requirement List (CDRL) in the contract

With such an emphasis on informing small businesses, it is incumbent upon the Contracting Officer and Program Manager to take advantage of the expertise of the Small Business Professional and Procurement Center Representative to determine and execute a sound market research strategy. A well-developed and well-executed market research strategy will yield market research results that help to define agency needs as well as the overall final acquisition strategy. The results of the market research should be analyzed and documented thoroughly in a market research report. The market research report is the primary document that will support the Contracting Officer's decision whether or not to set-aside an acquisition for small businesses or to provide maximum subcontracting opportunities. The contents of a market research report is dependent on the information needed to support the acquisition requirements.

Requirements documents define the technical requirements and objectives of the acquisition. The analysis of information obtained from accomplishing market research helps to define the final requirements document. It must be clear and address the actual needs of the Government. A well-written document is critical for the Government to receive the goods and services it needs from industry. As Acquisition Professionals, you need to thoroughly understand the requirement. Requirements need to be specific and not unduly restrictive. The requirements document should not contain language that may favor an incumbent or create unnecessary bundling or consolidation of requirements. Your understanding of the requirement will help minimize these issues. The SBP and SBA PCR are key players to assist with mitigating and eliminating unduly restrictive language and unnecessary bundling and consolidation. Requirements Documents will differ based on the type of acquisitions being worked. For example, acquisition of commercial products may require use of detailed product specifications, whereas acquisition of services may be acquired via use of performance based work statements, statements of objectives and so forth. When working major systems acquisitions (DoDI 5000.02), system requirements are subject to the Joint Capabilities Integration and Development System (JCIDS).

Based on market research results and use of DoD best practices in subcontracting, the acquisition team devised the small business participation requirements, which will be used in the development of the solicitation. Section L, Instructions and Notices, will inform all offerors that they must demonstrate their approach to meet these requirements in a proposal volume labeled Small Business Participation Commitment Document (SBPCD). Section L will also inform all offerors that in the event of an award, these SBPCD requirements will be contractually binding and monitored as established in a Section H, Special Contract Requirement clause. Section M, Evaluation Criteria, will inform all offerors how the Government will evaluate their SBPCD requirements, inclusive of their past performance in small business participation. Select Next to view the team's small business participation requirements.

SBPCD Requirements (all offerors): Minimum Quantitative Requirement (MQR) - A MQR of 20% based on total contract value (dollars) shall be achieved for small business participation on a per delivery order basis, unless waived by the Contracting Officer on a case-by-case basis. Itemization of Small business participation dollars and type of work for small business-- Delivery Orders 0001 and 0002. Status/type of binding small business agreements for Delivery Orders 0001 and 0002 proposals. Offeror proposed initiatives to enhance small business utilization for the entire acquisition (five-year ordering period). Periodic Reporting for SBPCD requirements shall be on a quarterly basis per CDRL A002 (contractor format is acceptable). Small Business Subcontracting Plan (Other Than Small Businesses (OTSBs) only): Master Subcontracting Plan with subcontracting goals to be negotiated on an order-by-order basis (FAR 5.219-9), unless offerors are participants in the DoD Comprehensive Subcontracting Program. Market research indicated an average achievement of 28% subcontracting for this industry, which was based on total subcontracted dollars.

Acquisition Strategy/Plan By this time in the process, all of your acquisition planning efforts have been coming together in a coordinated and integrated manner, and you are now in a position to develop a comprehensive plan for fulfilling the agency need in a timely manner and at a reasonable cost, inclusive of developing the overall strategy for managing the acquisition. Your market result findings must inform the development of this comprehensive plan called the Acquisition Strategy. The type of acquisition, complexity and governing framework will determine what you must address in the acquisition strategy document or plan, how long it will take you to get to this point in the process, and who the approval authority will be for the particular acquisition. For example, in a MDAP for a Milestone B decision or a major Defense Services Acquisition over $1B, it may take up 18 months or longer to get to this point in the Presolicitation period, whereas in a smaller, less complex acquisition, you may get to this point in 6 months. RED FLAG: You should have a complete Small Business Strategy at this point in time that must be predicated upon thorough market research results. Your local SBP and SBA PCR should have been engaged with you from the beginning of the Presolicitation Period to ensure maximum small business utilization within the Acquisition Strategy.

Set-asides are the preferred means of maximizing small business utilization (Rule of Two); however, consideration must also be given to providing maximum small business opportunities through subcontracting. Industry feedback will be instrumental in helping you define/refine your requirements to increase competition and small business participation. As Acquisition Professionals, creating and maintaining a competitive environment takes a lot of effort on your part, but you will send a clear message to industry when you do. Creating a level-playing field (competitive environment) and maximizing small business utilization requires you to inform industry that you are seeking to determine whether set-aside opportunities are feasible (Rule of Two). When small businesses see that you are serious about their interest and participation in your acquisition, companies that are capable of meeting your needs and competing for prime contracts will provide essential feedback necessary for you to craft or refine appropriate small business set-aside strategies. Set-asides are the preferred means of maximizing small business utilization (Rule of Two), however, consideration must also be given to providing maximum small business opportunities through subcontracting if subcontracting opportunities exist. You learned about the DoD Best Practices in Subcontracting in a previous lesson and will learn more in the next lesson. Industry feedback is also critical in devising appropriate subcontracting strategies.

DoDI 4205.01, Small Business Programs, describes the operational structure for DoD Small Business Programs and stipulates other statutory program authorities.

Because this is related to an acquisition strategy for a small business set-aside program, you should consult FAR part 19, DFARS and any applicable Component's FAR supplements. You should also check FAR part 36 since it covers construction.

General Services Administration (GSA) Federal Supply Schedules (FSS) and Government-wide Acquisition Contracts (GWACs) are established for a variety of products and services and are available for use by federal agencies. Use of these GSA vehicles by other federal agencies simplifies the acquisition process and reduces the acquisition lead time as products and/or services may be acquired via use of existing/simplified delivery and/or task order procedures. Market research must still be accomplished to determine if small business capabilities can meet the agency needs (seeDFARS 219.201(c)(10)(A)) and to ensure maximum small business utilization (FAR 19.201(a)). GSA Key Links: GSA One Acquisition Solution for Integrated Services (OASIS) and OASIS Small Business are multiple award, Indefinite Delivery Indefinite Quantity (IDIQ) contracts that provide flexible and innovative solutions for complex professional services. GSA Advantage may be queried to locate products providers predominantly. GSA eBuy may be queried to locate services providers when a response based on a performance work statement (response to a GSA Request for Quotation) would be required.

Customers Other Government customers can be excellent sources to find information about the products or services you are interested in because they may have previously purchased them. You may be able to find some of these customers through general web searches or through more specific sources such as FedBizOpps or FPDS-NG. FedBizOpps will provide information on current and past solicitations and contract award announcements for all Government agencies; FPDS-NG will provide specific information on contract awards to include contact information for the awarding Contracting Officers.

GSA-Advantage is a source for products and therefore would not be an appropriate source for finding snow removal services. GSA-ebuy is a source for services and therefore would not be an appropriate source for finding bullet proof vests which are a product/commodity.

Every solicitation must include a six-digit NAICS code that identifies the type of product or service being acquired. The NAICS code for Engineering Service is shown below. Take a minute to explore the parts of this code. Select each part of the NAICS code to learn more about it; when you are finished, select Next to continue.

The market research data you gather and collect must include early industry feedback. Industry will give you actionable feedback that can be used to help shape and refine the acquisition requirements to create a more competitive environment that also maximizes small business opportunities. As you learned in a previous lesson, FAR Part 11 and supplements thereto, provide guidance on describing agency needs, such as in performance work statements (PWS), statements of work (SOW), and statements of objectives (SOO).Too often, requirements are written in such a way as to preclude other sources from having a realistic opportunity to compete, or signal to other sources than the incumbent, that they need not bother. Examples include: Specifying features that unnecessarily restrict the competitive field Insufficient amount of time for offerors to build competitive teaming arrangements and submit proposals Requiring X% of the contractor's staff to have security clearances within X days of contract start (or mandating the contractor have a large Sensitive Compartmented Information Facility (SCIF) at contract start) Unrealistic transition periods if a source other than the incumbent wins As acquisition professionals, you will want industry to help you review the draft requirements documents, as applicable, for any unduly restrictive or poorly defined requirements. This is typically done by working with your team and the Contracting Officer using FAR Part 5 procedures to issue presolicitation notices, requests for information or draft solicitations for review and comment.

FAR 34.004 (Major Systems Acquisitions) mandates the Program Manager (or requirements planner in accordance with FAR 7.104), as specified in agency procedures, develop an acquisition strategy tailored to the particular major system acquisition program. This strategy is the Program Manager's overall plan for satisfying the mission need in the most effective, economical, and timely manner. The strategy must be in writing and prepared in accordance with the requirements of FAR Subpart 7.1, except where inconsistent with FAR Part 34, and must qualify as the acquisition plan for the major system acquisition. When working acquisitions not subject to DoDI 5000.02, FAR Part 34 will not apply. For example, FAR Part 36 (Construction and Architecture & Engineering Services), FAR Part 37 (Services), and FAR Part 12 (Acquisition of Commercial Items) establish requirements for acquiring these types of goods and services. When applicable to what you are acquiring, these FAR requirements must be used in conjunction with FAR Subpart 7.1. Components have supplemented FAR Part 7 extensively. Therefore, refer to Component and local policies and procedures before devising your acquisition strategy and acquisition plan, as applicable.

DD Form 2579 should be accompanied by the Acquisition Plan, Market Research Report, and Solicitation. The PCR does not need to sign if the recommended approach is a small business set-aside, but the Small Business Professional reviews the acquisitions over $10,000 except those under the simplified acquisition threshold that are totally set-aside for small business concerns.

Market research provides objective evidence that supports the determination of whether or not an acquisition can be set-aside.

As you do market research, you'll want to have a good method for storing and maintaining all the information you find. Suzanne is going to tell you about some approaches that she, as an experienced Small Business Professional (SBP), uses

Market research results should be thoroughly documented so that you can have a ready source of information for follow-on and related procurements. The results are typically documented in a Market Research Report. Select Play to hear Suzanne's message on documentation. Typical report sections may include: Objective: What is desired to be accomplished by doing the market research Requirement Description: Technical summary, Product Service Code (PSC) & NAICS code with description, estimated requirement value, performance period Market Research Team Members: Name, position, office Market Research Methodology: State the sources used to conduct the research Results/Findings/Analysis Describe the results, findings, and/or analysis in detail to include what the research revealed, such as: Potential sources including business size and socioeconomic categories Small business opportunities Terms and conditions Pricing structures Technical challenges All other information researched

DoD uses a number of small business programs to maximize opportunities for small businesses to support DoD's missions.

Meeting or exceeding your organization's assigned small business and socioeconomic program goals is one way to demonstrate successful small business performance. Your organization's performance is aggregated at the agency level to help in meeting or exceeding agency goals.

Phase begins after competitively negotiated contract(s) is awarded Phase ends when all contract performance is complete and contract(s) close out is complete

Monitor Performance As the contractor delivers the contracted products or services, the Contracting Officer monitors the contractor's performance and addresses any issues that arise. Some of these contract administration functions may be delegated to a Contract Administration Office (CAO) such as the Defense Contract Management Agency (DCMA) (see FAR part 42).Local Small Business Professionals may assist the Contracting Officer and/or DCMA with monitoring contractor compliance for small business participation requirements and small business subcontracting plan requirements. The Contracting Officer may appoint a Contracting Officer's Representative (COR) to assist in the technical monitoring and/or administration of a contract (see FAR 1.602-2(d) and FAR 1.604).

Consolidation DFARS 207.170-2 excerpt: The use of a solicitation to obtain offers for a single contract or a multiple award contract to satisfy two or more requirements of a department, agency, or activity for supplies or services that previously have been provided to, or performed for, that department, agency, or activity under two or more separate contracts." Note: Consolidating referred to in FAR 2.101 bundling definition has no association with the DoD definition for consolidation (DFARS 207.170-2) which implements 10 USC 2382.

Consolidation Requirements Per FAR 7.107-3, DFARS 207.170-3(a) with DoD Class Deviation 2013-O0021, agencies shall not consolidate contract requirements with an estimated total value exceeding $2 million unless the acquisition strategy includes the results of market research; identification of any alternative contracting approaches that would involve a lesser degree of consolidation; and a determination by the senior procurement executive that the consolidation is necessary and justified. For the consolidation to be necessary and justified, an analysis must be conducted to demonstrate that the advantages of the proposed consolidation "substantially exceed" those of each alternative strategy. Your local Small Business Professional (SBP) and the Small Business Administration's (SBA) Procurement Center Representative (PCR) should be involved in helping to maximize small business utilization in the acquisition. The Component and agency OSBP directors must review and coordinate on justifications for bundling and consolidation (DoDI 4205.01, DoD Small Business Programs, Enclosure 2, paragraph 2(i)(2)) when acquisitions will be reviewed at those levels.

The Dynamic Small Business Search (DSBS) is a registry of small businesses maintained by the Small Business Administration. DSBS is a "self-certifying database." This means that the search will yield self-descriptions, not Government collected data, and will represent only those businesses that chose to complete the profile. DSBS can be used to search for information on small businesses in multiple ways by using a variety of search criteria from information found in the system's small businesses profiles. As a small business registers in the System for Award Management (SAM), there is an opportunity for them to complete a profile, which is used to populate DSBS.

DSBS can be used to: Locate potential small business contractors for upcoming contracting opportunities Verify a company's Small Business Administration (SBA) certification as an8(a) Business Development participant or Historically Underutilized Business Zone (HUBZone) firm Review past performance data, if provided

It is Federal Government policy to solicit and award acquisitions on a competitive basis as much as possible. However, if the Rule of Two is not met, then Solicitation-Award may be on a sole source basis when applicable, meaning without any competition. Remember, the rule for sole source acquisitions for 8(a) business development program participants is different than that for other Socioeconomic Program categories.

Each small business program has unique program requirements and authorities, including: Eligibility Requirements Set-Aside Authority Sole Source Award Authority Limitations on Subcontracting Requirements

It is not uncommon for Contract Specialists and Program Managers to ask for the SBP's assistance in determining if certain products or services have been purchased previously from small businesses. In these instances, SBPs may help by running a query in FPDS-NG to see whether small businesses have been awarded contracts for similar products or services. Additionally, SBPs may conduct a search on FBO to see if there are any pending acquisitions (preaward) for the desired products or services

FDPS-NG ezSearchSee if the Government has previously purchased the product/service. FedBizOpps (FBO)Look for existing solicitations for the product/service.

Key points for Contracting Officers and Program Managers to know regarding SBIR/STTR phase III include: There is no limit on the number, duration, type, or dollar value of awards made to a business. The small business size limits for Phase I and Phase II awards do not apply to Phase III awards. Phase III contracts can be awarded without further competition, as the competition aspects of Phase I and Phase II satisfy the statutory competition requirements. If a justification & approval (J&A) is required, it will suffice to state that the project derives from a prior SBIR award and is authorized under 10 U.S.C. 2304(b)(2). Phase I and Phase II SBIR technical data rights/intellectual property rights extend to Phase III awards. Phase III contract actions must be reported in the Federal Procurement Data System to ensure proper coding for SBIR contracts. To derive maximum value, Contracting Officers should include specific incentives in contract language to target and incentivize incorporation of SBIR technologies by prime contractors.

In order to stimulate and foster scientific and technological innovation, including increasing commercialization of Federal R/R&D, the program must follow a uniform competitive process For maximum participation by interested small business concerns, it is important that the planning, scheduling and coordination of agency program solicitation release dates be completed as early as practicable to coincide with the commencement of the fiscal year on October 1.Bunching of agency program solicitation release and closing dates may prohibit small business concerns from preparation and timely submission of proposals for more than one STTR project. SBA's coordination of agency schedules minimizes the bunching of proposed release and closing dates. STTR agencies may elect to publish multiple program solicitations within a given fiscal year to facilitate in-house agency proposal review and evaluation scheduling.

Buyer: Small business acquisition requirements are predominantly found in FAR part 7 and 19, DFARS part 207 and 219, and DoD Instruction 4205.01. These requirements address small business utilization in DoD acquisitions and are used in conjunction with all other FAR/DFARS requirements, as applicable, whenever goods and services are acquired contractually. Role in Acquisitions Small business acquisition requirements are predominately found in the following regulations. FAR parts 7 and 19 DFARS parts 207 and 219 DoD Instruction 4205.01 Component regulations They can seem complex at times when you are trying to apply them to your unique acquisition situations. Your local agency SBP is there to assist you in acquisition support needs throughout the acquisition life cycle.

Interactions with Small Business Administration (SBA): How the SBP interacts with SBA personnel to maximize opportunities for small businesses is covered in FAR part 19. SBP: As the SBP supporting the acquisition team, I also work closely with the SBA PCR according to FAR part 19. I made contact with our local PCR, Maria, to discuss her expectations and role in coordinating on acquisition strategies. Her insights really helped, and she is supportive of a collaborative working environment to ensure our acquisition team's success in devising an appropriate acquisition strategy.

Small Business Programs The Small Business Administration (SBA) is the Executive Branch Government agency responsible for administering the Small Business Programs. The categories of Small Business Programs include small business and small businesses in the socioeconomic categories which are: Small Disadvantaged Business (SDB) and 8(a) Historically Underutilized Business Zone Small Business (HUBZone) Veteran-Owned Small Business (VOSB)Service-Disabled, Veteran-Owned Small Business (SDVOSB) Women-Owned Small Business (WOSB)/Economically Disadvantaged Women-Owned Small Business (EDWOSB)

Mentor-Protégé Program Through this program DoD encourages prime contractors to support the development of technical, management, and other business capabilities of small businesses to enable them to be viable DoD contractors.

The purposes of the RIF program are to accelerate the fielding of technologies developed pursuant to Phase II Small Business Innovation Research (SBIR) Program projects, by the defense laboratories, and other innovative technologies (including dual use technologies)

Objectives The RIF Program objectives are to: Stimulate innovative technologies Reduce acquisition or life cycle costs Address technical risks Improve the timeliness and thoroughness of test and evaluation outcomes Through a Broad Agency Announcement, agencies solicit white papers and technical proposals that offer solutions to DoD operational challenges or other critical national security needs RIF is administered by the Office of the Secretary of Defense (OSD) Assistant Secretary of Defense for Research and Engineering (ASD R&E) and the DoD OSBP. DoD issues one solicitation entitled "Rapid Innovation Fund Program Broad Agency Announcement (BAA)" that includes separate technology areas of interest for each of the DoD Components (Services and Defense Agencies). For DoD Components designated to receive funds, their contracting offices award contracts for the Component.

Defense Acquisition Regulations (DAR) Council/Civilian Agency Acquisition (CAA) Council The DAR Council and CAA Council review the regulatory language created by the FAR team and recommend changes to it, as needed. The DAR Council is responsible for publicizing DFARS and Procedures, Guidance, and Information (PGI). The CAA Council publishes Federal Register notices, solicits and reviews public comments, and publishes the final rule.

Office of Federal Procurement Policy (OFPP)/Office of Information and Regulatory Affairs (OIRA) The FAR case is then submitted to the OFPP for review and approval, and from there it goes to OMB's OIRA for review and approval. At its discretion, OIRA may coordinate its review with other agencies.

Small Business Administration (SBA)The Small Business Administration (SBA) creates regulations that ensure that small business interests will be protected. SBA's representatives are responsible for aiding, assisting, and protecting the interests of small businesses in Government procurements.

Other Than Small Business While large businesses, educational institutions, non-profits and other entities that are not small businesses may view small businesses as privileged competitors, they also recognize that there are benefits in partnering with small businesses in Government contracts.

Public Comments During a specified timeframe, the public can review the FAR case in the Federal Register and submit comments to the FAR Council. The Council reviews these comments and determines how to update the regulation.If changes are required, the FAR team will modify the language as needed and submit it for review and approval by the DAR Council, CAA Council, and then the OFPP and OIRA.

Publish Final Rule After approval by the OFPP and OIRA, the Final Rule is published in the Federal Register.

Regulations The requirements of the Influencing Sources can stem from legislation and/or other requirements that are implemented in regulations such as the FAR, DFARS, Component's FAR supplements and/or other appropriate policy or guidance documents. As acquisition professionals, you will need to understand this governance framework to develop sound acquisition strategies.

Regulations The requirements of the Influencing Sources can stem from legislation and/or other requirements that are implemented in regulations such as the FAR, DFARS, Component's FAR supplements and/or other appropriate policy or guidance documents. As acquisition professionals, you will need to understand this governance framework to develop sound acquisition strategies.

Under the program, mentors may provide assistance to protégés in a variety of ways to include: General business management, including organizational management, financial management, and personnel management, marketing, business development, and overall business planning Developmental assistance to enhance the capabilities of the protégé firms to perform as subcontractors and suppliers Engineering and technical assistance such as production inventory control and quality assurance Assistance with understanding Federal Contract regulations, including the FAR and DFARS after award of the program Assistance with acquisition competition to include entering into joint-venture arrangement to compete for and perform on federal Government contracts Financial assistance to include owning up to 40% of the protégé firm Any other assistance designed to develop the capabilities of the protégé firm under the developmental program

The DoD OSBP Web site provides access to MPP information to include templates and checklists for: Eligibility Requirements MPP Resources (to include templates) DOD OSBP Contacts Frequently Asked questions (FAQs) 2016 Nunn-Perry Award Winners Although the acquisition team members do not assist firms in establishing the mentor-protégé relationship, you should be aware of the process for businesses to participate in the Mentor-Protégé Program. Select each step for a description. Small Business Professionals may advise both the acquisition team and small businesses that need development on how businesses participate in the Mentor-Protégé Program.

Administration The MPP is administered by the DoD Office of Small Business Programs (OSBP). Execution of the program is accomplished at the Component level through the MP Program Managers. Contractors participate in the program by responding to solicitations that are published by each MPP participating Component. As a Contracting Officer or Program Manager, you may be in a military service or other defense agency office that participates in the MPP. As such, you may be called upon to solicit and award contracts for the program. It will be incumbent upon you to know about the program in detail. Detailed information on the DoD Pilot Mentor Protégé Program can be found at DFARS 219.71 and DFARS Appendix I.

The DoD may recognize benefits from businesses participating in the Mentor-Protégé Program: Can stimulate and transition innovative technologies into established Defense Acquisition programs Can rapidly source new technologies and services Trains and develops business acumen and capabilities of protégés, which helps DoD meet or exceed prime or subcontracting goals for small businesses Builds competition base for DoD suppliers of goods and services, which reduces total costs of ownership (TCO) Encourages partnerships between large and small firms, which improves supply chain risk management (SCRM)

Changes to the FAR are made through a formal rule-making process overseen by the FAR Council. Changes to the FAR must be approved by both a Defense Acquisition Regulations Council and a Civilian Agency Acquisition Council. FAR updates require an update to the CFR because the FAR is a part of the CFR.

The Federal Register and DPAP Policy Vault updates provide information on upcoming regulatory changes.

Guidance Documents DoD and other executive branch agencies may issue guidance in the form of policy that further clarifies the provisions in the regulations, describing in detail how the agency will implement the regulations or guidance from the influential sources.

The NDAA often includes provisions that specifically impact the Small Business Act and the DoD Small Business Programs. When the NDAA enacts legislation that impacts the FAR or DFARS, the rulemaking process must occur to implement these changes in the FAR or DFARS. We will learn more about rulemaking later in this lesson (see FAR subpart 1.02), as applicable. When there is no impact to the FAR or DFARS, NDAA changes are implemented in other ways.

The objectives of the Small Business Technology Transfer (STTR) Provide incentive for small businesses and research institutions to team together to move ideas from the research institution to the marketplace cooperatively Join two powerful forces for technological progress Foster the entrepreneurial spirit of high-tech small businesses

The National Defense Authorization Act for Fiscal Year 2011 (Public Law 111-383), Section 1073, established the Defense Research and Development Rapid Innovation Program. Within DoD, the program was redesignated as the Rapid Innovation Fund (RIF) Program. The FY17 NDAA repeals the sunset provision of the Rapid Innovation Program and makes the authorization of the program permanent. RIF provides a collaborative vehicle for small businesses to provide the department with innovative technologies that can be rapidly inserted into acquisition programs that meet specific defense needs.

Summary statistics on tangible small business contributions on a per project or program basis (cost, schedule and performance contributions) are difficult to track in DoD. There is no centralized database to capture and report these types of small business success stories. As Acquisition Professionals, you can help mitigate these challenges by sharing your small business success stories (quantitative and qualitative) with your local SBP and leadership. These success stories generally make it into public affairs articles, annual performance appraisals/recognition, and your Component/agency annual inputs for SBA's Scorecard, which SBA uses for measuring and grading agency small business performance. Despite the difficulties in manually collecting/reporting the tangible small business contributions, the DoD is the most significant agency when it comes to influencing Federal small business performance outcomes. This is because the DoD budget and contract dollar obligations are very large in comparison to other Federal agencies. For example, from a quick glance at the SBA's FY16 Scorecard at the above link, you can see DoD obligated 61% ($252B) of the Federal contract dollars ($411B). In other words, when DoD meets its small business goals, so does the Federal Government. Unfortunately, the reverse is true also which is why we're counting on each of you to do your part. Improved DoD small business performance means more opportunities for small businesses which, in turn, increases competition and helps to strengthen the national economy and industrial base. Select the PDF icon to view DoD small business performance trends, and see where small business contributions were the highest in terms of support for the warfighter.

The SBA's representatives are responsible for aiding, assisting, and protecting the interests of small businesses in Government procurements.

Together, the FAR, DFARS, Component supplements, and policy memoranda form a legal framework that significantly dictates steps of the contracting process for acquisitions.

The legal framework dictates much of what you do as a DoD Acquisition Professional. Take a minute to hear how the FAR, DFARS, Component supplements, policy memoranda, and/or other guidance documents can affect you or your acquisition team members when dealing with small business acquisition requirements.

In accordance with FAR subpart 42.15, agencies are required to monitor and document contractor's contract performance using designated tools. The Contractor Performance Assessment Reports System (CPARS) is used to collect information regarding contractor performance on current or completed contracts. This data is then transmitted to the Past Performance Information Retrieval System (PPIRS) where acquisition teams can access the information during source selection.

The responsible individual for ensuring data is entered into CPARS is typically the Program Manager; however, this responsibility may reside in the contracting office for certain types of requirements such as those supporting operational or installation level needs. Generally, the customer and acquisition team provide inputs towards the overall evaluation of the contractors performance for the specified period of time. Past performance information for both prime contracts and small business subcontracting (including the ratings and supporting narratives) is relevant information for future source selection purposes. Therefore, it is important for small businesses to be rated thoroughly as many new entrants must build a good and relevant past performance history to increase their opportunities for future awards.

The Office of Federal Procurement Policy provides overall direction for Government-wide procurement policies, regulations, and procedures to promote economy, efficiency, and effectiveness in acquisition processes, including Small Business Programs.

Within the Department of Defense (DoD), small business begins with the Department's Office of Small Business Programs (OSBP). The DoD OSBP, an arm of the Office of the Under Secretary of Defense (OUSD) for Acquisition, Technology, and Logistics (AT&L), provides policy and oversight for the Department's Small Business Programs through the operation of Component (Military Departments and Other Defense Agencies) Small Business Program offices across DoD.

Acquisition Professionals need to use PPIRS when serving as members of source selection teams.

You can compile a list of sources by using the DSBS or SAM to identify small businesses that belong to one of the socioeconomic categories. Then you can use FPDS-NG to see which firms are currently doing business with the Government.

FAR 19.202FAR 19.202, Specific Policies: In order to further the policy in 19.201(a), Contracting Officers shall comply with the specific policies listed in this section and shall consider recommendations of the agency Director of Small and Disadvantaged Business Utilization, or the Director's designee, as to whether a particular acquisition should be awarded under one of the following subparts: 19.5, Set-Asides for Small Business 19.8, Contracting with the Small Business Administration (The 8(a) Program) 19.13, Historically Underutilized Business Zone (HUBZone) Program. 19.14, Service-Disabled Veteran-Owned Small Business Procurement Program 19.15, Women-Owned Small Business Program

A number of influencing sources, including legislation, court decisions, and agency recommendations, necessitate new or updated regulations, which are further clarified in other guidance documents that describe in detail how to implement them.

Industry Capability Market research should identify whether small business capabilities/sources exist to meet the agency's requirements and to what degree they can be utilized in the acquisition. For example: Can a small business OR small business team (subcontractors and/or joint venture) meet the total requirement AND meet FAR 52.219-14 limitations? Why does this matter: To determine if the Rule of 2 applies for a total set-aside (FAR 19.502-2(b)), you must consider both capability and capacity. If a total set-aside is not feasible, you must consider a partial set-aside (FAR 19.502-3) before considering a full & open strategy.

Acquisition Strategy Market Research is conducted in an iterative manner throughout the Presolicitation Phase. It is essential for shaping a sound and defensible acquisition strategy to maximize small business utilization. Market research contributes to the definition and refinement of requirements, selection of method of procurement (set-aside, full & open competition or other than full & open competition), source selection strategy and evaluation criteria, acquisition plan, and solicitation development, inclusive of the model contract with all terms and conditions. The degree of small business utilization in any acquisition is highly dependent on the quality and adequacy of the market research results. It's important to get your local SBP engaged early to ensure you generate maximum industry interest, effective competition, and small business utilization in both prime and subcontract opportunities as appropriate.

Liaison with Other Agencies and Industry Liaison with SBA Educate small businesses SBP 2: One critical role of a SBP is to bring together a wide variety of entities, including small businesses, the Small Business Administration, and other Federal agencies. As the agency's primary liaison with the Small Business Administration (SBA), SBPs will reach out proactively to local SBA Procurement Center Representatives (PCRs) and make him/her aware of current and upcoming local acquisitions. SBPs will also engage with small businesses and educate them on doing business with your agency and local activity.

Advocate for Small Business Utilization Maximize small business participation Identify small business opportunities SBP 3: A primary focus of the SBP is to assist the acquisition team in maximizing the utilization of small businesses. To do this, SBPs must be a core member of the acquisition team(s). As advocates for maximizing small business utilization, SBPs will be creative in identifying opportunities and helping you find capable sources. Whenever feasible, those opportunities will be prime contract opportunities (total or partial set-asides); if set-asides are not feasible, they may be subcontracting opportunities. SBPs are proactive and when engaged during early acquisition planning, will assist in conducting market research and identifying small business capabilities to ensure maximum small business utilization.

The best way to keep up with regulatory changes is reviewing the Federal Register, which is the "Daily Journal of the U.S. Government." You can subscribe to the Federal Register to get automatic updates on legislative changes. Notices Proposed Rules Interim Rules Final Rules Presidential Documents

Another way to stay up-to-date with recent and future regulatory changes is subscribing to news services that will notify you of changes. Some of them are free and others charge a fee. Free services include: Small Business Administration (SBA) E-mail Updates SBA Office of Hearing and Appeals GAO E-mail Updates DPAP Policy Vault Updates Federal Register Federal Acquisition Circular (FAC) Paid Services include: The Virtual Acquisition Office

SB Market Research and Acquisition Strategy Formulation SBPs participate in conducting market research. SBPs use market research results in order to assist acquisition planners in maximizing small business utilization when developing acquisition strategies.

As you can see, Small Business Professionals can perform a variety of acquisition functions, depending on where they work, and like you, where they are in terms of career progression (intern, journeyman level, mid-level management). Many of DoD's Small Business Professionals carry out functions assigned to a "Small Business Specialist" as currently delineated in the regulations and policies shown below. However, some may also serve as the Director of a Component or field Office of Small Business Programs.

Bundling FAR 2.101 excerpt: (1) Consolidating two or more requirements for supplies or services, previously provided or performed under separate smaller contracts, into a solicitation for a single contract that is likely to be unsuitable for award to a small business concern due to—(i) The diversity, size, or specialized nature of the elements of the performance specified;(ii) The aggregate dollar value of the anticipated award;(iii) The geographical dispersion of the contract performance sites; or(iv) Any combination of the factors described in paragraphs (1)(i), (ii), and (iii) of this definition. (2) "Separate smaller contract" as used in this definition, means a contract that has been performed by one or more small business concerns or that was suitable for award to one or more small business concerns. (3) "Single contract" as used in this definition, includes—(i) Multiple awards of indefinite-quantity contracts under a single solicitation for the same or similarsupplies or services to two or more sources (see FAR 16.504(c)); and(ii) An order placed against an indefinite quantity contract under a—(A) Federal Supply Schedule contract; or(B) Task-order contract or delivery-order contract awarded by another agency (i.e.; Government-wide acquisition contract or multi-agency contract).(4) This definition does not apply to a contract that will be awarded and performed entirely outside of the United States."

Bundling Requirement Bundling Per FAR 7.107-3 market research must be conducted for any bundled acquisition to determine if the bundling is necessary and justified. Justification and determination of bundling must occur regardless of the dollar value of the acquisition. When substantial bundling may apply, see the additional acquisition planning activities that must occur (FAR 7.107-4, 7.107-5 and 107-6). For more detailed guidance on acquisitions involving bundling, see the DoD OSBP Benefit Analysis Guidebook.

Program Requirements To be considered a small business, a concern must meet the following general criteria: Be organized for-profit. Have a place of business in the U.S., or Operate primarily within the U.S., or Make a significant contribution to the U.S. economy through payment of taxes or use of American products, materials or labor. Be independently owned and operated. Not be dominant in its field. Be a Sole Proprietorship, Partnership, Corporation or other Legal Form and otherwise meet the conditions in 13 CFR part 121. Since the above criteria could also apply to entities that are "other-than-small," a business is further defined as small based on its size. The SBA has established numerical definitions, or "size standards," for all for-profit business industries that are based on the North American Industry Classification System (NAICS). Size standards represent the largest size that a business (including its subsidiaries and affiliates) may be to remain classified as a small business concern. Size standards can be found on the SBA Web site.Certification

Certification Requirements & Goals A small business concern self-certifies itself as a small business in the System for Award Management (SAM) for the size standard applicable for the NAICS codes in industries in which it does business. A concern may be considered small in one industry and other-than-small in another. Statutory Goal: 23% of the total dollars for Federal Government prime contracts to be awarded to small businesses.

The FAR system is established for the codification and publication of uniform policies and procedures for acquisition by all executive agencies. The Federal Acquisition Regulations System consists of the Federal Acquisition Regulation (FAR), which is the primary document, and agency acquisition regulations that implement or supplement the FAR (FAR Part 1).When Congress passes legislation that affects the FAR System, the Federal Acquisition Regulatory Council incorporates the provisions of the new law into the FAR System using the Rule-Making Process.

Changes to the FAR system is a dynamic one, in which changes are implemented through this rule-making process. The rule-making process may take from 90 days to two years, depending on the complexity of the situation

The objectives of the MPP are to: Provide incentives to major DoD contractors, performing under at least one active approved subcontracting plan negotiated with DoD or another Federal agency, to assist protégé (small businesses) firms in enhancing their capabilities to satisfy DoD prime contract and subcontract requirements. Increase the overall participation of protégé firms as subcontractors and suppliers under DoD contracts, other Federal agency contracts, and commercial contracts. Foster the establishment of long-term business relationships between protégé firms and major DoD contractors.

Companies approved as mentor firms enter into Mentor-Protégé agreements with eligible protégé firms. Mentors and Protégés are solely responsible for finding their own counterpart. The DoD may provide the mentor firm with either: Cost reimbursement through a separate contract line item in a DoD contract or a separate contract with DoD. Credit against applicable subcontracting goals established under contracts with DoD or other Federal Agencies or, A hybrid combination of cost reimbursement and credit.

Defense Federal Acquisition Regulation Supplement (DFARS)DFARS contains DoD-specific additions, deviations, or exceptions to the FAR. So, after checking the FAR to find out the rules governing a particular acquisition, you need to check DFARS to see if any additional rules apply for DoD. To allow easy cross-referencing, the numbering for DFARS citations is the same as the numbering of the FAR, except a "2" is added at the beginning. For example, DFARS 219.10 contains DoD supplemented information pertaining to FAR 19.10.

Component Supplements Some DoD agencies have their own supplements, which contain additions, deviations, or exceptions to the FAR or DFARS. You must also check the appropriate Component supplement when exploring a contracting issue. These supplements include: Army FAR Supplement (AFARS) Air Force FAR Supplement (AFFARS) DISA Acquisition Regulation Supplement (DARS) Defense Logistics Agency Directive (DLAD) Navy Marine Corps Acquisition Regulation Supplement (NMCARS) United States Special Operations Command FAR Supplement (USSOCOM) United States Transportation Command FAR Supplement (USTRANSCOM)

Small businesses operate in an environment that includes a variety of entities, each with its own interests and influence on small business participation in Government acquisition

Congress generates the legislation that impacts acquisition regulations and policy. Since the Depression of the 1930s, when Congress first enacted legislation to help businesses recover from financial difficulties, Congress has enacted a number of laws; such as the Budget Control Act of 2010 and an annual National Defense Authorization Act (NDAA), that support and promote small businesses. The Small Business Act of 1953 created national policy to provide maximum opportunity for small businesses to participate in Government acquisitions as prime contractors and subcontractors. Additionally, the Act officially established the Small Business Administration (SBA) to implement the national policy. Other laws have established procurement goals for small businesses in Federal acquisitions.

The SBA provides for an exception to the non-manufacturer rule if--(i) The procurement of a manufactured end product processed under the procedures set forth in part 13--(A) Is set-aside for small business; and (B) Is not anticipated to exceed $25,000, and (ii) The offeror supplies an end product that is manufactured or produced in the United States or its outlying areas."

DFARS 219.502-2 requires a small business set-aside for Architect-Engineer services for military construction or family housing projects of under $1 million, unless the Contracting Officer determines that the criteria for a set-aside cannot be met.

FAR part 10, Market Research FAR 10.001, Policy states that Agencies shall ensure that legitimate needs are identified and trade-offs evaluated to acquire items that meet those needs, conduct market research appropriate to the circumstances and use the results or the market research to determine if sources capable of satisfying the agency's requirements exist and if commercial items are suitable for agency needs. See FAR 10.001 for the full policy citation.

DFARS Part 210 DoD Implementation DFARS part 210 contains FAR DoD implementation information, additional situations when market research should be conducted, additional uses for the results of market research, and references to Procedures, Guidance and Information (PGI) sections.

OUSD AT&L Memoranda The OUSD AT&L oversees all Acquisition policy in the Department of Defense. The OUSD AT&L web site provides access to the DoDI 5000.02 and other AT&L acquisition policy memoranda.

DPAP Policy Memoranda The Defense Procurement and Acquisition Policy (DPAP) oversees all Contracting and Procurement policy matters in the Department of Defense, including e-business. Its Web site provides access to the FAR and DFARS/PGI. In addition, its policy memos provide additional guidance on implementing regulations within the DoD. You can access these memos via the DPAP Policy Vault.

DoDI 5000.74, Defense Services (Jan 2016) governs major Services Acquisitions that are NOT managed within a DoDI 5000.02 acquisition program. Defense Services covers a broad spectrum of requirements from research and development, advisory, financial, and assistance services, information technology support, medical, to maintaining equipment and facilities. Services acquisition is about acquiring performance results that meet performance requirements needed to successfully execute an organization's mission. The DPAP Services Acquisition (SA) office is responsible for the technical and programmatic evaluation and functional oversight of all aspects of DoD Services Acquisition. Additional information, links to the Services Acquisition Mall, and additional training materials and templates can be obtained at the DPAP Services Acquisition website. DAU ACQupedia and the Defense Acquisition Guidebook also have additional guidance.

DoDI 5000.75, Business System Requirements and Acquisitions (Feb 2017) governs major Business Systems acquisitions that are NOT designated as MDAPs per DoDI 5000.02. Market research is conducted in a similar manner as other procurements, but the focus is to find a business system that can meet the needs of the user. Business systems are information systems that are operated by, for, or on behalf of the Department of Defense, including: Financial systems Financial data feeder systems Contracting systems Logistics systems Planning and budgeting systems Installations management systems Human resources management systems Training and readiness systems

To facilitate the reporting to the Executive agencies, summary level Contract Action Reports (CARs) are electronically generated and transmitted to FPDS-NG when the automated contract writing systems electronically 'award' the contract action. The FPDS-NG CAR is addressed in FAR 4.604.The CAR and recurrence of data miscoding's are problematic for Small Business acquisitions. Needless to say, FPDS-NG Data Integrity is a major DoD concern.

Electronic Document Access (EDA) system is DoD's primary tool for distributing and sharing contract data. DFARS 204.201 requires Contracting Officers to post contract actions to the EDA system. It is a Web-based system that provides online access, storage, and retrieval of contracts, contract modifications, Government Bills of Lading (GBLs), Defense Finance and Accounting Service (DFAS) transactions for others, vouchers, and Contract Deficiency Reports to authorized users throughout the DoD. Whereas FPDS-NG provides access to award information, EDA houses complete copies of contracts, modifications, and the other stated documents. The EDA can be used to: Review work statements View/print versions of awarded contract actions Identify potential subcontractors

Other Federal Agencies Recommendations from Federal agencies at all levels can affect regulations and policies that impact small business, especially those of the following agencies: Government Accountability Office (GAO) - The independent agency that provides audit, evaluation, and investigative services to Congress. Office of Federal Procurement Policy (OFPP) - The executive branch office responsible for providing overall direction for Government-wide procurement policies, regulations, and procedures to promote economy, efficiency, and effectiveness in acquisition processes. Small Business Administration's (SBA) Office of Hearings & Appeals - The Office of Hearings and Appeals provides an independent, quasi-judicial appeal of certain SBA program decisions.

Executive Orders Executive orders provide direction from the President of the United States, which often results in changes to regulations and policies.

Communications with Industry: Myth Busting memorandum #1: Addressing Misconceptions to Improve Communication with industry during the Acquisition Process Myth Busting memorandum #2: Addressing Misconceptions and Further Improving Communication During the Acquisition Process Contracting Officer: While perusing the DPAP Web site, I came across the Director of Procurement Policy memos titled "Myth Busting." I found these memos enlightening as they address improving communications with industry and offers guidance on removing communication barriers. As I engage with small businesses, I'll use this information to ensure I'm communicating effectively with them.

FAR 19.201(a) It is the policy of the Government to provide maximum practicable opportunities in its acquisitions to small business, veteran-owned small business, service-disabled veteran-owned small business, HUBZone small business, small disadvantaged business, and women-owned small business concerns. Such concerns must also have the maximum practicable opportunity to participate as subcontractors in the contracts awarded by any executive agency, consistent with efficient contract performance. The Small Business Administration (SBA) counsels and assists small business concerns and assists contracting personnel to ensure that a fair proportion of contracts for supplies and services is placed with small business.

FAR 19.201(b)"Heads of contracting activities" are responsible for effectively implementing the small business programs within their activities, including achieving program goals. They are to ensure that contracting and technical personnel maintain knowledge of small business program requirements and take all reasonable action to increase participation in their activities' contracting processes by these businesses. See the DoDI 4205.01 glossary for a definition of heads of contracting activities.

FAR 19.201(c) & (d)FAR 19.201(c) & (d)The Small Business Act requires each agency with contracting authority to establish an Office of Small and Disadvantaged Business Utilization. For the Department of Defense, this office has been redesignated as the Office of Small Business Programs (OSBP). FAR 19.201(c) identifies the OSBP responsibilities. Small Business Specialists must be appointed and act in accordance with agency regulations (FAR 19.201(d). OSD AT&L established Small Business as a new cross-functional career field and redesignated Small Business Specialist as Small Business Professionals.

FAR Council The FAR rule-making process is overseen by the FAR Council, which consists of representatives from both the Defense Acquisition Regulations (DAR) Council and the Civilian Agency Acquisition (CAA) Council , including: Administrator, Office of Federal Procurement Policy (OFPP) Director, Defense Procurement and Acquisition Policy (DPAP), DoD Deputy Chief Acquisition Officer, GSA Deputy Chief Acquisition Officer, NASA The FAR Council provides the overall strategy for the DAR Council and CAA Council and resolves any disagreements between them.

FAR Team When a regulatory change is required, the FAR Council creates a 'case' and assigns a standing FAR team to address it. FAR teams typically consist of members from acquisition, finance, implementation, law, strategy, technology, and small business. On occasion, an ad hoc team may be formed to address either an unusually complicated matter or a matter that requires special attention. The FAR team develops the legal language to implement the required regulatory change.

Small Business Professionals use DSBS to get a better understanding of the market in which they operate and the small businesses that could support their agency's requirements. Market research involves collecting information, including sources that can be used to help acquisition teams make good decisions about how to proceed on a specific purchase. SBP's can use the DSBS to identify potential small business sources for a specific requirement. They create a query in DSBS based on what needs to be purchased and provide the results to the team as a starting point for conducting market research.

FPDS-NG is the system to use to identify whether or not small businesses have provided certain products and services to the Government.

Acquisition Professionals can find information and support in regulations or policy When acquisitions must be set-aside for small business When they need to determine if a company meets the definition for being a small business When they need to coordinate with SBA To find authorized communications with small business

Federal Acquisition Regulation (FAR)The FAR impacts almost every aspect of Federal contracting. It is divided into 53 parts, each part dealing with a separate subject about acquisitions. The most important parts for Small Business are FAR part 19, Small Business Programs, and FAR part 52, Solicitation Provisions and Contract Clauses. You will need to be thoroughly familiar with these parts so that you know what the Government can and cannot do with respect to small businesses.

Office of Management and Budget (OMB) / Office of Federal Procurement Policy (OFPP) As the President's executive agent for budget, finance, acquisition, and performance management, the Office of Management and Budget (OMB) promulgates many policies that impact small businesses. These are issued as OMB circulars and memos. The Office of Federal Procurement Policy (OFPP), which is part of OMB, provides overall direction for Government-wide procurement policies, regulations and procedures to promote economy, efficiency, and effectiveness in acquisition processes, including Small Business Programs.

Federal Agencies All Federal agencies in the Executive Branch of the Federal Government are charged with maximizing opportunities for small businesses. Each agency has small business and socioeconomic goals to achieve, including the Department of Defense (DoD). DoD is the largest Federal agency with the greatest share of the Federal Government's budget and thus the greatest responsibility for doing business with small businesses. For the Government to achieve the Federal-wide small business goal, DoD must achieve its small business goal.

Proposed/Interim Rule Once all FAR signatories have reviewed and approved the proposed/interim rule, it is published in the Federal Register by the CAA Council for public comment.

Federal Register Once approved by OFPP and OIRA, the proposed and interim rules are published in the Federal Register and public comments are solicited.

Electronic business systems in the Federal Integrated Acquisition Environment are critical tools in DoD acquisitions, and usage of them increases your effectiveness in utilizing small businesses in DoD procurements. Use of these tools help you locate sources to meet acquisition requirements, know which companies have been awarded Federal and/or DoD contracts, and enable you to analyze federal procurement spend for making smarter business decisions for acquiring goods or services; for example, category management. There are systems that can assist you and the rest of the acquisition team in conducting market research, advertising procurement opportunities, participating in industry events or soliciting industry-wide feedback. There are also systems that help Acquisition Professionals record, store, or query information on procurement transactions, contractor performance, subcontracting achievements, and other uses. This module introduces you to the most commonly used Federal Acquisition Environment ebusiness systems and describes how they are beneficial to the Acquisition Professional in support of DoD acquisitions.

Federal acquisition ebusiness systems are critical tools for working effectively, especially with the diverse and dispersed acquisition workforce throughout DoD. You'll want to be aware of these different systems and what they can help you do throughout the acquisition process. There are specific systems that will help with market research, spend analysis, and contractor performance assessments.

RIF full proposal submissions are by invitation only and RIF projects must be completed within 24 months of award.

In 1974, Congress enacted Section 504 of the Indian Financing Act (25 U.S.C. § 1544) authorizing the payment of a 5% incentive (referred to as a "rebate") for subcontracting to Indian-Owned Economic Enterprises or Indian Organizations. The Department of Defense implemented Section 504 in 1999. The 5% rebate is now available to a prime contractor or its subcontractors suppliers for the total amount subcontracted at any tier to a/an: Indian-Owned Economic Enterprise, Indian Organization, Alaska Native Corporation, or Native Hawaiian small business concern For Native American businesses, there are two primary requirements that must be met in order to participate in the IIP, the business must have: 51% Native American/Alaskan/Hawaiian ownership A federally recognized tribal enrollment

In the FY13 NDAA, Sections 1631 and 1633, Congress enacted legislation that amended the goals for procurement contracts awarded to small business concerns. These changes are not subject to the FAR Rulemaking procedures and have been implemented in various ways

In Section 868, Congress enacted legislation that amended the SBA's annual Scorecard methodology. These changes were directed to create more stringent grading of Federal agencies' performance in meeting goals (objectives) for both prime contracts and subcontracts and took effect beginning FY17.In Section 871, Congress amended the Senior Executive accountability they directed in the FY13 NDAA (Section 1633(b)) to add accountability for subcontracts. DoD's implementation of senior executive accountability applies to small business performance in both prime contracts and subcontracts (see DoDI 4205.01, paragraph 2, Enclosure 3). In the field, SB Professionals are often asked for inputs/guidance for annual SES/GO appraisals-- the SB performance goals / objectives. These SB performance goals/objectives usually take the form of: a goal or set of goals and objectives to achieve X by the end of the annual performance period. These goals/objectives can be initiatives, event-based numbers or percentages, but they should be measurable to ensure quantifiable results at the end of the rating period. This type of activity began as a result of the FY13 NDAA Section 1633(b) mandate.

The Electronic Subcontracting Reporting System (eSRS) provides a single point of entry for Federal Government subcontracting reporting. In accordance with FAR Clause 52.219-9 Small Business Subcontracting Plan, for contracts requiring subcontracting plans, contractors are required to report subcontracting plan compliance information into the eSRS.

In accordance with DFARS 219.706, when supporting Administrative Contracting Officers (ACOs), SBPs may use eSRS to review a business's profile and documentation to validate compliance with their subcontracting plans. Through eSRS, you as well as other members of the acquisition team, can: Review a company's performance in reporting their subcontracting achievements Review reports to obtain trending information Review contractor remarks regarding challenges and successes in complying with their subcontracting plans

One of the KEY recommendations from SBA's Congressionally-directed FY13 NDAA goaling methodology assessment took effect in FY16. SBA determined there was no basis in the SB Act for exclusion of contracting dollars awarded outside of the United States or its territories. As a result, this goaling exclusion was eliminated beginning in FY16.Because of DoD's unique and critical mission, other goaling exclusions were negotiated with SBA. These types of requirements have been excluded from DoD's goaling base since FY16: Efforts conducted pursuant to section 22 of the Arms Export Control Act (22 U.S.C. 2762); Efforts for humanitarian operations as defined in section 401(e) of title 10, United States Code; Efforts for contingency operations, as defined in section 101(a)(13) of title 10, United States Code; Efforts awarded pursuant to an agreement with the Government of a foreign country in which Armed Forces of the United States are deployed; or Efforts where both the place of award and the place of performance are outside of the United States and its territories.

In the FY17 NDAA, Section 1811, Congress enacted legislation amending the SBA Administrator's authority with respect to the scope of a Procurement Center Representative's (PCRs) review of a solicitation for a contract as follows:(a) Section 15(l) of the Small Business Act (15 U.S.C. 644(l)) is amended by adding at the end the following new paragraph: ''(9) SCOPE OF REVIEW. —The Administrator—(A) may not limit the scope of review by the Procurement Center Representative for any solicitation of a contract or task order without regard to whether the contract or task order or part of the contract or task order is set-aside for small business concerns, whether 1 or more contracts or task order awards are reserved for small business concerns under a multiple award contract, or whether or not the solicitation would result in a bundled or consolidated contract (as defined in subsection (s)) or a bundled or consolidated task order; and(B) shall, unless the contracting agency requests a review, limit the scope of review by the Procurement Center Representative for any solicitation of a contract or task order if such solicitation is awarded by or for the Department of Defense and—- (i) is conducted pursuant to section 22 of the Arms Export Control Act (22 U.S.C. 2762);- (ii) is a humanitarian operation as defined in section 401(e) of title 10, United States Code; - (iii) is for a contingency operation, as defined in section 101(a)(13) of title 10, United States Code; - (iv) is to be awarded pursuant to an agreement with the Government of a foreign country in which Armed Forces of the United States are deployed; or- (v) both the place of award and the place of performance are outside of the United States and its territories.(b) Section 15(g)(2)(B) of the Small Business Act (15 U.S.C. 644(g)(2)(B) is amended by inserting after the period at the end the following new sentence: ''Contracts excluded from review by procurement center representatives pursuant to subsection (l)(9)(B) shall not be considered when establishing these goals.''

Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) Programs These programs provide research and development funding to small businesses to promote development of innovative technologies.

Indian Incentive Program Through incentive payments to the prime contractor, this program incentivizes subcontracting to Indian-Owned Economic Enterprises or Indian Organizations.

Individuals Recommendations from Government employees and citizens can result in new or updated regulations and policies.

Industry Companies may make recommendations that result in new or updated regulations and policies.

In accordance with FAR 42.15, agencies are required to monitor and document contractor's contract performance using designated tools. The Past Performance Information Retrieval System (PPIRS) is a shared data warehouse of report cards that detail a vendor's performance on current (or completed) contracts. The information is restricted to use during source selections. Additionally, adverse action information on contractors is collected and transmitted to PPIRS through the Federal Awardee Performance and Integrity Information System (FAPIIS). Contracting Officials and source selection team members are the only personnel who need to access PPIRS during source selections. Government access to PPIRS is restricted to those individuals who are working on source selections, to include contractor responsibility determinations.

Information on contractor performance is collected and transmitted to PPIRS through the Contractor Performance Assessment Reporting System (CPARS).

The purpose of the Indian Incentive Program is to serve as an economic multiplier for Native American communities Objectives Increase subcontracting opportunities for Native American and Tribally-Owned firms Offer incentives for contractors to consider firms outside of their preferred provider lists How It Works A 5% rebate is paid to a prime contractor or its subcontractors, or suppliers for the total amount subcontracted at any tier to an Indian-Owned Economic Enterprise, Indian Organization, Alaska Native Corporations or Native Hawaiian Small Business Concern. The DoD Contracting Officers submit requests to DoD OSBP, collect, review, and verify documents received from prime contractors, and complete funding request letter containing the: Reference to DFARS clause 252.226-7001 Period of work (month/year-month/year) for the incentive payment Contracting Officer information: email, telephone and fax numbers Point of contact to receive the Military Interdepartmental Purchase Request Administration Though the IIP is administered by the DoD OSBP, its execution is accomplished by Component contracting activities. The Program is funded annually in the National Defense Appropriations Act. As a result, DoD Components do not need to provide any of their own funding for the program. To fully understand your role and responsibilities, you may find detailed information at FAR part 26. 1, FAR Clause 52.226-1, DFARS part 226.1, and DFARS Clause 252.226-7001.

It is not uncommon to get other types of inquires from industry about additional Small Business programs. Take a minute to review potential inquiries and how your local Small Business Professional might assist in addressing these.

The legal framework that governs acquisitions is influenced by a variety of sources. The requirements of the influencing sources, if enacted in legislation, generally require further implementation through acquisition regulations such as the FAR, DFARS, and Component's FAR supplements. However, other policy and guidance documents may be used for implementation when the requirements do not impact the FAR, DFARS or Component's FAR supplements.

Legislation Often Federal and DoD regulations or policies come about as a result of Congressional authorization or direction through legislation and legislative changes such as the annual National Defense Authorization Act (NDAA) which is the United States federal law specifying the annual appropriations and expenditures of the U.S. Department of Defense. The NDAA does not provide budget authority, which is provided by appropriations legislation. Enacted laws are implemented in regulations and/or polices as appropriate.

As an Acquisition Professional, the extent and type of market research required is dependent upon the type of acquisition, inclusive of governance framework, size, complexity, estimated acquisition value, and so forth. The types of acquisitions you encounter will vary based your organization's mission. The mission(s) determines the types of products/services you will acquire on behalf of the customer.

Major Acquisition Systems If your organization supports customers that acquire or sustain aircraft, ships, helicopters, or tanks, these are major acquisition systems. DoD Instruction (DoDI) 5000.02, Operation of Defense Acquisition Systems, sets forth the governance framework for these major acquisition systems (products) and incidental services. Major acquisition systems programs are categorized per criteria in the DoDI 5000.02 (Enclosure 1, Acquisition Program Categories and Compliance Requirements). The Defense Acquisition Executive (DAE) or designee is the Milestone Decision Authority (MDA) for Major Defense Acquisition Programs (MDAPs). The Component Acquisition Executive (CAE) or designee is the MDA for ACAT II & ACAT III programs. Note: The Under Secretary of Defense for Acquisition, Technology and Logistics serves as the DAE. ACAT programs are managed within portfolios by program executive's officers (PEOs) that report to the DAE or CAE, as applicable. Program managers assigned to ACAT programs report locally through established PEO chains.

DoD issues one solicitation titled "Rapid Innovation Fund Broad Agency Announcement" that includes separate technology areas of interest for each of the DoD Components. The BAA solicits white papers and technical proposals that offer solutions to DoD operational challenges or other critical national security needs. The BAA is published on the FedBizOpps website and includes separate technology areas of interest for each of the military departments and the defense agencies. For DoD Components designated to receive funds, their contracting offices award contracts for the Component. Qualification for the RIF Program also depends on the subject prototype's Technology Readiness Level (TRLs). This is the current or expected state of the technology prior to contract award. There are six acceptable TRLs. The majority of awards require a TRL of 6 or higher. Although TRLs of six and higher are typically required for proposed RIF projects, a TRL of four or five may be accepted if the technology is a breakthrough capability or operational game-changer, additional development cost is neutral to the acquisition program, and development can be accommodated within program schedule. As Program Managers, Product Support Managers, or Contracting Officers, you may be in a Component or field office that participates in the RIF program. If so, you may be called upon to participate in the RIF process, which may include topic development, solicitations, source selection, award and administration of contracts. You can get detailed information online at DoD Rapid Innovation Fund or Defense Innovation Marketplace.

Offerors invited to submit full proposals will receive an email or other written notification from the DoD Component cognizant Contracting Officer providing instructions for the submission of a full proposal. Similarly, offerors that submit a full proposal will receive an email or other written notification from the DoD Component cognizant Contracting Officer if their proposal has been selected for award. The invite should identify the technical point of contact for the requirement and the contracting office point of contact information. The DoD Component cognizant Contracting Officer provides instructions for the submission of a full proposal in accordance with their office policy. Negotiations are at the discretion of the DoD Component cognizant Contracting Officer and in accordance with contracting office policy. White Paper evaluation will not entitle the offeror to a debrief as no award can result from a White Paper. However, for proposals, the DoD Component cognizant Contracting Officer shall follow the procedures in FAR subpart 15.5.

Total Set-Aside - FAR 19.502-2A total set-aside is an acquisition that is reserved exclusively for small business concerns. If the Contracting Officer does not proceed with the small business set-aside and purchases on an unrestricted basis, they shall include the reason for this unrestricted purchase in the contract file. If the Contracting Officer receives only one acceptable offer from a responsible small business concern in response to a set-aside, they should make an award to that firm. If the Contracting Officer receives no acceptable offers from responsible small business concerns, the set-aside shall be withdrawn and the requirement, if still valid, shall be resolicited on an unrestricted basis. The Contracting Officer determines there is not a reasonable expectation of obtaining offers from two or more responsible small business concerns that are competitive in terms of market prices, quality, and delivery The acquisition meets the dollar thresholds outlined in FAR19.502-2(a) and (b) The acquisition can be satisfied fully by small businesses (Rule of 2 is met) The single solicitation will be restricted to small businesses (FAR 19.203 applies). The single solicitation for partial MAC IDIQ set-asides will also include an unrestricted portion (non-set-aside). Market research will be essential to devise appropriate strategies.

Partial Set-Aside - FAR 19.502-3When a total set-aside is not appropriate, you are required to set-aside a portion of an acquisition and restrict that portion for small business concerns under the following conditions: The requirement is severable into two or more economic production runs or reasonable lots. One or more small businesses are expected to have the technical and productive competency to satisfy the set-aside portion at a fair market price. The acquisition is not subject to simplified acquisition procedures. The traditional manner of setting an acquisition aside usually entails reserving the solicitation for participation by small businesses or businesses in a socioeconomic category, and awarding one or more prime contracts. The enactment of the Small Business Jobs Act of 2010 authorized set asides for multiple-award procurements.

DPAP Policy Changes The Defense Procurement and Acquisition Policy (DPAP) office is responsible for all contracting and procurement policy matters. Its policy changes can necessitate changes in other regulations and policies.

Regulations The requirements of the Influencing Sources can stem from legislation and/or other requirements that are implemented in regulations such as the FAR, DFARS, Component's FAR supplements and/or other appropriate policy or guidance documents. As acquisition professionals, you will need to understand this governance framework to develop sound acquisition strategies.

Market research results are the foundation for sound acquisition strategies. Early industry engagement and feedback are essential parts of conducting market research; these enable the Government to make iterative requirements refinements and devise acquisition strategies to meet customer needs while maximizing utilization of small businesses.

Requirements Definition Thorough market research can help the acquisition team define and/or refine the requirements on behalf of customer needs during the Presolicitation Phase of the acquisition. FAR part 11, Describing Agency Needs, provides policy and procedures for defining requirements and what must be considered when conducting market research. The results of effective market research will bring clarity to your team for purposes of developing appropriate product descriptions or systems requirements documents, as applicable; statements of work (SOW), statements of objectives (SOO), and/or performance work statements (PWS), as applicable. Your local Small Business Professional (SBP) will work with you to identify and mitigate requirements that may be unduly restrictive and/or act as barriers to competition and maximum small business utilization

FAR Subpart 19.5 - Set-Asides for Small Business Reserving of an acquisition exclusively for participation by small business concerns Single acquisition or class of acquisitions- unilateral (Contracting Officer) or joint (Contracting Officer & SBA) determinations Market research demonstrates feasibility of set-asides before use of full & open competition Contracting Officers must give consideration to Agency SBP set-aside recommendations A small business size standard and NAICS Code must be provided to industry via market research to determine feasibility of set-asides for the acquisition

Rule of Two In general terms, the Rule of Two (FAR 19.502) means the Contracting Officer shall set-aside an acquisition if there is there is a reasonable expectation that: Offers will be obtained from at least two responsible small business concerns and; Award will be made at fair market prices (i.e., presumes quality and delivery acceptable)There are anticipated dollar thresholds and other factors that you should be aware of regarding application of the Rule of Two during market research (see FAR 19.502-1; 19.502-2; 19.502-3): If under $3,500 - small business set-asides not applicable If over $3,500 but not over $150,000 (simplified acquisition threshold (SAT)) -- automatically reserved exclusively for small businesses if Rule of Two applies If over the SAT - Rule of Two applies in determining feasibility of set-asides Note: For R&D small business set-asides, there must also be a reasonable expectation of obtaining the best scientific and technological sources consistent with the demands of the proposed acquisition for the best mix of cost, performances, and schedules.

The System for Award Management (SAM) consolidates the legacy Federal procurement systems of Central Contractor Registry (CCR), Federal Agency Registration (FedReg), Online Representations and Certifications Application (ORCA), and Excluded Parties List System (EPLS), with the Catalog of Federal Domestic Assistance into one system. Each of the legacy systems played a role in collecting data from or about entities desiring to do or doing business with the Government. Consistent with the requirements of FAR subpart 4.11, SAM is the one stop location for entities to register to do business with the Federal Government, and it is the single authoritative source for Contracting Officers to verify an entity's registration before making a contract award, subject to certain exceptions.

SAM is often used to: Verify that a company is registered to do business with the Government Determine if a company is excluded from doing business with the Government Check a company's representations and certifications Access to SAM does not require a login account, but you can create a login account to have the ability to search for official use only (FOUO) information and for registrants who chose to opt out of making their information available to the general public. Your local SBP also assists in conducting market research and accesses SAM as necessary.

EDA is the system that enables you to view/print .pdf versions of awarded contract actions.

SAM is the system that integrated the Central Contractor Registry, Federal Agency Registration, and several other systems to become the one-stop location for businesses to register to do business with the Government.

Management/Leadership SBPs fill roles as managers and leaders who oversee programs and initiatives at the headquarters or OSD level. SBPs also oversee headquarters-level functions.

SB Industrial Base Analysis, Characterization, and Monitoring SBPs collect a variety of information and conduct extensive analysis of data to understand the marketplace in general and the characteristics of the small business industrial base in particular.

The DoD SBIR/STTR Programs are managed by the DoD OSBP. Each year OSBP issues several SBIR/STTR solicitations publicized through Broad Agency Announcements. These include military service, defense agency, and other Component-developed research topics. The contracting office of each military service or defense agency SBIR/STTR participant awards resulting contracts on the participants' behalf. If you are a Contracting Officer or Program Manager in the R&D environment, you will likely be involved with SBIR/STTR acquisitions. It will be incumbent upon you to know about the program in detail. Detailed information on the DoD SBIR/STTR Programs can be found at the DoD OSBP SBIR/STTR website. You can also contact your military service, defense agency, or Component SBIR/STTR Program Manager.

SBA policy governs the federal SBIR/STTR programs overall. Below are policy directives with which you should be familiar: SBIR Policy Directive STTR Policy Directive DoD has additional SBIR/STTR guidance for the Department. Below is specific DoD guidance and resources with which you should be familiar. OSBP SBIR/STTR Site DOD SBIR/STTR Resource Center OSD Policy Memo

The small business programs just described maximize prime contracting opportunities through use of set-asides and sole source authorities. Prime contracts are the preferred opportunities whenever feasible (Rule of Two); however, subcontracting opportunities must also be pursued when market research indicates opportunities exist.

SBCs vs OTSBs' Small Business Concerns (SBCs) vs Other Than Small Businesses (OTSBs)As a DoD Best Practice, use of small business participation commitment documents (SBPCD) (formerly small business participation plans) enables the Government to determine how companies have complied with FAR 52.219-8 for similar work, and also provides a means for companies to propose new participation requirements per the solicitation. SBPCDs apply to both SBCs and OTSBs.

For the most part, acquisitions using the Small Business Program and Socioeconomic Program authorities can be acquired as competitive set-asides or as sole source (see FAR 6.203 and FAR 6.302-5(b), subparagraphs (4), (5), (6), (7)).

Set-AsideFAR 19.501 states a "set-aside for small business" is the reserving of an acquisition exclusively for participation by small business concerns.

The phrase "Small Business Professional" encompasses a broad range of job titles, such as Small Business Specialist, Procurement Analyst, and Small Business Technology Specialist. Small Business Professional (SBP) responsibilities are categorized into ten functional areas as shown below. In some instances, Small Business Professionals specialize in one or more areas

Small Business Legislation, Regulation, and Policy SBP's perform small business policy analysis to review influence and develop policies related to small business utilization as well as create legislative proposals

Definition of Small Business: The definition of Small Business can be found in FAR part 2. Contract Specialist Intern: It was in FAR part 2 that I found the definition of small business. I now understand that many of the definitions I will need to know are found in part 2 of the FAR.

Small Business Set-Asides: Small business set-asides are addressed FAR part 19 Program Manager: By researching FAR part 19, I learned that there are rules governing small business set-asides as well as set-asides for socioeconomic categories. I will need to be well versed in these rules as I advise acquisition teams.

The successful SBP: Demonstrates sound business judgment on acquisitions Educates small businesses on doing business with your agency Identifies opportunities for small business utilization

Small businesses can be agile and flexible and offer a great deal of efficiency. Many are doing innovative work with technologies that could be useful for this procurement. In these ways, small businesses can help this agency achieve its mission

Small businesses are important to our nation; they strengthen the foundation of our economic security and industrial base. Additionally, small businesses are just as important to DoD. Because small businesses are nimble and can respond rapidly to our needs, they can help DoD realize greater efficiency and flexibility, take advantage of innovative technologies and approaches, and improve military readiness.

Small businesses drive economic growth in the United States. The Small Business Administration (SBA), Office of Advocacy, is the statistical arm of SBA. Part of their mission is to conduct, sponsor, and promote economic research that provides an environment for small business growth. While they regularly publish reports and other documents on economic research and statistics, their Frequently Asked Questions (FAQ) document is very helpful for learning and communicating national small business contributions.

Assistance and Advocacy Groups Advocacy groups such as Procurement Technical Assistance Centers, Small Business Development Centers, and Chambers of Commerce provide assistance to small businesses. They educate organizations on how small businesses can help them accomplish business with their agency.

Small businesses see the federal government as potential customer that is rich with opportunities

Mentor/Protégé Program Management DoD-managed program that encourage approved mentors to provide various forms of business development assistance from protégé firms. This program is administered by the OSBP and the SBPs are assigned those duties.

Subcontracting SBPs help to develop subcontracting strategies for DoD acquisitions and oversee compliance with subcontracting terms.

Federal Business Opportunities (FedBizOpps or FBO) is the official Government Point of Entry (GPE) as specified in FAR 5.201. FBO is a free Web-based portal that allows Government Contract Specialists and Contracting Officers (buyers) to post proposed contract actions and other procurement notices for industry and allows companies to view Federal procurement opportunities over $25,000.

The Federal Procurement Data System-Next Generation (FPDS-NG) is a Web-based procurement data system. It is the authoritative source system for federal procurement data and includes line-item level detail for all contract actions awarded over the micro-purchase threshold. FPDS-NG is a basis for recurring and special reports to the President, the Congress, the Government Accountability Office, Federal executive agencies, and the general public. Executive branch Federal agencies are required by FAR 4.602 to report contractual actions in a timely and accurate manner. Although FPDS-NG procurement data is publicly accessible, non-DoD account holders, such as the Small Business Administration (SBA), industry, or private citizens can only gain access to DoD procurement data that is at least 90 days old. The most commonly used feature in the FPDS-NG is ezSearch, which is a Google-like search engine that can be used to find procurement data that can be used for market analysis.

The RIF Program promotes innovative technologies by funding the final development, testing, evaluation, and integration of selected mature prototypes. RIF projects must cost no more than $3 million and be completed within 24 months of award. A proposed RIF project must also address one or more of the of the following requirements: Satisfies an operational or national security need Accelerates or enhances military capability Stimulates innovative technologies Reduces acquisition or lifecycle costs Addresses a technical risk Improves timeliness and thoroughness The RIF Program source selection process consists of two phases; White Paper submission and full proposal submission.

The RIF process starts with the issuance of a Broad Agency Announcement (BAA) for White Paper submissions. Persons or companies interested in responding then prepare a three-page White Paper. White Papers should focus on one requirement per paper. There is no limit on the number of White Papers an offeror may submit. The White Paper should describe the technology solution: How it addresses the RIF requirement What is innovative about the proposed technology Include adequate technical specifications for realistic evaluation The Contracting Officer overseeing the evaluation process will be at the DoD Component level. The four participating DoD Components will utilize a Contracting Officer to: Ensure the evaluation board properly evaluates the proposals Review evaluation reports. Invitations or Requests for Proposals will be sent from respective DoD Component Contracting Officers to offerors.

SBIR Objectives: The statutory purpose of the SBIR Program is to strengthen the role of innovative small business concerns in federally-funded research or research and development (R/R&D). The SBIR objectives are to: Stimulate technological innovation in DoD's Science and Technology Emphasis Areas Use small businesses to meet DoD research and development needs Foster and encourage participation by socially and Economically Disadvantaged Small Business concerns, and Women-Owned Small Business concerns, in technological innovation Increase private sector commercialization of innovations derived from DoD-supported research or research and development results STTR Objectives: STTR involves partnerships between small businesses and research institutions/universities. The objectives are to: Provide incentive for small businesses and research institutions/universities to team together to move ideas from the research institution/university to the marketplace cooperatively Join the forces of small business and research institutions/universities for technological progress Foster the entrepreneurial spirit of high-tech small businesses

The SBIR/STTR Programs are divided into three phases: Phase I - Project Feasibility: Phase I is the startup phase. The objective of this phase is to determine the scientific and technical merit and feasibility of the proposed effort and the quality of performance of the small business concern with a relatively small agency investment before consideration of further Federal support. Successful offerors receive contract awards for approximately one year to fund the exploration of the scientific, technical, and commercial feasibility of an idea or technology. Phase II - Project Development to Prototype: Phase II is the expansion phase. Phase I awardees' whose technology is deemed worthy of development, are typically eligible for Phase II awards. During this period, the R&D work is performed and there is a focus on transition planning to applicable defense and commercial markets. Some topics allow small businesses, who can demonstrate technology feasibility, to apply directly for a Phase II award through the Direct-to-Phase II program. Phase III - Commercialization: This is the period during which small businesses move their innovative technologies from the laboratory into Program of Records, fielded systems, or the commercial marketplace. Phase III funding may come from the private sector or other non-SBIR/STIR Federal agency funding. For both Phase I and Phase II, the R/R&D work must be performed in the United States or U.S. territories, unless waived. (SBIR Directive, Section 6)

United States Code Title 15, Section 637(A) (12) (C), requires that "Each executive agency reporting to the Federal Procurement Data System contract actions with an aggregate value in excess of $50,000,000 in fiscal year 1988, or in any succeeding fiscal year, shall prepare a forecast of expected contract opportunities or classes of contract opportunities for the next and succeeding fiscal years that small business concerns, including those owned and controlled by socially and economically disadvantaged individuals, are capable of performing."A forecast of expected opportunities can be prepared and shared with industry based on strategic and/or tactical market research data. Responses from industry expressing interest in forecasted procurements can assist the acquisition team in better understanding the market, and can lead to refined market research that can influence the final acquisition strategy. Agency officials in the Component acquisition program management offices develop acquisition forecasts and provide them to DoD OSBP on a recurring basis. These are posted in a centralized manner on the DoD OSBP website which is accessible by both Government and industry.

The extent of market research will vary, depending on such factors as urgency, estimated dollar value, complexity, and past experience. FAR 10.002 states that market research should include information about how the Government's need can be met, such as: Products that are available in the commercial marketplace as is, or with modifications, or used exclusively for Government purposes How items can be customized, modified, or tailored to meet customer needs and associated costs Practices, including warranty, buyer financing, discounts, and contract types Laws and regulations related to the products to be acquired Use of recovered materials and energy efficient products/services Distribution and support capabilities of suppliers Size and status of the potential sources In accordance with FAR 10.002, the Contracting Officer may use market research conducted within 18 months before the award of any task or delivery order if the information is still current, accurate, and relevant. This means that market research has a shelf life of about 18 months due to dynamic and ever-changing market conditions. Be sure your market research is current, accurate, and relevant when using it to support similar or follow-on requirements.

Legislative Foundation of the Small Business and Socioeconomic Programs The Small Business and Socioeconomic Programs were established to meet the requirements of the Small Business Act of 1953 to maximize opportunities for small businesses. They are administered by the Small Business Administration (SBA). Guidance for implementing them can be found in the FAR part 19 and DFARS part 219

The Small Business Administration (SBA) was created in 1953 as an independent agency of the Federal Government to aid, counsel, assist and protect the interests of small business concerns, to preserve free competitive enterprise, and to maintain and strengthen the overall economy of our nation. The SBA Administrator is a member of the U.S. President's cabinet. The Administrator's Headquarters Offices are established by functions to carryout uniquely assigned mission requirements. As Program Managers, Contracting Officers and Contract Specialists, you will frequently work with the local SBA Procurement Center Representatives (PCRs) and will likely work with other SBA office personnel when issues arise such as protests and appeals over small business size challenges, North American Industry Classification System (NAICS) code concerns, non-manufacturing rule concerns, 8(a) business development program concerns, matters involving contractor responsibility concerns, post award performance concerns, and so forth. Your local SBP should be your first point of contact when small business matters arise. SBPs will assist and advise on the best course of action to resolve small business matters. The SBA website has invaluable resources and training materials for both Government personnel and industry. However, you local SBP frequently provides Small Business Program training to activity acquisition personnel and will be glad to assist when small business training is needed.

Your local Small Business Professional's main involvement with the DoD Mentor-Protégé Program is to handle inquiries about the program and recommend it to businesses that need development

The Small Business Innovation Development Act of 1982 established the Small Business Innovation Research (SBIR) Program. The Small Business Research and Development Enhancement Act of 1992 (Public Law 102-564) established the Small Business Technology Transfer (STTR) Program. The SBIR/STTR programs are driven by SBA best practices and are designed to strengthen the DoD's buying power and to improve industry productivity. SBA uses these programs to ensure that small, high-tech, innovative businesses are a significant part of the federal Government's research and development efforts. Both programs have been reauthorized several times since their inception. Congress has reauthorized the SBIR/STTR Programs through September 30, 2017. All DoD SBIR/STTR Programs will continue to follow the current SBIR Policy Directive and STTR Policy Directive (unless otherwise noted in the SBA Implementation Policy) until new policy directives are released by the SBA and the DoD develops policy to implement any changes. Much of the regulatory guidance for the SBIR/STTR programs is not included in the FAR but can be located in the program's policy directive. The SBA, through its SBIR/STTR policy directives, purposely departs from normal Government solicitation formats and requirements and authorizes agencies to simplify the SBIR/STTR award process and minimize the regulatory burden on small business.

SB Program Evaluation and Goals SBPs examine small business programs performance in relation to program goals and develop Action Plans to improve goal achievement. In addition, SBPs analyze the degree to which DoD is including small businesses in DoD acquisitions.

The Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs, are DoD-managed and identify and support small businesses doing innovative research and technology development. This program is administered by the OSBP and the SBPs are assigned those duties.

It's the law as implemented in FAR Subparts 19.2 and 19.5. The acquisition shall be set-aside if the "Rule of Two" is met, which states that there needs to be a reasonable expectation that: 1) Offers will be obtained from at least two responsible small business concerns, and 2) Award will be made at fair market prices It is national policy to provide maximum opportunity in Government acquisitions to small businesses - they are the economic engine of the country!

The Small Business Program Decision Chart is a job aid that can help you decide when a set-aside or sole source is appropriate for each of the following categories: Small Business Programs 8(a) Program HUBZone Program SDVOSB Program WOSB Program The Small Business Program Decision Chart can be found on DAU's Acquisition Tools and Resources page. This job aid includes both a table and flowchart formats for ease of use.

Rapid Innovation Fund (RIF) This competitive, merit-based program accelerates the fielding of innovative technologies into military systems. Its purpose is to stimulate innovation while reducing acquisition or life cycle costs, addressing technical risks, and improving the timeliness and thoroughness of test and evaluation outcomes.

The Small Business Subcontracting Program Under defined circumstances, requires that negotiated and sealed bid acquisitions include a subcontracting plan requirement when subcontracting possibilities exist.

The SBIR/STTR data rights clause provides the Government limited rights in technical data and restricted rights in computer software during the SBIR and STTR data protection period. DFARS 252.227-7018(a)(15) defines limited rights as "the rights to use, modify, reproduce, release, perform, display, or disclose technical data, in whole or in part, within the Government." All SBIR and STTR contracts must contain the data rights clause. FAR part 27 and DFARS part 227 contain provisions to protect the data rights of small businesses under SBIR/STTR contracts. The specified clauses must be included in all Phase I, II, or III SBIR or STTR contracts. Because SBIR and STTR Phase III contracts are issued by DoD Components using the standard DoD contracting process, Contracting Officers and Program Managers must be aware that they need to use DFARS 252.227-7018(a)(15) in their acquisitions. NOTE: Even though the FAR and DFARS refer only to SBIR, the same provisions and clauses apply to STTR.

The goals and the structure of the two programs are very similar. However, SBIR is for small businesses alone. STTR involves partnerships between small businesses and non-profit research organizations such as universities.

Since its creation in 1953, the Small Business Act has been amended numerous times to further strengthen our economy through the participation of small businesses in Government procurement's through small business programs. For the small business programs, the SBA is responsible for ensuring Government-wide goals are established annually at the statutory levels and that federal agencies' achievements are measured against these statutory goals. Goals can be viewed at the SBA website. The SBA uses the information in the Federal Procurement Data System Next Generation (FPDS-NG) to monitor agencies' achievements against goals throughout the year. The fiscal year small business goaling reports can be viewed at the FPDS-NG website.

The purpose of Small Business Programs is to maximize opportunities for small businesses to win contracts with Federal agencies. Select each tab to learn more about the SB Programs; when finished, select Next to continue.

The purpose of the WOSB program is to provide equal access to federal contracting opportunities for Women-Owned Small Businesses (WOSBs) or Economically Disadvantaged Women-Owned Small Businesses (EDWOSBs). If the acquisition value exceeds the micro-purchase threshold and the product/services are in a NAICS code designated for WOSB or EDWOSB, the solicitation may be set-aside for Women-Owned Small Businesses or Economically Disadvantaged Women-Owned Small Businesses. Program eligibility is limited to WOSB/EDWOSBs doing business in certain industries identified by individual NAICS codes designated by the SBA. For requirements in NAICS codes designated by SBA as "underrepresented", a Contracting Officer may restrict competition to EDWOSB concerns. For requirements in NAICS codes designated by SBA as "substantially underrepresented", a Contracting Officer may restrict competition to WOSB concerns eligible under the WOSB Program (including EDWOSB concerns). Acquisitions can be set-aside for either WOSB or EDWOSB. It is important to note that WOSBs need not comply with the eligibility requirements of the WOSB Program; 1) if the NAICS code assigned to the acquisition is one of the designated NAICS codes for the WOSB program, but the acquisition is NOT set-aside under the program, or 2) if they are not doing business in a SBA-designated NAICS code. A WOSB/EDWOSB concern self-certifies as a WOSB in SAM for the size standard applicable for the NAICS codes in industries in which it does business. Additionally, to be eligible under the WOSB Program, Women-Owned Small Businesses and Economically Disadvantaged Women-Owned Small Businesses may self-certify using the process and procedures outlined on SBA's Web site, or they may elect to use the services of SBA approved Third Party Certifiers. Statutory Goal: 5% of total dollars of contracts awarded.

The purpose of the 8(a) Program is to provide managerial, technical, and contractual assistance to small disadvantaged businesses (SDBs) to ready them and their owners for success in private industry. Participation in the 8(a) Program is divided into two phases over nine years: A four-year developmental stage; and a five-year transition stage. Because qualified 8(a) firms are participants in a business development program, they are afforded procurement assistance authorities, and the program has authorities that are not available for small businesses or businesses in other socioeconomic categories, including: - Noncompetitive (sole source) contract awards up to certain ceilings - Ability of program participants to self -market for requirements - Search letter from SBA seeking any requirements for a specific participant - Requirements letter from SBA requesting a specific requirement for a specific participant - Offer a requirement to SBA for the program in general or on behalf of a specific participant - No justification and approval requirement for sole source awards under $22 million (See FAR 6.303-2) - Contract award to the SBA as the prime contractor with the program participant as the subcontractor to the SBA - Delegation of SBA contract execution authority to contracting agencies via Partnership Agreements (PA) The Department of Defense has entered into a PA with SBA which allows Contracting Officers to streamline contract awards to 8(a) contractors.

The purpose of the SDVOSB Program is to maximize opportunities for small businesses that are owned by Service-Disabled Veterans Federal Agencies can set-aside acquisitions for firms that self-certify as Service-Disabled, Veteran-Owned Small Businesses. It's important to note that there is no procurement program for veterans who are not service-disabled, except for one established by the Department of Veterans Affairs (VA). Its Veterans Benefits, Health Care and Information Technology Act of 2006 gave the VA authority to set acquisitions aside for Veteran-Owned Small Businesses (VOSB) A SDVOSB must be a small business concern that is not less than 51% owned by one or more Service-Disabled Veterans or, in the case of any publicly owned business, not less than 51% of the stock of which is owned by one or more Service-Disabled Veterans; and the management and daily business operations of which are controlled by one or more Service-Disabled Veterans or, in the case of a Service-Disabled Veteran with permanent and severe disability, the spouse or permanent caregiver of such veteran. A Service-Disabled, Veteran-Owned Small Business concern self-certifies itself as a SDVOSB in SAM for the size standard applicable for the NAICS codes in industries in which it does business.Statutory Goal: 3% of total dollars of contracts awarded.

The purpose of the HUBZone Program is to promote economic development in underutilized regions by stimulating capital investment, increasing job growth and employment opportunities Some acquisitions may be set-aside for small businesses located in economically distressed (urban or rural) communities that historically have been underutilized. Among other requirements, the principal office of the small business firm must be located within a HUBZone and at least 35% of the firm's employees must reside in a HUBZone. HUBZone firms cannot self-certify; they must receive certification from the SBA.Statutory Goal: 3% of total dollars of contracts awarded.

SBPs support the acquisition team by providing information about small business acquisition policies and regulations; Educate small businesses on opportunities to do business with DoD; Assist with market research to find small businesses that can support your organization.

There are numerous regulations, executive orders, and policies that are the frame work of authorities to govern providing federal opportunities to small businesses. In this module you will learn about these small business acquisition authorities and how they affect acquisition strategies. As a Program Manager or Contracting Professional, your knowledge of this governance framework will serve you well as you work with Small Business Professionals (SBPs), acquisition teams, industry, and the local SBA Procurement Center Representatives (PCRs) to maximize opportunities for small businesses in DoD acquisitions. As you maximize small business opportunities in both prime contracts and subcontracts, you are contributing to the growth and strength of the nation's economy by providing our warfighters increased competition, innovation, efficiency, and more affordable solutions.

OSBP's focus on small business utilization in acquisitions supports several key initiatives within DoD, such as Better Buying Power (BBP). Small business acquisitions contribute directly to achieving these DoD initiatives and objectives for improved efficiency, increased innovation, and improved tradecraft in the acquisition of services.

To achieve the DoD objectives for improved efficiency, increased innovation, and improved tradecraft in the acquisition of services, DoD uses a variety of Small Business Programs to support DoD's missions, which in turn ensures compliance with national policy to maximize opportunities for small businesses.

SBPs execute the functions specified in the Federal Acquisition Regulation (FAR), Defense Federal Acquisition Regulation Supplement (DFARS), DoD Instruction (DoDI) 4205.01 and Component small business program publications or policies, as applicable, in supporting DoD acquisitions. Like you, SBPs are members of the acquisition workforce and support many acquisition teams and programs at a time. Because they are acquisition experts and adept in small business programs and policies, you will want to engage SBPs early in acquisition planning to assist teams in maximizing small business utilization. SBPs also serve as a liaison between the acquisition team, industry, the Small Business Administration, and other Federal agencies

Trusted Business Advisor Customer-focused Knowledgeable in small business rules Sound business judgement in acquisitions SBP 1: SBPs are customer-focused when it comes to supporting acquisition teams. They will strive to understand the customer's requirements as well as your team's needs and perspectives. SBPs stay current on small business and acquisition regulations, policies, acquisition approaches, and the marketplace. They are knowledgeable about ways to maximize small business utilization in prime contracts and subcontracts and assist the team during the entire contracting process.

For new acquisitions involving multiple award contracts (MACs), the set-aside policy in FAR 19.502 applies. FAR 19.502-2 and FAR 19.502-3 must be considered prior to use of unrestricted competition in MACs(FAR 19.502-4). This discretionary authority for small business reserves aims to increase small business utilization (prime contracts).Reserves can be used in a variety of ways as appropriate for the circumstances of the acquisition: New, unrestricted MAC acquisitions (new contracts to be awarded) Unrestricted MACs that were previously awarded, but ended up including small business awardees (i.e., the Government's market research originally indicated there were not two or more capable small businesses for set-asides) Orders issued under FAR Part 16.5, GSA Federal Supply Schedules, or Government-wide acquisition contracts (GWACS)

Use of General Services Administration (GSA) Schedules, (see FAR subpart 8.4), or Government Wide Acquisition Contracts (GWACs) vehicles can result in significant acquisition lead time and schedule savings when these existing schedules/contracts can meet customer needs. Although FAR Part 19 is not mandatory when using Subpart 8.4, ordering activities may set-aside orders and blanket purchase agreements (BPA) and will receive the small business goaling credit, as applicable. When setting aside orders and/or BPAs under Subpart 8.4, FAR Part 19 applies (FAR 8.405-5, Small Business).Your local SBP and Small Business Administration (SBA) Procurement Center Representative (PCR) should be engaged in your team activities to conduct market research and devise appropriate acquisition strategies

Collaborator Acquisition teams Agency SBPs SBA and other Federal agencies Industry SBP 4: Engaging SBPs early can help to streamline your acquisition planning efforts. SBPs are 'Collaborators.' They routinely engage many concurrent acquisition teams across the local activity as well as industry, agency SBPs, SBA and other Federal agencies. In this role, SBPs build many solid relationships and gain invaluable insights which they can use to help streamline your acquisition planning activities to ensure maximum small business utilization.

What should you expect from your local SBP? A good SBP is not narrowly focused on meeting small business goals only. Like any other Acquisition Professional, there are some things you need to do to be successful in your career endeavors. Many of these involve exhibiting certain traits that enable desired outcomes