[Federal Register Volume 64, Number 66 (Wednesday, April 7, 1999)]
[Notices]
[Pages 16972-16973]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-8577]


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GENERAL SERVICES ADMINISTRATION


Implementation of Changes to the Small Business Competitiveness 
Demonstration Program

AGENCY: Office of Acquisition Policy, GSA.

ACTION: Notice.

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SUMMARY: Title VII of the ``Business Opportunity Development Act of 
1988'' (Pub. L. 100-656) established the Small Business Competitiveness 
Demonstration Program to provide for the testing of specified 
innovative procurement methods and procedures. The program was 
conducted by nine (9) designated agencies, including GSA, over a four 
(4) year period from January 1, 1989 to December 31, 1992. Title VII of 
Public Law 100-656 was amended by the Small Business Opportunity 
Enhancement Act of 1992 (Pub. L. 102-366) to extend the demonstration 
program through the Omnibus Consolidated Appropriations Act (Pub. L. 
104-208) for one year to September 1997. In 1997, Congress also 
extended the aspect of the Program covering expansion of small business 
participation in the dredging industry. In December 1997, the Small 
Business Reauthorization Act of 1997, was enacted into law. As a result 
the program is extended indefinitely along with amendments to be 
implemented. The law designated four (4) industry groups for testing 
whether the competitive capabilities of the specified industry groups 
will enable them to successfully compete on an unrestricted basis. The 
four (4) industry groups are: construction (except dredging); 
architectural and engineering (A&E) services (including surveying and 
mapping); refuse systems and related services (limited to trash/garbage 
collection services); and non-nuclear ship repair. Under the program, 
when a participating agency misses its small business participation 
goals, restricted competition is reinstituted only for those designated 
industry groups that failed to attain the goal. The small business goal 
is 40 percent of the total contract dollars awarded for construction, 
trash/garbage collection services, non-nuclear ship repair and 
architect-engineer services. This notice announces modifications to 
GSA's solicitation practices under the demonstration program based on a 
review of the agency's performance during the period from October 1, 
1998 through September 30, 1999. Modifications to solicitation 
practices are outlined in the SUPPLEMENTARY INFORMATION section below 
and apply to solicitations issued on or after February 1, 1999.

EFFECTIVE DATE: February 1, 1999.

FOR FURTHER INFORMATION CONTACT: Cecelia L. Davis, Office of 
Acquisition Policy, (202) 219-0202.

SUPPLEMENTARY INFORMATION: Procurements of construction or trash/
garbage collections with an estimated value of $25,000 or less and 
procurement of A&E services with an estimated value of $50,000 or less 
shall

[[Page 16973]]

be reserved for emerging small business when there is a reasonable 
expectation of obtaining offers from two or more (three or more for A&E 
procurements) that will be competitive in terms of market price, 
quality, and delivery. If no such expectation exists, the procurement 
shall be processed as a small business simplified acquisition set aside 
in accordance with FAR 13.105 or in accordance with FAR 19.5 or 19.8. 
If the contracting officer determines a procurement cannot be set aside 
for small business under FAR 19.5 or 19.8, the procurement may be made 
using unrestricted procedures. The use of simplified acquisition 
purchase procedures is not required under the reserve program; 
therefore, any procurement method may be used. The reserve program 
applies only to new awards. Modifications within the scope of work of 
contracts having an initial award value in excess of the $25,000 for 
construction and trash/garbage collection service or $50,000 for A&E 
service are not subject to the reserve program.
    Procurements of construction or trash/garbage collection services 
with estimated value in excess of $25,000 and procurements of A&E 
services with an estimated value in excess of $50,000 shall be made on 
an unrestricted basis as long as annual reviews show that GSA (as an 
agency) has attained the 40 percent goals. The 40 percent goal will be 
applied to each of the three (3) major groups in construction (groups 
15, 16, and 17), to trash/garbage collection, and to A&E services. 
However, if goal attainment (for GSA as an agency) in any major group 
drops below 40 percent, small business set asides will be imposed. The 
continued use of unrestricted procedures is unaffected by an agency's 
failure to meet the 15 percent goal for emerging small business. When 
annual reviews show that GSA as an agency has not attained the 40 
percent goal, competition will be restricted to small business, in 
accordance with FAR 19.5, on future procurements by the GSA contracting 
activities (e.g., regions) that failed to attain the goal. Other GSA 
contracting activities that meet the goals will continue to use 
unrestricted procedures. Notwithstanding the Small Business 
Competitiveness Demonstration Program, contracts may be awarded under 
the 8(a) program at any time. These procurements shall be made in 
accordance with the following procedures.

Construction Service in Groups 15, 16 and 17

    Procurements for construction services in SIC group 15 (except 
solicitations issued by Regions 4, 7, and 9), SIC group 16 and in SIC 
group 17 shall be conducted on an unrestricted basis.
    Procurements for construction services in SIC group 15 issued by 
contracting activities in Regions 4, 7, and 9 shall be set-aside for 
small business when there is a reasonable expectation of obtaining 
competition from two or more small businesses. If no expectation 
exists, the procurements may be conducted on an unrestricted basis.
    Region 4 (Southeast-Sunbelt) encompasses the states of Alabama, 
Florida, Georgia, Kentucky, North Carolina, South Carolina, Mississippi 
and Tennessee.
    Region 7 (Greater Southwest) encompasses the states of Arkansas, 
Louisiana, Oklahoma, New Mexico and Texas.
    Region 9 (Pacific Rim) encompasses the state of Arizona, 
California, Hawaii and Nevada.

Trash/Garbage Collection Services in PSC S205

    Procurements for trash/garbage collection services in PSC S205 
(except solicitations issued by contracting activities in Regions 4 and 
6) shall be conducted on an unrestricted basis.
    Procurements for trash/garbage collection services issued by 
contracting activities in Regions 4 and 6 shall be set aside for small 
business when there is a reasonable expectation of obtaining 
competition from two or more small businesses. If no expectation 
exists, the procurements may be conducted on an unrestricted basis.
    Region 4 (Southeast-Sunbelt) encompasses the states of Alabama, 
Florida, Georgia, Kentucky, North Carolina, South Carolina, Mississippi 
and Tennessee.
    Region 6 (Heartland) encompasses the states of Iowa, Kansas, 
Missouri and Nebraska.

Architech-Engineer Services (All PSC Codes Under the Demonstration 
Program)

    Procurements for architect-engineer services (except solicitations 
issued by contracting activities in Regions 2, 4, 7, 10 and NCR) shall 
be conducted on an unrestricted basis.
    Procurements for architect-engineer services issued by contracting 
activities in Regions 2, 4, 7, 10 and NCR shall be set aside for small 
business when there is a reasonable expectation of obtaining 
competition from two or more small businesses. If no expectation 
exists, the procurements may be conducted on an unrestricted basis.
    Region 2 (Northeast and Caribbean) encompasses the states of New 
Jersey, New York and territories of Puerto Rico and the Virgin Islands.
    Region 4 (Southeast-Sunbelt) encompasses the states of Alabama, 
Florida, Georgia, Kentucky, North Carolina, South Carolina, Mississippi 
and Tennessee.
    Region 7 (Greater Southwest) encompasses the states of Arkansas, 
Louisiana, Okahoma, New Mexico and Texas.
    Region 10 (Northwest-Arctic) encompasses the states of Alaska, 
Idaho, Oregon and Washington.
    The National Capitol Region (NCR) encompasses the District of 
Columbia, Montgomery and Prince Georges counties in Maryland the cities 
of Alexandria, Fairfax and Falls Church and the counties of Arlington, 
Fairfax, Loudoun and Prince William in Virginia.

Non-Nuclear Ship Repair

    GSA does not procure for non-nuclear ship repair.

    Dated: March 26, 1999.
J. Les Davison,
Acting Deputy Associate Administrator for Acquisition Policy.
[FR Doc. 99-8577 Filed 4-6-99; 8:45 am]
BILLING CODE 6820-61-M