The head of the contracting activity must approve exceeding the 5-year limitations specified in FAR 17.204(e) for individual contracts. The Associate Administrator for Acquisition Policy must approve requests to exceed the limitations for classes of contracts. The contract file for individual approvals and the requests for approval of classes of contracts must support the need to exceed the 5-year limitation. This section does not apply to contracts for automatic data processing (ADP) equipment and systems or to contracts for telecommunications

equipment and services.

[57 FR 59939, Dec. 17, 1992]

517.207 Exercise of options.

(a) If the option was not evaluated as part of the original competition, a syn

opsis of the option before it is exercised is required unless exempt under FAR 5.202.

(b) In addition to the items listed in FAR 17.207(d), the contracting officer may consider whether the contractor's performance under the contract has met or exceeded the Government's expectation for quality performance, or whether another circumstance exists that would warrant an extended contractual relationship when deciding whether to exercise an option. The contracting officer must always determine the option price(s) is fair and reasonable before exercising an option. [57 FR 59939, Dec. 17, 1992]

517.208 Solicitation

contract clauses.

provisions

and

(a) In addition to other applicable provisions or clauses related to options, the contracting officer shall insert a provision substantially the same as the provision at 552.217-71, Notice Regarding Option(s), in solicitations for supplies or services when necessary to inform offerors of the importance GSA will place on past performance when considering whether to exercise options.

(b) The contracting officer shall insert a provision substantially the same as the provision at 552.217-70, Evaluation of Options, in solicitations for procurements under the Federal Supply Service (FSS) stock or special order program when (1) the solicitation contains an option to extend the term of the contract and (2) a firm-fixed price contract with economic price adjustment based on the Producer Price Index or alternative indicator of market price changes is contemplated.

[57 FR 59939, Dec. 17, 1992]

PART 518-(RESERVED)

PART 519-SMALL BUSINESS AND SMALL DISADVANTAGED BUSINESS CONCERNS

Sec.

519.001 Definitions.

Subpart 519.2-Policies

519.201 General policy.

519.202 Specific policies.

519.202-2 Locating small business sources. 519.202-5 Data collection and reporting requirements.

Subpart 519.3-Determination of Status as a Small Business Concer

519.302 Protesting a small business representation.

519.304 Solicitation provisions.

Subpart 519.5-Set-Asides for Small

Business

519.803-70 Contracting Officer evaluation of recommendations for 8(a) set-aside(s). AUTHORITY: 40 U.S.C. 486(c).

SOURCE: 54 FR 26527, June 23, 1989, unless otherwise noted.

519.001 Definitions.

Agency small business technical advisors (SBTAs) as used in this part, means the directors of the Business Service Centers (or designees) in the regions and the individuals in FPRS, FSS, IRMS and PBS who have been designated to serve as SBTAS in the Central Office. In addition to the duties outlined at FAR 19.201(c), the agency small business technical advisors perform the functions of the small and disadvantaged business utilization specialist/representative described in FAR 19.506(a) and (b) and 19.705-4(d)(5).

Subpart 519.2-Policies

519.201 General policy.

The Director of Small and Disadvantaged Business Utilization (AU) may make recommendations to the contracting officer as to whether a particular acquisition should be awarded under FAR 19.5 as a set-aside (including those involving Labor Surplus Areas) or under FAR 19.8 as a section 8(a) award directly or through the SBTA.

[56 FR 26769, June 11, 1991; 56 FR 30618, July 3, 1991]

(a) Contracting officers should request assistance from SBTAS in locating small business sources.

(b) Business Service Centers (BSCs) will:

(1) Announce advance and current information about GSA business opportunities.

(2) Provide information, assistance, and counseling to enable small business concerns to take full advantage of business opportunities.

(3) Develop publications and public relations techniques designed to obtain maximum interest and participation of small business concerns. This activity will include, but not be limited to, the following:

(i) Arranging for and participating in meetings with business groups such as Chambers of Commerce, trade associations and similar organizations, State development corporations, Governors' and Mayors' advisory groups, local business and civic organizations, and small business councils.

(ii) Developing, preparing, and distributing informational material designed to stimulate the interest of small business concerns.

(iii) Developing interest and cooperation on the part of trade publications, the local press, and other media.

(4) Whenever practical, access the Small Business Administration's (SBA) Procurement Automated Source System (PASS) to locate small business

sources.

(c) BSC's will keep each other and the Office of Small and Disadvantaged Business Utilization (AU) informed on items of mutual interest regarding the small business programs.

[54 FR 26527, June 23, 1989, as amended at 56 FR 3044, Jan. 28, 1991]

519.202-5 Data collection and report

ing requirements.

Contracting officers shall submit a GSA Form 2677, Minority Contract Fact Sheet, to the SBTA when an 8(a) contract is awarded or modified.

[57 FR 37890, Aug. 21, 1992]

Subpart 519.5-Set-Asides for
Small Business

519.500 Scope of subpart.

The requirements in this subpart for setting aside acquisitions and for reviewing non-set-aside determinations do not apply to construction, architectural and engineering, or trash/garbage collection services estimated to exceed $25,000 that are acquired under the Small Business Competitiveness Demonstration Program during periods when goals are being met and contracting officers are required to contract for such services using unrestricted procedures. (See FAR 19.10.) However, contracts for these services may be awarded under the 8(a) program.

[56 FR 3044, Jan. 28, 1991]

shall periodically review individual set-asides to identify commodities and services suitable for class set-asides.

519.502-3 Partial set-asides.

(a) Initiating partial set-asides for stock items. Partial set-asides for procurement of stock items may be made when the following Economic Order Quantity (EOQ) factors are present:

(1) For annual contracts, an EOQ factor not exceeding 3 months; and

(2) For 6-month contracts, an EOQ factor not exceeding 1 month.

(b) Contract award. When the setaside portion of an item is awarded to the same concern as the corresponding non-set-aside portion, the award must be documented by issuing a separate contract or contract number for each group of items.

(c) Partial coverage. When only the non-set-aside portion of the procurement is awarded before the expiration of the current contract, contractual documents covering the transaction must be distributed to the ordering activities to provide at least partial coverage of the requirements.

(d) Contract coding. Information regarding partial or total set-asides must be included on GSA Form 1535, Recommendation for Award(s), as appropriate. Further, if a class set-aside is involved, the face of the GSA Form 1535 must be annotated as follows: "Class set-asides apply to

items

(e) Ordering procedures. The Inventory Manager shall ensure that the specified division of orders is made in accordance with the clause at 552.219-71 in those cases where two contractors are to supply the same item(s).

519.502-70 Review of non-set-aside de

terminations.

(a) If the contracting officer decides that a procurement that is expected to exceed $25,000 cannot be set aside for small business, the reasons for the decision must be recorded on the GSA Form 2689, Procurement Not Set Aside. The GSA Form 2689 must be submitted to the SBTA for review and coordination with the SBA.

(b) The SBTA will provide a copy of the GSA Form 2689 to the SBA representative as soon as possible so that

the review can be made by GSA and SBA within the timeframe provided in (c) of this section.

(c) Review of the contracting officer's determination should normally be completed within 5 workdays. GSA and SBA reviewing officials should notify the contracting officer if additional time is needed and request an extension of time to complete the review.

(d) Before the GSA or SBA reviewing officials provide additional small business sources to the contracting officer when requesting reconsideration of the non-set-aside determination, the reviewing officials shall contact the sources to ensure the source is interested in submitting an offer and to obtain information regarding the capability of the source to fulfill the Government's requirements. The information obtained should be provided to the contracting officer for consideration.

(e) If the SBTA recommends that the contracting officer set the procurement aside and the contracting officer still believes the procurement should be unrestricted, the matter must be referred to the contracting director's first level supervisor for a decision.

(f) If the SBA representative recommends that the contracting officer set the procurement aside and the contracting officer rejects the recommendation, the contracting officer shall comply with FAR 19.505.

519.503 Setting aside a class of acquisitions.

(a) A class set-aside may consist of an item (or service), a group of related items under a Federal Supply Class (FSC), or a whole FSC when restricted to small business on more than a onetime basis, as distinct from a one-time basis. A single item or a group of items restricted to small business on more than a one time basis, even though constituting only a small portion of an FSC, is defined as a class set-aside.

(b) Class set-aside determinations must be documented in the following format:

SMALL BUSINESS CLASS SET-ASIDE
DETERMINATION

In accordance with FAR 19.502–2, it is hereby determined that procurements by the (name of contracting activity) of the following items or services will be set aside for small

519.602-3 Resolving

differences between the agency and the Small Business Administration.

(a) Within 5 working days or such longer period as may be agreed to after the contracting officer makes a request to the SBA Regional Office to appeal a notice of intention to issue a Certificate of Competency, the contracting office shall prepare and forward the following information to AU:

(1) Copies of all correspondence between GSA and SBA concerning the case, including initial notice to SBA that a small business had been found nonresponsible;

(2) Copies of all technical documents sent to SBA along with the notice (i.e., solicitation, preaward surveys, stract of offers, if any, etc.);

ab

(3) A fact sheet detailing all pertinent information to support an appeal action to SBA, including any new information and a justification of the contracting officer's decision to continue the appeal.

(b) If the SBA Central Office informs the contracting officer that it concurs with its Regional Office's intention to issue a COC, the documentation available clearly supports an appeal, and the contracting officer believes an ap‐ peal to be in the Government's interest, the contracting officer shall contact AU and request that office formally appeal the SBA decision on the agency's behalf. After considering all the facts and conferring with the applicable contracting activity, AU will decide whether or not to file a formal appeal. Before a decision is made not to appeal, AU shall notify the applicable Central Office Service. Once a decision is made regarding the appeal the contracting officer will be notified.

519.701 Definitions.

Commercial products plan means an annual subcontracting plan effective during the offeror's fiscal year for all of the offeror's commercial products, and which has goals based on the offeror's production of both commercial and noncommercial products. This type of plan may apply to the production of the offeror's entire company, or it may be limited to a division or plant.

Individual contract plan means a subcontracting plan that applies to a specific contract and that has goals which are based upon the company's planned subcontracting and purchasing of supplies and services in support of the performance of a specific contract, except that indirect costs incurred for common or joint purposes may be allocated on a prorated basis to the contract. Individual contract plans may incorporate a master subcontracting plan.

Master subcontracting plan means a subcontracting plan which contains all of the required elements except goals, and which may be incorporated into an individual plan provided (a) the master plan has been approved by a Government contracting officer, (b) the offeror provides a copy of the approved master plan and evidence of its approval to the contracting officer and