![](media/image1.png){width="2.34375in" height="0.5104166666666666in"}

![](media/image2.jpeg){width="0.6826388888888889in"
height="0.6527777777777778in"} GSA Office of Governmentwide Policy

> FEB 27, 2001
>
> GSA Acquisition Letter MV-01-01 MEMORANDUM FOR ALL GSA CONTRACTING AC
> VITIES
>
> FROM: DAVID A. DRABKIN
> ![](media/image3.jpeg){width="2.0694444444444446in"
> height="0.47847222222222224in"}

DEPUTY ASSOCIATE ADMINISTRATOR FOR ACQUISITION POLICY

> SUBJECT: Conversion of Standard Industrial Classification and the
> Small Business Competitiveness Demonstration Program
>
> 1\. [Purpose.]{.underline} This Acquisition Letter provides fiscal
> year 2000 performance data for the Small Business Competitiveness
> Demonstration Program to be used for solicitations issued on or after
> March 01, 2001. It also revises the Program currently based on the
> Standard Industrial Classification (SIC) system and converts the codes
> to the North American Industry Classification System (NAICS). NAICS is
> a new system that more accurately identifies industries.
>
> 2\. [Background.]{.underline} Title VII of the \"Business Opportunity
> Development Reform Act of 1988\" (Public Law 100-656) established the
> Small Business Competitiveness Demonstration Program to provide for
> the testing of specified innovative procurement methods and procedures
> for the period January 1, 1989, through December 31, 1992. Nine
> designated agencies, including GSA are participants in the Program.
> Subsequently, other legislation has extended the Program. In December
> 1997, the Small Business Reauthorization Act of 1997, Public Law
> 105-135, was enacted into law and as a result, the Program is extended
> indefinitely along with amendments to be implemented. The Office of
> Acquisition Policy will incorporate these updates in the General
> Services Administration Acquisition Manual (GSAM), 519.10, Small
> Business Competitiveness Demonstration Program.
>
> 3\. [Effective Date.]{.underline} March 01, 2001.
>
> 4\. [Termination Date.]{.underline} This Acquisition Letter will
> expire December 31, 2001, unless cancelled earlier or extended.

U.S. General Services Administration 1800 F Street, N W

Washington, DC 20405-0002
[[www.gsa.gov]{.underline}](http://ww.gsa.gov/)

2

> 5\. [Applicability.]{.underline} This Acquisition Letter applies to
> all GSA contracting activities involved in the procurement of
> construction (except dredging), Architect-engineer services (including
> survey and mapping) using \"Brooks Act\" selection procedures, and
> trash/garbage collection services. This Acquisition Letter does not
> apply to construction (including repair and alteration) services
> acquired from a lessor under the terms and conditions of a lease for
> space in buildings. It does apply to construction services performed
> in leased space if the construction services are acquired through the
> normal procurement process.
>
> 6\. [Reference to regulations.]{.underline} Federal Acquisition
> Regulation 19.10 and GSAM 519.10.
>
> 7\. [Instructions/procedures.]{.underline}
>
> a\. Revises Subpart 519.10 to provide fiscal year 2000 performance
> data under the Small Business Competitiveness Demonstration Program
> and procedures to be used for solicitations issued on or after March
> 01, 2001, under the Program. This Acquisition Letter revises the GSAM
> as follows:
>
> \(1\) Paragraph 7.b replaces GSAM 519.1006-70(a).
>
> \(2\) Paragraph 7.c replaces GSAM 519.1006-71(b) introductory
> paragraph and (b)(1).
>
> \(3\) Paragraph 7.d.(1)-(3) replaces GSAM 519.1006-72.
>
> \(4\) Paragraph 7.e. replaces GSAM 519.1006-73.
>
> b\. Designated industry goals: GSA goals for designated industry
> groups are as follows:

+-------------------------------------------+-----------+-------------+
| **Designated Industry**                   | **Small** | *           |
|                                           |           | *Emerging** |
|                                           | **B       |             |
|                                           | usiness** | **Small**   |
|                                           |           |             |
|                                           | **Goal**  | **Business  |
|                                           |           | Goal**      |
+-------------------------------------------+-----------+-------------+
| > Construction under North American       | 40%       | 15%         |
| > Industry                                |           |             |
| >                                         |           |             |
| > Classification System (NAICS) codes     |           |             |
| > that comprise                           |           |             |
| >                                         |           |             |
| > subsectors 233, 234, and 235 (excluding |           |             |
| > dredging)                               |           |             |
+-------------------------------------------+-----------+-------------+
| > Architect-Engineer (A-E) services       | 40%       | 15%         |
| > (including surveying and mapping) under |           |             |
| > NAICS codes 541310, 541330,541360, or   |           |             |
| > 541370 (limited to FPDS service codes   |           |             |
| > C111 through C216, C219, T002, T004,    |           |             |
| > T008, T009, T014, and R404) awarded     |           |             |
| > under the Brooks A-E Act selection      |           |             |
| > procedures                              |           |             |
+-------------------------------------------+-----------+-------------+
| > Refuse systems and related services,    | 40%       | 15%         |
| > including                               |           |             |
| >                                         |           |             |
| > portable sanitation services, under     |           |             |
| > NAICS codes                             |           |             |
| >                                         |           |             |
| > 562111, 562119, or 562219, limited to   |           |             |
| > FPDS service                            |           |             |
| >                                         |           |             |
| > code S205                               |           |             |
+-------------------------------------------+-----------+-------------+

3

c\. [Unrestricted Procurements.]{.underline} You may make procurements
of construction or trash/garbage collection services with an estimated
value in excess of \$25,000 and procurements of A-E services with an
estimated value in excess of \$50,000 on an unrestricted basis as long
as quarterly reviews show that GSA, as an agency, has attained the 40
percent goals. The 40 percent goal applies to each of the 3 subsectors
in construction (subsectors 233, 234, and 235), to trash/garbage
collection, and to A-E services.

> d\. Goal attainment for period: Fiscal Year 2000.

\(1\) [Report.]{.underline} The Report on Small Business Participation
Under the Small Business Competitiveness Demonstration Program for
Designated Industry Groups for all of PBS and a separate report for each
PBS region will be distributed in the next GSAM change. These reports
reflect performance during the period from October 1, 1999, through
September 30, 2000.

\(2\) [Performance toward small business goals.]{.underline} Review of
cumulative award data from the GSA Procurement Data System for the
period beginning October 1, 1999, through September 30, 2000, indicates
that:

\(a\) GSA met the 40 percent goal for subsectors 233 (Building,
Developing, and General Contracting), 234 (Heavy Construction), and 235
(Special Trade Contractors). However, not all organizational units met
the 35 percent goal in all individual NAICS codes.

> \(b\) GSA did not meet the 40 percent overall goal in A-E services.

\(c\) GSA did meet the 40 percent overall goal in refuse systems and
related services (trash/garbage collection services). The 35 percent
rule does not apply to refuse systems and related services
(trash/garbage collection services).

\(3\) [Performance toward emerging small business goals.]{.underline}
Review of cumulative award data from the GSA Procurement Data System for
the period beginning October 1, 1999, through September 30, 2000,
indicates that:

\(a\) GSA exceeded the 15 percent goal for emerging small business
concerns in construction industry groups 234 and 235 and in refuse
systems and related services.

\(b\) GSA did not meet the 15 percent goals in subsector 233 (Building,
Developing, and General Contracting) and A-E services.

> e\. [Procurement procedures for solicitations issued on or after March
> 1, 2001.]{.underline}

4

\(1\) [Construction or trash/garbage collection services with an
estimated value]{.underline} [of \$25,000 or less and procurement of A-E
services with an estimated value of]{.underline} [\$50,000 or
less.]{.underline} Follow the procedures in 519.1006-71 for these
procurements.

\(2\) [Procurements above the reserve levels in
519.1006-71(a).]{.underline} Use the following procedures for
construction or trash/garbage collection services estimated to exceed
\$25,000 and A-E services estimated to exceed \$50,000.

\(a\) [NAICS subsectors 233, 234, and 235.]{.underline} Conduct
procurements in these NAICS subsectors on an unrestricted basis except
as follows. For the regions and NAICS subsectors listed below, you must
set aside the procurements for small business when you have a reasonable
expectation of obtaining competition from two or more small businesses.
If no such expectation exists, you may conduct the procurement on an
unrestricted basis.

+------------------------------------+----------+---------+-----------+
| **Region**                         | *        |         |           |
|                                    | *NAICS** |         |           |
| Region 1                           |          |         |           |
|                                    | 235950   |         |           |
+------------------------------------+----------+---------+-----------+
| Region 3                           | 235950,  | 235210, | 235920,   |
+------------------------------------+----------+---------+-----------+
|                                    | and      |         |           |
|                                    | 235990   |         |           |
+------------------------------------+----------+---------+-----------+
| Region 4                           | 235110   |         |           |
+------------------------------------+----------+---------+-----------+
| Region 5                           | 235950,  | 235210  | 235920,   |
+------------------------------------+----------+---------+-----------+
|                                    | and      |         |           |
|                                    | 235990   |         |           |
+------------------------------------+----------+---------+-----------+
| Region 6                           | 235110   |         | 235210,   |
|                                    | ,235950, |         |           |
|                                    | 235950,  |         |           |
+------------------------------------+----------+---------+-----------+
|                                    | 235920,  |         |           |
|                                    | and      |         |           |
|                                    | 235990   |         |           |
+------------------------------------+----------+---------+-----------+
| Region 7                           | 235950   |         |           |
+------------------------------------+----------+---------+-----------+
| Region 8                           | 233320,  |         |           |
|                                    | 234110   |         |           |
+------------------------------------+----------+---------+-----------+
| Region 9                           | 233320   |         |           |
|                                    | and      |         |           |
|                                    | 233310   |         |           |
+------------------------------------+----------+---------+-----------+
| National Capital Region            | 233320   |         |           |
+------------------------------------+----------+---------+-----------+

\(b\) [Trash/garbage collection services in PSC S205.]{.underline} With
the exception of Region 4, conduct any procurement for refuse services
in PSC S205 on an unrestricted basis.

\(c\) [Architect-Engineer services (all PSC codes under the
Program).]{.underline} Conduct procurements for A-E services under the
Program on an unrestricted basis except as follows. For the regions and
PSC codes listed below, you must set aside the procurements for small
business when you have a reasonable expectation of obtaining competition
from two or more small businesses. If no such expectation exists, you
may conduct the procurement on an unrestricted basis.

> **Region PSC**
>
> Region 1 C111

5

  -------------------------------------- -------------------------------- -------
  Region 4                               C111,C119,C211 and C219          C119,
                                                                          C211,
                                                                          and

  Region 5                               C111                             

  Region 7                               C111                             

  Region 8                               C111                             

  Region 9                               C111                             

  National Capital Region                C211                             
  -------------------------------------- -------------------------------- -------