![](media/image1.jpeg){width="1.226388888888889in"
height="0.7423611111111111in"} GSA Office of Governmentwide Policy

APR 1 4 2004 GSA Acquisition Letter MV-04-02

MEMORANDUM FOR ALL GSA CONTRACTING ACTIVITIES

FROM: DAVID A. DRABKIN
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height="0.3958333333333333in"}

DEPUTY ASSOCIATE ADMINISTRATOR FOR ACQUISITION POLICY

SUBJECT: Implementation of the Small Business Competitiveness
Demonstration Program

1\. [Purpose.]{.underline} This Acquisition Letter provides fiscal year
2003 performance data for the Small Business Competitiveness
Demonstration Program to be used for solicitations issued on or after
April 15, 2004.

2\. [Background.]{.underline} Title VII of the \"Business Opportunity
Development Reform Act of 1988,\" as amended (Public Law 100-656)
established the Small Business Competitiveness Demonstration Program to
provide for the testing of specified innovative procurement methods and
procedures from January 1, 1989 through December 31, 1997. The Small
Business Reauthorization Act of 1997, Public Law 105-135 established the
program on a permanent basis.

The Office of Acquisition Policy will no longer incorporate the fiscal
year Small Business Competitiveness Demonstration Program updates in the
General Services Administration Acquisition Manual (GSAM). Instead, the
Office of Acquisition Policy will amend the GSAM to refer contracting
personnel to an annual Acquisition Letter that will be available on
InSite.

3\. [Cancellation.]{.underline} Acquisition Letter MV-03-02 and
Supplement Number One.

4\. [Effective Date.]{.underline} April 15, 2004.

5\. [Termination Date.]{.underline} This Acquisition Letter will expire
February 28, 2005, unless cancelled or extended.

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

Washington, DC 20405- 0002 www.gsa.gov

-2­-

6\. [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.

7\. [Reference to requlations.]{.underline} Federal Acquisition
Regulation 19.10 and GSAM 519.10.

8\. [Instructions/procedures.]{.underline}

a\. Revises Subpart 519.10 to provide fiscal year 2003 performance data
under the Small Business Competitiveness Demonstration Program and
procedures to be used for solicitations issued on or after April 15,
2004, under the Program. This Acquisition Letter revises the GSAM as
follows:

\(1\) Paragraph 8.b. replaces GSAM 519.1006-70(a).

\(2\) Paragraph 8.c. replaces GSAM 519.1006-71(b) introductory paragraph
and (b)(1).

\(3\) Paragraph 8.d. (1) - (3) replaces GSAM 519.1006-72.

\(4\) Paragraph 8.e. replaces GSAM 519.1006-73.

b\. Designated industry goals: GSA goals for designated industry groups
are as follows:

+------------------------------------------+------------+--------------+
| **Designated Industry**                  | **Small    | **Emerging** |
|                                          | Business   |              |
|                                          | Goal**     | **Small      |
|                                          |            | Business**   |
|                                          |            |              |
|                                          |            | **Goal**     |
+------------------------------------------+------------+--------------+
| Construction under North American        | 40%        | 15%          |
| Industry                                 |            |              |
|                                          |            |              |
| Classification System (NAICS) codes that |            |              |
|                                          |            |              |
| comprise subsectors 236, 237 (excluding  |            |              |
|                                          |            |              |
| dredging), and 238                       |            |              |
+------------------------------------------+------------+--------------+
| 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 C119,    |            |              |
| C121                                     |            |              |
|                                          |            |              |
| through C124, C129, C130, C211 through   |            |              |
| C216,                                    |            |              |
|                                          |            |              |
| C219, T002, T004, T008, T009, T014, and  |            |              |
|                                          |            |              |
| R404) awarded under the Brooks A-E Act   |            |              |
|                                          |            |              |
| selection procedures                     |            |              |
+------------------------------------------+------------+--------------+
| FPDS service code S205 (trash/garbage    | 40%        | 15%          |
|                                          |            |              |
| collection services including portable   |            |              |
| sanitation                               |            |              |
|                                          |            |              |
| services)                                |            |              |
+------------------------------------------+------------+--------------+

-3­-

c\. [Unrestricted procurements.]{.underline} \"Unrestricted procurements
are those procurements that do not have to be set aside for the Small
Business Competitiveness Demonstration Program but [must be considered
for 8(a) and HUBZone set aside]{.underline} [before conducting a full
and open competition.\"]{.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 annual review shows that GSA, as an agency, has attained the 40
percent goals. The 40 percent goal applies to each of the 3 subsectors
in construction, to trash/garbage collection services, and to A-E
services (see chart above).

d\. [Goal attainment for period:]{.underline} Fiscal Year 2003.

\(1\) [Report.]{.underline} The Report on Small Business Participation
Under the Small Business Competitiveness Demonstration Program for
Designated Industry Groups for all of Public Buildings Service (PBS) and
a separate report for each PBS region will no longer be incorporated
into the GSAM.

\(2\) [Performance toward small business goals.]{.underline} Review of
cumulative award data from the GSA Procurement Data System for the
period beginning October 1, 2002 through September 30, 2003, indicates
that:

\(a\) GSA met the 40 percent goal for subsectors 237 (Heavy and Civil
Engineering Construction) and 238 (Specialty Trade Contractors) but did
not meet the 40 percent goal for subsector 236 (Construction of
Buildings). Not all organizational units met the 35 percent goal in all
individual NAICS codes.

\(b\) GSA did not meet the 40 percent overall goal for A-E services. Not
all organizational units met the 35 percent goal in all individual NAICS
codes.

\(c\) GSA met 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, 2002 through September 30, 2003,
indicates that GSA did not meet the 15 percent goals in:

\(a\) Subsectors 236 (Construction of Buildings), 237 (Heavy and Civil
Engineering Construction), or 238 (Specialty Trade Contractors);

\(b\) Architect-Engineering Services; or

-4­-

\(c\) Trash/garbage collection services including portable sanitation
services.

(d). Procurement procedures for solicitations issued on or after April
15, 2004.

\(1\) [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]{.underline} [of \$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 236, 237, and 238.]{.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          236115,      236116,     236117,     236118,

                    236210,      236220,     238210,     238290,

                    238390                               

  Region 2          237310,      238190                  

  Region 3          238220                               

  Region 4          237110,      237120,     237130,     237210,

                    237310,      237990,     238330      

  Region 5          236115,      236116,     236117,     236118,

                    236210,      236220,     238330,     238340

  Region 6          236115,      236116,     236117,     236118,

                    236210,      236220,     237110,     237120,

                    237130,      237210,     237310,     237990,

                    238350                               

  Region 7          236115,      236116,     236117,     236118,

                    236210,      236220                  

  Region 9          236115,      236116,     236117,     236118,

                    236210,      236220,     238130      

  Region 10         236115,      236116,     236117,     236118,

                    236210,      236220                  
  ----------------- ------------ ----------- ----------- ------------------

-5­-

\(b\) [Trash/garbage]{.underline} [collection]{.underline}
[services]{.underline} [in]{.underline} [PSC]{.underline}
[S205.]{.underline} With the exception of Regions 4, 6, 8, 10 and the
National Capital Region, conduct any procurement for refuse services 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                          | C213                              |
+-----------------------------------+-----------------------------------+
| Region 2                          | T002, T004, T008, T009, T014,     |
|                                   |                                   |
|                                   | C111, C112, C113, C114, C115,     |
|                                   |                                   |
|                                   | C116, C117, C118, C119, C121,     |
|                                   |                                   |
|                                   | C122, C123, C124, C129, C130,     |
|                                   |                                   |
|                                   | C211, C212, C213, C214, C215,     |
|                                   |                                   |
|                                   | C216, C219, R404                  |
+-----------------------------------+-----------------------------------+
| Region 3                          | T002, T004, T008, T009, T014,     |
|                                   |                                   |
|                                   | C111, C112, C113, C114, C115,     |
|                                   |                                   |
|                                   | C116, C117, C118, C119, C121,     |
|                                   |                                   |
|                                   | C122, C123, C124, C129, C130,     |
|                                   |                                   |
|                                   | C211, C212, C213, C214, C215,     |
|                                   |                                   |
|                                   | C216, C219, R404                  |
+-----------------------------------+-----------------------------------+
| Region 4                          | T002, T004, T008, T009, T014,     |
|                                   |                                   |
|                                   | C111, C112, C113, C114, C115,     |
|                                   |                                   |
|                                   | C116, C117, C118, C119, C121,     |
|                                   |                                   |
|                                   | C122, C123, C124, C129, C130,     |
|                                   |                                   |
|                                   | C211, C212, C213, C214, C215,     |
|                                   |                                   |
|                                   | C216, C219, R404                  |
+-----------------------------------+-----------------------------------+
| Region 5                          | T002, T004, T008, T009, T014,     |
|                                   |                                   |
|                                   | C111, C112, C113, C114, C115,     |
|                                   |                                   |
|                                   | C116, C117, C118, C119, C121,     |
|                                   |                                   |
|                                   | C122, C123, C124, C129, C130,     |
|                                   |                                   |
|                                   | C211, C212, C213, C214, C215,     |
|                                   |                                   |
|                                   | C216, C219, R404                  |
+-----------------------------------+-----------------------------------+
| Region 6                          | C211 and C213                     |
+-----------------------------------+-----------------------------------+
| Region 7                          | C211 and C213                     |
+-----------------------------------+-----------------------------------+

+-----------------------------------+-----------------------------------+
| **Region**                        | **PSC**                           |
+-----------------------------------+-----------------------------------+
| Region 8                          | C214                              |
+-----------------------------------+-----------------------------------+
| Region 9                          | T002, T004, T008, T009, T014,     |
|                                   |                                   |
|                                   | C111, C112, C113, C114, C115,     |
|                                   |                                   |
|                                   | C116, C117, C118, C119, C121,     |
|                                   |                                   |
|                                   | C122, C123, C124, C129, C130,     |
|                                   |                                   |
|                                   | C211, C212, C213, C214, C215,     |
|                                   |                                   |
|                                   | C216, C219, R404                  |
+-----------------------------------+-----------------------------------+
| Region 10                         | T002, T004, T008, T009, T014,     |
|                                   |                                   |
|                                   | C111, C112, C113, C114, C115,     |
|                                   |                                   |
|                                   | C116, C117, C118, C119, C121,     |
|                                   |                                   |
|                                   | C122, C123, C124, C129, C130,     |
|                                   |                                   |
|                                   | C211, C212, C213, C214, C215,     |
|                                   |                                   |
|                                   | C216, C219, R404                  |
+-----------------------------------+-----------------------------------+
| National Capital Region           | T002, T004, T008, T009, T014,     |
|                                   |                                   |
|                                   | C111, C112, C113, C114, C115,     |
|                                   |                                   |
|                                   | C116, C117, C118, C119, C121,     |
|                                   |                                   |
|                                   | C122, C123, C124, C129, C130,     |
|                                   |                                   |
|                                   | C211, C212, C213, C214, C215,     |
|                                   |                                   |
|                                   | C216, C219, R404                  |
+-----------------------------------+-----------------------------------+

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