U.S. Department of Energy

Strategic Plan for Small Business

Prepared by

Office of Economic Impact and Diversity

Office of Small and Disadvantaged 

Business Utilization
U. S. Department of Energy Strategic Plan for Small Business

 

2 

 

I. OBJECTIVE 

 

The objective of the Department of Energy’s (Department or DOE) Small Business Strategic 

Plan (Plan) is to define and institutionalize its efforts to increase contracting opportunities/ 

awards for small business at the Department. This Plan has been developed in response to 

Secretary Abraham’s September 23, 2002 directive that a Department-wide comprehensive 

small business strategy be prepared. 

II. BACKGROUND 

Historical Data

The small business program at DOE is administered by the Office of Small and 

Disadvantaged Business Utilization (OSDBU), which has been established by and which 

operates pursuant to statutory authority (Exhibit A). The program is headed by a Director 

who is responsible to, and reports directly to, the Secretary of Energy and/or to the Deputy 

Secretary of Energy. 

The Department spends approximately $18 billion per year under prime contracts. DOE 

prime contract awards have traditionally been divided into two distinct areas. These two 

areas are 1) the Facility Management Contractors (FMCs), which include management and 

operating contractors (M&Os), management and integration contractors and environmental 

restoration management contractors, and 2) the non-FMC contractors. The FMC awards are 

generally made to large businesses or to academic institutions because of the size, complexity 

and technical aspects of the contracts. Many of the large non-FMC contracts are also 

awarded to large businesses. 

From 1991 to 1999, DOE reported that between 16.7% and 20.2% of the value of its 

contracts were awarded to small businesses. These figures included the award of prime 

contracts by DOE and the award of subcontracts awarded by its M&O prime contractors. 

Between FY 2000 and FY 2002, DOE reported less than 3% in prime contract awards to 

small business. These dramatically lower numbers are the result of a directive of the Office 

of Federal Procurement Policy that DOE only count its prime contract awards to small 

business when computing its small business contract levels. 
U. S. Department of Energy Strategic Plan for Small Business

 

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Roles and Responsibilities

The OSDBU is responsible for 1) the Department=s small business goal process, 2) 

maintaining the Department=s annual contracting forecast, 3) reviewing acquisition requests 

over $3 million to ascertain whether small business participation is appropriate, and 

recommend such participation, 4) conducting outreach to the small business community on 

how to do business with DOE and, 5) conducting inreach to the contracting officers and 

procurement specialists at the Department to ensure that they are aware of the small business 

program goals and the availability of small businesses willing and able to do business with 

the Department. The OSDBU works with the Office of Procurement in implementing the 

Department’s small business program. 

The Office of Procurement is responsible for all DOE contracting activity including 1) the 

development/issuance of solicitations including Invitations for Bid (IFBs) and Requests for 

Proposals (RFPs), 2) the review of IFBs and evaluation of RFPs, 3) the development of 

contract language, 4) the negotiation of small business subcontracting plans and 5) the 

administration of contract awards. 

Goals

Pursuant to statutory authority (Exhibit B), the President establishes government-wide goals 

for procurement contracts awarded to small business concerns at not less than 23 percent of 

the total value of all prime contract awards for each fiscal year. The law further provides that 

each agency shall have an annual goal that presents, for that agency, the maximum 

practicable opportunity for small business concerns. 

In FY 2000, the Small Business Administration (SBA) issued a Achallenge goal@ of five 

percent to DOE; well below the 23 percent federally mandated government-wide goal. That 

same year, DOE reported that 2.9 percent of the total value of its prime contracts awarded 

that year had been awarded to small businesses. In FY 2001 the SBA-assigned goal remained 

at five percent, and DOE reported achievement of 2.75 percent. Therefore, for the second 

year, DOE did not fully achieve the SBA-assigned goal. 

In FY 2002 the SBA assigned a 23 percent goal to every Federal department, including DOE. 

In an attempt to negotiate a more practicable goal, DOE submitted its plan to SBA for a 3.7 

percent goal, which SBA approved. This goal represented $706.7 million of a total prime 

contract award base of $19.1 billion. DOE achieved $577.9 million or 82 percent of its goal. 

 The total dollar award represents a slight increase from the prior year but still fell under the 

3.7 percent goal negotiated with the SBA. 
U. S. Department of Energy Strategic Plan for Small Business

 

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In FY 2003, the Department established a Small Business Working Group consisting of 

representatives of all of the DOE elements. This Working Group is developing individual 

element goals, which will then be validated by the OSDBU, in support of the Departmental 

goal submitted to SBA 

Current Initiatives

Several major efforts addressing small business participation in the Federal government have 

occurred since early 2002. In March of 2002, President George W. Bush unveiled his Small 

Business Agenda to help create an environment where small businesses can flourish. The 

President=s agenda will give small businesses the jump-start they need to create new jobs, 

support their workers, and improve our economy. His agenda will: 

3⁄4 Tear down regulatory barriers. 

3⁄4 Ensure that government contracts are open to all small business. 

3⁄4 Avoid unnecessary contract bundling. 

3⁄4 Streamline the appeals process for small businesses.

3⁄4 Provide small businesses with information they need to succeed.

In September of 2002, the Secretary of Energy issued a Small Business Policy Statement 

(Exhibit C) in support of small business and directed the OSDBU to prepare a Departmentwide comprehensive small business strategy. 

In October of 2002, the Office of Management and Budget, Office of Federal Procurement 

Policy (OFPP) issued its report on Contract Bundling B A Strategy for Increasing Federal 

Contracting Opportunities for Small Business (Exhibit D). That report directed, among other 

things, that all federal agencies/departments review their contracting procedures in order to 

eliminate unnecessary and unjustified contract bundling, and to ensure that small business has 

access to contracting opportunities. 

III. DOE INITIATIVES

 

Departmental Procurement Forecast

All contracting information (both for prime contracts and subcontracts) will be included in 

the DOE procurement forecast. This forecast will be updated bi-annually in the Spring and 

Fall pursuant to P.L. 100-656. Directions and information as to the new forecast process 

will be available on the OSDBU website. 
U. S. Department of Energy Strategic Plan for Small Business

 

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Small Business Goals/Plans

All DOE program elements will be required to prepare annual small business prime and 

subcontracting goals/plans. The plans will include goals for small business subcomponents 

(i.e. the Small Disadvantaged Businesses (including 8a) , Women Owned Businesses, HUB 

Zone businesses and Service Disabled Veterans). The OSDBU will, on an annual basis, 

develop and submit to SBA the Department=s small business prime and subcontract goals. 

These goals will be developed based on the individual plans submitted by the elements. 

Directions and information as to the goals process/format will be available on the 

OSDBU website.

Outreach & Marketing

The OSDBU will prepare and implement annual Small Business Outreach and Marketing 

Plan. The first step of the plan will be maintaining a Small Business website easily 

accessible from the DOE homepage. Other steps will include paid advertisements in small 

business publications, press releases/conferences, radio/television presentations, articles in 

trade publications and newspapers, participation in small business conferences, and 

workshops as well as hosting an annual DOE national small business conference. A copy of 

the OSDBU Outreach and Marketing Plan will be available on the OSDBU website.

Inreach and Training

The OSDBU and Office of Procurement staff will establish regular communications with 

DOE headquarters personnel and Field Directors to promote the Department=s Small Business 

program requirements, refer small business candidates for projects/contracts out for bid, and 

conduct Acapability@ forums where small business firms can present their product/services to 

procurement/program officials. 

Partnerships/Small Business Advisory Team

The OSDBU will establish partnerships with other federal agencies, small business trade 

associations, women business groups, disabled veteran business organizations, and small and 

minority chambers of commerce. The purpose of these partnerships will be to identify small, 

small disadvantaged, women-owned and service disabled veteran business concerns. 

Additionally, the OSDBU will establish a Small Business Advisory Team to receive advice 

and guidance on small business programs and activities, identify best practices and explore 

commercial business models that promote small business advocacy and interaction with the 

small business community. Information on the partnerships and the Small Business 

Advisory Team will be available on the OSDBU website.
U. S. Department of Energy Strategic Plan for Small Business

 

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DOE/OSDBU Database

The OSDBU is developing a database of small businesses which will be tailor made for DOE 

and driven by North American Industrial Classification System (NAICS) codes, financial 

capacity and technical capability and Federal contracting/subcontracting experience. The 

firms will be selected from the SBA Pro-Net database and validated by the OSDBU. The 

final database will include firms in the top 11 NAICS codes by dollar volume awarded by 

DOE. This will include firms in the area of facility management, remediation, construction, 

R&D, management and scientific consulting, plate work manufacturing, administrative 

services, data processing, security, engineering and waste treatment and disposal. A copy of 

the OSDBU small business database will be available on the OSDBU website. 

Mentor-Protégé Programs

DOE has an existing Mentor-Protégé program established to promote partnerships between 

large business prime contractors who serve as mentors and small businesses who can serve as 

protégés. The SBA Mentor-Protégé program promotes teaming between an 8(a) small 

business and a large business in order for the small business to qualify as a prime contractor. 

 

In order to promote and enhance these Mentor-Protégé programs, DOE will include in all 

RFPs a requirement that Mentors in this program will receive additional points in the bid 

evaluation process. 

DOE will promote the Mentor-Protégé program by: 

3⁄4 Developing a list of prime contractors 

3⁄4 Informing DOE prime contractors about program benefits 

3⁄4 Identifying small businesses who are seeking mentors 

3⁄4 Scheduling meetings between DOE prime contractors and small businesses 

3⁄4 Monitoring Mentor-Protégé arrangements 

Information on the Mentor Protégé program will be available on the OSDBU website.

Advanced Planning Acquisition Team

DOE will establish an Aacquisition team@ comprised of representatives of the Office of 

Procurement, the OSDBU, the Procurement Center Representative (PCR) and the 

element/field office proposing an acquisition. The team will review all acquisition requests 

over $3 million and will make recommendations as to whether an award will be set aside for 

small business or whether portions of the proposed acquisition will be Abroken out@ for small 

business. Additionally, the team will review all acquisitions proposed for bundling. The 
U. S. Department of Energy Strategic Plan for Small Business

 

7 

decision to proceed with unnecessary or unjustified bundling will be made by the Deputy 

Secretary. Information on the team structure and process will be posted on the OSDBU 

website and written guidance provided to all contracting officers.

Technical Assistance Services

The OSDBU will provide Ahands on@ technical assistance to small businesses in order to 

ensure that they are aware of 1) the requirements for registering on the DOE website or other 

government websites, in order to be eligible to bid on or be awarded government contracts; 

2) where they can receive assistance in order to become certified/registered as 8(a), HUB 

zone, women-owned and/or service disabled veteran businesses; and 3) where they can obtain 

financial and bonding assistance. 

Reporting Requirements

 Prime Contracts

All DOE offices/elements will submit a brief monthly report to the OSDBU identifying 

the prime awards made to small businesses by name and amount. This information will be 

used by the OSDBU to validate the quarterly award report prepared by the DOE Financial 

Data Warehouse (FDW) and for its marketing activities on behalf of the department=s 

small business program. On a quarterly basis, the OSDBU will provide all DOE 

offices/elements a statistical report of their small business achievements. 

 Subcontracts

The OSDBU will communicate on a semi-annual basis with DOE’s prime contractors on 

their small business accomplishments and request that they provide verification of the 

awards made against their subcontracting plan or contract requirements. OSDBU will, 

from time to time, and contingent on availability of resource, conduct field reviews of the 

subcontract awards in order to validate the information. 

This plan reflects the current small business initiatives and will be updated as needed. 

May 2003 

 
ATTACHMENT- A 
I_I-TLEx> CHAPTER 14A > Sec. 644. 

Sec. 644. - Awards or contracts 

(a) Determination 

To effectuate the purposes of this chapter, smallbusiness concerns within the meaning of this chapter shall 

receive any award or contract or any part thereof, and be 

awarded any contract for the sale of Government property, 

as to which it is determined by the Administration and the 

contracting procurement or disposal agency 

(1) 

to be in the interest of maintaining or mobilizing the 

Nation's full productive capacity, 

(2) 

to be in the interest of war or national defense 

programs, 

(3) 

to be in the interest of assuring that a fair proportion 

of the total purchases and contracts for property and 

services for the Government in each industry category are 

placed with small-business concerns, or 

(4) 

to be in the interest of assuring that a fair proportion 

of the total sales of Government property be made to 

small-business concerns; but nothing contained in this 

chapter shall be construed to change any preferences or 

priorities established by law with respect to the sale of 

electrical power or other property by the Government or 

any agency thereof. These determinations may be made 

for individual awards or contracts or for classes of awards 

or contracts. If a proposed procurement includes in its 

statement of work goods or services currently being 

performed by a small business, and if the proposed 

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I 

Search Title 15 

Notes 

U!.d ate3 

Parallel authorities 

(CFR) 

Topical refehttp://www4.law.comell.edu/uscode/l5/644.html 3/26/2003 
by paragraph (2) in each annual report to the 

Congress on the state of small business prepared 

pursuant to section m(a) of this title. 

(i) Small business set-asides 

Nothing in this chapter or any other provision of law 

precludes exclusive small business set-asides for 

procurements of architectural and engineering services, 

research, development, test and evaluation, and each 

Federal agency is authorized to develop such set-asides to 

further the interests of small business in those areas, 

(j) Small business reservation 

(1) 

Each contract for the purchase of goods and services 

that has an anticipated value greater than $2,500 but not 

greater than $100,000 shall be reserved exclusively for 

small business concerns unless the contracting officer is 

unable to obtain offers from two or more small business 

concerns that are competitive with market prices and are 

competitive with regard to the quality and delivery of the 

goods or services being purchased. 

(2) 

In carrying out paragraph (l), a contracting officer 

shall consider a responsive offer timely received from an 

eligible small business offeror. 

(3) 

Nothing in paragraph (1) shall be construed as 

precluding an award of a contract with a value not greater 

than $100,000 under the authority of subsection (a) of 

section 637 of this title, section 2323 of title l0, section 

712 of the Business Opportunity Development Reform Act 

of 1988 (Public Law 100-656; 15 U.S.C. 644 note), or 

section 7102 of the Federal Acquisition Streamlining Act 

of 1994. 

(k) Office of Small and Disadvantaged Business Utilization; 

Director 

There is hereby established in each Federal agency 

having procurement powers an office to be known as the 

"Office of Small and Disadvantaged Business Utilization". The 

management of each such office shall be vested in an officer 

or employee of such agency who shall - 

( 1) 

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be known as the “Director of Small and 

Disadvantaged Business Utilization” for such agency, 

be appointed by the head of such agency, 

(3) 

be responsible only to, and report directly to, the 

head of such agency or to the deputy of such head, 

except that the director for the Office of the Secretary of 

Defense shall be responsible only to, and report directly 

to, such Secretary or the Secretary’s designee, 

(4) 

be responsible for the implementation and execution 

of the functions and duties under this section and section 

637 of this title which relate to such agency, 

(5) 

identiw proposed solicitations that involve significant 

bundling of contract requirements, and work with the 

agency acquisition officials and the Administration to 

revise the procurement strategies for such proposed 

solicitations where appropriate to increase the probability 

of participation by small businesses as prime contractors, 

or to facilitate small business participation as 

subcontractors and suppliers, if a solicitation for a 

bundled contract is to be issued; 

assist small business concerns to obtain payments, 

required late payment interest penalties, or information 

regarding payments due to such concerns from an 

executive agency or a contractor, in conformity with 

chapter 39 of title 31 or any other protection for 

contractors or subcontractors (including suppliers) that is 

included in the Federal Acquisition Regulation or any 

individual agency supplement to such Government-wide 

regulation, 

have supervisory authority over personnel of such 

agency to the extent that the functions and duties of such 

personnel relate to functions and duties under this section 

and section 637 of this title, 

http://m4.law.cornell.edu/uscode/l5/644.html 3/26/2003 
assign a small business technical adviser to each 

office to which the Administration has assigned a 

procurement center representative - 

(A) 

who shall be a full-time employee of the procuring 

activity and shall be well qualified, technically trained 

and familiar with the supplies or services purchased at 

the activity, and 

(B) 

whose principal duty shall be to assist the 

Administration procurement center representative in 

his duties and functions relating to this section and 

section 637 of this title, 

cooperate, and consult on a regular basis, with the 

Administration with respect to carrying out the functions 

and duties described in paragraph (4) of this subsection, 

and 

(10) 

make recommendations to contracting officers as to 

whether a particular contract requirement should be 

awarded pursuant to subsection (a) of this section, or 

section =(a) of this title or section of title 10. 

Such recommendations shall be made with due regard to 

the requirements of subsection (m) of this section, and 

the failure of the contracting officer to accept any such 

recommendations shail be documented and included 

within the appropriate contract file. This subsection shall 

not apply to the Administration. 

(I) Breakout procurement center representatives 

(1) 

The Administration shall assign to each major 

procurement center a breakout procurement center 

representative with such assistance as may be 

appropriate. The breakout procurement center 

representative shall carry out the activities described in 

paragraph (2), and shall be an advocate for the breakout 

of items for procurement through full and open 

competition, whenever appropriate, while maintaining the 

integrity of the system in which such items are used, and 

an advocate for the use of full and open competition, 

whenever appropriate, for the procurement of supplies 

http://www4.law.cornell.edu/uscode/15/644.html 3/26/2003 
ATTACHMENT B 
LIT 

TnE-15_> CHAPTER 14A> Sec. 644. 

Sec. 644. - Awards or contracts 

(a) Determination 

To effectuate the purposes of this chapter, smallbusiness concerns within the meaning of this chapter shall 

receive any award or contract or any part thereof, and be 

awarded any contract for the sale of Government property, 

as to which it is determined by the Administration and the 

contracting procurement or disposal agency 

(1) 

to be in the interest of maintaining or mobilizing the 

Nation's full productive capacity, 

(2) 

to be in the interest of war or national defense 

programs, 

(3) 

to be in the interest of assuring that a fair proportion 

of the total purchases and contracts for property and 

services for the Government in each industry category are 

placed with small-business concerns, or 

(4) 

to be in the interest of assuring that a fair proportion 

of the total sales of Government property be made to 

small-business concerns; but nothing contained in this 

chapter shall be construed to change any preferences or 

priorities established by law with respect to the sale of 

electrical power or other property by the Government or 

any agency thereof. These determinations may be made 

for individual awards or contracts or for classes of awards 

or contracts. If a proposed procurement includes in its 

statement of work goods or services currently being 

performed by a small business, and if the proposed 

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Search Title 15 1 

NO& 

Updates 

Parallel authorities 

ma. 

Topical references 

http://www4.law.comeIl.edu/uscode/l5/644.htmI 3/26/2003 
1994, 108 Stat. 3367 

Goals for participation of small business concerns in 

procurement contracts 

The President shall annually establish Governmentwide goals for procurement contracts awarded to small 

business concerns, small business concerns owned and 

controlled by service disabled El veterans, qualified 

HUBZone small business concerns, small business 

concerns owned and controlled by socially and 

economically disadvantaged individuals, and small 

business concerns owned and controlled by women. The 

Government-wide goal for participation by small business 

concerns shall be established at not less than 23 percent 

of the total value of all prime contract awards for each 

fiscal year. The Government-wide goal for participation by 

small business concerns owned and controlled by servicedisabled veterans shall be established at not less than 3 

percent of the total value of all prime contract and 

subcontract awards for each fiscal year. The 

Governmentwide goal for participation by qualified 

HUBZone small business concerns shall be established at 

not less than 1 percent of the total value of all prime 

contract awards for fiscal year 1999, not less than 1.5 

percent of the total value of all prime contract awards for 

fiscal year 2000, not less than 2 percent of the total value 

of all prime contract awards for fiscal year 2001, not less 

than 2.5 percent of the total value of all prime contract 

awards for fiscal year 2002, and not less than 3 percent 

of the total value of all prime contract awards for fiscal 

year 2003 and each fiscal year thereafter. The 

Government-wide goal for participation by small business 

concerns owned and controlled by socially and 

economically disadvantaged individuals shall be 

established at not less than 5 percent of the total value of 

all prime contract and subcontract awards for each fiscal 

year. The Government-wide goal for participation by 

small business concerns owned and controlled by women 

shall be established at not less than 5 percent of the total 

value of all prime contract and subcontract awards for 

each fiscal year. Notwithstanding the Government-wide 

goal, each agency shall have an annual goal that 

presents, for that agency, the maximum practicable 

opportunity for small business concerns, small business 

concerns owned and controlled by service-disabled 

veterans, qualified HUBZone small business concerns, 

small business concerns owned and controlled by socially 

and economically disadvantaged individuals, and small 

http://www4.law.comell.edu/uscode/l5/644.html 3/26/2003 
business concerns owned and controlled by women to 

participate in the performance of contracts let by such 

agency. The Administration and the Administrator of the 

Office of Federal Procurement Policy shall, when 

exercising their authority pursuant to paragraph (2), 

insure that the cumulative annual prime contract goals for 

all agencies meet or exceed the annual Government-wide 

prime contract goal established by the President pursuant 

to this paragraph. "service-disabled". 

The head of each Federal agency shall, after 

consultation with the Administration, establish goals for 

the participation by small business concerns, by small 

business concerns owned and controlled by servicedisabled veterans, by qualified HUBZone small business 

concerns, by small business concerns owned and 

controlled by socially and economically disadvantaged 

individuals, and by small business concerns owned and 

controlled by women in procurement contracts of such 

agency. Goals established under this subsection shall be 

jointly established by the Administration and the head of 

each Federal agency and shall realistically reflect the 

potential of small business concerns, small business 

concerns owned and controlled by service-disabled 

veterans, qualified HUBZone small business concerns, 

small business concerns owned and controlled by socially 

and economically disadvantaged individuals, and small 

business concerns owned and controlled by women to 

perform such contracts and to perform subcontracts 

under such contracts. Whenever the Administration and 

the head of any Federal agency fail to agree on 

established goals, the disagreement shall be submitted to 

the Administrator of the Office of Federal Procurement 

Policy for final determination. For the purpose of 

establishing goals under this subsection, the head of each 

Federal agency shall make consistent efforts to annually 

expand participation by small business concerns from 

each industry category in procurement contracts of the 

agency, including participation by small business concerns 

owned and controlled by service-disabled veterans, by 

qualified HUBZone small business concerns, by small 

business concerns owned and controlled by socially and 

economically disadvantaged individuals, and by small 

business concerns owned and controlled by women. The 

head of each Federal agency, in attempting to attain such 

participation, shall consider - 

(A) 

contracts awarded as the result of unrestricted 

competition; and 

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(B) 

contracts awarded after competition restricted to 

eligible small business concerns under this section and 

under the program established under section 6Jz(a) of 

this title. 

(h) Reports to Administration; submittal of information to 

Congress 

(1) 

At the conclusion of each fiscal year, the head of each 

Federal agency shall report to the Administration on the 

extent of participation by small business concerns, small 

business concerns owned and controlled by veterans 

(including service-disabled veterans), qualified HUBZone 

small business concerns, small business concerns owned 

and controlled by socially and economically 

disadvantaged individuals, and small business concerns 

owned and controlled by women in procurement contracts 

of such agency. Such reports shall contain appropriate 

justifications for failure to meet the goals established 

under subsection (9) of this section. 

(2) 

The Administration shall annually compile and analyze 

the reports submitted by the individual agencies pursuant 

to paragraph (1) and shall submit them to the President 

and the Congress. The Administration's submission to the 

President shall include the following: 

(A) 

The Government-wide goals for participation by 

small business concerns, small business concerns 

owned and controlled by service-disabled veterans, 

qualified HUBZone small business concerns, small 

business concerns owned and controlled by socially 

and economically disadvantaged individuals, and small 

business concerns owned and controlled by women 

and the performance in attaining such goals. 

(B) 

The goals in effect for each agency and the 

agency's performance in attaining such goals. 

(C) 

An analysis of any failure to achieve the 

Government-wide goals or any individual agency goals 

and the actions planned by such agency (and 

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ATTACHMENT C 
The Secretary of Energy 

Washington, DC 20585 

September 23,2002 

MEMORANDUM FOR ALL DEPARTMENTAL. EL 

FROM: SPENCER ABRAHAM 

SUBJECT: Policy Statement on 

Implementing DOE Missions 

Small businesses are the heart of the American economy. Small businesses are often 

the leaders of innovatlon and the creators of new technology, new products, and 

improved business processes. 

A priority of this Administration is to enable small businesses to participate fully in 

.Federal contracting. Earlier this year President Bush announced his “Small Business 

Agenda,” whch includes: 1) ensuring that Government contracts are open to a11 

small businesses that can supply the Government’s needs, and 2) avoiding 

unnecessary bundling of Government contracts. I fully support these objectives. 

To help fulfill these objectives and to promote opportunities for small businesses, I 

have directed that all departmental elements examine and seek to expand their grant 

and contract opportunities with small businesses, including small disadvantaged, 8(a), 

women-owned, service-disabled veteran-owned, and Historically Underutilized 

Business Zone (HUBZone) businesses. Our efforts should help these businesses to 

improve their capabilities, experiences, and therefore, strengthen the overall economy 

of the Nation. 

The Office of Small and Disadvantaged Business Utilization (OSDBU) is charged 

with the management of the Department’s small and small disadvantaged business 

programs and with monitoring performance by the Department in meeting its goals 

relating to those programs. I have recently tasked the Director of the OSDBU to 

prepare a Department-wide comprehensive small business strategy to ensure that 

small businesses are provided the maximum practicable opportunity to participate in 

departmental programs at the prime contract level. Additionally, I have directed that 

the plan include a strategy to increase the level and expand the type. of subcontracts 

awarded to small businesses by the Department’s facility management contractors. 

I am committed to the President’s National Policy in support of small businesses and 

will take a personal interest in examining the progress made by each departmental 

element at DOE in extending additional and innovative business opportunities to 

small businesses. I appreciate your support of this initiative. 

@ Rlnlsd on rnycled papel 
ATTACHMENT D 
CONTRACT BUNDLING 

A Strategy for 

Increasing h Federal Contracting Opportunities 

for Small Business 

October 2002 

Executive Ofice ofthe President 

OfJice of Management and Budget 

OfJice ofFederal Procurement Policy 
OFFICE OF FEDERAL 

PROCUREMENT POLICY 

EXECUTIVE OFFICE OF THE PRESIDENT 

OFFICE OF MANAGEMENT AND BUDGET 

WASHINGTON. O.C. 20503 

The President 

The White House 

Washington, DC 20500 

Dear Mr. President: 

October 29,2002 

In March of this year, as part of the Small Business Agenda, you called upon the 

Office of Management and Budget to prepare a strategy for unbundling federal contracts. 

On behalf of the Office of Federal Procurement Policy within the Office of Management 

and Budget, I am pleased to submit the enclosed strategy for increasing federal 

contracting opportunities for small businesses. 

As you how, the number and size of bundled contracts within the executive 

branch have reached record levels. Although contract bundling can serve a useful 

purpose, the effect of this increase in contract bundling over the past ten years cannot be 

underestimated. Not only are substantially fewer small businesses receiving federal 

contracts, but the federal government is suffering from a reduced supplier base. 

American small businesses bring innovation, creativity, competition and lower costs to 

the federal table. When these businesses are excluded &om federal opportunities through 

contract bundling, our agencies, small businesses and the taxpayers lose. 

The enclosed report provides an aggressive strategy for holding agencies 

accountable for eliminating unnecessary contract bundling and mitigating the effects of 

necessary contract bundling. The recommendations propose a series of regulatory 

changes to ensure maximum compliance with current contract bundling laws and full use 

of the resources of the Small Business Administration and agency Offices of Small and 

Disadvantaged Business Utilization. 

With successful implementation of this strategy, we will be making a significant 

step forward towards ensuring that small businesses and entrepreneurs have access to 

federal contracting opportunities. 

Sincerely, 

laB. Styles 

Administrator 

Enclosure 
PREFACE 

On March 19,2002, the President unveiled a Small Business Agenda that proposed 

several substantive steps toward creating a dynamic environment where small businesses and 

entrepreneurs can flourish. The plan included new tax incentives, health care options, and a 

reduction in regulatory barriers. And for those small businesses seeking to do business with the 

federal government, the President announced several proposals to improve the access of smaIl 

businesses to federal contracting opportunities. Specifically. the President called upon' the Office 

of Management and Budget (OMB) to prepare a strategy for unbundling contracts. 

In late March, the Office of Federal Procurement Policy (OFPP), within OMB, created an 

interagency working group to develop strategies for unbundling contracts. This group, chaired 

by Michael Gerich from OFPP, met on many occasions during the summer and early fall and 

was instrumental in creating the final report. 

OMB and the interagency working group sought significant public comment. On May 6, 

2002, OMB issued a notice in the Federal Register requesting public comments. We received 27 

public comments on contract bundling and issues related to the access of small businesses tofederal contracting opportunities. On June 14,2002, OMB held a public meeting where 

interested parties were given an opportunity to express their views. Fourteen individuals made 

presentations at that public meeting. Comments received from the public, both in writing and at 

the public meeting, were considered in the preparation of this report. 

Special thanks should be given to the following people for their participation in the 

development of this report: Janis CoughIin, OMB; Luz Hopewell, SBA; Janet Koch, DOD; 

Karyn Richman, OW, and Linda Williams, SBA. 
TABLE OF CONTENTS 

I . Executive Summary ................................................................................. 1 

I1 . Background ........................................................................................... 1 

A . What is Contract Bundling? ............................................................... 2 

B . Why are Contracts Bundled? .............................................................. 3 

What is the Impact of Contract Bundling on Small Businesses? ..................... 3 

What Sectors of the Workforce are Responsible for Contract Bundling Issues? ... 6 

C . 

D . 

111 . Strategy: Action Plan ........................................................................................ 8 
1. Executive Summary 

A strategy for unbundling contracts must recognize the combined challenges and 

benefits of a reduced acquisition workforce and the need to maintain an overall acquisition 

system that is fair, efficient, and transparent. We cannot afford to revert back to the 

paperwork and labor-intensive system of the past. Nor can we pursue operational 

efficiencies at the expense of reducing small business opportunities. The challenge is to 

strike an appropriate balance between operational efficiency, opportunity, and fairness. 

To address contract bundling in the executive branch, the following actions will be 

taken: 

1. Ensure accountability of senior agency management for improving contracting 

opportunities far small business. 

2. Ensure timely and accurate reporting of contract bundling information through 

the President’s Management Council. 

3. Require contract bundling reviews for task and delivery orders under multiple 

award contract vehicles. 

4. Require agency review of proposed acquisitions above specified thresholds for 

unnecessary and unjustified contract bundling. 

5. Require identification of alternative acquisition strategies for.the proposed 

bundling of contracts above specified thresholds and written justification when 

alternatives involving less bundling are not used. 

6. Mitigate the effects of contract bundling by strengthening compliance with 

subcontra.cting plans. 

7. Mitigate the effects of contract bundling by facilitating the development of small 

business teams and joint ventures. 

8. Identify best practices for maximizing small business opportunities. 

9. Dedicate agency Offices of Small and Disadvantaged Business Utilization 

(OSDBUs) to the President’s Small Business Agenda. 

11. Background 

Each year, the federal government awards over $200 billion in contracts. In fiscal 

year 2001, there were 1 1.4 million contract actions valued at $234 9 billion. Federal 
agencies state thal: they generally award nearly 23 percent of the total dollars spent on 

federal procurements each year to small businesses. In addition, in fiscal year 2001, large 

businesses subcontracted approximately $35.5 billion in federal work to small businesses. 

A. What is Contract Bundling? 

The Small Business Reauthorization Act of 1997 defines contract bundling as 

"consolidating two or more procurement requirements for goods or services previously 

provided or performed under separate, smaller contracts into a solicitation of offers for a 

single contract that is unlikely to be suitable for award to a small business concern." The 

Act lists several factors that might cause unsuitability for award to a small business. These 

are - - 

9 the diversity, size, or specialized nature of the elements of the performance 

specified; 

the aggregate dollar value of the anticipated award, 

the geographical dispersion of contract performance sites; or 

any combination of these criteria ' 

9 

1 

9 

The Act requires each federal department and agency, to the maximum extent 

practicable, to: (1) structure contracting requirements to facilitate competition by and 

among small business concerns, taking all reasonable steps to eliminate obstacles to their 

participation; and (2) avoid unnecessary and unjustified bundling of contract requirements 

that may preclude small business participation in procurements as prime contractors. 

Prior to bundling any contracts, agencies are required to conduct market research to 

determine whether contract bundling is necessary and justified. To justify contract 

bundling, agencies must demonstrate "measurably substantial benefits," such as cost 

savings, quality improvements, reduction in acquisition cycle times, or better terms and 

conditions.2 The Small Business Administration's implementing regulations further define 

"measurably substantial benefits" by requiring agencies to demonstrate - - 

= for contracts of $75 million or less - - benefits equivalent to 10 percent of 

contract value (including options), or 

' The dcfinitions of"bundled con\ncL.""bundling of conlnct requirements.' and "separate smaller contract" are codified 

in section 3(0) ofthe Small Business Act (15 U.S.C. 4 632(0)). 

' The statutory requirements for agcncies to conduct markct research to determine whether consolidation of procurement 

requirements is necessary and justified, including identification of"mcasunbiy substantial benefits." are codified in 

section I5(e) of the Small Busincss Act(15 U.S.C. 4 644(c)). 

L 
9 for contracts over $75 million - - benefits equivalent to 5 percent of contract 

value (including options) or $7.5 million, whichever is greater.3 

Several provisions of the Federal Acquisition Regulation (FAR) establish 

responsibilities for agency personnel who are considering contract bundling. The FAR 

places responsibility on agency acquisition planners to structure requirements, to the 

maximum extent practicable, to facilitate competition by and among small business 

concerns, and avoid unnecessary and unjustified bundling. Agency contracting officers are 

required to: (1) perform market research to determine whether bundling is necessary and 

justified; (2) justify their determinations in acquisition strategy documentation that 

identifies measurably substantial benefits that meet the statutory and regulatory 

requirements; and (3) consult with SBA representatives on their acquisition ~trategies.~ 

B. Why Are Contracts Bundled? 

Increased demands to make the acquisition process quicker and less complex 

coupled with reductions in the overall acquisition workforce have driven acquisition 

managers to bundle requirements. To meet these demands and increase customer 

satisfaction, agencies have increasingly consolidated contractual requirements into larger 

contracts and used limited and simplified competition procedures for acquiring products 

and services. 5 

C. What is the Impact of Contract Bundling on Small Businesses? 

According lo a report prepared for SBA’s Office of Advocacy, for every 100 

“bundled” contracts, 106 individual contracts are no longer available to small businesses. 

For every $100 awarded on a “bundled” contract, there is a $33 decrease to small 

businesses.6 Because these types of contracts “run longer and encompass a greater scope, 

competition is reduced in terms of frequency and the number of opportunities.”’ Analysis 

SBA’s bundling regulations arc codified at 13 C.F.R. $ 125.2. 

See FAR sections 7.103 and 7.107 (48 C.F.R. (i I. 7.103 and 7.107) formore information on acquisition planning. Also 

3 

4 

see FAR Part I0 (48 C.F.R. 4 1.10) and FAR Subpart 19.4 (48 C.F.R. 6 I, 19.4) for marc information on agency 

responsibilities lo conduct mark& research and cooperation with SBA. 

For a more detailed description ofthe rcaons for agency contract consolidation. scc Case Studies in DOD Contract 5 

Consolidations: A Study .for thc Office of Small and Disadvantaecd Businas Utilization. Appendix C, Logistics 

Managcmcnt Institute (Llvll), December 2000. 

The ImDact of Contract Bundline on Small Busincss FY IW2 - N 1999 (Eagle Eye Publishers for the U. S. Small 

Busincss Administration. Officc of Advocacy, Scptcmbcr 2ooO). In _Small Busincss: Limited Information Available on 

Contracl Bundline’s Extent and EfkcU (GAO/GGD-00-82. March 2000). GAO questioned lhc probative value of an 

earlier report by Eagle Eye. because the definition of contract bundling used by Eagle Eye did not correspond with the 

statutory definition. The later Eagle Eye report (cited above) relies on a similar definition. and thus is subject 10 the same 

scrutiny. Nevertheless, u’e use these figures as anecdotal evidence of Ihc impact of contract bundling and similar 

practices that may not meet the statutory definition. 

LMI report. supra notr: 5. pages 4-5 and 4-6. I 

3 
of the data indicates that, even though the overall dollars spent in contracting with small 

businesses remained relatively constant, there has been a sharp overall decline in new 

contract awards. Figure 1 shows a decline in new contract awards (k, new contracts 

rather than contract modifications or orders under existing contracts), from a high of 

86,243 in fiscal year 1991 to a low of 34,261 in fiscal year 2001 ,* 

Figure 1: New Definitive Contracts (over $25,000) 

New Definitive Contracts (Over 525,000) Sharply Decline 

70 000 

60 000 

50 000 

40.000 

30 000 

10 000 

We also found that significantly fewer small businesses are receiving federal 

government contracts. Figure 2 shows a dramatic decline in the number of small business 

contractors receiving new contract awards, from a high of 26,506 in fiscal year 1991 to a 

low of 11,651 in fiscal year 2000.9 The significant reductions in new contract awards and 

the number of small business contractors receiving contract awards signals an increase in 

contract bundling and a decline in small business opportunities. 

' GAO concluded in 2001 lhat". . . small businesses received a higher sharr in fiscal year 1999 ofexpenditures in new 

contracts for most categories of goods and services than they did in fiscal year 1993." (Small Business: Trends in Federal 

Procurement in thc 1990s, GAO-01-119. January 2001. page 12). Howevcr, as indicated in Figure 1. the total number of 

new contract awards declined significantly from fiscal year 1990 lo fiscal year 2001. Figure 3 indicates that during the 

same pcriod. there was a substantial increase in ordcrs under contracts ' 

These figures are based on cumulative data obtained from the Federal Procurement Data System (FPDS). 

4 
Figure 2: Small Business Contractors Receiving New Contract Awards 

Small Business CDntnctm Receiving New Contract Awards 

This decline in small business participation has been exacerbated by the use of 

contract vehicles that are not uniformly reviewed for contract bundling. Orders under 

agency multiple award contracts (MACs), multi-agency contracts, Government-Wide 

Acquisition Contracts (GWACs), and GSA’s Multiple Award Schedule Program are not 

subject to uniform reviews for contract bundling issues. This lack of uniform review is a 

problem because, while there has been a sharp decline in other contract actions, there has 

been a significant increase in orders under these contracts. 

Figure 3 sbciws an increase in department and agency expenditures for orders under 

existing contracts, from $21 billion in fiscal year 1990 to a high of $72 billion in fiscal year 

2001. With total fiscal year 2001 procurements valued at $234.9 billion, orders under 

existing contracts represent about 3 1 percent of the total. - 

5 
Figure 3: Dollars for Orders Under Existing Contracts 

Dollars for Orders Under Ertrlmg Conlrrclr 

Federal Procurement Data System 

SF 279 Data _____ ___ __~ 

=t 110 

$50 /- 

530 

520 

$10 

I- 

.. . 

1990 1991 1992 1993 1994 (995 1996 1997 1998 1999 2000 2001 

D. What Ssectors of the Workforce are Responsible for Contract Bundling 

Issues? 

A wide range of agency contracting personnel have responsibilities for fostering 

small business contracting opportunities and addressing contract bundling issues. For 

example, the Small Business Act assigns responsibility to agency Offices of Small and 

Disadvantaged Business Utilization (OSDBUs) to identify proposed solicitations that 

involve significant contract bundling requirements, and to work with agency contracting 

personnel and the SBA on procurement strategies to increase the participation by small 

businesses as prime contractors and subcontractors." By regulation, agency contracting 

personnel must identify and report to SBA the bundled contracts that the agency has 

determined are necessary and justified and the small businesses that would be displaced by 

contract bundling. 

1. Agency Acquisition Workforce 

The acquisition workforce is composed of numerous career fields. Contracting 

and purchasing personnel are just a part of the overall acquisition workforce, but they hold 

lo See section 15(k)(5) of the Small Business Act. 15 U.S.C. 5 644(k)(5). 

6 
primary responsibility for meeting various agency small business contracting goals. In 

addition, they perlbrm a wide range of duties including: conducting market research; 

planning acquisitions; soliciting potential contractors; negotiating costs, prices, and terms 

of contracts; and awarding and administering contracts. 

2. Offices of Small and Disadvantaged Business Utilization 

The Small Business Act (1 5 U.S.C. 5 63 I, m.) requires each department and 

agency with contracting authority to establish an OSDBU, with reporting authority to the 

head of the agency. These offices promote contracting opportunities for small businesses, 

including small business concerns owned and controlled by veterans, service-disabled 

veterans, women, and socially and economically disadvantaged individuals, as well as 

those small businesses located in Historically Underutilized Business Zones (HUBZones). 

OSDBUs are responsible for ensuring that small businesses have the maximum practicable 

opportunity to participate in the performance of federal contracts as both prime contractors 

and subcontractors 

With regard to contract bundling, OSDBUs work with SBA to: (I) identify 

proposed solicitations that involve bundling; (2) facilitate small business participation as 

prime contractors; and (3) facilitate small business participation as subcontractors and 

suppliers where participation by small business concerns as prime contractors is unlikely. 

OSDBU staff assigned to agency contracting offices, known as small business specialists, 

advise agency contracting and requirements personnel on small business issues and identify 

potential small business sources. They also review small business subcontracting plans and 

evaluate contractor performance under those plans. While some agencies may require 

participation of a small business specialist in the acquisition planning process, there is no 

government-wide requirement for participation by a small business advocate (internal or 

external to the agency) as a member of the acquisition planning team. 

3. Procurement Center Representatives (PCRS) 

SBA assigns Procurement Center Representatives (PCRs) to major contracting 

offices to implement small business policies and programs. PCR responsibilities include: 

reviewing proposed acquisitions and recommending alternative procurement strategies; 

identifying qualified small business sources; reviewing subcontracting plans; conducting 

reviews of the contracting office to ensure compliance with small business policies; 

counseling small businesses; and sponsoring and participating in conferences and training 

designed to increase small business opportunities. Forty-seven PCRs represent SBA at 255 

department and agency contracting offices across the country. PCRs cover 11.6 percent of 

the 2,200 federal contracting offices. However, the 255 contracting ofices award 

approximately $120 billion of the $200 billion awarded in federal contracts each year. 

7 
111. Strategy: Action Plan 

To address contract bundling in the executive branch, the following actions will be 

taken: 

1. Ensure accountability of senior agency management for improving 

contracting opportunities for small business. 

Senior agency management will be held accountable for eliminating unnecessary 

contract bundling and mitigating the effects of necessary and justified contract bundling. 

Agencies will be required to report to OMB’s Deputy Director for Management on a 

periodic basis on the status of agency efforts to address contract bundling issues. This 

approach will provide high-level accountability for contract bundling while maintaining a 

proper balance with mission critical issues. The first agency status reports will be due 

January 3 1,2003. 

2. Ensure timely and accurate reporting of contract bundling information 

through the President’s Management Council. 

Recording and distributing timely and accurate information on contract bundling is 

the key to accountability. OMB, agencies and the SBA can.use this information to monitor 

contract.bundling trends and adjust practices as warranted. The President’s Management 

Council (PMC), composed of deputy secretaries and administrators from the 26 major 

executive branch departments and agencies, will ensure agency accountability for timely 

and accurate reporting on contract bundling efforts and statistics. The PMC will be tasked 

with assisting OMB’s Deputy Director for Management with monitoring the status of 

agency efforts to address contract bundling. 

3. Require contract bundling reviews for task and delivery orders under 

mulltiple award contract vehicles. 

The definition of contract bundling in the FAR and SBA regulations will be 

clarified to require contract bundling reviews by the agency OSDBU for task andaelivery 

orders under multiple award contract vehicles. Because contract bundling reviews are not 

specifically required by the FAR or SBA regulations for agency multiple award contracts 

(MACs), multi-agency contracts, Government-Wide Acquisition Contracts (GWACs), or 

GSA’s Multiple Award Schedule Program, these contracts and the orders placed under 

these contracts effectively escape review. Recent and significant increases in this type of 

contracting make contract bundhng review essential. Proposed regulatory changes will be 

prepared by January 3 1,2003. 

8 
4. Require agency review of proposed acquisitions above specified 

thresholds for unnecessary and unjustified contract bundling. 

SBA regulations and the FAR will be modified to require contract bundling reviews 

of proposed acquisitions above agency-specific dollar thresholds. Individual agency 

review thresholds for acquisitions between $2 million and $7 million should be established 

based on an agency's volume of contracts and in consultation with the SBA and agency 

OSDBU. The review will be conducted by the agency OSDBU under guidelines 

established by the SBA before an agency finalizes a specific acquisition plan. However, 

appropriate time limits will be established to ensure expeditious consideration. Proposed 

regulatory changes will be prepared by January 3 1,2003. 

5. Require identification of alternative acquisition strategies for the 

proposed bundling of contracts above specified thresholds and written 

justification when alternatives involving less bundling are not used. 

SBA regulations and the FAR will be modified to require agencies to specifically 

identify alternative acquisition strategies that involve less bundling when an agency 

contemplates a bundled contract above a threshold between $2 million and $7 million. 

Where a bundled contract is used for an acquisition above the specified threshold, a written 

justification for using a bundled contract should identify these alternative strategies and the 

rationale for choosing a particular strategy over alternatives that could involve less 

bundling. Individual agency thresholds will be established based on an agency's volume of 

contracts and in consultation with the SBA and agency OSDBU. Proposed regulatory 

changes will be prepared by January 31,2003. 

6. Mitigate the effects of contract bundling by strengthening compliance 

with subcontracting plans. 

In acquisitions where contract bundling is determined to be necessary and justified, 

actions will be taken to mitigate the effects of bundling by increasing subcontracting 

opportunities for small businesses. Federal contractors that receive contracts of $500,000 

for products or services or $1 million for construction are generally required to prepare 

plans for subcontracting with small businesses.'' Compliance with these subcontracting 

plans and~agency oversight of contractor compliance with the plans has been inconsistent." 

To encourage greater small business participation as subcontmctors in bundled 

acquisitions, the FAR will be amended to require agencies to use contractor compliance 

See FAR Subpan 19.7 (48 C.F.R. g 1, 19.7). II 

'I For an examination of agency oversight of contractor compliance with small business subcontracting plans, 

see Small Business Subcontractine ReDon Validation Can Be Imoroved, GAO-02-166R Subcontracting Data, 

December 13,200 I. 

9 
with sub-contracting plans as an evaluation factor for future contract awards. Agencies 

also will strengthen oversight of contractor efforts to comply with subcontracting plans by 

establishing procedures that designate personnel responsible for monitoring contractor 

compliance with subcontracting plans, delineate responsibilities of such personnel, and 

monitor their performance. These procedures will include specific requirements for agency 

monitoring of contractor efforts to comply with subcontracting plans for agency multiple 

award contracts (MACs), multi-agency contracts, Government-Wide Acquisition Contracts 

(GWACs), and GSA's Multiple Award Schedule Program contracts and orders under all of 

these types of contracts. Proposed regulatory changes will be prepared by January 3 1, 

2003. 

7. Mitigate the effects of contract bundling by facilitating the development 

of small business teams and joint ventures. 

In acquisitions where contract bundling is determined to be necessary and justified, 

actions will be takm to mitigate the effects of bundling by encouraging the development of 

teams of small busi.nesses to effectively compete for bundled or consolidated contracts that 

might be too large or diversified for individual small businesses to perform. SBA bundling 

regulations encourage the formation of teams of small business contractors to compete for 

bundled contra~ts.'~ However, small businesses face obstacles to forming these teams due 

to relatively limited time available to respond to agency procurement solicitations, time 

that could otherwismz be used to prepare a proposal in response to the solicitation. Agencies 

will train and otherwise facilitate early development of teams of small business contractors 

to compete for upcoming procurements. Also, SBA will determine if regulatory changes 

are appropriate to encourage the development of these teams and joint ventures. 

8. Identify best practices for maximizing small business opportunities. 

Some agency acquisition plans and justifications for bundling contracts include 

successful strategies for maximizing prime and subcontracting opportunities for small 

businesses. In cooperation with department and agency procurement executives and 

OSDBU directors, SBA will collect and disseminate these examples and incorporate them 

in appropriate training courses and materials. 

9. 

In accordance with these recommendations, agency OSDBUs are expected to 

significantly increase reviews of proposed acquisitions for contract bundling as well as 

monitor contractor compliance with subcontracting plans. Heads of departments and 

agencies will ensure that agency OSDBU resources are dedicated to the President's Small 

Business Agenda by issuing guidance, training personnel, and reallocating resources as 

necessary. 

Dediicate agency OSDBUs to the President's Small Business Agenda. 

See SBA's bundling regulations. supru. note 3 13 

10 
The Deputy Secretary of Energy 

Washington, DC 20585 

March 18, 2003 

MEMORANDUM FOR HEADS OF HEADQUARTERS ELEMENTS 

FROM: KYLE E. McSLARROW 

SUBJECT: Small Business Achievements 

As we discussed at the March 12,2003, meeting of the Department’s 

Management Council, I will he reviewing progress against your small business 

goals as pm. of my upcoming review of each organization’s second quarter, FY 

2003 Annual Performance Plan (APP) results. 

Attached are charts showing the Department’s and each organization’s 

achievements toward our small business goals for the first quarter, FY2003, and 

through February 2003. If progress continues at the current pace, the Department 

will only meet about 50 percent of its FY2003 small business goals. Only two 

organizations are currently on track to meet their individual FY 2003 goals. This 

is not an acceptable level of performance. 

Please take immediate action to ensure accomplishment of your small business 

goals by the end of the fiscal year. You should be prepared to explain both your 

progress to date and plans for achieving your goal when we meet to review your 

next quarter”s APP results. 

Should you have any questions or need assistance, please do not hesitate to 

contact Theresa Speake, Director, Office of Small and Disadvantaged Business 

Utilization at 6-8383. 

- Attachments: First Quarter FY 2003 Small Business Achievement Chart 

Small Business Achievement Chart Through February 2003 
~jections 

SB Goal 

Projected 

Actual SB 

Performancc 

FINANCIAL DATA WAREHOUSE 

Small Business Awards Analysis for FY 2003 QTR I 

(October 1 - December 31) 

Power Administrations -. 

SW & SE 7,500,259) 82.3%1 6,172.71 3 I 992,2771 16.1% 

78,495,5501 74.7%1 56,636,1761 6,961,4601 11.9% 

SBA Analysis 200303 - Summary w PMA data Feb 13 cond format - 3/18/2003 
FY03 PI 

Western 

;oal Actual SB 

Performance 

78,495,5501 74.7%1 58,636,1761 8,121,201 I 13.9% 

FINANCIAL DATA WAREHOUSE 

(October 1 - February 28,2003) 

Small Business Awards Analysis for FY 2003 

SW & SE 7,500,2591 82.3%1 6,172,7131 1,229,3241 19.9% 

IGrand Total: I 17,772,222,115) 4.1%1 735,867,4981 151,900,314( 20.6%1 

SEA Analysis 200303A - Summary w PMA data Feb 13 cond format - 3/18/2003 
MEMORANDUM FROM KYLE MCSLARROW 

SUBJECT: SMALL BUSINESS ACHIEVEMENTS 
The Deputy Secretary of Energy 

Washington, DC 20585 

March 18. 2003 

MEMORANDUM FOR HEADS OF HEADQUARTERS ELEMENTS 

FROM: KYLE E. McSLARROW 

SUBJECT: Small Business Achievements 

As we discu.ssed at the March 12,2003, meeting of the Department’s 

Management Council, I will be reviewing progress against your small business 

goals as part of my upcoming review of each organization’s second quarter, FY 

2003 Annual Performance Plan (APP) results. 

Attached are charts showing the Department’s and each organization’s 

achievements toward our small business goals for the first quarter, FY2003, and 

through February 2003. If progress continues at the current pace, the Department 

will only meet about 50 percent of its FY2003 small business goals. Only two 

organizations are currently on track to meet their individual FY 2003 goals. This 

is not an acceptable level of performance. 

Please take nmmediate action to ensure accomplishment of your small business 

goals by the end of the fiscal year. You should be prepared to explain both your 

progress to date and plans for achieving your goal when we meet to review your 

next quarter’s APP results. 

Should you have any questions or need assistance, please do not hesitate to 

contact Theresa Speake, Director, Office of Small and Disadvantaged Business 

Utilization a.t 6-8383. 

Attachments: First Quarter FY 2003 Small Business Achievement Chart 

Small Business Achievement Chart Through February 2003 - 
FINANCIAL DATA WAREHOUSE 

Smt.. Business Awards Analysis for FY 20-1 QTR I 

(October 1 - December 31) 

FY03 F 

50.00 

I I 

jecrions 

SB Goal 

Projected Goal Proj. 

0.0% 

10.4% 

13.3% 

Power Administrations -_ 

SW & SE 7,500,2591 82.3%1 6,172,7131 992.2771 16 1% 

78,495,5501 74.7%1 58,636,1761 6,981,4601 11.9% 

SBAAnalysis 200303 - Summary w PMA data Feb 13 cond format - 3/18/2003 
FINANCIAL DATA WAREHOUSE 

(October 1 - February 28,2003) 

Small Business Awards Analysis for FY 2003 

HQ Org SB Goal ?4 

jections 

SB Goal 

Projected 

SBA Analysis 200303A - Summary w PMA data Feb 13 cond format - 3/18/2003