Part 519 - Small Business Programs

519.001 Definitions.

Subpart 519.2 - Policies

519.201 General policy.

519.202 Specific policies.

519.202-1 Encouraging small business participation in acquisitions.

519.202-2 Locating small business sources.

Subpart 519.3 - Determination of Small Business Status for Small Business Programs

519.302 Protesting a small business representation.

519.305 Protesting a representation of disadvantaged business status.

519.306 Protesting a firm’s status as a HUBZone small business concern.

519.307 Protesting a firm’s status as a Service-Disabled Veteran-Owned small business concern.

519.308 Protesting a firm's status as an Economically Disadvantaged Women-Owned Small Business

(EDWOSB) concern or Women-Owned Small Business (WOSB)) concern eligible under the WOSB

Program.

Subpart 519.4 - Cooperation With the Small Business Administration

Subpart 519.5 - Set-asides for Small Business

519.502 Setting aside acquisitions.

519.502-1 Requirements for setting aside acquisitions.

519.502-70 Review of non-set-aside determinations.

519.503 Setting aside a class of acquisitions for small business.

519.506 Withdrawing or modifying small business set-asides.

519.507 Contract clause.

Subpart 519.6 - Certificates of Competency and Determinations of Responsibility

519.602 Procedures.

519.602-3 Resolving differences between the agency and the Small Business Administration.

Subpart 519.7 - The Small Business Subcontracting Program

519.700 [Reserved]
519.700-70 Additional responsibilities.

519.702 [Reserved]

519.705 Responsibilities of the contracting officer under the subcontracting assistance program.

519.705-2 Determining the need for a subcontracting plan.

519.705-3 Preparing the solicitation.

519.705-4 Reviewing the subcontracting plan.

519.705-5 Awards involving subcontracting plans.

519.705-6 Postaward responsibilities of the contracting officer.

519.705-7 Liquidated damages.

519.706 Responsibilities of the cognizant administrative contracting officer.

Subpart 519.8 - Contracting With the Small Business Administration (The 8(a)Program)

519.803 Selecting acquisitions for the 8(a) program.

519.803-70 Contracting officer evaluation of recommendations for 8(a) set-aside(s).

519.803-71 Withdrawing or modifying 8(a) set-asides.

519.870 Direct 8(a)contracting.

519.870-1 Authority and applicability.

519.870-2 Contract clauses.

Subpart 519.10 - [Reserved]

Subpart 519.11 - [Reserved]

Subpart 519.12 - [Reserved]

Subpart 519.13 - [Reserved]

Subpart 519.14 - [Reserved]

Parent topic: General Services Administration Acquisition Manual

519.001 Definitions.

Subpart 519.2 - Policies
519.201 General policy.

(a) The Director of the Small and Disadvantaged Business Utilization is known in GSA as the

Associate Administrator, Office of Small and Disadvantaged Business Utilization (AA OSDBU).

(b) The AA OSDBU delegates duties to Small Business Technical Advisors (SBTAs) for each region

through written appointment. All references to SBTA in this part refer to the SBTA designated to

support his/her service or region, whichever is applicable.

(c) Contracting officers shall work with the designated SBTA for their region or service.

519.202 Specific policies.

519.202-1 Encouraging small business participation in acquisitions.

When applicable, the following procedures shall be used to promote small business through

acquisition.

(a) For any acquisition that requires a GSA Form 2689 per GSAM 519.502-70, an acquisition plan

shall be submitted to the SBTA. The acquisition plan shall be submitted to the SBTA for approval

after the GSA Form 2689 has been approved.

(b) The designated SBTA will provide the copy of the proposed acquisition package to the SBA PCR

in accordance with FAR 19.202-1(e) and GSAM 519.4.

(c) When placing orders or establishing BPAs against multiple-award contracts (see FAR 2.101),

small businesses should be given consideration prior to large businesses.

519.202-2 Locating small business sources.

(a) Queries using the “Dynamic Small Business Search,” at http://dsbs.sba.gov are encouraged to

locate small business sources.

(b) The designated SBTA may be contacted for assistance with identifying small business sources.

(c) The contracting officer must coordinate communications through the SBTA (see 519.4) when

contacting the SBA Procurement Center Representative (PCR) in accordance with FAR 19.202-1.

Subpart 519.3 - Determination of Small Business Status for

Small Business Programs

519.302 Protesting a small business representation.

If SBA determines that an offeror is not a small business concern, and there is evidence that the

offeror knowingly misrepresented itself as such, contracting activities must refer the matter to the
Inspector General and should also refer the matter to the Suspension and Debarment Official.

519.305 Protesting a representation of disadvantaged business status.

If SBA determines that an offeror is not a disadvantaged small business concern, and there is

evidence that the offeror knowingly misrepresented itself as such, contracting activities must refer

the matter to the Inspector General and should also refer the matter to the Suspension and

Debarment Official.

519.306 Protesting a firm’s status as a HUBZone small business concern.

If SBA determines that an offeror is not a HUBZone small business concern, and there is evidence

that the offeror knowingly misrepresented itself as such, contracting activities must refer the matter

to the Inspector General and should also refer the matter to the Suspension and Debarment Official.

519.307 Protesting a firm’s status as a Service-Disabled Veteran-Owned small

business concern.

If SBA determines that an offeror is not a service-disabled veteran-owned small business concern,

and there is evidence that the offeror knowingly misrepresented itself as such, contracting activities

must refer the matter to the Inspector General and should also refer the matter to the Suspension

and Debarment Official.

519.308 Protesting a firm's status as an Economically Disadvantaged WomenOwned Small Business (EDWOSB) concern or Women-Owned Small Business

(WOSB)) concern eligible under the WOSB Program.

If SBA determines that an offeror is not a women-owned small business or economically

disadvantaged women-owned small business concern, and there is evidence that the offeror

knowingly misrepresented itself as such, contracting activities must refer the matter to the Inspector

General and should also refer the matter to the Suspension and Debarment Official.

Subpart 519.4 - Cooperation With the Small Business

Administration

The AAOSDBU is the focal point for interfacing with SBA. Refer issues relating to small business

programs through the designated SBTA.

Subpart 519.5 - Set-asides for Small Business
519.502 Setting aside acquisitions.

519.502-1 Requirements for setting aside acquisitions.

(a) The contracting officer may make awards under the 8(a) Business Development Program (see

FAR 19.8), or set aside for the Historically Underutilized Business Zone (HUB-Zone) Program (see

FAR 19.13, Women-Owned Small Business (WOSB) Program (see FAR 19.15), or Service-Disabled

Veteran-Owned Small Business (SDVOSB) Procurement Program (see FAR 19.14).

(b) Once a contracting activity acquires a product or service successfully on the basis of a set-aside,

the activity must acquire all future requirements for that product or service using set-aside

procedures. If the contracting officer determines that he or she no longer can reasonably expect to

receive offers from at least two responsible small business concerns and make awards at fair market

prices, use the procedures in FAR 19.506 to withdraw or modify a set-aside. When market research

reveals that any supplies or services from mandatory sources, such as Federal Prison Industries, Inc.

and AbilityOne, that were not available at the time of the original requirement have become

available, a contracting officer may discontinue setting aside a continuing requirement (see FAR

8.002 and 8.003). The contracting officer shall document the determination to discontinue setting

aside a continuing requirement (see 519.502-70).

519.502-70 Review of non-set-aside determinations.

(a) General. GSA Form 2689, Small Business Analysis Record.

(1) The GSA Form 2689 is used to–

(i) Record evidence that consideration has been given to small business, service-disabled veteranowned small business, HUB-Zone small business, small disadvantaged business, women-owned small

business, or 8(a) Business Development Program participants; and

(ii) Document that small businesses received maximum practicable opportunity to participate in a

proposed acquisition.

(2) The GSA Form 2689 may be used in place of a “Memo to File” when documenting the

requirement for market research and as a tool to assure maximum practicable small business

opportunity.

(3) The contracting officer shall include all pertinent documents with the GSA Form 2689 to support

the proposed acquisition strategy (i.e., Dynamic Small Business Search results, responses to System

for Award Management Contract Opportunities sources sought notice, performance work statement,

statement of work, sole source justification, consolidation or bundling determination, business case,

etc.).

(4) The contracting officer shall record the justification and rationale for the determined acquisition

strategy on the GSA Form 2689.

(b) Consolidated or Bundled Acquisitions. The GSA Form 2689 is required for acquisitions when

consolidation, bundling or substantial bundling (FAR 2.101 and 7.107-4) is contemplated regardless

of estimated total contract value.
(c) Orders.

(1) The GSA Form 2689 is required for orders and Blanket Purchase Agreements (BPAs), including

BPA orders, against Multiple-award Contracts (see FAR 2.101) and expected to equal or exceed $6

million (see FAR 7.104(d)), unless the contract, order or BPA is set aside for one of the small

business programs specified in FAR 19.203 (e.g. 8(a), HUB-Zone, WOSB, or SDVOSB).

(2) Orders or BPAs against Multiple-award Contracts (see FAR 2.101) that are less than $6 million

do not require a GSA Form 2689, unless the acquisition is consolidation, bundling or substantial

bundling.

(d) Acquisitions at or below the Simplified Acquisition Threshold (SAT).

(1) The GSA Form 2689 is not required for acquisitions at or below the SAT, unless the acquisition is

consolidation, bundling or substantial bundling. However, it may be used to document market

research. Contracting officers are encouraged to use the GSA Form 2689 to document any

determination to not use small business under the SAT in accordance with FAR 19.502-2(a).

(2) The GSA Form 2689 does not require SBTA or SBA PCR review or signature when documenting

market research.

(e) Acquisitions expected to exceed the Simplified Acquisition Threshold (SAT). The GSA Form 2689

is required for acquisitions expected to exceed the SAT when—

(1) A determination is made to set aside for small business but not one of the small business

programs specified in FAR 19.203 (8(a), HUB-Zone, WOSB, or SDVOSB); or

(2) A determination is made to utilize full and open competition.

(f) Exceptions. The GSA Form 2689 is not required for—

(1) Acquisitions with mandatory sources (see FAR 8.002 and 8.003);

(2) Acquisitions, including contracts, orders, and BPAs, that have been set aside for a small business

program specified in FAR 19.203 (e.g. 8(a), HUB-Zone, WOSB, or SDVOSB) unless consolidated,

bundled or substantially bundled; or

(3) Orders or BPAs under $6 million, unless consolidated, bundled or substantially bundled (see

paragraphs (b) and (c) of this subsection).

(g) GSA Form 2689 Requirement Conditions.

(1) General. The following table is a reference to determine when the GSA Form 2689 is required for

completion and submission.

(2) Instructions. The table has an order of precedence.

(i) Review the “Contract Vehicle Conditions” column in numerical order.

(ii) Once a condition applies to the acquisition, the applicability of the form will be identified in the

“GSA Form 2689 Required?” column.

(iii) Once a condition applies to the acquisition, further conditions down the table do not apply.
Contract Vehicle Conditions GSA Form 2689

Required? Rationale

(A) Any acquisition from mandatory

sources

Not Required

GSAM 519.502-70(f)(1)

Mandatory Sources

FAR 8.002(a)(1)(iv)

(Supplies)

FAR 8.002(a)(2)(i)

(Services)

FAR 8.003

(B) Acquisitions, including contracts or

orders that meet the definition of

consolidation, bundling or substantial

bundling (FAR 2.101 and 7.107-4).

Required at any

estimated total

contract value

GSAM 519.502-70(b)

(C) Acquisitions, including contracts,

orders and BPAs, that have been set

aside for a small business program as

specified in FAR 19.203 (e.g. 8(a),

HUB-Zone, WOSB, or SDVOSB)

Not Required GSAM 519.502-70(f)(2)

(D) Orders and BPAs, including BPA

call orders, against Multiple-Award

contracts (see FAR 2.101)

Required if valued at

$6M or more, unless

set-aside for small

business programs as

specified in FAR

19.203 (e.g. 8(a), HUBZone, WOSB, or

SDVOSB) Not Required

if under $6M

GSAM 519.502-70(c)

Set-aside is

discretionary

FAR 8.405-5(a)

FAR 16.505(b)(2)(i)(F)

(E) Contracts under the SAT

Not Required but

encouraged to use the

form as a market

research tool

GSAM 519.502-70(d)

(F) Contracts over the SAT and setaside for 8(a), HUB-Zone, WOSB, or

SDVOSB

Not Required GSAM 519.502-70(f)(2)

FAR 19.203(a)

(G) Contracts over the SAT and set

aside for small business, but NOT setaside for 8(a), HUB-Zone, WOSB, or

SDVOSB

Required GSAM 519.502-70(e)(1)

FAR 19.203(c)
Contract Vehicle Conditions GSA Form 2689

Required? Rationale

(H) Contracts over the SAT and not

set-aside (i.e. full and open

competition

Required GSAM 519.502-70(e)(2)

(h) GSA Form 2689 Concurrence and Time-frames.

(1) Use the guidance in paragraphs (c) through (g) to determine if a GSA Form 2689 is required. If a

GSA Form 2689 is required, then follow the dollar value thresholds in the table below to determine

the level of concurrence for the form.

Thresholds SBTA

Concurrence

SBA PCR

Concurrence

AA OSDBU

Concurrence

Review

Time-frame

Less than

SAT

Not Required,

unless an

exception in

519.502-70(h)(2)

applies

Not Required,

unless an

exception in

519.502-70(h)(2)

applies

Not Required,

unless an

exception in

519.502-70(h)(2)

applies

Not

Applicable

Equal to or

greater than

SAT and

less than

$50M

Required Required

Not Required,

unless an

exception in

519.502-70(h)(2)

applies

Within 5

business

days

following the

day of

receipt

Equal to or

greater than

$50M

Required Required Required

Within 10

business

days

following the

day of

receipt (i.e. 5

business

days total for

the SBTA

and SBA PCR

and 5

business

days for AA

OSDBU)

(2) If the acquisition meets one of the following criteria, the contracting officer must obtain all

concurrences of the GSA Form 2689 regardless of the concurrence threshold:

(i) Complex, critical to agency strategic objectives and mission, highly visible or politically sensitive.
(ii) Acquisitions that will be performed in more than one region.

(3) The SBTA is responsible to follow-up with the SBA PCR and inform the contracting officer.

(4) The SBTA must request from the contracting officer an extension if concurrence will not be met

by the established time-frame as defined above in the table.

(5) If a response is not received from the SBA PCR, the SBTA must elevate within OSDBU for

resolution at osdbu_review_concurrence@gsa.gov.

(6) If the contracting officer does not receive a response from the SBTA within the established timeframes and the SBTA has been unresponsive to the contracting officer’s inquiries, the contracting

officer should elevate within OSDBU for resolution at osdbu_review_concurrence@gsa.gov.

(7) If a “Non-Concur” is received on the GSA Form 2689, the contracting officer is required to resubmit for concurrence. The time-frame for review is reset when the form is re-submitted.

(i) Disagreements. If a reviewing official disagrees with the contracting officer’s decision not to set

aside an acquisition, the SBTA must provide the contracting officer the rationale for the

disagreement or provide the contracting officer with additional small business sources that are

interested in and capable of fulfilling the requirement. Review and consider any information

provided by the SBTA before making a decision.

(j) Resolving disagreements. The HCA (see GSAM 502.101), as delegated, in the applicable Central

Office and/or Regional Service resolves disagreements between the contracting officer and the

SBTA. To resolve disagreements with the SBA PCR, see FAR 19.505.

519.503 Setting aside a class of acquisitions for small business.

(a) Definition. A class set-aside is an item (or service), a group of related items under a Federal

Supply Class (FSC), or a whole FSC set aside for exclusive small business participation on more than

a one-time basis. If the item or group of items constitute only a small portion of an FSC, this

definition still applies.

(b) Determinations. If the contracting officer has procurement responsibility for the class of items or

services involved, prepare the determination required by FAR 19.503. The determination can apply

to either a total or partial set-aside.

519.506 Withdrawing or modifying small business set-asides.

If the contracting officer and the SBTA disagree over the withdrawal or modification of a set-aside,

the SBTA must notify the AA OSDBU at the same time the matter is referred to the SBA PCR.

519.507 Contract clause.

Insert the clause at 552.219-70, Allocation of Orders—Partially Set-Aside Items, in solicitations and

contracts when a requirements contract for supplies is contemplated that will involve partially

setting aside orders for small business.
Subpart 519.6 - Certificates of Competency and

Determinations of Responsibility

519.602 Procedures.

519.602-3 Resolving differences between the agency and the Small Business

Administration.

(a) Within 5 business days after requesting the SBA Area Office to refer an intention to issue a

Certificate of Competency to SBA Headquarters for review, the contracting officer shall forward the

information in paragraphs (a)(1) and (a)(2) of this subsection to the AA OSDBU through your

designated SBTA. This period may be extended by mutual agreement.

(1) Copies of all correspondence between GSA and SBA concerning the case. Include the initial

referral notice of nonresponsibility.

(2) Copies of all technical documents sent to SBA (for example, the solicitation, preaward surveys,

or any abstract of offers). Include any new information and a justification of the contracting officer's

decision to continue the appeal.

(b) After considering all the facts and conferring with the contracting officer, the AA OSDBU will

decide whether or not to file a formal appeal. Before deciding whether or not to appeal, the AA

OSDBU must notify the contracting officer.

(c) For decisions on cases over $25,000,000, the AA OSDBU shall confer with the contracting

activity before responding to SBA regarding either of the options in FAR 19.602-3(b)(1)(i) and (ii).

Subpart 519.7 - The Small Business Subcontracting Program

519.700 [Reserved]

519.700-70 Additional responsibilities.

In addition to FAR 19.705 responsibilities, the contracting officer's preaward responsibilities

include:

(a) Developing target goals for sealed bid solicitations when practicable.

(b) Following FAR 15.306, conducting discussions with individual offerors, as appropriate,

concerning the subcontracting plans submitted for a negotiated solicitation.

519.702 [Reserved]
519.705 Responsibilities of the contracting officer under the subcontracting

assistance program.

519.705-2 Determining the need for a subcontracting plan.

(a) When the contracting officer calculates the applicable threshold, consider the actual or

estimated value of the contract for the entire term of the contract, including any option period(s).

This also applies to schedule contracts and other indefinite delivery type contracts. Consider the

estimated value of all orders expected to be placed during the term plus all options.

(b) FAR 19.705-2(d) permits the contracting officer to require submission of subcontracting plans

with initial offers under a negotiated acquisition. The contracting officer must require all offerors

(other than small business concerns) to submit subcontracting plans with their initial offers when a

negotiated acquisition meets all conditions:

(1) The contracting officer anticipates receiving individual subcontracting plans (not commercial

plans).

(2) The contracting officer will award on the basis of trade-offs among cost or price and technical

and/or management factors under FAR 15.101-1.

(3) The acquisition is not a commercial product or commercial service acquisition.

(4) The acquisition offers more than minimal subcontracting opportunities.

(5) An offeror’s subcontracting plan is identified as an evaluation factor in the solicitation.

(c) Nothing in paragraph (b) above limits the contracting officer’s ability to request subcontracting

plans with initial offers under other negotiated acquisitions when he or she decides such action is

appropriate under FAR 19.705-2(d). For example, such action may be appropriate for multiple award

schedules where GSA may have responsibility for negotiating commercial plans.

(d) Notify the AA OSDBU after receipt of offers if the contracting officer determines that an

apparent successful offeror’s proposal has no subcontracting opportunities.

(1) Coordinate the notice through the contracting officer's SBTA.

(2) Include justification documenting the rationale behind a determination of no subcontracting

opportunities. The contracting officer may use the justification provided by the apparent successful

offeror

(3) Obtain AA OSDBU concurrence on the determination prior to contract award.

519.705-3 Preparing the solicitation.

(a) If an acquisition, excluding any multiple award schedule contract, will cover two or more

Regions and is estimated to exceed $50 million (including options):

(1) In addition to the SBA PCR, the contracting officer shall provide the SBTA and OSDBU a

reasonable period of time (approximately 10 days) to review any solicitation requiring submission of
a subcontracting plan and to submit advisory findings before issuing the solicitation. The contracting

officer shall ensure that evaluation criteria contained in the solicitation do not unnecessarily limit

subcontracting opportunities for small, HUBZone small, small disadvantaged, women-owned small,

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

(2) For a negotiated acquisition, if the contracting officer believes that the acquisition provides

substantial subcontracting opportunities, consider including the offeror’s subcontracting plan as an

evaluation factor for award. This may be most appropriate in acquisitions when the contracting

officer expects individual plans or master plans. The contracting officer should consult with his or

her SBTA or regional SBUC to obtain any needed assistance with developing subcontracting plan

evaluation criteria before incorporating the plan into the solicitation as an evaluation factor.

Target goals in sealed bidding

(b) Unrealistic target goals tend to inhibit competition or increase acquisition costs if goals are too

high. Target goals that offer no challenge to potential contractors reflect poorly on GSA’s

commitment to ensure maximum practicable use of small, HUBZone small, small disadvantaged,

women-owned small, veteran-owned, and service-disabled veteran-owned small business concerns as

subcontractors.

(c) In establishing target goals for sealed bid solicitations, the contracting officer should avoid using

mechanical formulas or similar approaches that may be considered arbitrary. Reviewing historical

performance by contractors performing similar work is valid, but the contracting officer should

consider each solicitation independently in terms of the potential for subcontracting. Use as many

information sources as practical, including the contracting officer’s own knowledge of the supplies

or services. Factors to consider in setting targets include:

(1) Manufacturing processes involved.

(2) Availability and location of potential subcontractors.

(3) The basis for establishing subcontracting relationships.

(4) The diversity in prevailing economic conditions in the place of contract performance.

(d) If the contracting officer cannot establish realistic target goals, do not state specific targets in

the solicitation.

(1) Establishing realistic target goals is likely to be a problem in contracting for supplies because

the place of contract performance may not be known prior to contract award.

(2) Even if the contracting officer can predict the area of contract performance because a particular

industry is concentrated there, the diversity of manufacturing processes may affect the amount of

subcontracting and how subcontracting relationships are established. For example, some

manufacturers may use formal teaming arrangements or long term relationships versus

nonrepetitive purchase orders.

519.705-4 Reviewing the subcontracting plan.

(a) The contracting officer should provide offerors a model subcontracting plan when determined
appropriate, e.g., when it may facilitate evaluation or negotiation. The contracting officer may use

the model plan available on OSBU's website at

https://insite.gsa.gov/organizations/staff-offices/office-of-small-business-utilization-osbu. Include the

following notice on the transmittal, if providing a model in response to a single request, or in the

solicitation, if including it as an attachment:

Notice to Offerors: “GSA provides this model plan as a tool. The contracting officer must adapt this

model plan to fit the subcontracting situation. The plan is NOT a fill-in-the-blank form and the

contracting officer must remove instructional language. This model does not establish minimum

requirements for an acceptable plan. The model reflects objectives GSA encourages contractors to

adopt. GSA expects offerors to thoroughly review the requirements set forth in FAR 19.704,

Subcontracting Plan Requirements and FAR Clause 52.219-9, Small Business Subcontracting Plan

before submitting their subcontracting plans.”

(b) Performance under other contracts is an indicator of an offeror’s understanding of the reasons

for the law and benefits of the program.

(1) If an offeror prepared a subcontracting plan for another contract, the contracting officer should

contact the contracting officer responsible for administering the earlier plan to determine if the

offeror met the plan’s objectives and submitted required reports in a timely manner.

(2) The contracting officer shall consider overall compliance in the evaluation, not just whether or

not the offeror met the goals established in the plan.

(3) Submission of timely reports is an indication the offeror takes its responsibilities seriously.

(c) The contracting officer shall use the Subcontracting Plan Evaluation Checklist available on

OSBU's website at

https://insite.gsa.gov/organizations/staff-offices/office-of-small-business-utilization-osbu. and GSAM

519.7 to evaluate an offeror's subcontracting plan.

(1) Remember that a positive goal is required to establish a gauge for measuring results and to

provide an incentive for continuing efforts to increase the dollar value of subcontracts placed with

small, HUBZone small, small disadvantaged, women-owned small, veteran-owned, and servicedisabled veteran-owned small business concerns. Carefully scrutinize any subcontracting category

(e.g., small business, HUBZone small business, etc.) where the offeror does not specify a goal and

accept it only after assuring that no subcontracting opportunities exist. If any category with no goal

is accepted, the contracting officer must:

(i) Document the file explaining why the goal was accepted; and

(ii) Ensure the subcontracting plan includes an assurance that the contractor will make every effort

to continue seeking subcontracting opportunities in the category that lacks a goal.

(2) One measure of the adequacy of a subcontracting plan is that it provides a challenge to the

offeror and then builds upon previous achievements in subsequent contracts.

(3) Include in the contract file a basis for determining the subcontracting plan’s acceptability.

(d) A contracting officer cannot tell the offeror what its goals must be. The contracting officer may

tell the offeror what GSA’s national goals are. Ensure that an offeror’s subcontracting plan reflects

realistic goals and provides the maximum opportunity practicable to small, HUBZone small, small

disadvantaged, women-owned small, veteran-owned, and service-disabled veteran-owned small
business concerns to participate as subcontractors. If necessary, obtain information from the offeror

to substantiate the offeror’s proposed goals, past performance with respect to subcontracting, and

the proposed good faith effort. This information may include the names of proposed subcontractors

and other such data.

(e) When a contracting officer receives a subcontracting plan with initial offers, provide an

opportunity for the SBTA to review the subcontracting plans of those offers in the competitive range.

Allow the SBTA 5 workdays for review. Consider the SBTA’s comments in developing a negotiation

strategy.

Negotiating Goals and Other Aspects of Plans

(f) For complex or large dollar value procurements, when an offeror proposes miniscule or minimally

acceptable goals for small, HUBZone small, small disadvantaged, women-owned small, veteranowned, and service-disabled veteran-owned small business concerns, the contracting officer shall

ensure that the offeror has included all subcontracts that contribute to contract performance (see

FAR 52.219-9(d)(1)).

(g) The contracting officer shall develop a strategy for negotiating the subcontracting plan and

goals just as you would for negotiating a contract. Be forceful in negotiating the subcontracting plan

and, whenever possible, offer recommendations for subcontracting potential with small, HUBZone

small, small disadvantaged, women-owned small, veteran-owned, and service-disabled veteranowned small business concerns. The contracting officer should suggest organizations the offeror

may contact to identify potential sources. For example, offerors may contact any of the following:

(1) Local SBA offices. These can provide an offeror assistance in accessing the System for Award

Management (SAM) (https://www.sam.gov) database to conduct market research and confirm the

eligibility for SBA’s procurement preference programs.

(2) Department of Commerce, Minority Business Development Agencies (MBDAs) at

https://www.mbda.gov.

(3) GSA SBUCs and SBTAs, as well as OSDBU.

(4) State, county, and city government minority business offices.

(5) Small, minority, women-owned, and veteran business associations at

https://www.gsa.gov/smallbusiness.

(6) Local chambers of commerce.

(7) Trade associations, professional organizations, and Procurement Technical Assistance Centers.

(8) Department of Veterans Affairs for assistance in identifying Service Disabled Veteran-Owned

Small Businesses (SDVOSBs) and Veteran-Owned Small Businesses (VOSBs) at

https://www.va.gov/osdbu/.

(9) Dynamic Small Business Search (DSBS) at http://dsbs.sba.gov.

(h) In developing a negotiation strategy, the contracting officer shall consider whether the offeror’s

plan is realistic and does more than merely restate the elements required by FAR clause 52.219-9

and shall question aspects of the plan that do not appear to be realistic or do not demonstrate a
serious attempt to address requirements.

Commercial plans

(i) Contracting officers shall obtain from the contractor copies of any commercial plan for the

company’s current fiscal year and approval document from another GSA contracting activity or

another Federal agency. Incorporate these documents into the contract.

(j) If GSA is the first agency to enter into a contract with a company during the company’s fiscal

year, the contracting officer must approve the commercial plan on behalf of the Federal

Government, acknowledge receipt of the Summary Subcontract Report (SSR), accept or reject the

SSR in the Electronic Subcontracting Reporting System (eSRS), and evaluate compliance with the

approved commercial plan. If contract administration is delegated, the Administrative Contracting

Officer (ACO) generally is assigned responsibility for accepting or rejecting the SSR and evaluating

compliance with the approved commercial plan. Subsequent GSA contracts awarded during the

company’s same fiscal year and incorporating the previously approved commercial plan will only

require the submission of the Summary Subcontract Report submitted at the end of the

Government’s fiscal year.

(k) If the commercial plan was approved by another agency, the first GSA contracting officer

entering into a contract with the company during the company’s same fiscal year in which the plan

was approved, requires the contractor to submit the SSR report and monitors receipt of the report.

GSA requires no other monitoring or evaluation of this plan.

519.705-5 Awards involving subcontracting plans.

(a) Subcontracting plans requiring SBTA and SBA PCR review.

(1) For each contract that requires a subcontracting plan, the contracting officer will submit

electronically the apparent successful offeror’s subcontracting plan to the SBTA who will coordinate

review by the SBA PCR. When the contracting officer makes multiple awards under a solicitation,

electronically submit the subcontracting plans of all apparent successful offerors.

(i) Except as noted in paragraph (b) of this section, provide the SBTA an electronic copy of the plan

at least 5 workdays before the anticipated award date.

(ii) Consider any recommendations the SBTA or SBA PCR provides about whether to accept or

reject a subcontracting plan. In the case of an unresolved disagreement, notify the AA OSDBU and

consider any subsequent advice the AA OSDBU provides. Document the final decision in the contract

file.

(iii) If the contracting officer does not receive review comments from the SBTA within 5 workdays,

the contracting officer shall document the file and continue with the award process (see FAR

19.705-5(a)(3)).

(b) Subcontracting plans requiring AA OSDBU review.

(1) The AA OSDBU (through the contracting officer’s designated SBTA or Regional SBUC) will

review the SBTA’s and SBA PCR’s recommendations for contracts that meet either of these

conditions:
(i) Contract performance will occur in two or more Regions and the estimated value of the

acquisition exceeds $50 million (including options), excluding multiple award schedule contracts.

(ii) Based on political sensitivity or importance to GSA, the AA OSDBU designates the procurement

for review.

(2) The contracting officer shall provide the SBTA an electronic copy of the plan at least 10 days

before the anticipated award date. The SBTA and SBA PCR have 5 workdays to review and comment

on the plan, and the AA OSDBU (through the contracting officer’s designated SBTA or Regional

SBUC) has 5 workdays to review their recommendations and respond. All reviews must be

completed in 10 workdays unless the contracting officer grants an extension.

(3) The contracting officer shall consider any recommendations the SBTA, SBA PCR, or AA OSDBU

provides about whether to accept or reject a subcontracting plan. Document the final decision in the

contract file.

(4) If the contracting officer does not receive review comments from the SBTA (inclusive of AA

OSDBU review) within 10 workdays, the contracting officer shall document the file and continue

with the award process (see FAR 19.705-5(a)(3)).

(c) Notification letter for individual subcontracting plans.

(1) The contracting officer shall approve the subcontracting plan as part of the award. After

approval of an individual subcontracting plan, using FORMAT A in paragraph (c) of this section, the

contracting officer shall electronically send a notification letter to the contractor confirming the

subcontracting plan effective dates and when a new or updated plan will be required. The

contracting officer shall also inform the contractor of the reporting requirements and due dates for

submitting their Individual Subcontract Report (ISR) and Summary Subcontract Report (SSR)

through the eSRS.

(2) The contracting officer shall send the letter electronically with the award package or as soon as

practicable after award.

FORMAT A

Name Address City, State, Zip Code

Re: Approved Subcontracting Plan and Required Reports for Contract

No. _______________:

Dear _________________:

Your individual subcontracting plan submitted for the subject contract has been approved for the

base period [insert MM/DD/YY through MM/DD/YY] with goals that are subject to revision for each

remaining option period (if any).

You must submit subcontracting reports through the Electronic Subcontracting Reporting System

(https://www.esrs.gov/) using the Individual Summary Report (semi-annually) and the Summary

Subcontract Report (annually).

Use the Individual Summary Report (ISR) to report cumulative subcontracting activity under this
contract. Submit the report semiannually by April 30 for the reporting period October 1-March 31

and by October 30 for the reporting period April 1-September 30. A separate report is required at

contract completion. If requested by the Contracting Officer, you must furnish the name and size

status of your subcontractor(s), and the dollar amount of the subcontract(s).

Use the Summary Subcontract Report (SSR) to report total subcontracting activity under all of your

GSA contracts. Submit the report annually for the period October 1-September 30 (the Government

fiscal year). The report is due on or before October 30th of each year. A new reporting cycle begins

October 1st of each year. Include the Contracting Officer (CO), Administrative Contracting Officer

(ACO), the Small Business Administration (SBA) Commercial Market Representative (CMR), the

Small Business Technical Advisor (SBTA), and GSA's Subcontracting Plan Program Manager in the

email distribution when submitting the ISR and SSR via eSRS.

[Insert address of contracting office administering the contract], with a copy to: [insert address of

SBTA in Region or Central Office service where contract was awarded].

(d) Notification letter for commercial plans.

(1) The contracting officer shall approve the commercial plan as part of the award. After approval of

a commercial plan, using FORMAT B in paragraph (d) of this section, electronically send a

notification letter to the contractor informing them of requirements and due dates for submitting the

SSR via eSRS and confirm the subcontracting plan effective dates and when a new or updated plan

will be required.

(2) Send the letter with the award package or as soon as practicable after award.

FORMAT B

Name Address City, State, Zip Code

Re: Approved Subcontracting Plan and Required Reports for Contract

No. _______________:

Dear _________________:

Your commercial plan, submitted in connection with the subject contract has been approved for the

period of [insert MM/DD/YY through MM/DD/YY], by [insert name, address, and telephone number of

approving official]. You must submit your Summary Subcontract Report (SSR) via eSRS. The SSR is

an annual report due on or before October 30th of each year. The reporting period is October 1-

September 30, i.e., the Government fiscal year. The report should summarize subcontracting activity

under all contracts awarded during the current fiscal year that are covered by this commercial plan.

If at any time during contract performance you are unable to identify capable small, HUBZone small,

small disadvantaged, women-owned small, veteran-owned small and service-disabled veteran-owned

small business concerns, please contact your local Small Business Technical Advisor or the Office of

Small and Disadvantaged Business Utilization.

In addition, please include the SBA Commercial Market Representative (CMR) in the email

distribution on the SSR in eSRS, [insert email address of contracting office administering the

contract].
Sincerely,

Contracting Officer.

519.705-6 Postaward responsibilities of the contracting officer.

In addition to responsibilities described in FAR 19.705-6, the contracting officer must give the SBA

Area Director, SBTA and OSDBU a copy of the notice of award and the successful offeror’s

subcontracting plan within five work days of contract award or contract modification when

applicable. The notice of award must contain all the following:

(a) Contractor’s name, address, and phone number.

(b) Subcontracting plan administrator’s name, address, and phone number.

(c) Contract number.

(d) Place of performance.

(e) Dollar amount of contract award.

(f) Period of contract performance.

(g) Description of products/services (including FPDS Product/Service Code).

(h) Contracting Officer’s name, address, and phone number.

(i) Administrative contracting office address and phone number.

(j) Type of plan and dates that plan will cover.

(k) Approved goals stated both as percentages of total subcontracting planned and in dollars.

(l) A notation, “Awarded under the Energy Policy Act of 1992”, if the contract will be used to

measure GSA achievements under Section 3021 of the Energy Policy Act of 1992.

519.705-7 Liquidated damages.

(a) Initial assessment. The contracting officer shall provide the SBTA an information copy of his or

her initial assessment that the contractor did not make a good faith effort to comply with the plan.

(b) Final decision. Before making a final decision, the contracting officer shall consider all pertinent

available information including the contractor’s response, if any, to the contracting officer’s

notification letter required by FAR 19.705-7 that the contractor did not comply with the plan.

Document the contracting officer’s decision in a “final decision”, which is appealable by the

contractor under the “Disputes” clause of the contract. Provide the SBTA a copy of the contracting

officer’s final decision assessing liquidated damages. In addition to the FAR provisions, include in

the final decision letter:

(1) A description of the contractor’s failure.
(2) Reference to the appropriate contract terms.

(3) A statement of the factual areas of agreement and disagreement.

(4) A statement of the contracting officer’s decision with supporting rationale.

(5) A demand for liquidated damages.

(6) An explanation of the contractor’s appeal rights.

(c) Funds withheld from payments. If funds to collect liquidated damages are withheld from

payments due, the funds may be returned to the applicable GSA account along with other funds that

were obligated but not expended. If a commercial plan is involved, or if all payments have been

made under a contract with an individual contract plan, instruct the contractor to submit a check to

GSA. The GSA Office of Finance will transfer the funds to the Treasury Department for deposit in the

general receipts account.

(d) The contracting officer shall submit to the SBTA his or her final decision assessing liquidated

damages.

519.706 Responsibilities of the cognizant administrative contracting officer.

(a) If an ACO administers a contract with an individual subcontracting plan, the ACO must also

monitor receipt of and accept or reject the ISRs in eSRS.

(b) On all contracts with a subcontracting plan (individual or commercial), the ACO must monitor

receipt of the SSRs. ACO must monitor receipt of the SSR in eSRS, and the, Contracting Officers will

review the reports to ensure they are submitted timely and accurately.

(c) Contracting officers shall review reports for progress in meeting subcontracting goals by

comparing the applicable report with the approved plan. If percentage goals are not met, the

contracting officer shall require the contractor to explain the shortfall in the “Remarks” block of the

subcontracting report. The ACO may also require the contractor to submit evidence of its outreach

efforts to locate and provide subcontracting opportunities to small business, HUBZone small

business, small disadvantaged business, women-owned small, veteran-owned small, and servicedisabled veteran-owned small business concerns.

(d) If the ISR or SSR has not been received by the due date, the contracting officer shall contact the

contractor and request that the report be submitted immediately. For contracts with individual

subcontracting plans, the contracting officer shall pay particular attention to the final ISR required

at contract completion. Contracting officers shall issue to contractors who do not respond to the first

notice a second notice by certified mail indicating that:

(1) The named report has not been received.

(2) The contractor’s failure to submit the report is a material breach of its contract (see FAR

52.219-9, Small Business Subcontracting Plan).

(3) If the report is not received within 10 days from the date of the notice, the ACO will consider

withholding payments until the report is received or terminating the contract for default. To ensure

that the facts support a termination for default, the notice shall provide the contractor with the

opportunity to show cause why the contract should not be terminated for default.
Note: These statements do not apply to leases of real property, unless the terms of the lease

expressly provide for withholding of payment or termination under this circumstance.

(4) Failure to submit the report may affect the contractor’s ability to receive future awards from GSA

(see FAR 9.104-3(b) and willful failure to perform or a history of failure to perform may result in

debarment from future contracting with the Government for a period of time (see FAR 9.406-2(b)).

(5) The ISR and SSR shall be submitted through eSRS.

Subpart 519.8 - Contracting With the Small Business

Administration (The 8(a)Program)

519.803 Selecting acquisitions for the 8(a) program.

519.803-70 Contracting officer evaluation of recommendations for 8(a) set-aside(s).

(a) If the contracting officer disagrees with a recommendation by the AA OSDBU or the SBTA to set

aside a procurement for award under the 8(a) program, discuss the matter with the official who

made the recommendation.

(b) If the contracting officer decides not to award the contract under the 8(a)program, forward a

copy of the documentation required by FAR 19.202-1(e)(4) to the SBTA within 10 working days.

(c) Once a contracting activity acquires a product or service successfully on the basis of an 8(a) setaside, the activity must acquire all future requirements for that product or service using 8(a) setaside procedures.

(1) However, the availability of Federal Prison Industries, Inc. and Nonprofit Agencies Employing

People Who Are Blind or Severely Disabled (AbilityOne), and other mandatory sources, which may

not have existed at the time of the original requirement are sufficient reason to discontinue setting

aside a continuing requirement.

(2) If the contracting officer determines that acquiring the product or service as an 8(a)set-aside is

no longer in the Government’s best interest, use the procedures in FAR 19.506 to withdraw a

repetitive set-aside.

519.803-71 Withdrawing or modifying 8(a) set-asides.

If the contracting officer and the SBTA disagree over the withdrawal or modification of a set-aside,

the SBTA must notify the AA OSDBU at the same time the matter is referred to the SBA PCR.

519.870 Direct 8(a)contracting.

519.870-1 Authority and applicability.
(a) In accordance with FAR 19.800(f), GSA obtained a delegation from SBA permitting direct 8(a)

contracting as documented through GSA’s Partnership Agreement. The current Partnership

Agreement can be found on GSA's Acquisition Portal at https://insite.gsa.gov/acquisitionportal.

(b) This authority applies to all 8(a)acquisitions conducted by GSA. It does not apply to the multiple

award schedule program.

519.870-2 Contract clauses.

(a)Insert the following clauses in solicitations, contracts, and orders issued under GSA's Partnership

Agreement:

(1) 552.219-74, Section 8(a) Direct Award;

(2) 52.219-14, Limitations on Subcontracting; and

(3) 52.219-18, Notification of Competition Limited to Eligible 8(a) Participants, with—

(i)Paragraph (c) of the clause substituted with the following text “(c) Any award resulting from this

solicitation will be made directly by the Contracting Officer to the successful 8(a) offeror selected

through the evaluation criteria set forth in this solicitation” and

(ii)The text “(DEVIATION)” added after the date of the clause.

(b)Do not insert the following FAR clauses—

(1) 52.219-11, Special 8(a) Contract Conditions;

(2) 52.219-12, Special 8(a) Subcontract Conditions; and

(3) 52.219-17, Section 8(a) Award.

Subpart 519.10 - [Reserved]

Subpart 519.11 - [Reserved]

Subpart 519.12 - [Reserved]

Subpart 519.13 - [Reserved]

Subpart 519.14 - [Reserved]