245 
concern, the appropriate official shall enter the agreed-upon past per-
formance rating in the system described in subsection (b). 
(3) DISAGREEMENT ON RATING.—If the Office of Small and Dis-
advantaged Business Utilization and the prime contractor fail to re-
spond within 30 days or if they disagree about the rating, or if either 
the Office of Small and Disadvantaged Business Utilization or the 
prime contractor fail to respond and the responding person disagrees 
with the rating of the applicant small business concern, the Office of 
Small and Disadvantaged Business Utilization or the prime contractor 
shall submit a notice contesting the application to the appropriate offi-
cial. The appropriate official shall follow the requirements of subsection 
(e). 
(e) PROCEDURE FOR RATING.—Not later than 14 calendar days after re-
ceipt of a notice under subsection (d)(3), the appropriate official shall sub-
mit such notice to the applicant small business concern. Such concern may 
submit comments, rebuttals, or additional information relating to the past 
performance of such concern not later than 14 calendar days after receipt 
of such notice. The appropriate official shall enter into the system described 
in subsection (b) a rating that is neither favorable nor unfavorable along 
with the initial application from such concern, any responses of the Office 
of Small and Disadvantaged Business Utilization and the prime contractor, 
and any additional information provided by such concern. A copy of the in-
formation submitted shall be provided to the contracting officer (or designee 
of such officer) for the covered contract. 
(f) USE OF INFORMATION.—A small business subcontractor may use a 
past performance rating given under this section to establish its past per-
formance for a prime contract. 
(g) DURATION.—The pilot program established under this section shall 
terminate 3 years after the date on which the first applicant small business 
concern receives a past performance rating for performance as a first tier 
subcontractor. 
(h) REPORT.—The Comptroller General of the United States shall begin 
an assessment of the pilot program 1 year after the establishment of such 
program. Not later than 6 months after beginning such assessment, the 
Comptroller General shall submit a report to the Committee on Small Busi-
ness and Entrepreneurship of the Senate and the Committee on Small Busi-
ness of the House of Representatives, which shall include— 
(1) the number of small business concerns that have received past 
performance ratings under the pilot program; 
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(2) the number of applications in which the contracting officer (or 
designee) or the prime contractor contested the application of the small 
business concern; 
(3) any suggestions or recommendations the Comptroller General or 
the small business concerns participating in the program have to ad-
dress disputes between the small business concern, the contracting offi-
cer (or designee), and the prime contractor on past performance rat-
ings; 
(4) the number of small business concerns awarded prime contracts 
after receiving a past performance rating under this pilot program; and 
(5) any suggestions or recommendation the Comptroller General has 
to improve the operation of the pilot program. 
§ 243110. Effect of chapter 
Nothing in this chapter supersedes the requirements of part 331 of title 
44, Code of Federal Regulations (or any successor regulation). 
Chapter 245—Notice Provisions 
Sec. 
245101.
Notices of intention to solicit certain bids or proposals or to place certain orders. 
245102.
Notices of subcontracting opportunity. 
245103.
Limited applicability to Tennessee Valley Authority. 
§ 245101. Notices of intention to solicit certain bids or pro-
posals or to place certain orders 
(a) IN GENERAL.—Except as provided in subsection (e)— 
(1) an executive agency that intends to— 
(A) solicit bids or proposals for a contract for property or serv-
ices for a price expected to exceed $25,000; or 
(B) place an order, expected to exceed $25,000, under a basic 
agreement, basic ordering agreement, or similar arrangement; 
shall publish a notice described in subsection (d); 
(2) an executive agency intending to solicit bids or proposals for a 
contract for property or services shall post, for a period of not less than 
10 days, in a public place at the contracting office issuing the solicita-
tion, a notice of solicitation described in subsection (d)— 
(A) in the case of an executive agency other than the Depart-
ment of Defense, if the contract is for a price expected to exceed 
$10,000, but not to exceed $25,000; and 
(B) in the case of the Department of Defense, if the contract 
is for a price expected to exceed $5,000, but not to exceed 
$25,000; and 
(3) an executive agency awarding a contract for property or services 
for a price exceeding $100,000, or placing an order described in para-
graph (1)(B) exceeding $100,000, shall furnish for publication by the 
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Secretary of Commerce a notice announcing the award or order if there 
is likely to be a subcontract under the contract or order. 
(b) MEANS OF PUBLICATION.—A notice of solicitation required to be pub-
lished under subsection (a) may be published by an electronic means that 
meets the accessibility requirements under section 1708(d) of title 41. 
(c) LIMITATIONS.—When an executive agency is required by subsection 
(a)(1) to publish a notice of solicitation, the executive agency shall not— 
(1) issue the solicitation earlier than 15 days after the date on which 
the notice is published; or 
(2) in the case of a contract or order estimated to be greater than 
the simplified acquisition threshold, establish a deadline for the submis-
sion of all bids or proposals in response to the notice required by sub-
section (a)(1) that— 
(A) in the case of an order under a basic agreement, basic or-
dering agreement, or similar arrangement, is earlier than the date 
that is 30 days after the date on which the notice required by sub-
section (a)(1)(B) is published; 
(B) in the case of a solicitation for research and development, 
is earlier than the date that is 45 days after the date on which 
the notice required by subsection (a)(1)(A) is published; or 
(C) in any other case, is earlier than the date that is 30 days 
after the date on which the solicitation is issued. 
(d) CONTENTS OF NOTICE.— 
(1) IN GENERAL.—A notice of solicitation required by paragraph (1) 
or (2) of subsection (a) shall include— 
(A) an accurate description of the property or services to be 
contracted for; 
(B) provisions that— 
(i)(I) state whether the technical data required to respond 
to the solicitation will not be furnished as part of the solicita-
tion; and 
(II) identify the source in the Government, if any, from 
which the technical data may be obtained; and 
(ii)(I) state whether an offeror, its product, or service must 
meet a qualification requirement in order to be eligible for 
award; and 
(II) if so, identify the office from which a qualification re-
quirement may be obtained; 
(C) the name, business address, and telephone number of the 
contracting officer; 
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(D) a statement that all responsible sources may submit a bid, 
proposal, or quotation (as appropriate) that shall be considered by 
the agency; 
(E) in the case of a procurement using procedures other than 
competitive procedures, a statement of the reason justifying the 
use of such procedures and the identity of the intended source; 
and 
(F) in the case of a contract in an amount estimated to be 
greater than $25,000 but not greater than the simplified acquisi-
tion threshold— 
(i) a description of the procedures to be used in awarding 
the contract; and 
(ii) a statement specifying the periods for prospective 
offerors and the contracting officer to take the necessary 
preaward and award actions. 
(2) PROPERTY OR SERVICE DESCRIPTION.—A property or service de-
scription under paragraph (1)(A)— 
(A) shall not be unnecessarily restrictive of competition; and 
(B) shall include, as appropriate, the agency nomenclature, Na-
tional Stock Number or other part number, and a brief description 
of the item’s form, fit, or function, physical dimensions, predomi-
nant material of manufacture, or similar information that will as-
sist a prospective contractor in making an informed business judg-
ment concerning whether the prospective contractor should request 
a copy of the solicitation. 
(e) EXEMPTED ACTIVITIES.—A notice is not required under subsection 
(a)(1) if— 
(1) the proposed procurement— 
(A) is for an amount not greater than the simplified acquisition 
threshold; and 
(B) is to be conducted by— 
(i) using widespread electronic public notice of the solicita-
tion in a form that allows convenient and universal user ac-
cess through a single, Governmentwide point of entry; and 
(ii) permitting the public to respond to the solicitation elec-
tronically; 
(2)(A) the notice would disclose the executive agency’s needs; and 
(B) the disclosure of those needs would compromise the national se-
curity; 
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(3)(A) the proposed procurement would result from acceptance of an 
unsolicited proposal that demonstrates a unique and innovative re-
search concept; and 
(B) the publication of a notice of the unsolicited research proposal 
would disclose the originality of thought or innovativeness of the pro-
posal or would disclose proprietary information associated with the pro-
posal; 
(4) the proposed procurement would result from acceptance of a pro-
posal submitted under chapter 263; 
(5) the procurement is made against an order placed under a re-
quirements contract; 
(6) the procurement is made for perishable subsistence supplies; 
(7)(A) the procurement is for a utility service other than a tele-
communication service; and 
(B) only 1 source is available; or 
(8) the procurement is for the service of an expert for use in any 
litigation or dispute (including preparation for any foreseeable litigation 
or dispute) that involves or could involve the Federal Government in 
any trial, hearing, or proceeding before any court, administrative tri-
bunal, or agency, or in any part of an alternative dispute resolution 
process, whether or not the expert is expected to testify. 
(f) AVAILABILITY OF COMPLETE SOLICITATION PACKAGE.— 
(1) IN GENERAL.—An executive agency shall make available to any 
business concern, or the authorized representative of a business con-
cern, the complete solicitation package for any ongoing procurement 
announced in a notice under this section. 
(2) FEE.—An executive agency may require the payment of a fee, 
not exceeding the actual cost of duplication, for a copy of a solicitation 
package under paragraph (1). 
§ 245102. Notices of subcontracting opportunity 
(a) IN GENERAL.—A notice of subcontracting opportunity may be sub-
mitted for publication on the appropriate Federal website (as determined by 
the Administrator) by— 
(1) a contractor that is a business concern that is awarded a con-
tract by an executive agency subject to section 245101(a)(3) of this 
title section; or 
(2) a business concern that is a subcontractor at any tier or supplier 
at any tier to a contractor described in paragraph (1) that has a sub-
contracting opportunity in excess of $10,000. 
(b) CONTENTS.—A notice of a subcontracting opportunity shall include— 
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(1) a description of the business opportunity that is comparable to 
the description specified in subparagraphs (A), (B), (C), and (D) of 
section 245101(d)(1) of this title; and 
(2) the deadline for receipt of offers. 
(c) UNIFORM
IMPLEMENTATION.—The Federal Acquisition Regulation 
shall provide for uniform implementation of this section. 
§ 245103. Limited applicability to Tennessee Valley Author-
ity 
This chapter applies to the Tennessee Valley Authority only with respect 
to procurements to be paid from appropriated funds. 
Chapter 247—Noncompetitive Procedures 
Sec. 
247101.
Limitation on use of noncompetitive procedures. 
247102.
Limited applicability to Tennessee Valley Authority. 
§ 247101. Limitation on use of noncompetitive procedures 
(a) IN GENERAL.—An executive agency may not award a contract using 
noncompetitive procedures unless— 
(1) except as provided in subsection (c), a written justification for 
the use of noncompetitive procedures has been approved— 
(A) in the case of a contract for an amount exceeding $100,000 
(but equal to or less than $1,000,000), by the advocate for com-
petition for the procurement activity; 
(B) in the case of a contract for an amount exceeding 
$1,000,000 (but equal to or less than $10,000,000), by the head 
of the procurement activity or a delegate who— 
(i) if a member of the Armed Forces, is a general or flag 
officer; or 
(ii) if a civilian, is serving in a position classified above 
GS–15 pursuant to section 5108 of title 5; or 
(C) in the case of a contract for an amount exceeding 
$10,000,000, by the senior procurement executive of the agency 
designated pursuant to section 1702(c) of title 41; and 
(2) all other requirements applicable to the use of noncompetitive 
procedures under section 3304 of title 41 or chapter 137 of title 10, 
as appropriate, have been satisfied. 
(b) NONDELEGABILITY.—The authority of an advocate for competition to 
approve the use of noncompetitive procedures under subsection (a)(1)(A) 
and the authority of a senior procurement executive to approve the use of 
noncompetitive procedures under subsection (a)(1)(C) may not be delegated. 
(c) EXCEPTIONS.—The same exceptions as are provided in section 
3304(e)(4) of title 41 or section 2304(f)(2) of title 10 shall apply with re-
spect to the requirements of subsection (a)(1) of this section in the same 
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manner as those exceptions apply to the requirements of section 3304(e)(1) 
of title 41 or section 2304(f)(1) of title 10, as appropriate. 
§ 247102. Limited applicability to Tennessee Valley Author-
ity 
This chapter applies to the Tennessee Valley Authority only with respect 
to procurements to be paid from appropriated funds. 
Division H—Contract Reservation 
Programs 
Chapter 251—General Provisions 
Sec. 
251101.
Awards of contracts to small business concerns. 
251102.
Placement of contracts by procuring agency. 
251103.
Disabled individuals. 
251104.
Priorities and preferences. 
251105.
Procurement strategies; contract bundling. 
251106.
Goals for participation by small business concerns in procurement contracts. 
251107.
No effect on certain small business setasides. 
251108.
Mandatory contract reservation. 
251109.
Offices of Small and Disadvantaged Business Utilization. 
251110.
Procurement center representatives. 
251111.
Department of Defense, Coast Guard, and National Aeronautics and Space Adminis-
tration contract goals. 
251112.
Actions by procurement center representatives to ensure compliance. 
251113.
Limitations on subcontracting. 
251114.
Multiple award contracts. 
251115.
Data quality improvement plan. 
251116.
Post-award compliance resources. 
251117.
Regulatory changes and training materials. 
§ 251101. Awards of contracts to small business concerns 
(a) SMALL BUSINESS PROCUREMENTS.— 
(1) IN GENERAL.—For purposes of this subtitle and subtitle I of this 
title, small business concerns shall receive any award or contract if 
such award or contract is, in the determination of the Administrator 
and the contracting agency, in the interest of— 
(A) maintaining or mobilizing the full productive capacity of the 
United States; 
(B) war or national defense programs; or 
(C) assuring that a fair proportion of the total purchase and 
contracts for goods and services of the Government in each indus-
try category (as defined under paragraph (2)) are awarded to 
small business concerns. 
(2) DEFINITION OF INDUSTRY CATEGORY.— 
(A) IN GENERAL.—In this subsection, the term ‘‘industry cat-
egory’’ means a discrete group of similar goods and services, as 
determined by the Administrator in accordance with the North 
American Industry Classification System codes used to establish 
small business size standards, except that the Administrator shall 
limit an industry category to a greater extent than provided under 
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the North American Industry Classification System codes if the 
Administrator receives evidence indicating that further segmenta-
tion of the industry category is warranted— 
(i) due to special capital equipment needs; 
(ii) due to special labor requirements; 
(iii) due to special geographic requirements, except as pro-
vided in subparagraph (B); 
(iv) due to unique Federal buying patterns or require-
ments; or 
(v) to recognize a new industry. 
(B) EXCEPTION FOR GEOGRAPHIC REQUIREMENTS.—The Ad-
ministrator may not further segment an industry category based 
on geographic requirements unless— 
(i) the Government typically designates the geographic area 
where work for contracts for goods or services is to be per-
formed; 
(ii) Government purchases comprise the major portion of 
the entire domestic market for such goods or services; and 
(iii) it is unreasonable to expect competition from business 
concerns located outside of the general geographic area due 
to the fixed location of facilities, high mobilization costs, or 
similar economic factors. 
(3) DETERMINATIONS WITH RESPECT TO AWARDS OR CONTRACTS.— 
Determinations made pursuant to paragraph (1) may be made for indi-
vidual awards or contracts, any part of an award or contract or task 
order, or for classes of awards or contracts or task orders. 
(4) INCREASING PRIME CONTRACTING OPPORTUNITIES FOR SMALL 
BUSINESS CONCERNS.— 
(A) DESCRIPTION OF COVERED PROPOSED PROCUREMENTS.— 
The requirements of this paragraph shall apply to a proposed pro-
curement that includes in its statement of work goods or services 
currently being supplied or performed by a small business concern 
and, as determined by the Administrator— 
(i) is in a quantity or of an estimated dollar value which 
makes the participation of a small business concern as a 
prime contractor unlikely; 
(ii) in the case of a proposed procurement for construction, 
seeks to bundle or consolidate discrete construction projects; 
or 
(iii) is a solicitation that involves an unnecessary or un-
justified bundling of contract requirements. 
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(B) NOTICE TO PROCUREMENT CENTER REPRESENTATIVES.— 
With respect to proposed procurements described in subparagraph 
(A), at least 30 days before issuing a solicitation and concurrent 
with other processing steps required before issuing the solicitation, 
the contracting agency shall provide a copy of the proposed pro-
curement to the procurement center representative of the con-
tracting agency (as described in section 251110 of this title) along 
with a statement explaining— 
(i) why the proposed procurement cannot be divided into 
reasonably small lots (not less than economic production 
runs) to permit offers on quantities less than the total re-
quirement; 
(ii) why delivery schedules cannot be established on a real-
istic basis that will encourage the participation of small busi-
ness concerns in a manner consistent with the actual require-
ments of the Government; 
(iii) why the proposed procurement cannot be offered to in-
crease the likelihood of the participation of small business 
concerns; 
(iv) in the case of a proposed procurement for construction, 
why the proposed procurement cannot be offered as separate 
discrete projects; or 
(v) why the contracting agency has determined that the 
bundling of contract requirements is necessary and justified. 
(C) ALTERNATIVES TO INCREASE PRIME CONTRACTING OPPOR-
TUNITIES FOR SMALL BUSINESS CONCERNS.—If the procurement 
center representative believes that the proposed procurement will 
make the participation of small business concerns as prime con-
tractors unlikely, the procurement center representative, within 15 
days after receiving the statement described in subparagraph (B), 
shall recommend to the contracting agency alternative procure-
ment methods for increasing prime contracting opportunities for 
small business concerns. 
(D) FAILURE TO AGREE ON AN ALTERNATIVE PROCUREMENT 
METHOD.—If the procurement center representative and the con-
tracting agency fail to agree on an alternative procurement meth-
od, the Administrator shall submit the matter to the head of the 
appropriate department or agency for a determination. 
(5) CONTRACTS FOR SALE OF GOVERNMENT PROPERTY.—With re-
spect to a contract for the sale of Government property, small business 
concerns shall receive any such contract if, in the determination of the 
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