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What are the implications for a small business that is a schedule holder?


Perhaps the question should read: How can a small MBE compete against all the other schedule holders for task orders?

The answer lies in what the rules will allow, and how Federal contracting officers have used them to award task orders to small schedule holders. All Federal OSDBUs strongly support the continued use of schedules for making task order awards to small businesses. FAR Part 8.4 governs the use of schedules, and states that small business rules do not apply to orders placed against FSS schedules. This is because orders placed against GSA schedules are considered to be issued using full and open competition. The rule also states that ordering offices need not consider small business programs.

However, this language does not hinder small business participation in FSS purchases. To the contrary, the rule also provides clear guidance for planning acquisitions in such a way as to maximize small business participation in FSS purchasing. The FAR states that, to ensure that an element of competition is inherent in FSS ordering, agencies should review the catalogs or pricelists of at least three schedule contractors. Therefore, agencies may issue requests for proposals from a limited number of potential offerors whose published FSS schedule information indicates their ability to fill the requirement at a reasonable price. Nothing precludes an agency from limiting the source list to three or more small businesses (or a specific category of small businesses).

In fact, the FAR states that “When conducting evaluations and before placing an order, consider including, if available, one or more small, women-owned small, and/or small disadvantaged business schedule contractor(s).” When read together, these rules authorize any agency to limit the pool of potential offerors on requirements to be filled through FSS schedules to small FSS contract holders. Additionally, orders placed against the schedules may be credited toward the ordering agency's small business goals. And the FAR states that, for orders exceeding the micro-purchase threshold, ordering offices should give preference to the items of small business concerns when two or more items at the same delivered price will satisfy the requirement.





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