Department of the Interior Acquisition Policy Release (DIAPR) 2004-01

SUBJECT: Small Business Competitiveness Demonstration PrOgram (SBCDP) Adjustment of Set-aside Policy

1. Purpose:

This policy release provides bureau and office contracting personnel with updated information regarding the SBCDP.

2. Effective Date:

The instructions contained in this release are applicable to solicitations issued on or after November 3,2003, and supersede previously issued changes in the Designated Industry Group (DIG) set-aside policy (see DIAPR 2002 - 03).

3. Expiration Date:

This policy release remains effective unless superseded or canceled.

4. Background and Explanation:

Current policy established by the Office of Federal Procurement Policy and the Small Business Administration (see DIAPR 2000-5 and Federal Acquisition Regulation Subpart 19.10) calls for participating agencies to monitor attainment of their small business participation goals and make adjustments in set-aside policy on an annual basis.

Accordingly, agencies must analyze procurement activity within their respective "Designated Industry Groups (DIG)" for the most recent complete fiscal year and implement changes in set-aside policy based on this analysis. For the Department of the Interior, the FY 2002 report (see Attachment 1) indicates that the dollar value of awards to small business segregated by North American Industry Classification System (NAICS) codes:

1. Fell below the 35 percent goal in construction NAICS code 233220;

2. Rose above the 35 percent goal in construction codes 234120 and 237310 (the old SIC code 1622);

3. Continued to exceed the 40 percent goal in the nonnuclear ship repair code (336611);

4. Fell below the 35 percent goal in architectural and engineering (A-E) services codes 541330 and 541360; and

5. Fell below the 40 percent goal in refuse systems code 562111.

5. Action Required:

A.Specific. Small business set-aside policy within the Department is adjusted as follows:

Category/Code	Set-aside Adjustment
Construction NAICS Code 233220	The National Park Service (NPS) will reinstate the use of small business set-asides where possible.
Construction Codes 234120 and 237310	The NPS will resume the use of full and open competition.**
A-E Services NAICS Code 541330	The NPS and the Fish and Wildlife Service (FWS) will reinstate the use of small business set-asides.
A-E Services Code 541360	The Bureau of Reclamation, the FWS, and the NPS will reinstate the use of set-asides where possible.
Refuse Systems NAICS Code 562111	The NPS will reinstate set-asides where possible.
Non-nuclear Ship Repair Code 336611	The NPS will resume the use of full and open competition.**

B.General. Where no instructions are specified above, bureaus and offices listed above shall use full and open competition exclusively for DIG procurements estimated to exceed the "Reserve Amount for Emerging Small Businesses."

Note: The Reserve Amounts are $50,000 for A-E services and $25,000 for the other DIGs.

Bureaus and offices other than those listed above shall use full and open competition** exclusively for all DIG procurements estimated to exceed the "Reserve Amount for Emerging Small Businesses."

For your ready reference, Attachment 2 provides a full description of PSCs affected by set-aside policy changes.

**In switching to the "full and open competition" mode, the use of small business set-asides is temporarily suspended (see FAR 19.1007(b)(1)). However, bureaus are authorized and encouraged to use the 8(a) and HUBZone programs as an exception and alternative to "full and open competition" in this mode (see FAR 19.1007(b)(2)).

Please contact Frank Gisondi, Office of Small and Disadvantaged Business Utilization ((202)208-4907), if you should have any questions regarding the SBCDP.

Debra E. Sonderman, Director Office of Acquisition and Property Management

Attachment 1

Attachment 2