Department of the Interior Acquisition Policy Release (DIAPR) 2008-02

SUBJECT: Small Business Competitiveness Demonstration Program

Reference: Federal Acquisition Regulation Part 19

1. Purpose:

This DIAPR provides updated guidance regarding the Small Business Competitiveness Demonstration Program (SBCDP). This policy release also supersedes DIAPR 2007-07.

2. Effective Date:

Effective upon issuance. The instructions contained in this release are applicable to solicitations issued after receipt of this document.

3. Expiration Date:

No expiration unless superseded or canceled.

4. Background and Explanation:

Title VII of the Business Opportunity Development Reform Act of 1988, as amended (Public Law 100-656), established the SBCDP to allow testing of specified innovative procurement methods and procedures from January 1, 1989 through December 31, 1997. The Small Business Reauthorization Act of 1997, Public Law 105-135, established the program on a permanent basis. Section 821 of the Ronald W. Reagan National Defense Authorization Act for Fiscal Year 2005, Public Law 108-375, amended Section 717 of the SBCDP Act of 1988 (15 U.S.C. 644 note). The program is implemented in FAR Subpart 19.10.

Participating agencies are required to monitor attainment of their small business participation goals and make adjustments in set-aside policy on an annual basis. The current goals for designated industry groups (DIGs) are as follows:

Designated Industry Groups/Codes	Small Business Goal	Emerging Small Business Goal
Construction under NAICAS 23****	40%	15%
Architect-Engineer (A-E) services (including surveying and mapping) under NAICS codes 541310, 541330, 541360, or 541370.	40%	15%
Refuse systems and related services under NAICS Codes 562111, 562119, and 562219	40%	15%
336611 – Non-nuclear Ship Repair	40%	15%
561710 - Exterminating and Pest Control Services	40%	15%
561730 - Landscaping Services	40%	15%

Accordingly, the Department has analyzed procurement activity for Fiscal Year 2007. Changes in set-aside policy are implemented based on attainment of 40% for each group and 35% for NAICS. The FY 2007 report for the Department (see Attachment 1) shows that the dollar value of awards to small businesses in the designated industry groups were as follows:

a. DOI met the 40 percent goal for Construction, but did not meet the 35% goal for NAICS 234910, 236115, 237210 and 238130.

b. DOI did not achieve the 40% goal for A&E Services and did not meet the 35% goal for NAICS 541330.

c. DOI did not meet the 40% goal in Non-Nuclear Ship Repair NAICS 336611.

d. DOI exceeded the 40% goal in Refuse Systems and Related Services and exceeded the 35% for the individual NAICS 562111, 562119, 562219.

e. DOI exceeded the 40% goal in the Pest Control and Landscaping services and exceeded the 35% goal for the individual NAICS 561710 and 561730.

5. Action Required:

All bureaus and offices shall adjust their small business set-aside policy as follows:

Catagory/Code	Set-aside Ajustment
Construction All construction NAICS Codes except 234910, 236115, 237210 and 238130.	Use full and open competition and other methods except for small business set-asides. Use small business set-asides where possible and prudent.
A-E Services	Use small business set-asides where possible and prudent.
Non-nuclear Ship Repair	Use small business set-asides where possible and prudent.
Refuse Systems	Use full and open competition and other methods except for small business set-asides
Landscaping and Pest control	Use full and open competition and other methods except for small business set-asides

When set-asides are not permitted, the use of full and open competition applies to all DIG procurements estimated to exceed the Reserve Amount for Emerging Small Businesses. Reserve Amounts are $50,000 for A-E services and $30,000 for the other DIGs. However, bureaus are authorized and encouraged to use the 8(a), HUBZone, and service-disabled veteran-owned business programs as an exception and alternative to full and open competition in this mode. (See FAR 19.1007(b)(2)).

6. Additional Information:

Please contact Gary Wadde, Office of Small and Disadvantaged Business Utilization on (202) 208-3493 if you should have any questions regarding the SBCDP.