Ms. Debbie Ridgely, Director Office of Small and Disadvantaged Business Utilization Department of Health and Human Services Dear Entrepreneur, Thank you for your interest in the acquisition opportunities at the Department of Health and Human Services (HHS). This information package has been developed to assist you in your marketing efforts. The Office of Small and Disadvantaged Business Utilization (OSDBU) is fully dedicated to supporting every small business entity (which includes: minority, women-owned, veteran-owned, service-disabled veteran-owned and HUBZone companies), in their pursuit of health-related contracts. The OSDBU believes that the success of the Small Business Program depends on a solid partnership between every stakeholder in the acquisition process. Internally, the Program Official, the Contracting Officer and the Small Business Specialist must work together to balance the mission needs with the socioeconomic goal achievement. Externally, we must collectively reach out to the vendor community and build a relationship of mutual trust. Early acquisition planning is key, information exchange is essential but reaching consensus on the strategy is paramount. A Procurement Forecast is posted on our web site on October 1st. of each fiscal year.  It outlines all of the potential contracting opportunities over $100,000. The forecast is an excellent tool that will familiarize you with the types of products and services the department buys. The forecast is located on our web site: www.hhs.gov/osdbu.  The marketing package also includes specific points of contact, such as:  the OSDBU office personnel, the Small Business Specialists, Simplified Acquisition contacts and the SBA Procurement Center Representative.   The HHS OSDBU office encourages you to stay in touch, stay engaged and continue to move forward.    Together, we will make a difference! Sincerely, Debbie Ridgely, Director Office of Small and Disadvantaged Business Utilization "Small Business. . .The Heart of our Economy"

INTRODUCTION

THE DEPARTMENT OF HEALTH AND HUMAN SERVICES is the United States government's principal agency for protecting the health of all Americans and providing essential human services, especially for those who are least able to help themselves.

THE DEPARTMENT INCLUDES MORE THAN 300 PROGRAMS, covering a wide spectrum of activities. Some highlights include:

Medical and social science research

• Preventing outbreak of infectious disease, including immunization services

Assuring food and drug safety

• Medicare (health insurance for elderly and disabled Americans) and Medicaid (health insurance for low-income people)
• Financial assistance and services for low-income families
• Improving maternal and infant health
• Head Start (pre-school education and services)
• Preventing child abuse and domestic violence
• Substance abuse treatment and prevention
• Services for older Americans, including home-delivered meals
• Comprehensive health services for Native Americans

HHS IS THE LARGEST GRANT-MAKING AGENCY in the federal government, providing some 60,000 grants per year. HHS' Medicare program is the nation's largest health insurer, handling more than 900 million claims per year.

HHS WORKS CLOSELY WITH STATE, LOCAL AND TRIBAL GOVERNMENTS, and many HHS-funded services are provided at the local level by state, county or tribal agencies, or through private sector grantees. The Department's programs are administered by 11 HHS operating divisions, including eight agencies in the U.S. Public Health Service and three human services agencies. In addition to the services they deliver, the HHS programs provide for equitable treatment of beneficiaries nationwide, and they enable the collection of national health and other data.

* HHS Budget, FY 2008 -- $698 billion
* HHS employees' -- 65,500

Leadership is provided by the Office of the Secretary, and administrative support is provided by the Program Support Center, a self-supporting operating component of HHS. The Department's Headquarters is in the Hubert H. Humphrey Building, 200 Independence Avenue SW, Washington, D.C., 20201. HHS has a long history.

To View DHHS' Organizational Chart (Click Here)

Office of Small and Disadvantaged Business Utilization
(OSDBU)

Small Business. . .The Heart of Our Economy

Background

The Office of Small and Disadvantaged Business Utilization (OSDBU) was established in October 1979 pursuant to Public Law 95-507, an amendment to the Small Business Act and the Small Business Investment Act of 1958.

HHS' Small and Disadvantaged Business Program is designed to ensure that small businesses (including disadvantaged, veteran-owned and service-disabled veteran-owned, HUBZone, and women-owned businesses) have an equitable opportunity to participate in HHS' procurement programs and that they receive a fair share of resulting contract awards.  The status of a business entity as "small" is determined by criteria established for each industry by the Small Business Administration (SBA) size standards as published in the regulation of the SBA (Title 13, CFR Part 121).

HHS has a "Memorandum of Understanding" with SBA pledging to work together to increase the participation of women-owned small business (WOSB) in prime and subcontracting opportunities at HHS. In addition, OSDBU has an "8(a) Partnership Agreement" with SBA to support the 8(a) Business Development Program.

HHS works closely with the following economically and socially disadvantaged businesses to access government procurements: African Americans, Hispanic Americans, Native Americans (American Indians, Eskimos, Alutes or Native Hawaiians) Asian Pacific Americans (persons with origin from Japan, China, the Philippines, Vietnam, Korea, Samoa, Guam, U.S. Trust Territory of the Pacific Islands, Northern Mariana Islands, Laos, Cambodia, or Taiwan); Asian Indian Americans (persons with origins from India, Pakistan or Bangladesh); and members of other groups designated from time to time by SBA, under 13 CFR 124.105(d).

Key Contacts

To assist small businesses in their marketing efforts we have provided a list of the OSDBU staff with their key program areas. We suggest you contact the appropriate person by telephone or e-mail.

OSDBU's Mailing Address:
Office of Small & Disadvantaged Business Utilization
200 Independence Avenue, S. W.
Room 360G - Hubert H. Humphrey Building
Washington, D.C. 20201
Telephone Number: 202-690-7300
Fax: 202-260-4872

OSDBU Headquarter Staff

Debbie Ridgely
Director, Office of Small & Disadvantaged Business Utilization
Telephone Number: 202-690-7300
E-mail Address: debbie.ridgely@hhs.gov

Clarence Randall
Senior Advisor
Telephone Number: 202-690-8544
E-mail: Clarence.Randall@hhs.gov

Teneshia G. Alston
Senior Small Business Analyst
Telephone Number: 202-205-4919
E-mail: Teneshia.Alston@hhs.gov

Gaynel Abadie
Small Business Specialist
    Supporting OS/BARDA
Telephone Number: 202-690-6286
E-mail: Gaynel.abadie@hhs.gov

Linda M. Purnell
Program Analyst
Telephone Number: 202-690-7302
E-mail: linda.purnell@hhs.gov

Ruth E. Lewis
Program Assistant
Telephone Number: 202-690-7301
E-mail: ruth.lewis@hhs.gov

OSDBU Mission and Lines of Business

The mission of HHS' OSDBU is to "The Heart of our Economy". Our mission refers to "health" in the literal sense and it also refers to the economic "health" of our country. Small business is the backbone of our economy. To accomplish its mission, the OSDBU office has organized its responsibilities, programs and activities under three lines of business: Advocacy, Outreach, and Unification of the Business Process. The results achieved under all three lines of business support the accomplishment of the HHS' Strategic goal - to encourage and assist the participation of all small businesses in HHS contracts and grants.

Advocacy

OSDBU's advocacy role includes a wide range of responsibilities and programs that are directed at ensuring that all small businesses participate in the Department's direct procurement and Federal financial assistance programs. OSDBU is committed to ensuring that all small businesses, have an equitable opportunity to participate in DHHS' procurement programs, and that they actually receive and fair share of the resulting contract awards.

Programs and initiatives under the advocacy role include: implementing and monitoring HHS' goals for small, disadvantaged, women-owned, HUBZone, veteran-owned, and service-disabled veteran-owned small businesses under the Procurement Preference Goals Program. We strongly support the role of small business at the subcontracting level by monitoring goal achievement of the prime contractor. OSDBU reviews and comments on proposed legislation and implements small business policy. We assist firms on Prompt Payment Act requirements and mediate and resolve sensitive acquisition issues.

Outreach

Outreach is a key component to the success of the Small Business Program. Outreach is conducted externally with the vendor community but is also conducted internally to keep every stakeholder in the acquisition process informed and cognizant of small business issues. External outreach efforts include activities such as sponsoring Departmental small business procurement conferences, Agency's networking sessions, workshops and seminars, as well as participating in trade group seminars, conventions, and other forums, which promote the utilization of small and disadvantaged businesses as contractors. Internal Outreach is conducted through quarterly meetings and training sessions with the Acquisition and the Program Offices.

Vendor Outreach Sessions -  The Department hosts bi-monthly Vendor Outreach Sessions to educate vendors on the Department's preferential procurement programs and provide information on how to effectively market their products and services. These sessions provide vendors an opportunity to meet one-on-one with the Department's Small Business Specialists representing each of the operating divisions. The sessions are free for all vendors, and are held the second Tuesday of each month from 9:00 A.M. - 12:00 noon. Vendors may register for these sessions by visiting OSDBU website at www.hhs.gov/osdbu.   

Unification of the Business Process

HHS Small Business Specialists

The Department is comprised of ten (10) operating divisions, plus a fee-for-service organization, each of which have specialized missions, formulate their own acquisition needs, and make purchases through their own contracting offices. In addition, most divisions have a Small Business Specialist who serves as the central point of contact for the dissemination of program and procurement information.

General Contracting Information

Regulations and Directives Governing HHS' Acquisitions

HHS' contracting activities are governed by the following regulations and procedures:

The Federal Acquisition Regulation (FAR). The FAR is codified as Chapter 1 of Title 48 Code of Federal Regulation. The FAR implements various statutes and regulations and other directives such as OMB circulars pertaining to Federal acquisitions. The FAR is accessible at http://www.arnet.gov/far.

The Health and Human Services Acquisition Regulations (HHSAR)

Federal Business Opportunities (FedBizOpps) - (formerly known as the Electronic Posting System [EPS]) is a web-based system for posting solicitations and other procurement-related documents to the Internet. FedBizOpps was designated by the Federal Acquisition Regulation as the mandatory "Government wide Point of Entry, (GPE)", effective October 1, 2001, for posting of government business opportunities greater than $25,000, including synopses of proposed contract actions, solicitations, and associated information, and subcontracting opportunity notices.

FedBizOpps allow contract specialists to post synopses and other procurement documents, such as solicitations, amendments, and award notifications to a common index. This index, accessible on http://www.eps.gov allows vendors to search databases containing information from many federal agencies. Vendors may also subscribe to FedBizOpps to receive daily e-mail notifications of requirements sorted by selected organizations and product service classifications, or by solicitation number. HHS welcomes inquiries and discussions with appropriate company representatives. Inquiries of a general nature should be addressed to the Small Business Mailbox located at the following website: http://www.hhs.gov/osdbu. 

Contracting Opportunities Information

While HHS contracting opportunities over $25,000.00 are advertised in FedBizOpps prior to solicitation, prospective contractors are encouraged to develop a general awareness of HHS' program and acquisition requirements. The Department produces an annual Procurement Forecast, which announces anticipated contracting opportunities for that fiscal year. The Procurement Forecast is available via the Internet at the OSDBU Website http://www.hhs.gov/osdbu.   FedBizOpps can be accessed at www.fedbizopps.gov

PRO-Net Procurement Marketing and Access Network

Pro-Net is an electronic gateway of procurement information -- for and about small businesses -- provided by the Small Business Administration. It is a search engine for contracting officers, a marketing tool for small firms and a "link" to procurement opportunities and important information. It is designed to be a "virtual" one-stop-procurement marketing and small business access network.

A Search Engine

Pro-Net is an Internet-based database of information on small, disadvantaged, 8(a), HUBZone, service-disabled, and women-owned businesses. It is free to federal and state government agencies as well as prime and other contractors seeking small business contractors, subcontractors and/or partnership opportunities. Pro-Net is open to all small firms seeking federal, state and private contracts.

Businesses profiled on the Pro-Net system can be searched by the North American Industry Classification System (NAICS); key words; location; quality certifications; business type; ownership race and gender; Electronic Data Interchange (EDI) capability, etc.

A Marketing Tool

Business profiles in the Pro-Net system include data from SBA's files and other available databases, moreover additional business and marketing information on individual firms. Businesses in the system are responsible for updating their profiles and keeping information current.

Profiles are structured like executive business summaries, with specific data search fields that are user-friendly and designed to meet the needs of contracting officers and other potential users.

It is extremely important that businesses update their ProNet information on a routine basis. When contracting officers or other users conduct routine searches in ProNet, only firms that have updated their data within the last 18 months show up unless the person conducting the search specifies otherwise. Increasingly, the electronic information (e-mail and web addresses) is a primary means of contact. Companies with "home-pages" can link their web site to their Pro-Net profile. In addition, current past performance information plays an important role in marketing your business.

A Link to Procurement Opportunities

The Pro-Net project is a cooperative effort among SBA's offices of Government Contracting, Minority Enterprise Development, Advocacy, Women's Business Ownership, Field Operations, Marketing & Customer Service, the Chief Information Officer, and the National Women's Business Council.

Pro-Net can be accessed at: http://pro-net.sba.gov/

Central Contractor Registration (CCR) System

As of October 1, 2003, all contractors doing business with the Federal Government must be registered in the Central Contractor Registration (CCR) System in order to be paid. The CCR program is located at http://www.ccr.com

All HHS contracts must contain (FAR) 48 CFR 52.232-33, Payment by Electronic Funds Transfer-Central Contractor Registration. This means contractors receiving payments under HHS contracts, purchase orders, delivery orders, or other contractual vehicles must be registered in the CCR. The EFT information in the CCR must be accurate in order for contractors' invoices or contract financing requests to be considered proper invoices for the purpose of prompt payment under HHS contracts.

There are several ways to register in CCR:

• Via the CCR website: www.ccr2003.gov   
• Using Value Added Network (VAN) by sending ANSI X 12838 EDI Transaction through VAN provider.
• By submitting a hard copy registration via mail or fax: Department of Defense Central Contractor Registration, 74 Washington Ave N, Suite 7, Battle Creek, MI 49017-3084, Fax (616) 961-7243

Current and prospective contractors must register in the CCR. By registering, the paperwork burden imposed by (FAR)48 CFR 52.232-34 and (FAR) 48 CFR 52.232-35 will no longer exist. In lieu thereof, contractors will update their EFT information electronically through the CCR.

HHS' Senior Procurement Executive
(Reference FAR Subpart 2.1)

The HHS Senior Procurement Executive (SPE) carries out those acquisition related authorities and functions assigned to the "head of the agency" or "agency head" in the FAR, with the authority to redelegate and authorize successive redelegations of those duties, except as prescribed by the Secretary of Health and Human Services, or specifically limited by statute, Executive Order, or regulation. The SPE includes these delegations in the FAR and HHSAR, as appropriate.

The HHS Senior Procurement Executive is:

Mr. Martin Brown
Deputy Assistant Secretary, Office of Acquisition Management and Policy
200 Independence Avenue, S.W.
Room 328E, HHH Building
Washington, D. C. 20201
Telephone: 202-690-8554

Federal Supply Schedule
(Reference FAR Subpart 8.4)

Prior to initiating acquisitions from commercial sources, the Contracting Officer must determine whether or not the required supplies or services are available from a Federal Supply Schedule established by the General Services Administration (GSA) or as a common stock item at a GSA supply depot. The GSA negotiates the contract with the vendors and vendor products, services pricing and terms and conditions are made available in the Schedule.

The GSA Schedule is available to all Government agencies to use as a procurement vehicle. This can result in a streamlined procurement process for both vendors and government agencies because instead of negotiating individual contracts with various agencies, vendors can negotiate a contract to get on the GSA Schedule and then the vendors can market the contract as a procurement tool for all government agencies. Over the years, the GSA Schedule contract has become a very important contractual vehicle for Government procurement, bringing thousands of Federal customers and vendors together. Products and services can also be purchased electronically through GSA Advantage website located at: http://www.gsaadvantage.gov, which is GSA's online shopping and ordering system. Government credit cards may be used to procure through the GSA Schedule.

The GSA awards three types of contracts: Single Award Schedule (SAS), Multiple Award Schedule (MAS) and the Maintenance and Repair Schedule. The following is a brief description of each:

• Single Award Schedule (SAS): One supplier. Items manufactured under Federal Military Specifications or Commercial Item Specific Geographic area. Awarded as a result of Sealed bidding.
• Multiple Award Schedule (MAS):Multiple suppliers. No guarantee of sales. Indefinite delivery indefinite quantity (IDIQ contract). Major contractual vehicle for Government procurement. Based on discounts from Commercial Price Lists.
• Maintenance and Repair: Used for maintenance and repair of in-use property. Mandatory for all departments and independent establishments in the Executive Branch of the Government. Sealed bidding Small Business set aside unless exempt.

Firms interested in doing business as a Federal Supply Services contractor should contact the Washington, D.C. Area GSA Business Service Center at (202) 708-5804, (202) 501-1021 or at http://www.gsa.gov or http://www.fss.gsa.gov.

Sealed Bidding
(Reference FAR Part 14)

Sealed bidding is a method of contracting that employs competitive bids, public opening of bids, and awards. Each sealed bid includes technical specifications, delivery or completion dates, place and method of delivery, nature and number of reports or manuals, which may be required, operational tests and instructions, and other items, which should be considered in submitting a bid. The terms and conditions are set forth in detail as are the date, hour, and place where bids will be publicly opened and recorded. Contract clauses are generally incorporated by reference. Unless specifically authorized, a telegraphic or alternate bid will not be considered.

Negotiated Procurement
(Reference FAR Part 15)

Most HHS procurement dollars are spent under negotiated procedures. Compared to sealed bidding, negotiation is a more flexible procedure that includes the receipt of proposals from offerors, permits bargaining, and usually affords offerors an opportunity to revise their offers before award of a contract. Bargaining in the sense of discussion, persuasion, alteration of initial assumptions and positions, and give-and-take may apply to price, schedule, technical requirements, type of contract, or other terms of a proposed contract. The contracting officer's objective is to negotiate a contract of a type, and with a price, providing the contractor the greatest incentive for efficient and economical performance. The negotiation of a contract type, and a price, are related and should be considered together with the issues of risk and uncertainty to the contractor and the Government.

Unsolicited Proposals
(Reference FAR Subpart 15.6)

"Unsolicited proposal" means a written proposal for a new or innovative idea that is submitted to an agency on the initiative of the offeror for the purpose of obtaining a contract with the Government, and that is not in response to a request for proposals, Broad Agency Announcement, Small Business Innovation Research topic, Small Business Technology Transfer Research topic, Program Research and Development Announcement, or any other Government-initiated solicitation or program.

It is the policy of the Government to encourage the submission of new and innovative ideas in response to Broad Agency Announcements, Small Business Innovation Research topics, Small Business Technology Transfer Research topics, Program Research and Development Announcements, or any other Government-initiated solicitation or program. When the new and innovative ideas do not fall under topic areas publicized under those programs or techniques, the ideas may be submitted as unsolicited proposals to the Head of the Contracting Activity (HCA) within the respective operational division.

Architect and Engineering Services (A&E)
(Reference FAR Subpart 36.6)

"Architect-engineer services", as defined in 40 U.S.C. 541, means: (1) Professional services of an architectural or engineering nature, as defined by State law, if applicable, which are required to be performed or approved by a person licensed, registered, or certified to provide such services; (2) Professional services of an architectural or engineering nature performed by contract that are associated with research, planning, development, design, construction, alteration, or repair of real property; and (3) Such other professional services of an architectural or engineering nature, or incidental services, which members of the architectural and engineering professions (and individuals in their employ) may logically or justifiably perform, including studies, investigations, surveying and mapping, tests, evaluations, consultations, comprehensive planning, program management, conceptual designs, plans and specifications, value engineering, construction phase services, soils engineering, drawing reviews, preparation of operating and maintenance manuals, and other related services.

Architect-Engineer services are related to construction, alteration, or repair of buildings, bridges, roadways, or other kinds of structures and utility systems. The work may include master planning, engineering studies, preparation of plans and specifications, and supervision and inspection of construction work.

Contracting for A&E services is based on an evaluation of the qualifications of interested firms. The evaluation is performed by an A&E Evaluation Board, which selects a minimum of three firms for interview discussions with the Board. For some projects the firms selected for interviews may also be required to prepare written information pertaining to, among other things, relevant experience, technical approach, project schedule, and key personnel.

The Board recommends to the appropriate HHS official at least three firms, in order of preference, considered best qualified to perform the required work. Negotiations are conducted with the firm given first preference. If a mutually satisfactory contract cannot be agreed to, negotiations are then initiated with the firm given second preference on the list. Generally, this procedure continues until a contract has been negotiated.

HHS Architect-Engineering services are most frequently procured by the Program Support Center (PSC), National Institutes of Health and the Center for Disease Control . You may contact the cognizant Small Business Specialist for additional information on Architect-Engineering Services.

FedBizOpps announcements invite interested qualified firms to submit GSA Standard Form 254 "Architect-Engineering and Related Services Questionnaire," if one is not already on file, and GSA Standard Form 255, "Architect-Engineer Related Services for Specific Project," which provides detailed Information on a firm's qualifications for a particular project.

Small Business Innovation Research (SBIR) Program and Small Business Technology Transfer Research (STTR) Program

The SBIR Program was created to ensure that small businesses received a greater share of federal research and development awards. The "Small Business Research and Development Enhancement Act of 1992" requires the Department of Health and Human Services' and certain other Federal agencies to reserve a specified amount of their extramural research and development budgets for the STTR Program.

The National Institutes of Health releases two SBIR solicitations and one STTR solicitation each fiscal year. Under NIH's solicitations, you will also find research topics for the Agency for Healthcare Research and Quality (AHRQ), Centers for Disease Control and Prevention (CDC), and the Food and Drug Administration (FDA). For more information regarding small business funding opportunities, with this Department, visit our website at: http://grants.nih.gov/grants/funding/sbir.htm  To obtain a hard copy of NIH's SBIR solicitation, contact the following:

PHS SBIR/STTR Solicitation Office
13687 Baltimore Avenue
Laurel, MD 20707-5096
Telephone Number: 301-206-9385
Fax: 301-206-9722
Internet Address: a2y@cu.nih.gov

Also, this Department has two other agencies that may release an SBIR solicitation, every two or three fiscal years. They are, the Administration for Children and Families (ACF) and the Centers for Medicare and Medicaid Services (CMS). Contact for the SBIR Program Coordinators are listed below, for more information or questions you may have about the SBIR program.

JoAnne Goodnight, SBIR Coordinator
National Institutes of Health Office of Planning, Research and Evaluation
6705 Rockledge Drive
Rockledge II Building, Room 6186
Bethesda, MD 20892-7910
Telephone Number: 301-435-2688
Fax: 301-480-0146
E-mail Address: jg128w@nih.gov

Ms. Anne F. Bergan
Administration for Children and Families
370 L’Enfant Promenade, 7th Floor
Washington, DC 20447
p: 202-260-8515
F: 202-205-3598
Email: abergan@acf.hhs.gov

William Saunders
Office of Research, Development and Information
Centers for Medicare and Medicaid Services
1700 Security Boulevard
Baltimore, MD 21244-1850
Telephone Number: 410-786-6533
Fax: 410-786-6511
E-mail Address: WSaunder@cms.hhs.gov

Subcontracting Opportunities

Recognizing that small firms may not have the capability to perform as a prime contractor on certain large contracts, HHS promotes the involvement of small business at the subcontract level. Special contract clauses, which require the prime contractor to maximize small, and minority business subcontracting opportunities are included in large HHS prime contracts in accordance with Public Law 95-507. Small and disadvantaged business firms are encouraged to identify their capabilities to major prime contractors. Businesses are encouraged to view the Subcontracting section of the OSDBU website at: http://www.hhs.gov/osdbu.

Small Business Preferential Contracting Programs

Preferential contracting was first authorized by the Small Business Act of 1953, which set up SBA to aid and counsel small businesses and to ensure that small firms receive a fair share of Government contracts. Amendments such as Public Law 95-507 have significantly expanded and strengthened Federal Government contract and subcontract opportunities for small and disadvantaged businesses. The various regulations pertaining to programs provided under the Act, as amended, are generally found in FAR Part 19.

Small business firms, especially newly formed organizations, are encouraged to contact their nearest SBA office for assistance and to learn of the many programs and opportunities that are available to them. These include contracting and technical assistance as well as financial and management assistance. SBA has a very useful website that contains detailed information on the various programs and answers to some frequently asked questions, go to http://www.sba.gov   

Inquiries may also be addressed to: Small Business Administration, 409 Third Street S.W., Washington, D.C. 20416. You may contact them at (202) 205-6600 or by fax at (202) 205-6622. You may also contact the nearest field office of the SBA by referring to the blue pages in your local phone book or by calling SBA toll-free at (800) 827-5722.

The U.S. Government Purchasing and Sales Directory published by the SBA lists major Federal purchasing offices, including the military services, summarizing what they buy, and provides useful information on selling to the Government. This publication may be purchased from the Superintendent of Documents, Government Printing Office, Washington D.C. 20402, telephone number (202) 512-1800.

The following describes some of the tools available to implement such programs.

Simplified Acquisitions
(Reference FAR Subpart 13)

Agencies shall use simplified acquisition procedures to the maximum extent practicable for all purchases of supplies or services not exceeding the simplified acquisition threshold. This policy does not apply if it can be met using:

Required sources of supply under Part 8
Existing indefinite delivery/indefinite quantity contracts; or
Other established contracts.

Simplified Acquisition Procedures

Requirements that are anticipated not to exceed $100,000 (or $5 million for certain commercial items), can be purchased using simplified acquisition procedures under part 13 of the federal acquisition regulations. The purpose of this part is to prescribe simplified acquisition procedures in order to:

1. Reduce administrative costs;
2. Improve opportunities for small, small disadvantaged, and women owned business concerns to obtain a fair proportion of Government contracts;
3. Promote efficiency and economy in contracting; and
4. Avoid unnecessary burdens for agencies and contractors.

Generally simplified acquisition are automatically reserved for small businesses unless the contracting officer determines there is not a reasonable expectation of obtaining offers from two or more responsible small business concerns that are competitive in terms of market prices, quality, and delivery.

Each acquisition of supplies or services that has an anticipated dollar value exceeding $2,500 and not exceeding $100,000 is reserved exclusively for small business concerns and shall be set-aside. Contracting Officers shall not use simplified acquisition procedures to acquire supplies or services if the anticipated award will exceed the simplified acquisition threshold, or $5,000,000 including options, for acquisitions of commercial items using FAR Subpart 13.5.

Small Business Set-asides
(Reference FAR Subpart 19.501)

The purpose of small business set-asides is to award certain acquisitions exclusively to small business concerns. A "set-aside for small business" is the reserving of an acquisition exclusively for participation by small business concerns. A small business set-aside of a single acquisition or a class of acquisitions may be total or partial.

Requirements for Setting Aside Acquisitions
Reference FAR Subpart 19.502-1)

Contracting Officers shall set aside an individual acquisition or class of acquisitions when it is determined to be in the interest of:

1. maintaining or mobilizing the Nation's full productive capacity, war or national defense programs, or
2. assuring that the fair proportion of Government contracts in each industry category is placed with small business concerns, and when the circumstances described in FAR Subpart 19.502-2 or 19.502-3(a) exist. This requirement does not apply to purchases of $2,500 or less, or purchases from required sources of supply under FAR Part 8.

Total Set-Asides
(Reference FAR Subpart 19. 502-2)

With certain exemption, the contracting officer shall set-aside any acquisition exceeding the simplified acquisition threshold, for small business participation when there is an expectation that (1) offers will be from at least two responsible small business concerns offering the products of different small business concerns; and, (2) award will be made at fair market prices. This is known as the "Rule of Two".

The contracting officer shall review acquisitions to determine if they can be set aside for small business, giving consideration to the recommendations of agency personnel having cognizance of the agency's small business programs. All solicitations involving set-asides must specify the applicable small business size standard and NAICS code. Except as authorized by law, a contract may not be awarded as a result of a small business set-aside if the cost to the awarding agency exceeds the fair market price.

Partial Set-Asides
(Reference FAR Subpart 19.502-3)

The Contracting Officer shall set aside a portion of an acquisition, except for construction, for exclusive small business participation when:

• total set-aside is not appropriate
• the requirement can be severable into two or more economic production runs or reasonable lots
• one or more small business concerns are expected to have the technical competence and productive capacity to satisfy the set-aside portion of the requirement at a fair market price
• the acquisition is not subject to simplified acquisition procedures, and
• a partial set-aside shall not be made if there is reasonable expectation that only two concerns (one large and one small) with capability will respond with offers unless authorized by the head of a contracting activity on a case-by-case basis.

SBA Contracting Assistance Programs

8(a) Program
(Reference FAR Subpart 19.8)

Section 8(a) of the Small Business Act, as amended, authorizes SBA to contract for goods and services with Federal agencies. SBA then subcontracts actual performance of the work to socially and economically disadvantaged small businesses, which have been certified by SBA as eligible to receive these contracts. The major advantage of this program is that it allows the Government, to contract, on a noncompetitive basis, with socially and economically disadvantaged small businesses. SBA also offers managerial, technical, and financial support to participating firms.

HHS gives special emphasis to identifying procurement requirements for matching with the capabilities and potential of approved 8(a) firms. HHS has obtained special authority to negotiate directly with 8(a) firms on the behalf of the SBA under our Memorandum of Understanding.

You can learn more about the 8(a) program on the SBA web site at: http://www.sba.gov/8abd.

Small Disadvantaged Business Certification Program (SDB)
(Reference FAR Subpart 19.12)

The SDB Certification Program pertains specifically to federal procurement. When the SBA certifies a business as SDB qualified, and the firm is in one of 55 industrial classifications cited by the Department of Commerce as still suffering from the effects of discrimination, that business immediately becomes eligible for special bidding advantages. Moreover, they substantially increase their subcontracting opportunities with larger Prime Contractors who accumulate evaluation credits by 'subbing' out to qualified SDBs.

Small businesses interested in securing SDB certification may obtain an application and other information on-line at http://www.sba.gov/sdb

HUBZone Empowerment Contracting Program
(Reference FAR 19.13)

The HUBZone Empowerment Contracting program provides federal contracting opportunities for qualified small businesses located in distressed areas. This program was enacted into law as part of the Small Business Reauthorization Act of 1997 and is administered by the SBA. The program encourages economic development in historically underutilized business zones (HUBZones) and through the establishment of preferences.

SBA certifies firms for eligibility to receive HUBZone contracts and maintains a listing of qualified HUBZone small businesses that federal agencies can use to locate prospective vendors.

You can  learn more about the HUBZone program and apply electronically on the SBA web site at:  http://www.sba.gov/hubzone/.

To learn more about this program and to see a listing of the designated pilot areas, visit the SBA web site at http://www.sba.gov/GC/indexprograms-vsb.html.

Women-Owned Business Program

SBA's Women-Owned Business Program was designed to promote the growth of women-owned businesses through programs that:

1. address business training and technical assistance; and,
2. provide access to credit and capital, federal contracts, and international trade opportunities.

SBA's Office of Women's Business Ownership (WBO) is at the forefront of helping women start and build successful businesses. You can learn more about them on the SBA web site at http://www.sbaonline.sba.gov/womeninbusiness/.

HHS, through the Office of Small and Disadvantaged Business Utilization, identifies women-owned small businesses and their capabilities, provides this information to the contracting offices and encourages them to issue solicitations and obtain proposals from qualified women-owned firms.

Ms. Teneshia G. Alston serves as the HHS Women's Business Advocate. Ms. Alston serve as direct liaison to the women-owned business community and aggressively encourage each operating division's procurement office and program office to consider women-owned small businesses (WOSB) for all procurement opportunities. She will work to raise the visibility of women-owned business in day-to-day procurement activities and closely monitor their operating division's achievement of the women-owned goal.

Public Health Service Agencies

National Institutes of Health -- NIH is the world's premier medical research organization, supporting some 35,000 research projects nationwide in diseases like cancer, Alzheimer's, diabetes, arthritis, heart ailments and AIDS. The NIH includes 18 separate health institutes, the National Center for Complementary and Alternative Medicine and the National Library of Medicine. Established: 1887, as the Hygienic Laboratory, Staten Island, N.Y. Headquarters: Bethesda, Md.

Employees — 18,179
Director -- Elias Adam Zerhouni, M.D.
FY '07 Budget -- $29.2 billion

Food and Drug Administration -- FDA assures the safety of foods and cosmetics, and the safety and efficacy of pharmaceuticals, biological products and medical devices -- products that represent 25 cents out of every dollar in U.S. consumer spending. Established: 1906, when the Pure Food and Drug Act gave regulatory authority to the Bureau of Chemistry. Headquarters: Rockville, Md.

Employees -- 10,479
Commissioner — Andrew C. von Eschenbach, Ph.D.
FY '07 Budget -- $1.7 billion

Centers for Disease Control and Prevention -- Working with states and other partners, CDC provides a system of health surveillance to monitor and prevent disease outbreaks (including bioterrorism), implements disease prevention strategies, and maintains national health statistics. Provides for immunization services, workplace safety, and environmental disease prevention. Guards against international disease transmission, with personnel stationed in more than 25 foreign countries. Established: 1946, as the Communicable Disease Center. Headquarters: Atlanta, Ga.

Employees -- 8,668
Director -- Julie Louise Gerberding M.D., M.P.H.
FY '07 Budget -- $6.8 billion

The CDC director is also the administrator of the Agency for Toxic Substances and Disease Registry, which helps prevent exposure to hazardous substances from waste sites on the U.S. Environmental Protection Agency's National Priorities List, and develops toxicological profiles of chemicals found at these sites.

Indian Health Service -- Working with tribes, the IHS provides health services to nearly 1.5 million American Indians and Alaska Natives of 557 Federally recognized tribes. Annually there are about 69,000 hospital admissions and 7 million outpatient visits, 4 million community health representative client contacts, and 2.4 million dental services. Established: 1924 (mission transferred from the Interior Department in 1955). Headquarters: Rockville, MD.

Employees: 15,500
Director: Robert G. McSwain
FY '07 Budget: $3.5 billion

Health Resources and Services Administration -- HRSA provides access to essential health services for people who are poor, uninsured, or who live in rural and urban neighborhoods where health care is scarce. HRSA-funded health centers provide comprehensive primary and preventive medical care to more than 9 million patients each year at more than 3000 sites nationwide. Working in partnership with many state and community organizations, HRSA also supports programs that ensure healthy mothers and children, increase the number and diversity of health care professionals in undeserved communities, and provide supportive services for people fighting HIV/AIDS through the Ryan White Care Act. Established: 1982, bringing together several already-existing programs. Headquarters: Rockville, MD.

Employees -- 1,600
Administrator -- Elizabeth M. Duke, Ph.D.
FY '07 Budget -- $6.4 billion

Substance Abuse and Mental Health Services Administration -- SAMHSA works to improve the quality and availability of substance abuse prevention, addiction treatment and mental health services. Provides funding to the States to support and maintain substance abuse and mental health services through federal block grants. Targeted Capacity Expansion grants provide resources to address emerging drug abuse trends and mental health service needs and related public health problems, including HIV/AIDS, at the earliest possible stages. Funds hundreds of programs nationwide to increase the use and improve prevention and treatment methods shown by research to be effective through "Knowledge Development and Application" grants. Established: 1992. (predecessor agency, the Alcohol, Drug Abuse and Mental Health Administration, was established in 1974.) Headquarters: Rockville, MD.

Employees - 588
Administrator —Terry Cline, Ph.D.
FY '07 Budget -- $3.3 billion

Agency for Healthcare Research and Quality -- AHRQ supports research designed to improve the quality of health care, reduce its cost, improve patient safety, address medical errors, and broaden access to essential services. AHRQ provides evidence-based information on health care outcomes; quality; and cost, use, and access. Established: 1989. Headquarters: Rockville, Md.

Employees -- 294
Director -- Carolyn Clancy, M.D.
FY '07 Budget -- $309 million

Other HHS Agencies

Centers for Medicare & Medicaid Services -- CMS administers the Medicare and Medicaid programs, which provide health care to about one in every four Americans. Medicare provides health insurance for more than 41 million elderly and disabled Americans. Medicaid, a joint federal-state program, provides health coverage for more some 44 million low-income persons, including nearly 19 million children, as well as nursing home coverage for low-income elderly. The Children's Health Insurance Program covers more than 4.2 million children. Established: 1977, as the Health Care Financing Administration. Headquarters: Baltimore, Md.

Employees -- 4,661
Acting Administrator — Kerry N. Weems
FY '07 Budget -- $413 billion

Administration for Children and Families -- ACF is responsible for some 60 programs that promote the economic and social well being of families, children, individuals and communities. Administers the state-federal welfare program, Temporary Assistance for Needy Families, providing assistance to an estimated 5 million persons, including 4 million children. Administers national child support enforcement system, collecting some $20 billion in FY 2002 in payments from non-custodial parents. Administers the Head Start program, serving more than 900,000 pre-school children. Provides funds to assist low-income families in paying for childcare, and supports state programs to provide for foster care and adoption assistance. Funds programs to prevent child abuse and domestic violence. Established: 1991, bringing together several already-existing programs. Headquarters: Washington, D.C.

Employees -- 1,512
Acting Assistant Secretary for Children and Families — Daniel Schneider
FY '07 Budget -- $47.5 billion

Administration on Aging -- AoA supports a nationwide aging network, providing services to the elderly, especially to enable them to remain independent. Supports some 240 million meals for the elderly each year, including home-delivered "meals on wheels." Helps provide transportation and at-home services. Supports ombudsman services for elderly, and provides policy leadership on aging issues. Established: 1965. Headquarters: Washington, D.C.

Employees - 124
Assistant Secretary for Aging -- Josefina G. Carbonell
FY '07 Budget -- $1.4 billion

The U.S. Public Health Service Commissioned Corps is a uniformed service of more than 6,000 health professionals who serve in many HHS and other federal agencies. The Surgeon General is head of the Commissioned Corps.

Also included in the Department are the Office of Public Health and Science, the Office of the HHS Inspector General and the HHS Office for Civil Rights. In addition, the Program Support Center, a self-supporting division of the Department, provides administrative services for HHS and other federal agencies.

Departmental leadership is provided by the Office of the Secretary, including five staff divisions.

To contact the Department's Small Business Specialist, click here.

To see the Listing of Simplified Acquisition Contacts, click here.

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