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Office of Small and Disadvantaged Business UtilizationSmall Business Program Policy ManualSmall Business Review of Simplified Acquisition ActionsThe purpose of this chapter is to provide an understanding of the small business program policy and procedure for purchases that are below the Simplified Acquisition Threshold as defined in the Federal Acquisition Regulations Part 2.101. A. GENERAL The Contracting Official (CO) or Purchasing Agent (PA) (hereafter both referred to as PA) shall reserve requests for small business concerns for supplies or service that have an anticipated dollar value that exceed the micro purchase threshold, but does not exceed the simplified acquisition threshold, for small business concerns. Foreign purchases and purchases from required sources of supply (Federal Prison Industries, Committee for Purchase from People Who Are Blind or Severely Disabled, mandatory Federal Supply Schedule contracts, see FAR 13.003) are exempt from this requirement. B. ACTIONS BELOW THE MICRO-PURCHASE THRESHOLD In accordance with the FAR, a micro-purchase transaction is an acquisition of supplies or services (except construction) which does not exceed $3,000, except that in the case of construction subject to the Davis Bacon Act, the limit is $2,000. Micro-purchases may be awarded without competitive quotations if the PA determines the price fair and reasonable. The acquisition file must contain a brief justification which supports the PA’s determination. To the extent practicable, micro-purchases shall be distributed equitably among qualified suppliers. Further, it is the policy of the HHS to use small businesses to the maximum extent practicable for micro-purchases (FAR 13.003). The PA is not required to submit a U.S. Department of Health and Human Services (HHS) Review Form 653 (Form 653) and supporting documentation to the HHS Small Business Specialist (SBS) serving the Operating Division (OPDIV) for review of any action at or below the micro-purchase threshold. C. ACTIONS ABOVE THE MICRO-PURCHASE THRESHOLD AND BELOW 30,000 If the PA determines that there is not a reasonable expectation that quotations will be received from two or more responsible small business concerns that are competitive in terms of market price, quality and delivery, the PA shall complete a Form 653, document the file and proceed with the purchase on an unrestricted basis (FAR 13.106.1). The PA shall maintain the Form 653 and support documentation in accordance with the FAR 13.16-3(b), the National Archives, General Records Schedule and OPDIV records control schedules. In the event that the Small Business Administration (SBA) Procurement Center Representative (PCR) requests access to the acquisition file, the PA will submit the Form 653 and support documentation through its OPDIV SBS for review (FAR 19.501(f)).
Note: If the OPDIV HCA determine that the services or products are required to “support a contingency operation or to facilitate defense against or recovery from nuclear, biological, chemical, or radiological attack”, the threshold is $25,000 (FAR Part 13.201(g)(1).
D. ACTIONS WHICH EXCEED $30,000 AND BELOW THE SIMPLIFIED ACQUISITION THRESHOLD Purchases that exceed $30,000 and are below the SAT and are not set aside for small business concerns require the completion and submission of a Form 653 for the OPDIV SBS and SBA PCR review at least 30 days prior to the issuance of the solicitation (FAR 19.202). The Form 653 and following supporting documentation will be reviewed by the PCR in accordance with FAR 19.501(f):
The PA should consult the OPDIV SBS if there are questions concerning the supporting documentation. The PA will submit the Form 653 and supporting documentation at least 30 days prior to the issuance of a solicitation (FAR 19.202-1). The OPDIV SBS will provide a response within five business days as to whether the PCR requires additional information or additional time to complete the SBA the review. E. HHS STRATEGIC SOURCING BLANKET PURCHASE AGREEMENT (BPA) BELOW THE SIMPLIFIED ACQUISITION THRESHOLD The PA is not required to submit a Form 653 for the PCR and SBS review when considering small business concerns identified as HHS Strategic Sourcing BPA vendors below the SAT. The PA shall complete a Form 653 and supporting documentation for any Strategic Sourcing vendor that is not a small business and if the purchase exceeds $30,000. The completed Form 653 and supporting documentation must be forwarded to the OPDIV SBS for PCR review. F. FEDERAL SUPPLY SCHEDULES The OSDBU recognizes that according to the FAR small business guidelines addressed in FAR Part 19 are not applicable to schedule contracts; however, the FAR encourages small business consideration when using schedule contracts (FAR 8.405-5). Moreover, the FAR instructs the agency to justify its action when restricting consideration of other sources. Therefore, the PA must include the rationale for restricting competition to schedule contract sources. NOTE: The OPDIV may not receive credit towards it small business goal when using schedule contracts. Currently, the 8(a) Streamlined Technology Acquisition Resources for Services (STARS) Government-wide Acquisition Contract (GWAC) allows an agency to receive credit towards it 8(a) small business goal. G. COMPETITION AND MARKETING In accordance with FAR Part 10, the PA must conduct market research that is appropriate to the acquisition or circumstance. Typically, requirements below the SAT have a shorter processing period which does not allow time for extensive market research. For this reason, the OSDBU suggest that upon receipt of a requisition the PA quickly identify at least three sources to promote competition to the maximum extent practical (FAR 13.104 and 13.303-6). The PA may review the Contractor Central Registration (CCR), HHS and OPDIV Blanket Purchasing Agreement (BPA) Listing, HHS Strategic Sources and other approved departmental sources. The PA is encouraged to contact the OPDIV SBS for guidance or assistance when conducting market research. |
Last Revised: June 2, 2008
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