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Office of Small and Disadvantaged Business Utilization

Small Business Program Policy Manual

Small Business Review of Contract Actions

The purpose of this chapter is to provide a basic understanding of the small business program policy and procedure for purchases that exceed the Simplified Acquisition Threshold (Federal Acquisition Regulations Part 2.101).

A. HHS Small Business Specialist Review

The Contracting Officer (CO) shall complete and submit a U.S. Department of Health and Human Services (HHS) HHS Review Form 653 (Form 653) for all acquisitions which exceed the Simplified Acquisition Threshold (SAT) for the HHS Small Business Specialist (SBS) and Small Business Administration (SBA) Procurement Center Representative (PCR) review. In addition, a complete Request for Quote (RFQ) or Request for Contract Proposal (RFP) package will be submitted as support documentation. The package must include:

A Statement of Work or Statement of Objectives;
Evaluation Criteria;
Government Cost Estimate;
Market Research conducted within the past 12 months; and
A brief justification for other than small business consideration that might be applicable to the subject acquisition plan.

The SBS, CO and technical personnel will determine the appropriate market research and supporting documentation during the acquisition planning phase in accordance with FAR 7.102 and FAR Part 10.

If the SBS is not included in the acquisition planning process, the SBS may recommend that the procurement be set-aside for one of the Small Business programs upon receipt of the HHS Form 653 and supporting documentation. In all unrestricted requirements, the SBS and PCR review must be conducted and the CO must receive concurrence prior to posting an announcement or solicitation on a Government Point of Entry (GPE), such as the FedBizOpps website

Upon receipt of the Form 653 and documentation, a small business tracking number will be assigned to the procurement.

At the conclusion of the review, the CO will receive a copy of the Form 653 with the small business tracking number and the SBS’ signature. In some instances, the PCR may not be available for to provide a signature. However, SBA reserves the right to review the documentation at a later date.

B. Small Business Administration Procurement Center Representation Review

In order to conduct an effective review, the Small Business Administration (SBA) Procurement Center Representative (PCR) may also meet with CO and/or technical personnel. Small business sources may be provided by the PCR and shall be included on the solicitation notification list.

If the CO rejects the SBS’ decision, written notice shall be furnished to the Director, Office of Small Disadvantaged Business Utilization (OSDBU) within five (5) business days. If the CO rejects the PCR’s decision, written notice shall be forwarded within five (5) business days through the SBS or OSDBU to the PCR.

The PCR may appeal the CO’s rejection to the Operating Division (OPDIV) Head Contracting Activity (HCA) within two (2) business days. The HCA shall provide a decision within seven (7) business days in accordance with FAR 19.505.

C. Strategic Sourcing

The CO shall complete and submit a Form 653 for the SBS review when considering Strategic Sourcing vendors that are not small business concerns

D. Subcontracting Plan Review

In accordance with FAR 19.7, the CO shall develop a proposed subcontracting plan for negotiated contracts which exceed the $550,000 ($1,000,000 for construction) and submit for the HHS SBS and SBA PCR review prior to the issuance of an award. The CO should allow at least five business days for the SBS response. At that time, the SBS will indicate their concurrence and provide a status of the SBA PCR response.

When issuing an award to large prime contractor, the terms and conditions of the award will include information on the submission of the contractor’s bi-annual Individual Subcontracting Reports (ISR) and annual Summary Subcontracting Report (SSR) (formerly SF 294 and SF 295, respectively) through the Electronic Subcontracting Reporting System (eSRS) (FAR 19.7). Small business concerns are not required to submit a subcontracting plan. Currently, the HHS Agency Coordinator accepts all SSRs and the CO accepts ISRs. Please log onto https://esrs.symplicity.com/index?_tab=signin&cck=1 to learn more about the eSRS.

E. Federal Supply Schedules

According to the Office of Management Budget (OMB), FAR Part 8.404 and 8.505 are exempt from “certain mandatory small business programs” (OMB memorandum dated January 16, 2008). It is the policy of HHS to encourage COs to consider small business concerns when procuring services and products through the General Services Administration (GSA) schedules. If the CO’s proposes to acquire services or products through GSA schedules, the requirement will be considered full and open and reviewed by the SBS as such. The CO shall complete and submit a Form 653 and supporting documentation for the SBS review.

Last Revised: June 2, 2008

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