§ 19.502-3 - Partial set-asides of contracts other than multiple-award contracts.

19.502-3 Partial set-asides .

Cross Reference

Link to an amendment published at 85 FR 11761, Feb. 27, 2020.

of contracts other than multiple-award contracts.

(a) The contracting officer shall set aside a portion or portions of an acquisition, except for construction, for exclusive small business participation when -

(1) A Market research indicates that a total set-aside is not appropriate (see 19.502-2);

(2) The requirement is severable into two or more economic production runs or reasonable lotscan be divided into distinct portions;

(3) One The acquisition is not subject to simplified acquisition procedures;

(4) Two or more responsible small business concerns are reasonably expected to

have the technical competence and productive capacity to satisfy the

submit offers on the set-aside portion or portions of the

requirement at a fair market price;

(4) The acquisition is not subject to simplified acquisition procedures; and

(5) A partial set-aside shall not be made if there is a 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. Similarly, a class of acquisitions, not including construction, may be partially set aside. Under certain specified conditions, partial set-asides may be used in conjunction with multiyear contracting procedures

acquisition that are competitive in terms of fair market prices, quality, and delivery;

(5) The specific program eligibility requirements identified in this part apply; and

(6) The solicitation will result in a contract other than a multiple-award contract (see 2.101 for definition of multiple-award contract).

(b) When the contracting officer determines that a portion of an acquisition requirement is to be partially set aside, the requirement shall be divided into a set-aside portion and a non-set-aside portion, each of which shall

(1) be an economic production run or reasonable lot and

(2) have terms and a delivery schedule comparable to the other. When practicable, the set-aside portion should make maximum use of small business capacity

solicitation shall identify which portion or portions are set aside and not set aside.

(c)

(1)

The contracting officer shall

award the non-set-aside portion using normal contracting procedures.

(2)

(i) After all awards have been made on the non-set-aside portion, the contracting officer shall negotiate with eligible concerns on

specify in the solicitation how offers shall be submitted with regard to the set-aside

portion, as provided in the solicitation,

and

make award. Negotiations shall be conducted only with those offerors who have submitted responsive offers on the

non-set-aside

portion. Negotations shall be conducted with small business concerns in the order of priority as indicated in the solicitation (but see (ii) below). The set-aside portion shall be awarded as provided in the solicitation. An offeror entitled to receive the award for quantities of an item under the non-set-aside portion and who accepts the award of additional quantities under the set-aside portion shall not be requested to accept a lower price because of the increased quantities of the award, nor shall negotiation be conducted with a view to obtaining such a lower price based solely upon receipt of award of both portions of the acquisition. This does not prevent acceptance by the contracting officer of voluntary reductions in the price from the low eligible offeror before award, acceptance of voluntary refunds, or the change of prices after award by negotiation of a contract modification.

(ii) If equal low offers are received on the non-set-aside portion from concerns eligible for the set-aside portion, the concern that is awarded the non-set-aside part of the acquisition shall have first priority with respect to negotiations for the set-aside.

[48 FR 42240, Sept. 19, 1989, as amended at 53 FR 43390, Oct. 26, 1988; 60 FR 34757, July 3, 1995

portions.

(d) Offers received from concerns that do not qualify as small business concerns shall be considered nonresponsive and shall be rejected on the set-aside portion of partial set-asides. However, before rejecting an offer otherwise eligible for award because of questions concerning the size representation, an SBA determination must be obtained (see subpart 19.3).

[85 FR 11761, Feb. 27, 2020]