[Federal Register Volume 64, Number 63 (Friday, April 2, 1999)]
[Notices]
[Pages 16003-16005]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-8123]
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OFFICE OF MANAGEMENT AND BUDGET
Office of Federal Procurement Policy
OFPP Policy Letter 99-1 on Government-Wide Small Business,
HUBZone Small Business, Small Disadvantaged Business, and Women-Owned
Small Business Goals for Procurement Contracts
AGENCY: Executive Office of the President, Office of Management and
Budget (OMB), Office of Federal Procurement Policy (OFPP).
ACTION: Notice of proposed policy letter.
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SUMMARY: OFPP is requesting comments on proposed OFPP Policy Letter 99-
1. This letter contains guidance on implementing government-wide goals
for procurement contracts awarded to small businesses, HUBZone small
businesses, small disadvantaged businesses, and women-owned small
businesses. The Policy Letter also provides guidance on reporting
requirements that will help the Small Business Administration (SBA)
[[Page 16004]]
determine whether executive agencies are reaching these goals. This
Policy Letter, when issued in final, will supersede OFPP Policy Letter
91-1.
COMMENT DATE: We must receive comments on or before June 1, 1999.
ADDRESSES: Send your comments to Deidre A. Lee, Administrator, Office
of Federal Procurement Policy, Old Executive Office Building, Room 352,
Washington, DC 20503. Send e-mail comments to Keith Coleman at
kcoleman@oa.eop.gov.
FOR FURTHER INFORMATION CONTACT: Keith Coleman at 202-395-7209 or Linda
Williams at 202-395-3302.
SUPPLEMENTARY INFORMATION: We issued an earlier Policy Letter, 91-1,
entitled ``Government-Wide Small Business and Small Disadvantaged
Business Goals for Procurement Contracts'' on March 11, 1991. That
policy letter addressed sections 502 and 503 of the Business
Opportunity Development Act of 1988. Section 502 establishes
government-wide goals for contract awards to small business concerns
and small disadvantaged businesses. Section 503 requires the President
to include the agencies' actual goal achievements in the ``State of
Small Business'' report. The report also includes an analysis of an
agency's failure to achieve the goals, and the number and dollar value
of prime contracts awarded to small firms through noncompetitive
negotiated procurements, restricted and unrestricted competitions, and
information on subcontract awards.
We need to issue this new policy letter because of statutory
changes made in 1994 and 1997. Section 7106 of the Federal Acquisition
Streamlining Act of 1994 (FASA) establishes a 5 percent women-owned
small business goal. Section 603 of the Small Business Reauthorization
Act of 1997 increases the annual government-wide goal for prime
contract awards to small business concerns from not less than 20
percent to not less than 23 percent. The Act also adds a 3 percent
HUBZone small business goal phased-in over the next 5 years.
This Policy Letter, when issued in final, will supersede OFPP
Policy Letter 91-1. This proposed Policy Letter supports the Small
Business Administration's (SBA) policies of establishing its own
guidance on the new goals, establishing with each agency mutually
acceptable prime contract goals for awards made under section 8(a) of
the Small Business Act, and using procurement data in the Federal
Procurement Data System to measure accomplishments rather than
requiring agencies to provide this information in separate reports.
We request comments on the proposed policy letter.
Deidre A. Lee,
Administrator.
Policy Letter 99-1
To the Heads of Executive Departments and Establishments
Subject: Government-Wide Small Business, HUBZone Small Business, Small
Disadvantaged Business, and Women-Owned Small Business Goals for
Procurement Contracts.
1. Purpose. This Policy Letter provides guidance to Executive
branch departments and agencies on government-wide goals for
procurement contracts awarded to small businesses, HUBZone small
businesses, small disadvantaged businesses and women-owned small
businesses (``small businesses''). It also provides guidance on
reporting requirements that will help the Small Business Administration
(SBA) determine whether agencies are reaching these goals.
2. Supersession Information. This Policy Letter replaces OFPP
Policy Letter 91-1, ``Government-Wide Small Business and Small
Disadvantaged Business Goals for Procurement Contracts,'' dated March
11, 1991.
3. Authority. This policy letter is based on the Small Business
Act, the Office of Federal Procurement Policy Act, the Business
Opportunity Development Reform Act of 1988, the Federal Acquisition
Streamlining Act of 1994, and the Small Business Reauthorization Act of
1997.
4. Background. The Small Business Act requires executive agencies,
in consultation with SBA, to develop annual goals for contract awards
to small businesses. SBA monitors agency performance and reports their
achievements to the President. The Office of Federal Procurement Policy
Act, 41 U.S.C. 405, empowers the Administrator for Federal Procurement
Policy to prescribe government-wide procurement policies.
The Business Opportunity Development Reform Act establishes
government-wide goals for small businesses and small disadvantaged
businesses and requires the President to include the agencies' actual
goal achievements in the ``State of Small Business'' report. The report
must also include an analysis of any failure to achieve the goals, and
the number and dollar value of prime contracts awarded to small
businesses through noncompetitive negotiated procurements, restricted
and unrestricted competitions, and information on subcontract awards.
The Federal Acquisition Streamlining Act of 1994 (FASA) establishes a 5
percent women-owned small business goal. The Small Business
Reauthorization Act of 1997 (SBRA) adds a 3 percent HUBZone small
business goal phased-in over the next 5 years. It also increases the
annual government-wide goal for prime contract awards to small business
concerns to not less than 23 percent.
In March 1991, the OFPP issued Policy Letter 91-1 to implement
government-wide goals for small businesses and small disadvantaged
businesses. This proposed Policy Letter includes the guidance from
Policy Letter 91-1, and also implements the more recent statutory
provisions of FASA and SBRA.
This proposed Policy Letter also supports the Small Business
Administration's (SBA) policies of establishing its own guidance on the
new goals, establishing with each agency mutually acceptable prime
contract goals for awards made under section 8(a) of the Small Business
Act, and using procurement data in the Federal Procurement Data System
to measure accomplishments rather than requiring agencies to provide
this information in separate reports.
5. Policy. Prior to the beginning of each fiscal year, the SBA will
mutually establish with each agency goals for participation by small
business, small disadvantaged business, HUBZone small business, and
women-owned small businesses. The agencies' cumulative goals shall
count toward accomplishment of the government-wide goals.
6. Goals.
a. The government-wide small business goal is not less than 23
percent of the total value of all prime contracts awarded for the
fiscal year. This includes all the goals for the specific categories of
small business.
b. The following table lists the specific goals for small
disadvantaged and women-owned small businesses.
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The goal for... is...
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small disadvantaged business prime not less than 5 percent of
contracts. the value of all prime
contract awards.
small disadvantaged business subcontracts. not less than 5 percent of
the value of all
subcontract awards.
women-owned small business prime contracts not less than 5 percent of
the value of all prime
contract awards.
[[Page 16005]]
women-owned small business subcontracts... not less than 5 percent of
the value of all
subcontract awards.
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c. The following table lists the specific goals for HUBZone small
businesses.
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the percentage goal is at
For FY... least...
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1999...................................... 1 percent of the value of
all prime contract awards
2000...................................... 1.5 percent of the value of
all prime contract awards
2001...................................... 2 percent of the value of
all prime contract awards
2002...................................... 2.5 percent of the value of
all prime contract awards
2003 and after............................ 3 percent of the value of
all prime contract awards.
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d. There is no specific statutory requirement to establish goals
for awards made pursuant to section 8(a) of the Small Business Act.
However, agencies must mutually establish with SBA acceptable goals for
awards to 8(a) firms.
e. Agencies may count prime contract awards to small businesses
toward more than one goal. Prime contract awards to small businesses,
women-owned small businesses, small disadvantaged businesses, 8(a)
firms, and HUBZone small businesses count toward the government-wide
small business goal.
7. Responsibilities.
a. Agency Responsibilities.
(1) Each department or agency must negotiate annually in good faith
with the SBA to establish its specific goals for small business, woman-
owned small business, small disadvantaged business, HUBZone small
business, and 8(a) firms. These goals should provide the maximum
practicable opportunity for all these types of small businesses to
participate in contracts let by the agency. SBA's annual guidance on
establishing small business goals, entitled ``Guidelines on Goals Under
Procurement Preference Programs,'' covers the goal-setting process.
(2) At the end of the fiscal year, agencies must submit a narrative
report to SBA analyzing its achievements and any failures to achieve
its small business goals for the year. The report must also include
plans for improving performance in the next year.
(3) Agencies must ensure that their prime and subcontract data in
the Federal Procurement Data System is accurate and complete in order
to measure their small business goal accomplishments.
b. SBA Responsibilities.
(1) Prior to the beginning of each fiscal year, the SBA will work
with each agency to establish mutually acceptable goals for the
different categories of small business.
(2) SBA must ensure that the mutually established cumulative goals
for all agencies meet or exceed the government-wide small business goal
of 23 percent.
(3) SBA must compile and analyze agencies' achievements against
their individual small business procurement goals and report the
results to the President.
(4) SBA will use data in the Federal Procurement Data System to
determine:
(i) agencies' success in reaching their procurement goals for prime
and subcontracts;
(ii) the number and dollar value of prime contracts awarded to
small business concerns, HUBZone small business concerns, small
disadvantaged business concerns, and women-owned small business
concerns through:
Noncompetitive negotiation,
Competition restricted to small disadvantaged business
concerns,
Competition restricted to small business concerns and
HUBZone small business concerns, and
Unrestricted competitions; and
(iii) the dollar value of subcontracts awarded to small business
concerns, HUBZone small business concerns, small disadvantaged business
concerns, and women-owned small business concerns.
8. Information Contact. Direct any questions regarding this Policy
Letter to Linda Williams (202-395-3302), or Keith Coleman (202-395-
7209).
9. Effective Date. The Policy Letter is effective 30 days after
issuance.
[FR Doc. 99-8123 Filed 4-1-99; 8:45 am]
BILLING CODE 3110-01-P
