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This is historical material, "frozen in time."
The web site is no longer updated and links to external web sites and some internal pages will not work.
OFFICE OF MANAGEMENT AND BUDGET
Office of Federal Procurement Policy
Small Disadvantaged Business Procurement: Reform of Affirmative Action in
Federal Procurement
AGENCY: Office of Federal Procurement Policy (OFPP)
ACTION: Notice of Determination Concerning the Price Evaluation Adjustment Program and the Small Disadvantaged
Business (SDB) Participation Program
SUMMARY: The Federal Acquisition Regulation (FAR), 48 CFR Subparts 19.11 and 19.12 contain procurement
mechanisms applicable to the SDB reform program. FAR Subpart 19.11 permits eligible SDBs to receive price evaluation
adjustments in Federal procurement programs. FAR Subpart 19.12 provides for an SDB participation program that
evaluates the extent of participation of SDB concerns in contract performance. The FAR provides further that the
Department of Commerce will determine on an annual basis the price evaluation adjustment by standard industrial
classification (SIC) major groups for the price evaluation adjustment program and the authorized SIC major groups for the
SDB participation program.
The Commerce Department, in the attached memorandum, determines that for fiscal year 2000 the price evaluation
adjustment and the authorized SIC major groups are the same as used in fiscal year 1999. The OFPP notice of June 30, 1998
(63 Fed. Reg. 35714) includes the Commerce determination for fiscal year 1999 of the price evaluation adjustment by SIC
major groups for the price evaluation adjustment program. Subsequently, OFPP published on December 29, 1998 (63 Fed.
Reg. 71724) the Commerce determination of authorized SIC major groups for the SDB participation program which were
the same SIC major groups applicable to the price evaluation adjustment program.
EFFECTIVE DATE: September 30, 1999
FOR FURTHER INFORMATION CONTACT: Michael Gerich, Deputy Associate Administrator, Office of Federal
Procurement Policy, Telephone, 202-395-3501. For information on the Commerce determination, contact Jeffrey Mayer,
Director of Policy Development, Economics and Statistics Administration, U.S. Department of Commerce, Telephone
202-482-1728.
SUPPLEMENTARY INFORMATION
PROCUREMENT MECHANISMS AND FACTORS
FAR Subparts 19.11 and 19.12 contain procurement mechanisms applicable to the SDB reform program. FAR Subpart
19.11 provides for the use of a price evaluation adjustment for eligible SDBs. FAR Subpart 19.12 provides for an SDB
participation program that consists of two mechanisms: (1) an evaluation factor or subfactor for evaluating the extent of
participation of SDBs in performance of the contract; and (2) an incentive subcontracting program for exceeding SDB
participation targets. OFPP gives notice that the attached memorandum from the Commerce Department determines that for
fiscal year 2000 the price evaluation adjustment and the authorized SIC major groups are the same as used in fiscal year
1999. (See 63 Fed. Reg. 35714 (June 30, 1998) for the price evaluation adjustment and the listing of the eligible SIC major
groups applicable in fiscal year 1999.) This determination affects solicitations issued on or after October 1, 1999.
Deidre A. Lee Administrator
Attachment
MEMORANDUM FOR OFFICE OF FEDERAL PROCUREMENT POLICY
FROM:
Jeffrey L. Mayer
Director of Policy Development
SUBJECT:
Determination on the Price Evaluation Adjustment for Small Disadvantaged Business Concerns and the Small
Disadvantaged Business Participation Program for FY 2000
Pursuant to Federal Acquisition Regulation paragraph 19.201(b) and subparts 19.11 and 19.12, transmitted herein is the
Department of Commerce (DOC) determination on the Price Evaluation Adjustments for Small Disadvantaged Business
Concerns and the Small Disadvantaged Business Participation Program for use in Federal procurements in FY 2000.
DOC transmitted a Notice of Determination Concerning Price Evaluation Adjustments to the Office of Federal Procurement
Policy, which was published in the Federal Register on June 30, 1998 (see 63 Fed. Reg. 35714 (1998)). The Notice
identified the standard industrial classification (SIC) major industry groups in which offers by small disadvantaged businesses
on certain federal prime contracts would be eligible for ten percent price evaluation adjustments in FY 1999. In addition,
DOC transmitted a Notice of Determination Concerning the Small Disadvantaged Business Participation Program to the
Office of Federal Procurement Policy, which was published in the Federal Register on December 29, 1998 (see 63 Fed.
Reg. 71724 (1998)). In both cases, the determinations were based on DOC's benchmark and utilization estimates derived
from FY 1996 data.
In order to develop new benchmarks and utilization estimates for its FY 2001 determination, DOC plans to collect and
analyze FY 1999 data along the lines of the methodology outlined in the June 30, 1998 Notice. The determination based on
the resulting estimates will be published in June 2000 and will take effect on October 1, 2000. Based on its assessment of the
consistency in recent federal procurement patterns, DOC proposes to develop new benchmarks and utilization estimates
every three years. DOC will monitor procurement annually to see if benchmarks and utilization estimates should be updated
more frequently than every three years.
DOC's determination of industries eligible for both the Price Evaluation Adjustment for Small Disadvantaged Business
Concerns and the Small Disadvantaged Business Participation Program for FY 2000 is the same as its determination for FY
1999 and is reproduced in the table below.
Industries Eligible for a Ten Percent Price Evaluation Adjustment and the Small
Disadvantaged Business Participation Program
SIC Major
Industry
Group
Eligibility
(*)
Description of Industry Grouping
AGRICULTURE, FORESTRY, AND FISHING
01
Agricultural production -- crops
02
Agricultural production -- livestock
07
Agricultural services
08
Forestry
09
Fishing, hunting, & trapping
MINING
10
*
Metal mining
12
*
Coal mining
13
*
Oil & gas extraction
14
*
Extraction of nonmetallic minerals, ex. Fuels
CONSTRUCTION
15
Building construction -- general contractors
15
*
East North Central
15
*
East South Central
15
*
Middle Atlantic
15
Mountain
15
New England
15
Pacific
15
South Atlantic
15
West North Central
15
*
West South Central
16
Heavy construction other than buildings -- contractors
16
East North Central
16
*
East South Central
16
Middle Atlantic
16
Mountain
16
New England
16
Pacific
16
South Atlantic
16
West North Central
16
*
West South Central
17
Construction -- special trade contractors
17
East North Central
17
East South Central
17
Middle Atlantic
17
Mountain
17
*
New England
17
Pacific
17
South Atlantic
17
*
West North Central
17
West South Central
MANUFACTURING
20
Food & kindred products
21
Tobacco products
22
*
Textile mill products
23
*
Apparel & other finished products made from fabrics
Hotels, rooming houses, camps, & other lodging places
72
Personal services
73
*
Business services
75
*
Automotive repair, services, & parking
76
*
Miscellaneous repair services
78
Motion pictures
79
Amusement & recreation services
80
*
Health services
81
Legal services
82
*
Educational services
83
Social services
84
Museums, art galleries, & botanical & zoological gardens
86
Membership organizations
87
*
Engineering, accounting, research, management, & related services
88
Private households
89
*
Miscellaneous services
Recommendations specific to major industry groups (and combinations thereof) apply nation-wide for all industry groupings
except the major construction industry groups (SIC Major Industry Groups 15, 16, and 17). Determinations in these three
major groups apply regionally rather than nationally. Regional definitions are based on the nine multi-state Divisions used by
the Bureau of the Census when it reports certain sub-national data. DOC augmented the Bureau's basic definitions for the
Divisions by including Guam in the Pacific Region and Puerto Rico and the Virgin Islands in the South Atlantic Region. A
complete list of the states and outlying areas that comprise each of the nine regions used by DOC follows:
East North Central: Illinois, Indiana, Michigan, Ohio, Wisconsin
East South Central: Alabama, Kentucky, Mississippi, Tennessee
Middle Atlantic: New Jersey, New York, Pennsylvania
Mountain: Arizona, Colorado, Idaho, Montana, Nevada, New Mexico, Utah, Wyoming
New England: Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, Vermont
Pacific: Alaska, California, Guam, Hawaii, Oregon, Washington
South Atlantic: Delaware, District of Columbia, Florida, Georgia, Maryland, North Carolina,
Puerto Rico, South Carolina, Virgin Islands, Virginia, West Virginia
West North Central: Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota,
South Dakota
West South Central: Arkansas, Louisiana, Oklahoma, Texas
