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