SP -- SMALL BUSINESS COMPETITIVENESS DEMONSTRATION PROGRAM Title VII of the "Business Opportunity Development Act of 1988" (Public Law 100-656) established the Small Business Competitiveness Demonstration Program to provide for the testing of specified innovative procurement methods and procedures. The program was conducted by nine (9) designated agencies, including GSA, over a four (4) year period from January 1, 1989 to December 31, 1992. Title VII of Public Law 100-656 was amended by the Small Business opportunity Enhancement Act of 1992 (Public Law 102-366) to extend the demonstration program through the Omnibus Consolidated Appropriations Act (Public Law 104-208) for one year to September 1997. In 1997, Congress also extended the aspect of the Program covering expansion of small business participation in the dredging industry. In December 1997, the Small Business Reauthorization Act of 1997, was enacted into law. As a result the program is extended indefinitely along with amendments to be implemented. The law designated four (4) industry groups for testing whether the competitive capabilities of the specified industry groups will enable them to successfully compete on an unrestricted basis. The four (4) industry groups are: construction (except dredging); architectural and engineering (A&E) services (including surveying and mapping); refuse systems and related services (limited to trash/garbage collection services); and non-nuclear ship repair. Under the program, when a participating agency misses its small business participation goals, restricted competition is reinstituted only for those designated industry groups that failed to attain the goal. The small business goal is 40 percent of the total contract dollars awarded for construction, trash/garbage collection services, non-nuclear ship repair and architect-engineer services. This notice announces modifications to GSA's solicitation practices under the demonstration program based on a review of the agency's performance during the period from October 1, 1998 through September 30, 1999. Modifications tosolicitation practices are outlined below and apply to solicitations issued on or after February 1, 1999. Procurements of construction or trash/garbage collections with an estimated value of $25,000 or less and procurements of A&E services with an estimated value of $50,000 or less shall be reserved for emerging small business when there is a reasonable expectation of obtaining offers from two or more (three or more for A&E procurements) that will be competitive in terms of market price, quality, and delivery. If no such expectation exists, the procurement shall be processed as a small business simplified acquisition set aside in accordance with FAR 13.105 or in accordance with FAR 19.5 or 19.8. If the contracting officer determines a procurement cannot be set aside for small business under FAR 19.5 or 19.8, the procurement may be made using unrestricted procedures. The use of simplified acquisition purchase procedures is not required under the reserve program; therefore, any procurement method may be used. The reserve program applies only to new awards. Modifications within the scope of work of contracts having an initial award value in excess of the $25,000 for construction and trash/garbage collection service or $50,000 for A&E service are not subject to the reserve program. Procurements of construction or trash/garbage collection services with estimated value in excess of $25,000 and procurements of A&E services with an estimated value in excess of $50,000 shall be made on an unrestricted basis as long as annual reviews show that GSA (as an agency) has attained the 40 percent goals. The 40 percent goal will be applied to each of the three (3) major groups in construction (groups 15, 16, and 17), to trash/garbage collection, and to A&E services. However, if goal attainment (for GSA as an agency) in any major group drops below 40 percent, small business set asides will be imposed. The continued use of unrestricted procedures is unaffected by an agency's failure to meet the 15 percent goal for emerging small business. When annual reviews show that GSA as an agency has not attained the 40 percent goal, competition will be restricted to small business, in accordance with FAR 19.5, on future procurements by the GSA contracting activities (e.g., regions) that failed to attain the goal. Other GSA contracting activities that meet the goals will continue to use unrestricted procedures. Notwithstanding the Small Business Competitiveness Demonstration Program, contracts may be awarded under the 8(a) program at any time. These procurements shall be made in accordance with the following procedures: Construction Service in Groups 15, 16 and 17: Procurements for construction services in SIC group 15 (except solicitations issued by Regions 4, 7, and 9), SIC group 16 and in SIC group 17 shall be conducted on an unrestricted basis. Procurements for construction services in SIC group 15 issued by contracting activities in Regions 4, 7, and 9 shall be set-aside for small business when there is a reasonable expectation of obtaining competition from two or more small businesses. If no expectation exists, the procurements may be conducted on an unrestricted basis. Region 4 (Southeast-Sunbelt) encompasses the states of Alabama, Florida, Georgia, Kentucky, North Carolina, South Carolina, Mississippi and Tennessee. Region 7 (Greater Southwest) encompasses the states of Arkansas, Louisiana, Oklahoma, New Mexico and Texas. Region 9 (Pacific Rim) encompasses the states of Arizona, California, Hawaii and Nevada. Trash/garbage collection services in PSC S205: Procurements for trash/garbage collection services in PSC S205 (except solicitations issued by contracting activities in Regions 4 and 6) shall be conducted on an unrestricted basis. Procurements for trash/garbage collection services issued by contracting activities in Regions 4 and 6 shall be set aside for small business when there is a reasonable expectation of obtaining competition from two or more small businesses. If no expectation exists, the procurements may be conducted on an unrestricted basis. Region 4 (Southeast-Sunbelt) encompasses the states of Alabama, Florida, Georgia, Kentucky, North Carolina, South Carolina, Mississippi and Tennessee. Region 6 (Heartland) encompasses the states of Iowa, Kansas, Missouri and Nebraska. Architect-Engineer services (all PSC codes under the Demonstration Program): Procurements for architect-engineer services (except solicitations issued by contracting activities in Regions 2, 4, 7, 10 and NCR) shall be conducted on an unrestricted basis. Procurements for architect-engineer services issued by contracting activities in Regions 2, 4, 7, 10 and NCR shall be set aside for small business when there is a reasonable expectation of obtaining competition from two or more small businesses. If no expectation exists, the procurements may be conducted on an unrestricted basis. Region 2 (Northeast and Caribbean) encompasses the states of New Jersey, New York and territories of Puerto Rico and the Virgin Islands. Region 4 (Southeast-Sunbelt) encompasses the states of Alabama, Florida, Georgia, Kentucky, North Carolina, South Carolina, Mississippi and Tennessee. Region 7 (Greater Southwest) encompasses the states of Arkansas, Louisiana, Oklahoma, New Mexico and Texas. Region 10 (Northwest-Arctic) encompasses the states of Alaska, Idaho, Oregon and Washington. The National Capital Region (NCR) encompasses the District of Columbia, Montgomery and Prince Georges counties in Maryland, the cities of Alexandria, Fairfax and Falls Church and the counties of Arlington, Fairfax, Loudoun and Prince William in Virginia. Non-Nuclear Ship Repair: GSA does not procure for non-nuclear ship repair. WEB: Visit this URL for the latest information about this, http://www.eps.gov/cgi-bin/WebObjects/EPS?ACode=S&;ProjID=020199&LocID= 128. E-MAIL: Cecelia Davis, cecelia.davis@gsa.gov. Posted 04/13/99 (D-SN319416).

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