MAS Student Guide | Topic 2 | Page 4

Socioeconomics: FAR 8.405 Slide Socioeconomics: FAR 8.405

  • The FAR exempts Subpart 8.405 purchases from the applicability of FAR Part 19, Small Business Programs
  • Ordering activity receives socioeconomic credit
  • Ordering activities should rely on the small business representations made by Schedule contractors at the contract level
  • Agencies do not need to make a separate size determination at the order level, but the Government Accountability Office (GAO) has upheld agencies’ right to request a recertification at the order level (CMS Information Services Inc., B-290541, Aug. 7, 2002)

Socioeconomics: FAR 8.405 Slide Socioeconomics: FAR 8.405

  • Agencies are encouraged to consider at least one small business prior to placing an order
  • Agencies may establish evaluation criteria that gives preference to socioeconomic factors in their best value analysis
  • Agencies should give preference to small business when two or more are available on Schedule (8.405-5(c))

FAR Part 8.405-5 Small business.

  1. Ordering activities may consider socioeconomic status when identifying contractor(s) for consideration or competition for award of an order or BPA. At a minimum, ordering activities should consider, if available, at least one small business, veteran-owned small business, service-disabled veteran-owned small business, HUBZone small business, women-owned small business, or small disadvantaged business Schedule contractor(s). GSAAdvantage!® and Schedules eLibrary contain information on the small business representations of Schedule contractors.
  2. For orders exceeding the micro-purchase threshold, ordering activities should give preference to the items of small business concerns when two or more items at the same delivered price will satisfy the requirement.

Evaluation Criteria

Although MAS contracts do not allow for small business set-asides at the order level, ordering activities may consider socioeconomic status as part of the source selection criteria for award of an order or BPA.

Socioeconomic Credit Slide Socioeconomic Credit

  • SBA policy allows agencies to include in their procurement base and goals the dollar value of orders expected to be placed against GSA Schedule contracts
  • Actual orders may be reported as accomplishments and credited toward ordering activities’ small business goals
  • GSAAdvantage!® and GSA eLibrary contain information on supplies and services offered by small businesses
  • This information should be used as a tool to assist agencies in maximizing opportunities for small businesses

FAR Part 8.405-5 Small business.

  1. Although the mandatory preference programs of Part 19 do not apply, orders placed against Schedule contracts may be credited toward the ordering activity’s small business goals.

Credits

All socioeconomic credit applicable to Schedule orders is to be taken by the ordering activity. (Note: 8a credit is not applicable to GSA Schedule orders.) GSA does not take socioeconomic credit for orders placed against Schedules.