[Code of Federal Regulations]
[Title 48, Volume 1]
[Revised as of October 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 48CFR19.202-1]

[Page 341-342]
 
            TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM
 
                CHAPTER 1--FEDERAL ACQUISITION REGULATION
 
PART 19_SMALL BUSINESS PROGRAMS--Table of Contents
 
                          Subpart 19.2_Policies
 
Sec.  19.202-1  Encouraging small business participation in acquisitions.

    Small business concerns shall be afforded an equitable opportunity 
to compete for all contracts that they can perform to the extent 
consistent with the Government's interest. When applicable, the 
contracting officer shall take the following actions:
    (a) Divide proposed acquisitions of supplies and services (except 
construction) into reasonably small lots (not less than economic 
production runs) to permit offers on quantities less than the total 
requirement.
    (b) Plan acquisitions such that, if practicable, more than one small 
business concern may perform the work, if the work exceeds the amount 
for which a surety may be guaranteed by SBA against loss under 15 U.S.C. 
694b.
    (c) Ensure that delivery schedules are established on a realistic 
basis that will encourage small business participation to the extent 
consistent with the actual requirements of the Government.
    (d) Encourage prime contractors to subcontract with small business 
concerns (see subpart 19.7).
    (e)(1) Provide a copy of the proposed acquisition package to the SBA 
procurement center representative at least 30 days prior to the issuance 
of the solicitation if--
    (i) The proposed acquisition is for supplies or services currently 
being provided by a small business and the proposed acquisition is of a 
quantity or estimated dollar value, the magnitude of which makes it 
unlikely that small businesses can compete for the prime contract;
    (ii) The proposed acquisition is for construction and seeks to 
package or consolidate discrete construction projects and the magnitude 
of this consolidation makes it unlikely that small businesses can 
compete for the prime contract; or
    (iii) The proposed acquisition is for a bundled requirement. (See 
10.001(c)(2)(i) for mandatory 30-day notice requirement to incumbent 
small business concerns.)
    (2) The contracting officer also must provide a statement explaining 
why the--

[[Page 342]]

    (i) Proposed acquisition cannot be divided into reasonably small 
lots (not less than economic production runs) to permit offers on 
quantities less than the total requirement;
    (ii) Delivery schedules cannot be established on a realistic basis 
that will encourage small business participation to the extent 
consistent with the actual requirements of the Government;
    (iii) Proposed acquisition cannot be structured so as to make it 
likely that small businesses can compete for the prime contract;
    (iv) Consolidated construction project cannot be acquired as 
separate discrete projects; or
    (v) Bundling is necessary and justified.
    (3) The 30-day notification process shall occur concurrently with 
other processing steps required prior to the issuance of the 
solicitation.
    (4) If the contracting officer rejects the SBA procurement center 
representative's recommendation, made in accordance with 19.402(c)(2), 
the contracting officer shall document the basis for the rejection and 
notify the SBA procurement center representative in accordance with 
19.505.

[48 FR 42240, Sept. 19, 1983, as amended at 56 FR 67132, Dec. 27, 1991; 
57 FR 60581, Dec. 21, 1992; 64 FR 72444, Dec. 27, 1999; 65 FR 46055, 
July 26, 2000]