# AFARS PART 5119

- Subpart 5119.2 -- Policies

- 5119.201 -- General policy.

- 5119.202-1 -- Encouraging small business participation in acquisitions.

- Subpart 5119.502 -- Setting-Aside Acquisitions

- 5119.502-2—Total small business set-asides.
- 5119.502-2-90—Total set-sides for small disadvantaged business concerns.

- 5119.505 -- Rejecting Small Business Administration recommendations.
- 5119.506 -- Withdrawing or modifying small business set-asides.

- Subpart 5119.6 -- Certificates of Competency and Determinations of Responsibility

- 5119.602 -- Procedures.

- 5119.602-3 -- Resolving differences between the agency and the Small Business Administration.

- Subpart 5119.7 – The Small Business Subcontracting Program

- 5119.704 -- Subcontracting plan requirements.
- 5119.705 -- Responsibilities of the contracting officer under the subcontracting assistance program.

- 5119.705-4 -- Reviewing the Subcontracting Plan.

- Subpart 5119.708—Solicitation provisions and contract clauses.
- Subpart 5119.8 -- Contracting with the Small Business Administration (The 8(a) Program)

- 5119.803 -- Selecting acquisitions for the 8(a) program.
- 5119.804 -- Evaluation, offering, and acceptance.

- 5119.804-2 -- Agency offering.

- 5119.808 -- Contract negotiation.

- 5119.808-1 -- Sole source.

- 5119.810 -- SBA appeals.
- 5119.812 -- Contract administration.
- 5119.890 -- Notification of Award.

AFARS -- Part 5119
Small Business Programs

Subpart 5119.2 -- Policies

5119.201 -- General policy.

(b) (i) The Deputy for each Program Executive Officer/Program Manager is the designated point of contact to the supporting command Small Business Specialist, who will draft the Small Business Strategy in support of each Acquisition Strategy, assist in the requirements process to maximize small business opportunities, and identify potential products or services suitable for award to small or small disadvantaged businesses. [AFARS Revision #11, dated May 4, 2004]

(d) (6) The Director, Small Business Programs, must be afforded an opportunity to comment on, and contribute to, the performance evaluation of associate directors, who must be afforded the same opportunity for the principal Small Business Specialists at subordinate activities.

(7) (A) At those contracting activities where there is a resident SBA Procurement Center Representative (PCR), the Small Business Technical Advisor (SBTA) will be assigned full time to the Office of Small Business Programs and be supervised by the chief of the office. The SBTA cannot be a Small Business Specialist.

(B) At those activities where the assignment of an SBTA is not required, but where requirements are technically complex, a technical point of contact must be identified to the PCR and Small Business Specialist. Upon request, the technical contact will provide the PCR and Small Business Specialist technical advice and information to support their reviews of acquisition actions.

(C) Duties of the SBTA may include the following types of technical assistance:

(1) Explaining and interpreting drawings, specifications, and other technical data.

(2) Providing information on the requisite professional skills, facilities, production equipment, and other necessary capabilities required for production, testing, quality control, etc.

(3) Arranging for technical personnel to provide assistance on subject matter outside the SBTA’s expertise.

(4) Helping identify acquisitions which are candidates for breakout.

(5) Helping identify candidates for the Small Business program, Small Disadvantaged Business program, Women-Owned Small Business program, Service-Disabled Veteran-Owned Small Business program, Veteran-Owned Small Business program, Historically Underutilized Business Zone program, and Historically Black Colleges and Universities, Minority Institutions, Hispanic Serving Institutions, and Tribal Council Universities program.

(6) Reviewing acquisition plans.

(9) (B) (1) To facilitate the review of the DD Form 2579, the contracting officer must:

(i) Prepare the DD Form 2579 with sufficient lead time to permit the cognizant Small Business Specialist and the SBA PCR to review and sign it prior to transmitting the Commerce Business Daily synopsis notice if one is required.

(ii) Keep the original DD Form 2579 in the contract file and send copies to the SBA PCR and activity Small Business Specialist.

(2) The Small Business Specialist serving the contracting office must:

(i) Number Item 1, Control No., on the DD Form 2579, consecutively starting with “1” at the beginning of each FY, and adding the last two digits of the FY, e.g. 1-96, 2-96.

(ii) Review and sign the DD Form, 2579. If the SBA procurement center representative lacks the necessary security clearance to review the DD Form 2579, the contracting officer must document the file by so annotating that there is no cleared SBA representative. The form then satisfies FAR 19.402(b) requirements.

(3) When completed and until the date of contract award, the DD Form 2579 must be made available only to personnel who have a “need to know”. Copies distributed outside the Army must be marked “For Official Use Only.”

(e) Small Business Specialists must be appointed by the commander of each command or subordinate activity responsible for a contracting office. The commander of each major command must appoint an Associate Director, Small Business Programs.

(A) Only individuals who possess business acumen and knowledge of Army contracting policy and procedures and who have the training and background to accomplish the objectives of the overall small business program can be appointed associate directors and Small Business Specialists.

(B) Before appointing an associate director, the commander must submit a summary of the candidate’s qualifications to the DirectorSmall Business Programs, for review and shall consult with the Director. A copy of the appointment document must be sent to the Office of Small Business Programs.

(C) The appointment of other Small Business Specialists must be coordinated in advance with the appropriate associate director. Where a full-time specialist is appointed, they cannot be assigned to the contracting office. Where a part-time specialist is appointed, they should be the chief of the contracting office.

(D) Furnish the name, grade level, position, title, telephone numbers (commercial and DSN), and activity location of newly appointed Small Business Specialists to the Office of Small Business Programs, within 30 calendar days after appointment. When applicable, identify the Small Business Specialist being replaced.

[AFARS Revision #21, dated May 22, 2007]

5119.202-1 -- Encouraging small business participation in acquisitions.

(a) (i) If circumstances dictate consolidation, written justification supporting this action must be provided to the contracting officer by the program manager or requiring activity. The determination that a consolidated requirement cannot be placed under one of the preference programs must be approved by the Head of the Contracting Activity (HCA) prior to release of the solicitation. [AFARS Revision #21, dated May 22, 2007]

Subpart 5119.502 -- Setting-Aside Acquisitions

5119.502-2—Total small business set-asides.

5119.502-2-90—Total set-sides for small disadvantaged business concerns.

The contracting officer shall determine the fair market price using the guidelines of FAR 19.806 and FAR 19.807. The analysis used to determine the fair market price shall be documented in the contract file. [AFARS Revision #21, dated May 22, 2007]

5119.505 -- Rejecting Small Business Administration recommendations.

(d) Process appeals, on a case-by-case basis, in accordance with instructions from the Director, Small Business Programs. Generally, the contracting officer will be requested to prepare and send a case file through contracting channels to the Office of Small Business Programs. The Small Business Specialist at each level must review the case. The case file must include:

(i) A statement of attempts to resolve the matter.
(ii) A response to each issue raised by SBA in its appeal.
(iii) Supporting documents related to controversial aspects.

[AFARS Revision #21, dated May 22, 2007]

5119.506 -- Withdrawing or modifying small business set-asides.

(b) If a SBA representative is not assigned or available, the Small Business Specialist must refer disagreements to the specialist’s appointing authority.

Subpart 5119.6 -- Certificates of Competency and Determinations of Responsibility

5119.602 -- Procedures.

5119.602-3 -- Resolving differences between the agency and the Small Business Administration.

(c) (i) (B) The contracting officer must prepare the case and send through contracting channels and the addressee in 5101.290(b)(3) to the Director, Small Business Programs. The Small Business Specialist at each level will review the case. [AFARS Revision #21, dated May 22, 2007]

Subpart 5119.7 – The Small Business Subcontracting Program

5119.704 -- Subcontracting plan requirements.

(a) Subcontracting plans required by FAR 19.702(a)(1) and (2) should be realistic, challenging, achievable, with positive percentage and dollar goals for subcontracting with Small Business (SB) concerns, Small Disadvantaged Business (SDB) concerns, Women- Owned Small Business (WOSB), Service-Disabled Veteran-Owned Small Business (S-D V-O SB), Veteran-Owned Small Business (V-SB), Historically Underutilized Business Zone (HUBZone) concerns, and Historically Black Colleges and Universities (HBCU), Minority Institutions (MI), Hispanic Serving Institutions (HIS), and Tribal Council Universities.

5119.705 -- Responsibilities of the contracting officer under the subcontracting assistance program.

5119.705-4 -- Reviewing the Subcontracting Plan.

(d) Contracting officers must –

(i) Use the guide at Appendix DD to evaluate all subcontracting plans, except those for commercial items; and

(ii) Require submission of subcontracting plans that cover the required elements to their satisfaction, notwithstanding the score given a plan evaluated in accordance with Appendix DD. Plans are not acceptable if they do not—

(A) Adequately address the six required statutory elements; or

(B) Provide sufficient information to enable the contracting officer to answer affirmatively questions A through H of Appendix DD, Part 2, Number 8.

(iii) Carefully consider the acceptability of any plan with a score of 70 or fewer points. Identify those areas where the plan is deficient, and discuss them with the offeror to try to get the deficiencies corrected. After discussions, if plans are still scored at 70 or fewer points and are determined acceptable, include the rationale for that determination in the contract file. Provide a copy of the determination and rationale to the local Small Business Specialist.

Subpart 5119.708—Solicitation provisions and contract clauses.

(b) (1) When FAR 19.705-2(d) applies (e.g., see DFARS 215.304(c)(i)), include a notice in Section L of the solicitation to instruct offerors to submit subcontracting plans with their proposals. Also include a notice that, in addition to all other subcontracting plan requirements, the subcontracting plan must address and respond to the evaluation criteria related to subcontracting and included in the solicitation. Notwithstanding coverage in any other part of the proposal, the extent and nature of participation by Small Business concerns, Small Disadvantaged Business concerns, Women-Owned Small Business, Service-Disabled Veteran-Owned Small Business, Veteran-Owned Small Business, Historically Underutilized Business Zone Concerns, Minority Institutions, Hispanic Servicing Institutions, and Tribal Council Universities must be addressed as an integral part of the subcontracting plan. [AFARS Revision #21, dated May 22, 2007]

Subpart 5119.8 -- Contracting with the Small Business Administration (The 8(a) Program)

5119.803 -- Selecting acquisitions for the 8(a) program.

(a) The Associate Director, Small Business Program shall respond directly to general search letters from SBA. The Associate Director, Small Business Program may redelegate this function to the Small Business Specialists at subcontracting contracting activities.

(b) The contracting officer, in coordination with the Small Business Specialist, shall respond to SBA requests for a specific requirement by offering the requirement (see 5119.804-2) or by explaining why the requirement is not being offered in accordance with SBA’s request.

(c) Where a number of requirements are being offered to SBA for planning purposes, Associate Directors, Small Business Programs or their designated Small Business Specialists must identify the requirements to SBA. Specific individual requirements shall be offered in accordance with 5119.804-2(a).

5119.804 -- Evaluation, offering, and acceptance.

5119.804-2 -- Agency offering.

(a) The contracting office must inform the SBA and Associate Director, Small Business Programs. This notification represents a firm commitment to negotiate with the SBA, provided there is no material change in requirements, availability of funds, or other factors.

(14) The contracting officer must coordinate noncompetitive 8(a) offerings with a total estimated contract value above the thresholds in FAR 19.805-1(a)(2) with the local competition advocate, who will review the technical requirements for the supplies and services to ensure they are not overly restrictive.

5119.808 -- Contract negotiation.

5119.808-1 -- Sole source.

(a) The contracting activity must notify the Associate Director, Small Business Programs of the intent to proceed with the acquisition without further regard to the 8(a) procedures. Withdrawal of the 8(a) commitment must be documented.

(b) When direct negotiation with an 8(a) subcontractor does not proceed satisfactorily, the contracting officer must ask the SBA to enter negotiations promptly to expedite the award.

[AFARS Revision #21, dated May 22, 2007]

5119.810 -- SBA appeals.

(b) Process appeals in accordance with 5119.505.

5119.812 -- Contract administration.

(c) Early recognition of deficiencies in contract performance and prompt notification to the subcontractor and SBA are of particular importance. Any indication that the subcontractor requires technical or management assistance must be promptly reported to the SBA office awarded the contract, and the contract file documented.

If the SBA fails to act in a timely manner to help the subcontractor take corrective action, the contracting officer must report this failure to the Associate Director, Small Business Programs, with recommendation for action. Matters that cannot be resolved with Associate Directors must be referred to the Director, Small Business Programs.

[AFARS Revision #21, dated May 22, 2007]

5119.890 -- Notification of Award.

Immediately after award of any 8(a) contract, the contracting officer must notify the Small Business Specialist of the SBA office to which award was made and the 8(a) firm’s name and address, providing a description of the supplies or services, the quantity, dollar value, date of award and contract number. Furnish a copy of the notification to the Associate Director, Small Business Programs. [AFARS Revision #21, dated May 22, 2007]