Great article, Sam. This shows how they can avoid the Rule of Two small business preference without even changing FAR Part 19. There is no mandatory Rule of Two under FAR Part 8. This category management practice forces agencies to use preselected contract vehicles (like Army CHESS, NASA SEWP, and GSA MAS), where there might not be two or more capable small businesses, despite the existence of dozens of capable small businesses available on the open market. Forcing agencies to work with only a few firms will eliminate competition, while also reducing the responsiveness of industry. One more order to a firm with hundreds of government orders is just another order. However, to a small firm that same order might be the company's biggest order and would get prioritized.
This is also an example of how they pick and choose, not based on statues, but rather preference. The FAR Part 8 overhaul does not point to a statute to eliminate the small business Rule of Two. Instead it points to the GSA FAR Supplement as the authority to avoid the mandatory small business preference. That's a long way off of getting back to statutes, it's just making things up as they go along because they don't want the chosen few firms to have to compete with small business.
Thanks for reading, Phil. That’s a great part about avoiding the Rule of Two while using these mandatory contract vehicles. Small businesses could do a lot of the work awarded through the vehicles, but they are often boxed out through limited competition.
Sam. Great points, all. FAR revisions affecting the public should be subject to review and public comment (APA). How or why is this not being done for these major revisions? RFPs will also afford agencies the opportunity to rank and rate offers (Best Value). Comparative evaluations very rarely result in nonresponsibility determinations where the offer of a small businesses (apparent successful offeror is eliminated). That offer would otherwise be subject to a Certificate of Competency referral to SBA; further limiting the ability of a small business to be re-evaluated by SBA for the possible award of that contract. Finally, RFP evaluations generally take longer to perform than sealed bids. Time saved? Much has changed since I retired from SBA.
Very good point about how RFPs give small businesses a second chance with nonresponsibility determinations. Thanks, Dean. It's great to hear from you, and I hope you are enjoying retirement. And, indeed, a lot has changed even since I left.
In a negotiated Best Value procurement, there are no “unacceptable” offers. Only “less acceptable’ offers. Hence, no one is determined “unacceptable”. No COC referral. I imagine a review of last year’s FY data would show a marked decline in COC referrals to SBA. Also, it looks like the number of SBA PCRs and Subcontracting Specialists has been drastically reduced. A subject for another discussion. Your insights are invaluable and much needed and appreciated.
Great article, Sam. This shows how they can avoid the Rule of Two small business preference without even changing FAR Part 19. There is no mandatory Rule of Two under FAR Part 8. This category management practice forces agencies to use preselected contract vehicles (like Army CHESS, NASA SEWP, and GSA MAS), where there might not be two or more capable small businesses, despite the existence of dozens of capable small businesses available on the open market. Forcing agencies to work with only a few firms will eliminate competition, while also reducing the responsiveness of industry. One more order to a firm with hundreds of government orders is just another order. However, to a small firm that same order might be the company's biggest order and would get prioritized.
This is also an example of how they pick and choose, not based on statues, but rather preference. The FAR Part 8 overhaul does not point to a statute to eliminate the small business Rule of Two. Instead it points to the GSA FAR Supplement as the authority to avoid the mandatory small business preference. That's a long way off of getting back to statutes, it's just making things up as they go along because they don't want the chosen few firms to have to compete with small business.
Thanks for reading, Phil. That’s a great part about avoiding the Rule of Two while using these mandatory contract vehicles. Small businesses could do a lot of the work awarded through the vehicles, but they are often boxed out through limited competition.
Sam. Great points, all. FAR revisions affecting the public should be subject to review and public comment (APA). How or why is this not being done for these major revisions? RFPs will also afford agencies the opportunity to rank and rate offers (Best Value). Comparative evaluations very rarely result in nonresponsibility determinations where the offer of a small businesses (apparent successful offeror is eliminated). That offer would otherwise be subject to a Certificate of Competency referral to SBA; further limiting the ability of a small business to be re-evaluated by SBA for the possible award of that contract. Finally, RFP evaluations generally take longer to perform than sealed bids. Time saved? Much has changed since I retired from SBA.
Very good point about how RFPs give small businesses a second chance with nonresponsibility determinations. Thanks, Dean. It's great to hear from you, and I hope you are enjoying retirement. And, indeed, a lot has changed even since I left.
In a negotiated Best Value procurement, there are no “unacceptable” offers. Only “less acceptable’ offers. Hence, no one is determined “unacceptable”. No COC referral. I imagine a review of last year’s FY data would show a marked decline in COC referrals to SBA. Also, it looks like the number of SBA PCRs and Subcontracting Specialists has been drastically reduced. A subject for another discussion. Your insights are invaluable and much needed and appreciated.