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  • Question

    FAR 19.502-2(c) contains the following language, In both of these cases, the contracting officer's determination in paragraph (b)(1) of this subsection or the decision not to set aside a procurement reserved for small businesses under paragraph (a) of this subsection will be based on the expectation of receiving offers from at least two responsible small businesses, including non-manufacturers, offering the products of different concerns. In light of that, can the acquisition of brand name supply valued at less than $25,000 be set aside for small business if the offers will not be offering products of different concerns, despite the fact that the item is manufactured domestically?


    Answer

    You can not do a set-aside because FAR 19.502-2(c) states, "For small business set-asides other than for construction or services, any concern proposing to furnish a product that it did not itself manufacture must furnish the product of a small business manufacturer unless the SBA has granted either a waiver or exception to the nonmanufacturer rule (see 19.102(f)). In industries where the SBA finds that there are no small business manufacturers, it may issue a waiver to the nonmanufacturer rule (see 19.102(f)(4) and (5)). In addition, SBA has excepted procurements processed under simplified acquisition procedures (see Part 13), where the anticipated cost of the procurement will not exceed $25,000, from the nonmanufacturer rule. Waivers permit small businesses to provide any firm’s product. The exception permits small businesses to provide any domestic firm’s product. In both of these cases, the contracting officer’s determination in paragraph (b)(1) of this subsection or the decision not to set aside a procurement reserved for small business under paragraph (a) of this subsection will be based on the expectation of receiving offers from at least two responsible small businesses, including nonmanufacturers, offering the products of different concerns."


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