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  • Question

    Does the requirement to have a written determination that the consolidation is necessary IAW FAR 7.107-2 apply to actions solicited and awarded outside of the United States or its outlying areas? If so, why?


    Answer

    Given the information provided in your scenario, I believe that you are correct when you say the determination is not required, but like most things in contracting, it depends.  If you are awarding your contracts CONUS for performance completed OCONUS, and possibly have an overseas ACO assigned (such as with DCMA), then I think you would complete the small business requirements.

    However, if you are awarding and performing OCONUS, then I believe your assessment is correct. The requirement for a written determination is centered around not squeezing out small businesses. Most of the organizations that I know of have an internal policy regarding the topic. I don't know all the DPC, Navy, NAVFAC, etc., policies on this, but I would imagine there is possibly a class deviation in place from this requirement. It seems logical that your organization has a class deviation for this also, thus I would do further research in that area within your organization.  Also, as always, consult with your legal staff.

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