Memorandum

U.S. Department of
Transportation

Office of the Secretary
of Transportation


 

DATE:

May 23, 2005

SUBJECT:

ACTION:  Class Deviations from FAR 52.219-11, 52.219-12, 52.219-17 and 52.219-18

FROM:
 

Original signed by

David J. Litman
Senior Procurement Executive

TO:

Procurement Management Council Members

 

 

In accordance with the Transportation Acquisition Regulation (TAR) 1201.404, class deviations were granted from the Federal Acquisition Regulation (FAR) 52.219-11, 52.219-12, 52.219-17, and 52.219-18 to implement the “Partnership Agreement between the U.S. Small Business Administration and the Department of Transportation (DOT).”  The Partnership Agreement expedites the award of requirements pursuant to section 8(a) of the Small Business Act, as amended (15 USC 637(a)) and the Small Business Administration regulations.

 

These deviations were originally granted under DOT’s Procurement Reinvention Laboratory (LAB).  Since the LAB will be closing effective June 1, 2005, I hereby authorize a continuation of these class deviations for the purposes of the Partnership Agreement.

 

These deviations are effective until the Partnership Agreement is terminated or a change to the FAR is made that replaces or changes the clauses to meet the Partnership Agreement requirements.  The applicable clauses are attached.

 

Attachment

 


ATTACHMENT

Clauses applicable to the Partnership Agreement between the U.S. Small Business Administration and the U.S. Department of Transportation

52.219-11  Special 8(a) Contract Conditions.

 

Used only in sole-source ($3 million or less) contracts using the procedures established under the DOT/SBA Partnering Agreement and may be prepared in a tri-partitle format.

 

As prescribed in 19.811-3(a), insert the following clause:

 

SPECIAL 8(a) CONTRACT CONDITIONS (FEB 1990)  (DEVIATION)

 

The Small Business Administration (SBA) agrees to the following:

(a) (DELETED)

(b) (DELETED)

(c) Except for novation agreements and advance payments, delegate to the [insert name of contracting agency] the responsibility for administering the subcontract to be awarded hereunder with complete authority to take any action on behalf of the Government under the terms and conditions of the subcontract; provided, however, that the [insert name of contracting agency] shall give advance notice to the SBA before it issues a final notice terminating the right of a subcontractor to proceed with further performance, either in whole or in part, under the subcontract for default or for the convenience of the Government.

(d) That payments to be made under any contract awarded under this contract will be made directly to the subcontractor by the [insert name of contracting agency].

(e) That the subcontractor awarded a subcontract hereunder shall have the right of appeal from decisions of the Contracting Officer cognizable under the “Disputes” clause of said subcontract.

(f) To notify the [insert name of contracting agency] Contracting Officer immediately upon notification by the subcontractor that the owner or owners upon whom 8(a) eligibility was based plan to relinquish ownership or control of the concern.

(End of clause)

52.219-12  Special 8(a) Subcontract Conditions.

 

Used only in sole-source ($3 million or less) contracts using the procedures established under the DOT/SBA Partnering Agreement.

 

As prescribed in 19.811-3(b), insert the following clause:

 

SPECIAL 8(a) SUBCONTRACT CONDITIONS (FEB 1990)  (DEVIATION)

 (a) The Small Business Administration (SBA) has delegated to the [insert name of contracting agency] authority to enter into an 8(a) contract directly with the participant to furnish the supplies or services as described therein.

 (b) The [insert name of 8(a) contractor], hereafter referred to as the subcontractor, agrees and acknowledges as follows:

(1) That it will, for and on behalf of the SBA, fulfill and perform all of the requirements of Contract No.  [insert number of contract] for the consideration stated therein and that it has read and is familiar with each and every part of the contract.

(2) That the SBA has delegated responsibility, except for novation agreements and advance payments, for the administration of this subcontract to the [insert name of contracting agency] with complete authority to take any action on behalf of the Government under the terms and conditions of this subcontract.

(3) That it will not subcontract the performance of any of the requirements of this subcontract to any lower tier subcontractor without the prior written approval of the SBA and the designated Contracting Officer of the [insert name of contracting agency].

(4) That it will notify the  [insert name of contracting agency] Contracting Officer in writing immediately upon entering an agreement (either oral or written) to transfer all or part of its stock or other ownership interest to any other party.

(c) Payments, including any progress payments under this subcontract, will be made directly to the subcontractor by the [insert name of contracting agency].

(End of clause)

52.219-17  Section 8(a) Award.

Used with all 8(a) competitive contracts awarded under the procedures established under the DOT/SBA Partnering Agreement.

 

As prescribed in 19.811-3(c), insert the following clause:

 

SECTION 8(a) AWARD (DEC 1996)  (DEVIATION)

 

(a) By execution of a contract, the Small Business Administration (SBA) agrees to the following:

(1)  (DELETED)

(2) Except for novation agreements and advance payments, delegates to the [insert name of contracting activity] the responsibility for administering the contract with complete authority to take any action on behalf of the Government under the terms and conditions of the contract; provided, however that the contracting agency shall give advance notice to the SBA before it issues a final notice terminating the right of the subcontractor to proceed with further performance, either in whole or in part, under the contract.

(3) That payments to be made under the contract will be made directly to the subcontractor by the contracting activity.

(4) To notify the [insert name of contracting agency] Contracting Officer immediately upon notification by the subcontractor that the owner or owners upon whom 8(a) eligibility was based plan to relinquish ownership or control of the concern.

(5) That the subcontractor awarded a subcontract hereunder shall have the right of appeal from decisions of the cognizant Contracting Officer under the “Disputes” clause of the subcontract.

(b) The offeror/subcontractor agrees and acknowledges that it will, for and on behalf of the SBA, fulfill and perform all of the requirements of the contract.

(c) The offeror/subcontractor agrees that it will not subcontract the performance of any of the requirements of this subcontract to any lower tier subcontractor without the prior written approval of the SBA and the cognizant Contracting Officer of the [insert name of contracting agency].

(End of clause)

52.219-18  Notification of Competition Limited to Eligible 8(a) Concerns.

Used with all 8(a) competitive awards under the procedures established under the DOT/SBA Partnering Agreement.

 

As prescribed in 19.811-3(d), insert the following clause:

 

NOTIFICATION OF COMPETITION LIMITED TO ELIGIBLE 8(a) CONCERNS (JUNE 2003) (DEVIATION)

 

(a) Offers are solicited only from small business concerns expressly certified by the Small Business Administration (SBA) for participation in the SBA’s 8(a) Program and which meet the following criteria at the time of submission of offer—

(1) The Offeror is in conformance with the 8(a) support limitation set forth in its approved business plan; and

(2) The Offeror is in conformance with the Business Activity Targets set forth in its approved business plan or any remedial action directed by the SBA.

(b) By submission of its offer, the Offeror represents that it meets all of the criteria set forth in paragraph (a) of this clause.

(c) Any award resulting from this solicitation will be made directly by [insert name of contracting agency] to the successful 8(a) offeror selected through the evaluation criteria set forth in this solicitation.

(d)(1) Agreement. A small business concern submitting an offer in its own name shall furnish, in performing the contract, only end items manufactured or produced by small business concerns in the United States or its outlying areas. If this procurement is processed under simplified acquisition procedures and the total amount of this contract does not exceed $25,000, a small business concern may furnish the product of any domestic firm. This paragraph does not apply to construction or service contracts.

(2) The [insert name of SBA's contractor] will notify the [insert name of contracting agency] Contracting Officer in writing immediately upon entering an agreement (either oral or written) to transfer all or part of its stock or other ownership interest to any other party.

(End of clause)

Alternate I (Apr 2005). If the competition is to be limited to 8(a) concerns within one or more specific SBA regions or districts, add the following paragraph (a)(3) to paragraph (a) of the clause:

(3) The offeror's approved business plan is on the file and serviced by [Contracting Officer completes by inserting the appropriate SBA District and/or Regional Office(s) as identified by the SBA].

Alternate II (Dec 1996). When the acquisition is for a product in a class for which the Small Business Administration has determined that there are no small business manufacturers or processors in the Federal market in accordance with 19.502-2(c), delete paragraph (d)(1).