234 the primary benefit of sdb certification is to

Info icon This preview shows pages 56–57. Sign up to view the full content.

View Full Document Right Arrow Icon
234 The primary benefit of SDB certification is to provide evaluation credits for prime contractors that achieve SDB subcontracting targets. To be certified by the SBA as an SDB, a small business must be at least 51% owned and controlled by an individual determined as socially and economically disadvantaged. States also conduct their own set-aside programmes (Table AIII.2). 13. The Department of Commerce determines annually by North American Industry Classification System (NAICS) Industry Subsector and Region, if any, the authorized small disadvantaged business (SDB) procurement mechanisms and application factors (percentages). The Department of Commerce determination must include the applicable factors, by NAICS Industry Subsector, to be used in the price evaluation adjustment for SDB concerns. 235 14. In FY 2001, the value of contracts awarded through preferential or set-aside programmes was 8.1% of total federal prime procurement awards. 236 Prime contracts awarded to all small businesses reached 22.8% of the total, slightly below the 23% goal. 15. Under the Surety Bond Guarantee Program, the SBA is authorized to issue bond guarantees to surety companies for construction, service, and supply contracts that do not exceed US$2 million, and to reimburse these sureties up to 90% of the losses sustained if the contractor defaults. The bonds are delivered through surety and insurance companies. Both the surety company and the contractor pay a fee for an SBA surety bond guarantee. The number of bonds issued to contractors was 7,372 in FY 2002; resources in the Surety Bond Guarantee Fund were US$4.2 billion. (d) Enforcement and monitoring 1. The "Title VII" process, initially established under Title VII of the Omnibus Trade and Competitiveness Act of 1988, as amended, provided a vehicle for identifying discriminatory foreign government procurement practices and for monitoring and enforcing existing international agreements. After the Title VII legislation expired in 1996, the process was re-instituted by Executive Order 13116 in March 1999 for three years, 1999-01. 237 These reports were discontinued in 2001. 2. Under Section 305(g) (1) of the Trade Agreements Act of 1979, the United States has applied sanctions, since May 1993, to certain Member States of the EU considered to discriminate against U.S. products and services in their government procurement practices. The sanctions apply to end- products and construction materials not covered by the GPA, to all service contracts below GPA ship repair, and US$50,000 for architectural and engineering services. Information available online at: http://www.arnet.gov/far/ loadmainre.html. 234 Federal Acquisition Regulations, Sub-Part 19.8. Available online at: http://www.arnet.gov/far/ participation loadmainre.html. 235 Federal Acquisition Regulations, Sub-Part 19.201. Available online at: http://www.arnet.gov/far/ loadmainre.html.
Image of page 56

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 57
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern