Each year the Federal Government purchases from private firms hundreds of billions of dollars in goods and services that range from office supplies to complex space systems. The Federal Government wants a fair share of that amount to be awarded to U.S. small businesses. As a result of Government programs, small businesses win about $100 billion a year in Government contracts. 1 U.S. Census Bureau, SUSB, SPS: International Trade Administration: Bureau of Labor Statistics, Business Employment Dynamics (BED): Advocacy-funded research, Small Business GDP: Update 2002-2010. © Management Concepts. See inside front cover for additional information. 8-1
In the Small Business Act of 1953 (15 U.S.C. 631), Congress created the small business program by declaring that small businesses should receive a fair proportion of the Federal Government's purchases and contracts for property, services and construction. Congress also established the Small Business Administration (SBA) to manage the small business program. Since then the law has been amended numerous times to expand the program. After completing this lesson, you will be able to: 8.1 IDENTIFY the elements of the Small Business Program to include policy and regulations, goals, size standards, non- manufacturer rule, and North American Industrial Classification System (NAICS) codes. 8.2 IDENTIFY the roles of the contract specialist and small business specialist in the acquisition team and the benefits of their early involvement in acquisition planning and market research. 8.3 EXPLAIN the different types of small business set-asides, the Rule of Two, and eligibility requirements for each small business program. 8.4 COMPARE the difference between subcontracting plans and small business participation plans, when they are required, and the elements of each within the source selection evaluation process. 8.5 IDENTIFY key components of various other small business programs and issues that could impact an acquisition. KEY TERMS Small Business —a business concern, including its affiliates, that is independently owned and operated, not dominant in the field of operation in which it is bidding on Government contracts, and is qualified as a small business under the criteria and size standards in 13 CFR 121 (see FAR 19.102). A small business is “not dominant in its field of operation” and does not exercise a controlling or major influence on a national basis in a kind of business activity in which a number of business concerns are primarily engaged. In determining whether dominance exists, consideration must be given to all appropriate factors, including volume of business, number of employees, financial resources, competitive status or position, ownership or control of materials, processes, patents, license agreements, facilities, sales territory, and nature of business activity.
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