Each year the federal government purchases from

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.