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Panoptic Enterprises' FEDERAL CONTRACTS DISPATCH

DATE: August 21, 2001

SUBJECT: Department of Defense (DOD); Delay in Electronic Submission and Processing of Claims for Contract Payments

SOURCE: August 13, 2001, Memorandum from the Director of Defense Procurement

AGENCIES: Department of Defense (DOD)

ACTION: Notice

SYNOPSIS: Director of Defense Procurement Deidre Lee is reinstating small business set-asides for non-nuclear ship repair on the West Coast as required under the Small Business Competitiveness Demonstration Program. In addition, she is reinstating unrestricted competition for heavy construction and special trade contractors.

EDITOR'S NOTE: For more on the Small Business Competitiveness Demonstration Program, see FAR Subpart 19.10, DOD-specific regulations in Defense FAR Supplement (DFARS) Subpart 219.10, and the March 27, 2000, FEDERAL CONTRACTS DISPATCH "Federal Acquisition Circular (FAC) 97-16, Small Business Competitiveness Demonstration Program and Progress Payments."

For more on small business set-asides, see FAR Subpart 19.5, Set-Asides for Small Business, and DFARS Subpart 219.5.

EFFECTIVE DATE: August 13, 2001.

FOR MORE INFORMATION CONTACT: Tim Forman, Department of Defense Office of Small and Disadvantaged Business Utilization, 703-588-8611, or Teresa Brooks, DP/CPA, 703-695-8567.

SUPPLEMENTAL INFORMATION: The Small Business Competitiveness Demonstration Program was established in 1988 as a test program by the Small Business Competitiveness Demonstration Program Act (Public Law 100-656), and it is implemented by FAR Subpart 19.10 (in 1997, the program was made permanent).

The primary purpose of the program is to assess the ability of small businesses to compete successfully in four "designated industry groups" (DIGs) without the use of small business set-asides. The DIGs are construction, refuse systems and related services, non-nuclear ship repair, and architectural and engineering services). Ten federal agencies participate in the program, including DOD (except the National Imagery and Mapping Agency).

If a participating agency fails to award 40% of its contracts in a particular DIG to small businesses, or if small business awards under certain North American Industry Classification System (NAICS) codes within the construction and architectural & engineering services DIGs fall below 35%, the organizational element that failed to meet the small business participation goal must reinstate small business set-asides until its awards to small businesses reach the 40% (or 35%) mark.

For the 12 months ending September 2000, DOD fell below the 40% goal in acquisitions under NAICS Code 336611, Federal Service Code (FSC) J999, for non-nuclear ship repairs on the West Coast. Therefore, in accordance with paragraph (b)(1) of DFARS 219.1007, Procedures, Director of Defense Procurement Deidre Lee has directed the reinstatement of small business set-aside procedures for all solicitations issued on or after August 13, 2001, or as soon thereafter as practicable, for non-nuclear ship repairs on the West Coast.

Also, small business set-asides had been reinstated for NAICS Subsector 234, Heavy Construction Other than Building Construction -- Contractors, for all Army and Navy activities, and NAICS Subsector 235, Construction -- Special Trade Contractors, for all Navy activities, because DOD fell below the goals in those industries. However, for the 12 months ending September 2000, DOD met the 40% goal in acquisitions under NAICS Subsector 234, and met the 35% goal in all subcategories of Subsector 235. Therefore, Director of Defense Procurement Deidre Lee has directed that unrestricted competition be reinstatement for all solicitations issued on or after August 13, 2001, or as soon thereafter as practicable.

FOR FURTHER INFORMATION CONTACT: Panoptic Enterprises at 703-451-5953 or by e-mail to Panoptic@FedGovContracts.com.

Copyright 2001 by Panoptic Enterprises. All Rights Reserved.

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