FAR Subpart 19.12—Small Disadvantaged
Business Participation Program
This subpart addresses the evaluation of the extent of participation
of small disadvantaged business (SDB) concerns in performance
of contracts in the North American Industry Classification
System (NAICS) Industry Subsectors as determined by the Department
of Commerce (see 19.201(b)), and to the extent authorized
by law. Two mechanisms are addressed in this subpart—
- (a) An evaluation factor or subfactor for the participation
of SDB concerns in performance of the contract; and
- (b) An incentive subcontracting program for SDB concerns.
19.1202 Evaluation factor or subfactor.
The extent of participation of SDB concerns in performance
of the contract, in the NAICS Industry Subsector as determined
by the Department of Commerce, and to the extent authorized
by law, shall be evaluated consistent with this section. Participation
in performance of the contract includes joint ventures, teaming
arrangements, and subcontracts. Credit under the evaluation
factor or subfactor is not available to SDB concerns that
receive a price evaluation adjustment under Subpart 19.11.
If an SDB concern waives the price evaluation adjustment at
Subpart 19.11, participation in performance of that contract
includes the work expected to be performed by the SDB concern
at the prime contract level.
- (a) Except as provided in paragraph (b) of this subsection,
the extent of participation of SDB concerns in performance
of the contract in the authorized NAICS Industry Subsector
shall be evaluated in competitive, negotiated acquisitions
expected to exceed $550,000 ($1,000,000 for construction).
- (b) The extent of participation of SDB concerns in performance
of the contract in the authorized NAICS Industry Subsector
(see paragraph (a) of this subsection) shall not be evaluated
- Small business set-asides (see Subpart 19.5), HUBZone
set-asides (see Subpart 19.13), and service-disabled
veteran-owned small business set-asides (see Subpart
- 8(a) acquisitions (see Subpart 19.8);
- Negotiated acquisitions where the lowest price technically
acceptable source selection process is used (see 15.101-2);
- Contract actions that will be performed entirely outside
of the United States and its outlying areas.
19.1202-3 Considerations in developing an evaluation
factor or subfactor.
In developing an SDB participation evaluation factor or subfactor
for the solicitation, agencies may consider—
- (a) The extent to which SDB concerns are specifically
- (b) The extent of commitment to use SDB concerns (for
example, enforceable commitments are to be weighted more
heavily than non-enforceable ones);
- (c) The complexity and variety of the work SDB concerns
are to perform;
- (d) The realism of the proposal;
- (e) Past performance of offerors in complying with subcontracting
plan goals for SDB concerns and monetary targets for SDB
- (f) The extent of participation of SDB concerns in terms
of the value of the total acquisition.
- (a) The solicitation shall describe the SDB participation
evaluation factor or subfactor. The solicitation shall require
offerors to provide, with their offers, targets, expressed
as dollars and percentages of total contract value, in each
of the applicable, authorized NAICS Industry Subsector,
and a total target for SDB participation by the contractor,
including joint venture partners, and team members, and
a total target for SDB participation by subcontractors.
The solicitation shall require an SDB offeror that waives
the SDB price evaluation adjustment in the clause at 52.219-23,
Notice of Price Evaluation Adjustment for Small Disadvantaged
Business Concerns, to provide with its offer a target for
the work that it intends to perform as the prime contractor.
The solicitation shall state that any targets will be incorporated
into and become part of any resulting contract. Contractors
with SDB participation targets shall be required to report
- (b) When an evaluation includes an SDB participation evaluation
factor or subfactor that considers the extent to which SDB
concerns are specifically identified, the SDB concerns considered
in the evaluation shall be listed in the contract, and the
contractor shall be required to notify the contracting officer
of any substitutions of firms that are not SDB concerns.
19.1203 Incentive subcontracting with small
disadvantaged business concerns.
The contracting officer may encourage increased subcontracting
opportunities in the NAICS Industry Subsector as determined
by the Department of Commerce for SDB concerns in negotiated
acquisitions by providing monetary incentives (see the clause
at 52.219-26, Small Disadvantaged Business Participation Program—Incentive
Subcontracting, and 19.1204(c)). Monetary incentives shall
be based on actual achievement as compared to proposed monetary
targets for SDB subcontracting. The incentive subcontracting
program is separate and distinct from the establishment, monitoring,
and enforcement of SDB subcontracting goals in a subcontracting
19.1204 Solicitation provisions and contract
- (a) The contracting officer may insert a provision substantially
the same as the provision at 52.219-24, Small Disadvantaged
Business Participation Program—Targets, in solicitations
that consider the extent of participation of SDB concerns
in performance of the contract. The contracting officer
may vary the terms of this provision consistent with the
policies in 19.1202-4.
- (b) The contracting officer shall insert the clause at
52.219-25, Small Disadvantaged Business Participation Program—Disadvantaged
Status and Reporting, in solicitations and contracts that
consider the extent of participation of SDB concerns in
performance of the contract.
- (c) The contracting officer may, when contracting by negotiation,
insert in solicitations and contracts containing the clause
at 52.219-25, Small Disadvantaged Business Participation
Program—Disadvantaged Status and Reporting, a clause
substantially the same as the clause at 52.219-26, Small
Disadvantaged Business Participation Program—Incentive
Subcontracting, when authorized (see 19.1203). The contracting
officer may include an award fee provision in lieu of the
incentive; in such cases, however, the contracting officer
shall not use the clause at 52.219-26.