Set-Asides and Blanket Purchase Agreements (and

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					Strategic Sourcing




             Set-Asides
                 and
          Blanket Purchase
        Agreements (and FSS)

                          Gary Boyd
Strategic Sourcing

FAR 8.404 – Use of Federal Supply Schedules.
(a) General. Parts 13 (except 13.303-2(c)(3)), 14,
    15, and 19 [Small Business Programs]
    (except for the requirement at 19.202-1(e)(1)(iii)
    [bundled requirements]) do not apply to BPAs
    or orders placed against Federal Supply
    Schedules contracts (but see 8.405-5).
FAR 8.405-5 – Small Business.
(a) Although the mandatory preference
    programs of Part 19 do not apply, orders
    placed against schedule contracts may be
    credited toward the ordering activity's small
    business goals.
Strategic Sourcing
     H.R. 3867--Small Business Contracting Program Improvements Act
    (passed the House on October 31, 2007 and currently under consideration
                          by a Senate Committee)
SEC. 602. SENSE OF THE HOUSE OF REPRESENTATIVES ON ACQUISITIONS
CONDUCTED UNDER THE GENERAL SERVICES ADMINISTRATION'S FEDERAL SUPPLY
SCHEDULE.
(a) Findings- Congress finds the following:
(1) The Small Business Act was adopted by Congress to ensure that small business concerns
receive fair access to, and a fair share of, Federal government contracts and subcontracts.
(2) There is a disagreement between the General Services Administration and the Small
Business Administration on whether the Small Business Act applies to the acquisitions under the
General Services Administration's Federal Supply Schedule, which account for over
$30,000,000,000 in procurement dollars awarded each year.
(3) As demonstrated in proceedings of the White House Acquisition Advisory Panel, small
businesses hold 79.6 percent of contracts under the Federal Supply Schedule, but receive only
37.1 percent of dollars awarded under the Federal Supply Schedule, and this disparity has a
significant impact on the competitive viability of small business concerns in government
contracting.
(b) Sense of the House- Therefore, it is the sense of the House of Representatives that
small business set-asides should not be excluded from any acquisitions under the
General Services Administration's Federal Supply Schedule. [emphasis mine]
Strategic Sourcing
                     Now what?
    • First, 9 of HHS’ 18 strategic sourcing
      vendors are small businesses.
    • Second, all HHS’ strategic sourcing
      BPAs comply with FAR 8.4.

    • The House preference may become
      law. If and when it does, the FAR
      Council, CAAC, and DARC will
      implement it.