United States Department of Agriculture
Research, Education, and Economics
ARS * CSREES * ERS * NASS
Policies and Procedures
| Title: | Procurement Preference Program |
| Number: | 210.8 |
| Date: | 9/24/1999 |
| Originating Office: | Procurement and Property Division, Policy Branch, AFM/ARS |
| This Replaces: | 210.8 dated 5/30/96 |
| Distribution: | REE Offices in Headquarters, Areas, and Field Locations |
| This P&P provides the guidance to implement and manage the Procurement Preference Program and to develop the procurement forecast and preference goals. |
Table of Contents
1. Authorities
2. Background
3. Policy
4. Program Definitions
5. Procedures
What to Include in the
Procurement Preference Program Goals
What Not to Include in the
Procurement Preference Goals
Other Considerations
Goal Monitoring
Documentation
6. Critical Timeframes
Exhibit 1
Exhibit 2
Departmental Regulation (DR) 5090-2, “Annual Procurement Preference Program (PPP) Goals,” dated July 1, 1998, prescribes policies and procedures for establishing procurement preference program goals and monitoring achievements in accordance with 15 United States Code (U.S.C.) 644(g)(2).
DR 5090-3, “Annual Procurement Forecast Requirements,” dated July 1, 1998, prescribes policies, responsibilities and procedures for developing annual procurement forecasts in accordance with 15 U.S.C. 637(a)(12)(c).
HUBZone Act of 1997, Title VI of Public Law 105-135, enacted on December 2, 1997, prescribes policies and procedures which established program goals and monitoring achievements under the HUBZone Empowerment Program.
The head of each Federal agency is required to establish realistic goals for the award of contracts to small business concerns owned and controlled by socially and economically disadvantaged individuals, and small business concerns owned and controlled by women. Small businesses may be awarded any contract or any part of a contract which is determined to be in the interest of assuring that a fair proportion of the total purchases and contracts for property and services are placed with small business concerns (15 U.S.C. 644(g)(2)).
In accordance with 15 U.S.C. 644(g)(1):
In accordance with the HUBZone Act of 1997, Title VI of P.L. 105-125, the goal for the award of HUBZone contracts must not be less than the following percentage of the total value of all prime contract and subcontract awards for each fiscal year: 1999 - 1 percent; 2000 - 1-1/2 percent; 2001 - 2 percent; 2002 - 2-1/2 percent; 2003 and each year thereafter 3 percent. The agency is also required to make available to small businesses an annual forecast of expected contract opportunities that small business concerns, including those owned and controlled by socially and economically disadvantaged individuals, are capable of performing. Such forecast must be periodically revised during the year (15 U.S.C. 637(a)(12)(c)).
It is policy of REE to provide a fair portion of its contracting and subcontracting opportunities to small, small disadvantaged, women-owned, and HUBZone small businesses. Such firms will also be provided the opportunity to perform as subcontractors on other contracts.
To accomplish this, DR 5090-3 requires all agencies and staff offices with contracting authority to prepare and submit:
Agencies are also required to establish goals that meet or exceed the Governmentwide or
Departmentwide minimums and develop procurement forecasts which reflect planned
procurement and goals established in the agency's annual small business preference plan
for small, small disadvantaged, 8(a), and women-owned small businesses. Projects contained
in the procurement forecast must be reflected in the PPP goals.
Head of Contracting Activity Designee
The Head of the Contracting Activity (HCA) e.g., Administrator, ARS, has the overall responsibility for managing the contracting activity and may designate an official, i.e., Head of the Contracting Activity Designee (HCAD), to carry out the functions of the HCA. The HCAD will establish and report on PPP goals for the agency and submit the agency's procurement forecast. The HCA may also be cognizant HCA for other agencies for whom he may exercise procurement authority. The HCAD for REE is the Director, Procurement and Property Division (PPD), Administrative and Financial Management.
Agency Head
The head of an agency or a staff office director who may not have procurement authority but whose office generates procurement and who receives procurement services from a cognizant HCA, i.e., CSREES, NASS, and ERS. The cognizant HCA for each of these agencies is the Administrator, ARS.
Procurement Preference Program Categories
The Small Business Administration (SBA), has classified the following categories as preference program areas:
Prime Contracts
(1) Small Businesses;
(2) 8(a);
(3) Small Disadvantaged Businesses;
(4) Women-Owned Small Businesses; and
(5) HUBZone Small Businesses.
Subcontracts
(1) Subcontracts Awarded to Small Businesses;
(2) Subcontracts Awarded to Small Disadvantaged Businesses;
(3) Subcontracts Awarded to Women-Owned Small Businesses; and
(4) Subcontracts Awarded to HUBZone Small Businesses.
Procurement Forecast
The procurement forecast is a projection of contract requirements to be initiated during a fiscal year to carry out the mission of the organization. The procurement forecast must identify those contract requirements set aside for exclusive participation of 8(a) firms, small, small disadvantaged, and HUBZONE concerns.
REE Coordinator
The REE individual designated by the HCAD or a representative to carry out the duties of the Small Business Coordinator within REE. The duties of the Small Business Coordinator are outlined in the AGAR 419.201-71.
Instructions for development of the Annual Procurement Forecast are contained in Exhibit 2 of these Policies and Procedures. The format for the forecast is appended thereto.
Data To Be Provided in the Procurement Preference Goals Estimate. Area PAO's
and Headquarters buying activities shall propose the amount of total prime contracts and
subcontracts which will be awarded in their areas of responsibilities under the
procurement preference program during the upcoming fiscal year. The goals for each
category must be developed and assembled in accordance with procedures set forth herein
and submitted to the HCA no later than July 15 of each fiscal year for compilation and
submission to Office of Small Disadvantaged Business Utilization (OSDBU) by August 15. The
goal shall be submitted in the format prescribed in Exhibit 1. Preference goals shall be
reflective of the procurement opportunities contained in the Forecast. An explanation of
the information required in the Procurement Preference Program Goals Estimate (Exhibit 1)
follows:
Include all contract awards to non-profit organizations, educational institutions, and
for-profit entities. Include all contract actions involving appropriated funds including
options exercised unilaterally by the Government and contract modifications likely to be
funded during the current fiscal year. Include new contracts, new delivery or task orders,
and all other requirements which exceed $25,000 including known modifications and change
orders.
Federal Supply Schedule (FSS) Contracting Dollars. GSA will submit separate goals
for the types of businesses with FSS schedule awards in effect during the fiscal year. Agency
goals must include contracting dollars for Federal Supply Schedules. These dollars
should be included as part of items (a) through (f) above.
The following should not be included in the estimate of Procurement Preference Goals:
Purchases Made with Credit Cards (Under $25,000). Neither micropurchases ($2,500 and under) nor individual purchases ranging from $2,501 through $25,000 should be included in Total Prime Contracts. Purchases above the micropurchase level and under $25,000 should not be included unless they result in the submission of form SF-279, Individual Contract Action Report. For example, all contracts covered by the Small Business Competitiveness Demonstration Program are required to be reported in Federal Procurement Data System (FPDS) even if they total less than $25,000, see also Departmental Manual 5013-6. These purchases will be reported through the Purchase Card Management System (PCMS) at the Department level only, and not at the agency level. No PCMS report will be issued at the agency level. Departmental Manual 5013-6 indicates that:
"Micro purchases need not be reported. Procurement preference program data for these purchases will be obtained by PCMS through the VISA network.... Procurement actions above the micropurchase threshold are to be reported as follows: (i) Actions with a cost above the micro purchase level but less than $25,000 must be reported using the appropriate SF-281 reporting codes in PCMS; (ii) Actions at or above $25,000 and actions in the Small Business Competitiveness Demonstration Program at any dollar value, must be reported by completing the SF-279, Independent Contract Action Report.”
Planned Contract Volumes. Each major buying activity is required to establish realistic goals while emphasizing the agency's efforts to support small, small disadvantaged, 8(a), women- owned, and HUBZone small business concerns. The contract dollar volume should be a realistic representation of the amount of contracts likely to be awarded during the upcoming fiscal year.
The contract volume is the amount of total “planned” dollars expected to be awarded during the fiscal year. The “planned” volume is the best estimate of the amount of dollars reasonably expected to be awarded in the current period. The volume should be based upon realistic expectations.
In developing the estimate, give due consideration to the historical data available
from the previous fiscal year. Review the previous year's achievements and total dollar
value of prime contracts and subcontracts. Determine whether the planned volume was
understated or overstated by a significant amount; compare it to the current
“planned” volume; and consider whether the planned volumes being projected for
the current period are reasonable considering past history. Adjust the planned volume to
the expected level of contracting. For each of the categories, compare the planned goals
with the actual accomplishments, paying particular attention to the percentage, dollar
values, and what they reveal. The percentage goal will remain fixed and will be
controlling as they are applied against your accomplishments to determine whether your
goals have been met.
Percentage Goals. Based on the previous year's achievements, determine what volume
of contract awards can be made in each procurement preference category based upon an
assessment of how well your Area performed in previous periods. Determine whether the
goals were met in each of the reporting categories. If not, determine the cause(s) of any
failures, analyze the causes, and determine if they are correctable. If they are
correctable, identify the necessary actions to achieve the goals and propose a plan to
implement, within the current fiscal year, which actions will achieve the proposed goals.
In the event the causes cannot be overcome, identify those reasons in a cover memorandum
to the HCAD with your proposed goals. Identify the steps you have undertaken to overcome
those barriers, including any which involve outreach activities.
Percentage Goal as the Controlling Factor. Note that all goals are expressed in terms of numbers, dollars, and percentages. If there is any variance, up or down, from the projected base amounts upon which goals are established, the percentage goal is the controlling factor and will be used to measure actual achievement.
Extraordinary Circumstances. In the event of extraordinary circumstances such as unexpected budget cuts, requests for revised goals will be considered if received by December 1 of the goaling year for submission to OSDBU Director, by December 15.
Adjustment of Minority Goals. Consistent with the Department of Justice affirmative action proposal published in the Federal Register, small disadvantaged businesses (prime and subcontracting) goals may be adjusted in the latter part of the fiscal year, if appropriate, to reflect estimated industry benchmarks.
Reports on Achievements Against Established Goals (Prime Contracts). After the close of each reporting quarter, a combined summary report of SF-279/281 data will be provided to each major buying activity detailing preference accomplishments for the quarter. The report shall be reviewed by each activity for completeness, accuracy, and monitoring of goal achievement. (Data corrections required shall be made through the SF-279 in the Federal Procurement Data System (FPDS); however, other software errors should be reported, in writing, to the Policy Branch of PPD.) Each activity is required to verify to the HCA Designee the accuracy of the data being reported and respond with an assessment of the reported achievements against the goals and future plans for remedying any shortfalls. Agency reports of goal achievements should be based upon official SF-279/SF-281 data as recorded at the Federal Procurement Data Center.
Report on Achievements Against Established Goals (Subcontracts). Reports of goal achievements in subcontracting will be based upon official data contained in the SF-295, Summary Subcontract Report. These reports will be submitted by the prime contractor through the Contracting Officer to the HCA Designee no later than October 15 each fiscal year for submission to OSDBU by October 30.
The reports must be reviewed by Contracting Officers to determine:
Format of Procurement Preference Goals Estimate. To facilitate the consolidation of this information, submit your PPP goals on the enclosed form titled, Procurement Preference Goals Estimate, FY- __ (Exhibit 1), which coincides with the procedures from the OSDBU. A column has been provided for the number of contracts and subcontracts expected to be awarded. Instructions for development of the preference goals are noted above.
A detailed written presentation of the method used to establish the estimates and goals shall be submitted by the noncognizant agency heads and major ARS buying activities along with copies of the historical data upon which the estimates and goals are based. Information about the numbers of contracts involved in the estimates is also required. This information is needed to evaluate the estimates and the goals to which they relate. In establishing contracting goals, identify and justify each class of contracts and the projected total value thereof which has been determined by a major buying activity to have little or no subcontracting possibilities.
-/Sd/-
W. G. HORNER
Deputy Administrator
Administrative and Financial Management
PROCUREMENT PREFERENCE PROGRAM GOALS
ESTIMATE
FY-______
Office ________________________
| No. of Actions | Dollars | Percentage of Item 1 | |
| 1. Total Prime Contracts | |||
| 2. Prime Contracts - Small Business |
|||
| 3. Prime Contracts - 8(a) Firms |
|||
| 4. Prime Contracts - Minority | |||
| 5. Prime Contracts - Women-Owned Concerns |
|||
| 6. Prime Contracts - HUBZone Concerns | |||
| No. of Actions | Dollars | Percentage of Item 7 | |
| 7. Total Subcontracts | |||
| 8. Subcontracts - Small Business |
|||
| 9. Subcontracts - Minority | |||
| 10. Subcontracts - Women-Owned Concerns |
|||
| 11. Subcontracts - HUBZone Concerns |
12. Methods used to establish estimates and goals.
INSTRUCTIONS
FORECAST OF PROCUREMENT OPPORTUNITIES
The forecast is intended to convey information on the procurement opportunities available
within the mission area. For the fiscal year include anticipated funded new requirements
which will be expected to exceed $25,000. This will include equipment, one-time and
recurring services, repair and maintenance, and construction likely to be funded within
the fiscal year.
The forecast should contain individual projects and classes of opportunities (and the
number of opportunities within each class). Contract options, modifications, or change
orders must not be included as they are not available for competition. The Forecast should
be reflective of goals established in the Procurement Preference Program for small, small
disadvantaged, 8(a), Women-Owned and HUBZone Small Businesses to the maximum extent
practicable.
To ensure consistency in the Agency's submission, submit your forecast
information on the form provided at the end of Exhibit 2. Do not extend the rows of
the table or otherwise alter the form. If additional copies are needed, simply
copy the table.
Block 1. Description of the Product or Service. Describe the
item clearly and concisely.
Block 2. Anticipated Source of Supply. Using the list of
supply codes below, identify the anticipated source of supply for the product or service
to be procured:
| 8(a) | Section 8(a) Set-Aside |
| SBSA | Small Business Set-Aside |
| SDB | Small Disadvantaged Business |
| WO | Women Owned Business |
| GSA/FSS | Federal Supply Schedule |
| C | Competitive |
| JWOD | Javits-Wagner O'Day Act Firm |
| DO/TO Man | Delivery/Task orders issued against mandatory contracts |
| DO/TO-Non-Man | Delivery/Task orders issued against non-mandatory contracts |
Block 3. Estimated Dollar Amount Or Dollar Range. The following
ranges must be
used in specifying the Government's cost
estimate for each anticipated procurement. No actual dollar amounts should be used.
| $25,000 or less | "A" |
| $25,001 to $100, 000 | "B" |
| $100,001 to $250,000 | "C" |
| $250,0001 to $500,000 | "D" |
| $500,001 to $1,000,000 | "E" |
| $1,000,001 to $5,000,000 | "F" |
| $5,000,001 to $10,000,000 | "G" |
| Over $10,000,000 | “H" |
Block 4. Anticipated Award Date. Identify the calendar quarter
when award is expected to be made, e.g., lst, 2nd, 3rd or 4th quarter.
Block 5. Location of the Project. Identify the city and
state where the project will be performed or supplies will be delivered.
Block 6. SIC Code. Identify the Standard Industrial
Classification Code associated with the product/services.
Please E-mail (or fax) the completed form to PPD Policy Branch. The procurement
forecast and goals must be submitted to PPD Policy Branch by July 15. The forecast must be
accompanied by the PPP goals and a cover memo, as required, to explain proposed goals
which do not meet the Department's minimum threshold.
FY ____
FORECAST OF PROCUREMENT OPPORTUNITIES
AGENCY _________________________
| Product Description | Source of Supply (USE LIST) |
Anticipated Price Range | Anticipated Quarter of Award | Location of Projected Award | SIC Code |