CFCM Small Business Programs — Questions and Answers
Question 1: Under FAR 19.502-2, a total small business set-aside is mandatory when the contracting officer determines there is a reasonable expectation of receiving offers from at least how many responsible small business concerns at fair market prices?
- One
- Two (Correct answer)
- Three
- Five
Correct answer: Two
FAR 19.502-2 requires a total small business set-aside when the contracting officer has a reasonable expectation that at least two responsible small business concerns will submit offers at fair market prices, quality, and delivery. This is known as the 'Rule of Two.'
Question 2: The 8(a) Business Development Program is administered by which agency, and its primary purpose is to:
- GSA; reduce procurement lead times for commercial items
- SBA; assist firms owned by socially and economically disadvantaged individuals (Correct answer)
- Department of Commerce; promote export opportunities for small manufacturers
- DCAA; ensure cost accounting compliance for small contractors
Correct answer: SBA; assist firms owned by socially and economically disadvantaged individuals
The SBA's 8(a) Business Development Program helps firms owned and controlled by socially and economically disadvantaged individuals gain access to government contracts and business development assistance. Contracts can be awarded sole-source or competitively within the program.
Question 3: The Historically Underutilized Business Zone (HUBZone) program grants contracting preferences to firms that:
- Are majority-owned by veterans who served in combat zones
- Maintain their principal office and at least 35% of employees in designated economically distressed areas (Correct answer)
- Operate exclusively on federally owned land or military installations
- Have fewer than 10 employees and annual revenues under $1 million
Correct answer: Maintain their principal office and at least 35% of employees in designated economically distressed areas
To qualify for the HUBZone program, a firm must be located in a Historically Underutilized Business Zone, at least 35% of its employees must reside in a HUBZone, and it must be a small business concern. The program stimulates economic development in distressed communities.
Question 4: Under FAR 19.702, a prime contractor is required to submit a small business subcontracting plan when the contract is expected to:
- Exceed $750,000 (or $1.5 million for construction) and subcontracting possibilities exist, unless the prime is itself a small business (Correct answer)
- Exceed the simplified acquisition threshold on any cost-reimbursement contract
- Include any subcontractor regardless of contract value
- Exceed $5 million and the prime contractor has more than 500 employees
Correct answer: Exceed $750,000 (or $1.5 million for construction) and subcontracting possibilities exist, unless the prime is itself a small business
FAR 19.702 requires subcontracting plans from other-than-small prime contractors on contracts exceeding $750,000 ($1.5M for construction) when subcontracting opportunities exist. Small business primes are exempt. The plan must include goals for utilization of small and small disadvantaged businesses.
Question 5: A Women-Owned Small Business (WOSB) set-aside is authorized under FAR Subpart 19.15 for acquisitions in industries where women-owned small businesses are:
- Registered in SAM.gov and have past performance ratings above average
- Underrepresented or substantially underrepresented, as determined by SBA research (Correct answer)
- Located in a HUBZone or 8(a) certified geographic area
- Jointly owned with a Service-Disabled Veteran
Correct answer: Underrepresented or substantially underrepresented, as determined by SBA research
The WOSB Federal Contract Program at FAR Subpart 19.15 allows set-asides in NAICS codes where SBA data shows women-owned small businesses are underrepresented or substantially underrepresented in federal contracting. This is based on SBA's analysis of market participation data.
Question 6: A Service-Disabled Veteran-Owned Small Business (SDVOSB) set-aside under FAR 19.1405 may be awarded when the contracting officer reasonably expects:
- At least two responsible SDVOSB concerns will submit offers at fair and reasonable prices (Correct answer)
- The incumbent contractor is an SDVOSB regardless of competitive interest
- At least one SDVOSB will bid and the price is within 10% of the independent government estimate
- The SBA has pre-approved the acquisition for SDVOSB competition
Correct answer: At least two responsible SDVOSB concerns will submit offers at fair and reasonable prices
FAR 19.1405 allows SDVOSB set-asides when the contracting officer has a reasonable expectation that at least two responsible SDVOSB concerns will submit offers at fair and reasonable prices. This mirrors the 'Rule of Two' applied specifically to this socioeconomic category.
CFCM Small Business Programs
Under FAR 19.502-2, a total small business set-aside is mandatory when the contracting officer determines there is a reasonable expectation of receiving offers from at least how many responsible small business concerns at fair market prices?