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Section 5308.405-5: Small Business.

(90) AFMC contracting officers will restrict competition to small business schedule holders when there is a reasonable expectation that offers will be received from at least three responsible small business concerns, as defined in FAR 19.001, (for both supplies and services), capable of fulfilling the work requirements (for services), and award will be made at a fair market price.

(91) When competition is restricted to small business concerns, include the following in the solicitation:
(a) A notice that competition is restricted to small business schedule holders;
(b) The applicable NAICS code and corresponding size standard;
(c) A requirement for certification of size status by responding contractors as of the date set for submission of proposals.

(92) When restricting the competition to small businesses, include an appropriate limitation of subcontracting requirement in the solicitation/order. This requirement can be met by using a clause substantially the same as at FAR 52.219-14, Limitations on Subcontracting. For services, 50 percent of the cost of labor must be performed by the prime contractor or small business members of a team; for supplies/equipment, 50 percent of the cost of manufacturing, excluding cost of materials, must be performed by the prime contractor or small business members of a team. Team means small business members of a joint venture (reference 13 CFR 125.6(h)). An informal joint venture must be evidenced by some type of written agreement between the parties in accordance with 5352.219-9001,Use of Joint Ventures in Meeting the Limitations on Subcontracting Requirements.




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