SB Instructions To Offerors (Section L) 14 Feb 22.docx

SMALL BUSINESS FACTOR

Revision 2-14-2022

INSTRUCTIONS TO OFFERORS (SECTION L)

FACTOR X: SMALL BUSINESS UTILIZATION AND PARTICIPATION

It is the policy of the Government to provide maximum practicable opportunities in its acquisitions to Small Business (SB) concerns, including Historically Underutilized Business Zone Small Business (HUBZone SB), Woman-Owned Small Business (WOSB), Small Disadvantaged Business (SDB), Veteran-Owned Small Business (VOSB), Service-Disabled Veteran-Owned Small Business (SDVOSB), and other small business concerns. Further, it is the policy of the Government that such concerns will have the maximum practicable opportunity to participate in contract performance consistent with its efficient performance.

NAVFAC’s command-wide small business subcontracting targets are shown below. These may be higher or lower than percentages that would represent realistic, challenging, small business subcontracting goals for this acquisition consistent with efficient and effective performance of the contract. Offerors’ submissions will be rated against their planned use of small businesses that support these socio-economic small business categories and targets. These targets are based on a percentage of total planned subcontract dollars.

This Factor assesses both the historical achievements in utilizing small business concerns and the proposed small business participation commitment for this requirement. It also requires that Large Business Offerors submit a Small Business Subcontracting Plan for consideration with their proposal.

The Offeror is required to demonstrate its previous commitment to SBs through its record of past utilization on the Historical Small Business Utilization form (Attachment X). Small Business utilization will be evaluated on past performance projects that required the use of a Small Business Subcontracting Plan (SBSP). The Offeror’s Small Business commitment on the project’s SBSP will be compared to the Offeror’s actual use of small businesses. The Government may utilize information contained in its databases to validate entries.

The Offerors are required to demonstrate support for NAVFAC’s command-wide Small Business Program by making a commitment to utilize small businesses in the performance of this requirement. Small Business commitment shall be annotated on the Small Business Participation Commitment Document (SBPCD) (Attachment Y). In addition to estimating small business performance, Offerors shall include some type of written commitment from the small businesses that they plan to use to provide specific services Offeror’s should make every effort to attract and use small businesses in a variety of socio-economic categories to help NAVFAC Washington meet its small business goals. Offerors are encouraged to reach out to their local Small Business Administration (SBA) to get a list of available small business vendors in specific socio-economic categories, to assist them with meeting their small business goals. Failure to submit either Attachment X or Attachment Y may result in a deficiency.

In accordance with FAR 19.7, all other than small businesses (OTSBs) shall submit a Small Business Subcontracting Plan (SBSP) utilizing the template provided as Attachment W. The Government will not evaluate or rate the SBSP; however, a Small Business Professional/Authorized Representative and the Contracting Officer will review the SBSP for acceptability. The Contracting Officer shall negotiate and/or accept the SBSP prior to contract award. Failure to negotiate an acceptable subcontracting plan within the time limit prescribed by the Contracting Officer will render the Offeror ineligible for award of the contract. The SBSP will be incorporated into the resulting contract and monitored for goal achievement throughout contract performance.

The SBSP must meet the minimum commitments offered in the Small Business Utilization and Participation Factor (Attachment Y). In accordance with DFARS 215.304(c)(i), when an evaluation assesses the extent that small businesses are specifically identified in proposals, those small businesses considered in the evaluation shall be listed in the SBSP.

Please note that SBSP goals and the participation requirements provided in the Small Business Participation Commitment Document (SBPCD) WILL NOT be the same. The participation requirements within the SBPCD are provided as percentages of the total contract value; subcontract plan goals are provided as a percentage of planned subcontracting dollars. While the percentages will differ, the types of products/services identified in the SBSP, should be the same as those products/services identified in the SBPCD. Likewise, the planned small business subcontract dollars in the SBSP will be equal to (or in some cases greater than) the extent of small business participation identified in the SBPCD.

Proposal Submission Requirements:

1. Historical Small Business Utilization. All Offerors (both Other than Small Businesses (OTSB) AND SBs shall use Attachment X (Historical Small Business Utilization) to demonstrate their historical utilization of SBs. Attachment X shall be provided for each project submitted under Factor 1, Corporate Experience. Failure to submit Attachment X for each project submitted under Factor 1, Corporate Experience, or the failure to fully complete Attachment X may result in a deficiency. [Deficiency]

2. Small Business Participation Commitment. Small Business participation is defined as work to be performed by a small business – either as the prime contractor or as a subcontractor. All Offerors (both OTSBs and SBs) shall use Attachment Y (Small Business Participation Commitment Document (SPCD)) to demonstrate support of NAVFAC Washington’s Small Business participation objectives. Failure to submit Attachment Y may result in a deficiency. [Deficiency] Large business Offerors may achieve the minimum total small business participation requirement through subcontracting to small businesses. Small business Offerors may achieve the minimum total small business participation requirement through their own performance/participation as a prime and also through a joint venture, teaming arrangement, and/or subcontracting with other small business concerns.

The following information is required for this factor:

a. Offerors shall identify all planned subcontractors by name that will be used to support each specific small business category (i.e., SB, HUBZone SB, WOSB, SDB, VOSB, and SDVOSB). Identify the type and complexity of product/service to be subcontracted, and the estimated subcontract value. Offerors shall include the type of commitment document (i.e., teaming agreement, letter of commitment, etc.) for each named subcontractor. Failure to identify subcontractors by name or provide commitment documentation may result in a lower rating. [Weakness] Firm commitments from ALL proposed small business subcontractors to include providing the commitment document may be rated higher. [Strength]

b. Offerors shall identify (in terms of dollar value and percentage of the total contract value) the Offeror’s proposed small business participation. The minimum required small business participation threshold is 20% for this project. Failure to submit dollar value and percentages of the total contract value set aside for small businesses may result in a deficiency. [Deficiency] Offerors are encouraged to exceed this percentage and seek meaningful levels of participation in each of the small business categories (i.e., SB, HUBZone SB, WOSB, SDB, VOSB, and SDVOSB) consistent with efficient contract performance. Offerors who exceed the minimum percentage may be rated higher. [Strength] Failure to provide at least 20% minimum small business participation may result in a lower rating. [Weakness]

Offerors who are not able to meet the minimum total small business participation requirement of 20% (of the total contract value) shall provide a detailed explanation why the minimum total small business participation requirement cannot be achieved. If the Offeror does not intend to subcontract (i.e. they are a self-performing small business), provide a detailed explanation why subcontracting would not result in efficient contract performance. Failure to provide a detailed explanation for proposing less than 20% small business participation or 0% participation may result in a lower rating, regardless of business size. [Weakness]

3. Small Business Subcontracting Plan (SBSP). All other than small businesses (OTSBs) shall submit a Small Business Subcontracting Plan utilizing the template provided (Attachment W). Failure to provide a completed SBSP may result in a deficiency. [Deficiency]

BASIS OF EVALUATION (SECTION M)

The Government will evaluate the realism and likelihood of success in achieving the small business objectives of this acquisition based on the following:

A. Historical Utilization: The extent to which the Offeror is able to demonstrate a history of supporting Government policies concerning the utilization of small business concerns (including all of the various socioeconomic categories of small business, HUBZone SB, WOSB, SDB, VOSB, SDVOSB) and the success in achieving goals established by subcontracting plans on prior contracts.

B. Small Business Participation Commitment Document: The extent to which the Offeror has demonstrated an achievable commitment to use small businesses (including HUBZone SB, WOSB, SDB, VOSB, SDVOSB) in the performance of this contract in the SBPCD. The SBPCD will be evaluated to determine the extent to which small business concerns are specifically identified by name and socioeconomic category in the document and the quantitative degree to which small business concerns (including HUBZone, WOSB, SDB, VOSB, and SDVOSB) will participate relative to the total contract value. The complexity and variety of the work small business concerns will perform and the degree of commitment to use named sources through formal teaming agreements, letters of intent/commitment will be evaluated to assess achievability of the commitment. This minimum small business participation requirement, through work performed by the small business prime and/or subcontracting with small businesses, shall be equal to or exceed 20% of the total contract value, unless the Offeror provides a reasonable and well-documented explanation for why the minimum 20% small business participation requirement cannot be achieved.

C. Small Business Subcontracting Plan. The Small Business Subcontracting Plan is required to be submitted for all other than small business (OTSB) entities. The evaluation of the SBSP will be limited to its inclusion with the Offeror’s proposal and its completeness. If the Offer is considered for award, the contents will be confirmed to include the Offer’s small business commitment on the evaluated Small Business Participation Commitment Document (Attachment Y) prior to award. Failure to conform the SBSP to meet commitments submitted on the Small Business Commitment Document may make the Offeror ineligible for award.

* [RATINGS SHOULD BE THE SAME AS THE OTHR BVSS RATINGS USED. GREEN WORDING IS FOR INTERNAL US ONLY.]