IMMEDIATE ACTION

DEPARTMENT OF THE AIR FORCE AFMC ACQUISITION CIRCULAR 02-04

Headquarter AFMC

Wright Patterson AFB OH 45433 8 Jun 04

Air Force Materiel Command Acquisition Circular (AFMCAC)

1. All items in this AFMCAC are effective as of the date of publication unless otherwise specified in the item description. Each item in this AFMCAC shall remain in effect until specifically cancelled or incorporated by a subsequent AFMCAC or change to the AFMC FAR Supplement (AFMCFARS).

2. This AFMCAC implements AFMC FAR Council case 03-14, Approval of Change to AFMCFARS Subpart 5308.404, Small Business and General Services Administration’s (GSA) Federal Supply Schedule (FSS). Therefore, the AFMCFARS is amended as specified below (all changes are highlighted in bold).

a. Item 1: AFMCFARS 5308.404, Using Schedules. Purpose/Explanation of Change(s): This change adds paragraph (a) and (b) to address ordering procedures for optional use of schedules.

No. of Printed Pages: 2

OPR: HQ AFMC/PKPA (Major Kimberly L. Yoder)

PART 5308 – REQUIRED SOURCES OF SUPPLIES AND SERVICES

(AFMCAC 02-04, June 8, 2004)

SUBPART 5308.4 – FEDERAL SUPPLY SCHEDULES

5308.404 Using Schedules.

(a) General.

(1) While FAR Part 19 does not apply to orders placed against FSSs, restricting competition for an order to small business schedule holders (including 8(a), HUBZone, and service-disabled veteran-owned small businesses) is permissible.

(b) Ordering procedures for optional use schedules.

(6) 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 or small business subcontractors to a prime small business contractor (reference 13 CFR 125.6(g)).

(93) For acquisitions over $100,000, when schedules holders include multiple small businesses, the contracting officer will obtain written coordination from the center’s small business specialist when competition is not restricted to small business concerns. The small business specialist will provide coordination or propose an alternate approach within three business days. Disagreements between the contracting officer and the small business specialist shall be resolved by the Chief of the Contracting Office (COCO) (See 5302.101, Definitions).