PF 2020-52 Conversion of Activities Performed by Small Business Concerns to Federal Employees

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DATE: September 28, 2020

SUBJECT: Conversion of Activities Performed by Small Business Concerns to Federal Employees

TO: HCAs/Procurement Directors/Contracting Officers
FROM: Director, Contract and Financial Assistance Policy Division, Office of Policy, Office of Acquisition Management

SUMMARY: 

The Small Business Act, Section 15(k), paragraph (11), (15 U.S.C. § 644(k)(11)), states that the Director of the Office of Small and Disadvantaged Business Utilization (OSDBU) “shall review and advise such agency on any decision to convert an activity performed by a small business concern to an activity performed by a Federal employee…”

In order to comply with the Small Business Act, OSDBU has instituted the following process effective immediately:

  • When a DOE or NNSA Head of the Contracting Activity (HCA) proposes a conversion of an activity performed by a small business to a federal employee, such HCA shall provide a memorandum to notify OSDBU and explain why.
  • OSDBU will review such proposal and advise according to the Small Business Act, Section 15(k).
  • OSDBU will provide such advice to the originating HCA within 10 business days.
  • If a timely review is not possible, OSDBU will negotiate a new review date with the HCA.

The memorandum from the Director of OSDBU containing these instructions is attached to this policy flash.

Acquisition Guide Chapter 19.2, Small Business Programs, will be updated to include this information.

Questions concerning this policy flash should be directed to the Office of Small and Disadvantaged Business Utilization at (202) 586-7377.

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