9000-0150-FAR Clauses

52.219-20

FEDERAL ACQUISITION REGULATION

NO. OF EMPLOYEES

AVG. ANNUAL GROSS REVENUES

____ 50 or fewer
____ 51–100
____ 101–250
____ 251–500
____ 501–750
____ 751–1,000
____ Over 1,000

____ $1 million or less
____ $1,000,001–$2 million
____ $2,000,001–$3.5 million
____ $3,500,001–$5 million
____ $5,000,001–$10 million
____ $10,000,001–$17 million
____ Over $17 million
(End of provision)

52.219-20 Notice of Emerging Small Business Set-Aside.
As prescribed in 19.1008(b), insert the following
provision:
NOTICE OF EMERGING SMALL BUSINESS SET-ASIDE
(JAN 1991)
Offers or quotations under this acquisition are solicited
from emerging small business concerns only. Offers that are
not from an emerging small business shall not be considered
and shall be rejected.
(End of provision)
52.219-21 Small Business Size Representation for
Targeted Industry Categories under the Small Business
Competitiveness Demonstration Program.
As prescribed in 19.1008(c), insert the following
provision:
SMALL BUSINESS SIZE REPRESENTATION FOR TARGETED
INDUSTRY CATEGORIES UNDER THE SMALL BUSINESS
COMPETITIVENESS DEMONSTRATION PROGRAM
(MAY 1999)
[Complete only if the Offeror has represented itself under
the provision at 52.219-1 as a small business concern under
the size standards of this solicitation.]
Offeror’s number of employees for the past 12 months
[check this column if size standard stated in solicitation is
expressed in terms of number of employees] or Offeror’s average annual gross revenue for the last 3 fiscal years [check this
column if size standard stated in solicitation is expressed in
terms of annual receipts]. [Check one of the following.]
NO. OF EMPLOYEES
____ 50 or fewer
____ 51–100
____ 101–250
____ 251–500
____ 501–750
____ 751–1,000
____ Over 1,000

AVG. ANNUAL GROSS REVENUES
____ $1 million or less
____ $1,000,001–$2 million
____ $2,000,001–$3.5 million
____ $3,500,001–$5 million
____ $5,000,001–$10 million
____ $10,000,001–$17 million
____ Over $17 million

(End of provision)
52.2-100

(FAC 2005–03)

52.219-22 Small Disadvantaged Business Status.
As prescribed in 19.308(b), insert the following provision:
SMALL DISADVANTAGED BUSINESS STATUS (OCT 1999)
(a) General. This provision is used to assess an offeror’s
small disadvantaged business status for the purpose of obtaining a benefit on this solicitation. Status as a small business and
status as a small disadvantaged business for general statistical
purposes is covered by the provision at FAR 52.219-1, Small
Business Program Representation.
(b) Representations. (1) General. The offeror represents,
as part of its offer, that it is a small business under the size standard applicable to this acquisition; and either—
[ ] (i) It has received certification by the Small
Business Administration as a small disadvantaged business
concern consistent with 13 CFR 124, Subpart B; and
(A) No material change in disadvantaged ownership and control has occurred since its certification;
(B) Where the concern is owned by one or more
disadvantaged individuals, the net worth of each individual
upon whom the certification is based does not exceed
$750,000 after taking into account the applicable exclusions
set forth at 13 CFR 124.104(c)(2); and
(C) It is identified, on the date of its representation, as a certified small disadvantaged business concern in
the database maintained by the Small Business Administration (PRO-Net); or
[ ] (ii) It has submitted a completed application to
the Small Business Administration or a Private Certifier to be
certified as a small disadvantaged business concern in
accordance with 13 CFR 124, Subpart B, and a decision on
that application is pending, and that no material change in
disadvantaged ownership and control has occurred since its
application was submitted.
(2) ❏ For Joint Ventures. The offeror represents, as part
of its offer, that it is a joint venture that complies with the
requirements at 13 CFR 124.1002(f) and that the representation in paragraph (b)(1) of this provision is accurate for the
small disadvantaged business concern that is participating in
the joint venture. [The offeror shall enter the name of the small
disadvantaged business concern that is participating in the
joint venture: _________________________.]
(c) Penalties and Remedies. Anyone who misrepresents
any aspects of the disadvantaged status of a concern for the
purposes of securing a contract or subcontract shall—
(1) Be punished by imposition of a fine, imprisonment,
or both;
(2) Be subject to administrative remedies, including
suspension and debarment; and
(3) Be ineligible for participation in programs conducted under the authority of the Small Business Act.
(End of provision)

FAC 2005–27 OCTOBER 17, 2008
SUBPART 52.2—TEXT OF PROVISIONS AND CLAUSES
Alternate I (Oct 1998). As prescribed in 19.308(b), add the
following paragraph (b)(3) to the basic provision:
(3) Address. The offeror represents that its address ❏ is,
❏ is not in a region for which a small disadvantaged business

procurement mechanism is authorized and its address has not
changed since its certification as a small disadvantaged business
concern or submission of its application for certification. The
list of authorized small disadvantaged business procurement
mechanisms and regions is posted at http://www.arnet.gov/
References/sdbadjustments.htm. The offeror shall use the list in
effect on the date of this solicitation. “Address,” as used in this
provision, means the address of the offeror as listed on the Small
Business Administration’s register of small disadvantaged business concerns or the address on the completed application that
the concern has submitted to the Small Business Administration
or a Private Certifier in accordance with 13 CFR Part 124,
subpart B. For joint ventures, “address” refers to the address of
the small disadvantaged business concern that is participating in
the joint venture.

52.219-23 Notice of Price Evaluation Adjustment for
Small Disadvantaged Business Concerns.
As prescribed in 19.1104, insert the following clause:
NOTICE OF PRICE EVALUATION ADJUSTMENT FOR SMALL
DISADVANTAGED BUSINESS CONCERNS (OCT 2008)
(a) Definitions. As used in this clause—
“Historically black college or university” means an institution determined by the Secretary of Education to meet the
requirements of 34 CFR 608.2. For the Department of
Defense (DoD), the National Aeronautics and Space Administration (NASA), and the Coast Guard, the term also includes
any nonprofit research institution that was an integral part of
such a college or university before November 14, 1986.
“Minority institution” means an institution of higher education meeting the requirements of Section 365(3) of the
Higher Education Act of 1965 (20 U.S.C. 1067k), including a
Hispanic-serving institution of higher education, as defined in
Section 502(a) of the Act (20 U.S.C. 1101a).
“Small disadvantaged business concern” means an offeror
that represents, as part of its offer, that it is a small business
under the size standard applicable to this acquisition; and
either—
(1) It has received certification by the Small Business
Administration as a small disadvantaged business concern
consistent with 13 CFR Part 124, subpart B; and
(i) No material change in disadvantaged ownership
and control has occurred since its certification;
(ii) Where the concern is owned by one or more disadvantaged individuals, the net worth of each individual upon
whom the certification is based does not exceed $750,000
after taking into account the applicable exclusions set forth at
13 CFR 124.104(c)(2); and

52.219-23
(iii) It is identified, on the date of its representation,
as a certified small disadvantaged business concern in the
database maintained by the Small Business Administration
(PRO-Net).
(2) It has submitted a completed application to the Small
Business Administration or a Private Certifier to be certified
as a small disadvantaged business concern in accordance with
13 CFR Part 124, subpart B, and a decision on that application is pending, and that no material change in disadvantaged
ownership and control has occurred since its application was
submitted. In this case, in order to receive the benefit of a price
evaluation adjustment, an offeror must receive certification as
a small disadvantaged business concern by the Small Business
Administration prior to contract award; or
(3) Is a joint venture as defined in 13 CFR 124.1002(f).
(b) Evaluation adjustment. (1) The Contracting Officer
will evaluate offers by adding a factor of ____ [Contracting
Officer insert the percentage] percent to the price of all offers,
except—
(i) Offers from small disadvantaged business concerns that have not waived the adjustment; and
(ii) An otherwise successful offer from a historically
black college or university or minority institution.
(2) The Contracting Officer will apply the factor to a
line item or a group of line items on which award may be
made. The Contracting Officer will apply other evaluation
factors described in the solicitation before application of the
factor. The factor may not be applied if using the adjustment
would cause the contract award to be made at a price that
exceeds the fair market price by more than the factor in
paragraph (b)(1) of this clause.
(c) Waiver of evaluation adjustment. A small disadvantaged business concern may elect to waive the adjustment, in
which case the factor will be added to its offer for evaluation
purposes. The agreements in paragraph (d) of this clause do
not apply to offers that waive the adjustment.
______ Offeror elects to waive the adjustment.
(d) Agreements. (1) A small disadvantaged business concern, that did not waive the adjustment, agrees that in performance of the contract, in the case of a contract for—
(i) Services, except construction, at least 50 percent
of the cost of personnel for contract performance will be spent
for employees of the concern;
(ii) Supplies (other than procurement from a nonmanufacturer of such supplies), at least 50 percent of the cost
of manufacturing, excluding the cost of materials, will be performed by the concern;
(iii) General construction, at least 15 percent of the
cost of the contract, excluding the cost of materials, will be
performed by employees of the concern; or
(iv) Construction by special trade contractors, at
least 25 percent of the cost of the contract, excluding the cost
of materials, will be performed by employees of the concern.
52.2-101

FAC 2005–25 APRIL 22, 2008
52.219-24

FEDERAL ACQUISITION REGULATION

(2) A small disadvantaged business concern submitting
an offer in its own name shall furnish in performing this contract only end items manufactured or produced by small disadvantaged business concerns in the United States or its
outlying areas. This paragraph does not apply to construction
or service contracts.
(End of clause)
Alternate I (June 2003). As prescribed in 19.1104, substitute the following paragraph (d)(2) for paragraph (d)(2) of the
basic clause:
(2) A small disadvantaged business concern submitting an
offer in its own name shall furnish in performing this contract
only end items manufactured or produced by small business
concerns in the United States or its outlying areas. This paragraph does not apply to construction or service contracts.

Alternate II (Oct 1998) As prescribed in 19.1104, substitute the following paragraph (b)(1)(i) for paragraph (b)(1)(i)
of the basic clause:
(i) Offers from small disadvantaged business concerns,
that have not waived the adjustment, whose address is in a
region for which an evaluation adjustment is authorized;

52.219-24 Small Disadvantaged Business Participation
Program—Targets.
As prescribed in 19.1204(a), insert a provision substantially the same as the following:
SMALL DISADVANTAGED BUSINESS PARTICIPATION
PROGRAM—TARGETS (OCT 2000)
(a) This solicitation contains a source selection factor or
subfactor related to the participation of small disadvantaged
business (SDB) concerns in the contract. Credit under that
evaluation factor or subfactor is not available to an SDB concern that qualifies for a price evaluation adjustment under the
clause at FAR 52.219-23, Notice of Price Evaluation Adjustment for Small Disadvantaged Business Concerns, unless the
SDB concern specifically waives the price evaluation
adjustment.
(b) In order to receive credit under the source selection factor or subfactor, the offeror must provide, with its offer, targets, expressed as dollars and percentages of total contract
value, for SDB participation in any of the North American
Industry Classification System (NAICS) Industry Subsectors
as determined by the Department of Commerce. The targets

52.2-102

may provide for participation by a prime contractor, joint venture partner, teaming arrangement member, or subcontractor;
however, the targets for subcontractors must be listed
separately.
(End of provision)
52.219-25 Small Disadvantaged Business Participation
Program—Disadvantaged Status and Reporting.
As prescribed in 19.1204(b), insert the following clause:
SMALL DISADVANTAGED BUSINESS PARTICIPATION
PROGRAM—DISADVANTAGED STATUS AND REPORTING
(APR 2008)
(a) Disadvantaged status for joint venture partners, team
members, and subcontractors. This clause addresses disadvantaged status for joint venture partners, teaming arrangement members, and subcontractors and is applicable if this
contract contains small disadvantaged business (SDB) participation targets. The Contractor shall obtain representations of
small disadvantaged status from joint venture partners, teaming arrangement members, and subcontractors through use of
a provision substantially the same as paragraph (b)(1)(i) of the
provision at FAR 52.219-22, Small Disadvantaged Business
Status. The Contractor shall confirm that a joint venture partner, team member, or subcontractor representing itself as a
small disadvantaged business concern is a small disadvantaged business concern certified by the Small Business
Administration by using the Central Contractor Registration
database or by contacting the SBA’s Office of Small Disadvantaged Business Certification and Eligibility.
(b) Reporting requirement. If this contract contains SDB
participation targets, the Contractor shall report on the participation of SDB concerns at contract completion, or as otherwise pro-vided in this contract. Reporting may be on Optional
Form 312, Small Disadvantaged Business Participation
Report, in the Contractor’s own format providing the same
information, or accomplished through using the Electronic
Subcontracting Reporting System’s Small Disadvantaged
Business Participation Report. This report is required for each
contract containing SDB participation targets. If this contract
contains an individual Small Business Subcontracting Plan,
reports shall be submitted with the final Individual Subcontract Report at the completion of the contract.
(End of clause)

SUBPART 52.2—TEXT OF PROVISIONS AND CLAUSES
52.219-26 Small Disadvantaged Business Participation
Program—Incentive Subcontracting.
As prescribed in 19.1204(c), insert a clause substantially
the same as the following:
SMALL DISADVANTAGED BUSINESS PARTICIPATION
PROGRAM—INCENTIVE SUBCONTRACTING (OCT 2000)
(a) Of the total dollars it plans to spend under subcontracts,
the Contractor has committed itself in its offer to try to award
a certain amount to small disadvantaged business concerns in
the North American Industry Classification System (NAICS)
Industry Subsectors as determined by the Department of
Commerce.
(b) If the Contractor exceeds its total monetary target for
subcontracting to small disadvantaged business concerns in
the authorized, NAICS Industry Subsectors, it will receive
____________ [Contracting Officer to insert the appropriate
number between 0 and 10] percent of the dollars in excess of
the monetary target, unless the Contracting Officer determines that the excess was not due to the Contractor’s efforts
(e.g., a subcontractor cost overrun caused the actual subcontract amount to exceed that estimated in the offer, or the excess
was caused by the award of subcontracts that had been
planned but had not been disclosed in the offer during contract
negotiations). Determinations made under this paragraph are
unilateral decisions made solely at the discretion of the
Government.
(c) If this is a cost-plus-fixed-fee contract, the sum of the
fixed fee and the incentive fee earned under this contract may
not exceed the limitations in subsection 15.404-4 of the Federal Acquisition Regulation.
(End of clause)
52.219-27 Notice of Total Service-Disabled VeteranOwned Small Business Set-Aside.
As prescribed in 19.1407, insert the following clause:
NOTICE OF TOTAL SERVICE-DISABLED VETERAN-OWNED
SMALL BUSINESS SET-ASIDE (MAY 2004)
(a) Definition. “Service-disabled veteran-owned small
business concern”—
(1) Means a small business concern—
(i) Not less than 51 percent of which is owned by one
or more service-disabled veterans or, in the case of any publicly owned business, not less than 51 percent of the stock of
which is owned by one or more service-disabled veterans; and
(ii) The management and daily business operations
of which are controlled by one or more service-disabled veterans or, in the case of a service-disabled veteran with permanent and severe disability, the spouse or permanent caregiver
of such veteran.

52.219-27
(2) “Service-disabled veteran” means a veteran, as
defined in 38 U.S.C. 101(2), with a disability that is serviceconnected, as defined in 38 U.S.C. 101(16).
(b) General. (1) Offers are solicited only from service-disabled veteran-owned small business concerns. Offers
received from concerns that are not service-disabled veteranowned small business concerns shall not be considered.
(2) Any award resulting from this solicitation will be
made to a service-disabled veteran-owned small business
concern.
(c) Agreement. A service-disabled veteran-owned small
business concern agrees that in the performance of the contract, in the case of a contract for—
(1) Services (except construction), at least 50 percent of
the cost of personnel for contract performance will be spent
for employees of the concern or employees of other servicedisabled veteran-owned small business concerns;
(2) Supplies (other than acquisition from a nonmanufacturer of the supplies), at least 50 percent of the cost of manufacturing, excluding the cost of materials, will be performed
by the concern or other service-disabled veteran-owned small
business concerns;
(3) General construction, at least 15 percent of the cost
of the contract performance incurred for personnel will be
spent on the concern’s employees or the employees of other
service-disabled veteran-owned small business concerns; or
(4) Construction by special trade contractors, at least
25 percent of the cost of the contract performance incurred for
personnel will be spent on the concern’s employees or the
employees of other service-disabled veteran-owned small
business concerns.
(d) A joint venture may be considered a service-disabled
veteran owned small business concern if—
(1) At least one member of the joint venture is a servicedisabled veteran-owned small business concern, and makes
the following representations: That it is a service-disabled veteran-owned small business concern, and that it is a small business concern under the North American Industry
Classification Systems (NAICS) code assigned to the
procurement;
(2) Each other concern is small under the size standard
corresponding to the NAICS code assigned to the procurement; and
(3) The joint venture meets the requirements of paragraph 7 of the explanation of Affiliates in 19.101 of the Federal Acquisition Regulation.
(4) The joint venture meets the requirements of
13 CFR 125.15(b)
(e) Any service-disabled veteran-owned small business
concern (nonmanufacturer) must meet the requirements in
52.2-103