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Set-Asides and
Certified Small Business |
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Frequently Asked
Questions & Answers |
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1. |
Should agencies
contact women and minority-owned vendors to communicate the need
to additionally certify as DMBE-certified small businesses? |
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10. |
Does the mandate of 3.10g (1)
apply to over-the-counter SPCC purchases? If so, what
recommendations would DPS make for procurement of commodities
for which no local vendors are DMBE certified small businesses
and the over-the-counter procurement is the most efficient and
economical method for fulfilling an urgent (but not emergency)
business need? |
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2. |
If a procurement is not set-aside for DMBE-certified
small businesses and DMBE-certified small businesses respond to
the solicitation, how should the solicitation be awarded? |
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11. |
For eVA Quick
Quote solicitations, the Quick Quote is automatically sent to
all premium vendors registered for the commodity code(s)
contained in the solicitation, and the buyer cannot deselect any
premium vendors. Accordingly, Quick Quotes for solicitations
set-aside for DMBE-certified small business will be sent to the
entire list of premium vendors including those that are not DMBE
certified small businesses. Will changes be made to eVA Quick
Quote allowing the buyer to send the Quick Quote to DMBE
certified small businesses only? |
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3. |
If you know through historical data that
certain commodities do not generate enough competition to
set-aside a procurement, above $5,000 up to $50,000, is
documentation needed each time to declare a non-set-aside? |
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12. |
Are the purchases which are
excluded from competitive requirements under APSPM 1.5(b) and
those excluded from eVA under 14.9(b) also excluded from the
set-aside requirement for purchases up to
$50,000? |
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4. |
Can portions of procurements be set-aside? |
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13. |
Are hard copies of the APSPM available and
are the references to the chapter changes available as well? |
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5. |
If the minimum of six DMBE-certified small
businesses are not available for procurements over $50,000, can
the procurement be set-aside? |
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14. |
Regarding the set-aside process. Currently
as Quick Quotes are issued in eVA, e-mail notifications are sent
to all vendors registered under the commodity code selected. eVA
does not block vendors who are not DMBE-certified small
businesses from responding to a set-aside. Therefore, responses
are received by vendors who are not DMBE-certified small
businesses. The summary of Quick Quotes may then show that a
non-DMBE-certified small business as the lowest quote and the
lowest quote from a vendor who is a DMBE-certified small
business may not be fair and reasonable. In this scenario does
the buyer then remove the set-aside and re-solicit or can they
award to the non-small business? |
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6. |
Where can buyers find vendors with
DMBE small business certification status? |
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15. |
A disparity occurs sometimes when
searching for DMBE-certified small businesses between eVA and
DMBE. A search in eVA by commodity code may give the name of a
vendor who does not show up in DMBE under that commodity code or
the same name appearing in eVA. My comment is that adding a
search in DMBE by FIN would be a great help to cross reference
that a vendor's registration matches. |
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7. |
At what point must a vendor be
DMBE-certified in order to receive a set-aside award? |
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8. |
If a solicitation is set aside,
and three bids were received from DMBE-certified small business,
however, the prices do not appear to be fair and reasonable, do
I award to one of the vendors regardless of the price? |
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9. |
How do I designate my procurement
as a set-aside?
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1.
Should agencies contact women and minority-owned vendors to
communicate the need to additionally certify as DMBE-certified small
businesses?
Yes, Agencies should encourage vendors
to register as DMBE-certified small businesses. Currently over 90% of
all businesses in VA could be certified as small. DMBE is sending
letters to women-owned and minority-owned businesses.
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2.
If a procurement is not set-aside for DMBE-certified small businesses
and DMBE-certified small businesses respond to the solicitation, how
should the solicitation be awarded?
The solicitation would be awarded to the lowest responsive and
responsible bidder or highest ranked offeror, unless the procurement is
over $50,000 and the “award to other than lowest bidder or highest
ranking offeror” (APSPM, Special Term and Condition 7.J or 7.K) has been
included. If included, the award may be made to the lowest DMBE-certified
small business bidder or highest ranking DMBE-certified small business
offeror if the price is fair and
reasonable.
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3.
If
you know through historical data that certain commodities do not
generate enough competition to set-aside a procurement, above $5,000 up
to $50,000, is documentation needed each time to declare a
non-set-aside?
No, a blanket justification can be used as documentation for a
reasonable period of time (periodic review with sufficient documentation
is recommended). The documentation can read, “There is not a reasonable
expectation that this agency will receive at least two DMBE-certified
small competitive bids or offers because…, therefore, this procurement
does not qualify for a set-aside”. Agencies could create a master file
for blanket procurement justifications.
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4.
Can portions of
procurements be set-aside?
Yes, partial set-asides are allowed.
Procurement offices need to be familiar with the marketplace prior to
issuing partial set-asides.
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5.
If the minimum of six DMBE-certified small businesses are not available
for procurements over $50,000, can the procurement be set-aside?
Yes, if the expectation is that at least two (2) competitive bids/offers
are expected from DMBE-certified small businesses.
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6.
Where can buyers find vendors with DMBE
small business certification status?
Via eVA at www.eva.virginia.gov eVA
bidders list, and DMBE’s website at www.dmbe.virginia.gov.
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7.
At what point must a vendor be DMBE-certified
in order to receive a set-aside award?
By the due date for receipt of bid or proposal (i.e., IFB [Invitation
for Bid], RFP [Request for Proposal], or Quick Quote) closes.
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8.
If a solicitation is set aside, and three
bids were received from DMBE-certified small business, however, the
prices do not appear to be fair and reasonable, do I award to one of the
vendors regardless of the price?
No, if after research, and a written determination has
been made that the prices offered are not fair and reasonable (in
accordance with APSPM 4.10), the set-aside may be withdrawn and the
requirement re-solicited as a non-set-aside.
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9.
How do
I designate my procurement as a set-aside?
In accordance with
APSPM 14.15, Quick Quotes and other procurements that are to be
set-aside for DMBE-certified small businesses shall be titled in the
“Request Title” field as set-aside in the solicitation by typing in all
caps “SET-ASIDE FOR SMALL BUSINESSES, followed by the title of the
commodity or service being procured.
Note: Placing a check in the “Set-Aside” checkbox on the Quick
Quote header information screen will automatically add properly
formatted set-aside text to the beginning of the Quick Quote title. The
user checks the box then types the commodity or service in the Quick
Quote Title area and eVA will format the Quick Quote accordingly.
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10.
Does the mandate of 3.10g (1)
apply to over-the-counter SPCC purchases? If so, what recommendations
would DPS make for procurement of commodities for which no local vendors
are DMBE certified small businesses and the over-the-counter procurement
is the most efficient and economical method for fulfilling an urgent
(but not emergency) business need?
Yes, the mandate applies to
over-the-counter SPCC purchases. DPS recommends the following actions:
• encourage those small businesses that have not certified as DMBE-certified
small businesses with DMBE to certify by explaining the benefits
• set-aside procurements for DMBE-certified
small businesses and only do
business with DMBE-certified small businesses to encourage the others to
certify. Note that below $5,000 only one quote from a DMBE-certified
small
business is required if the price is fair and reasonable.
• only after the above
actions have been taken and no DMBE-certified small
business is available, at a fair and reasonable price, then do business
with a
non-certified vendor. Document the procurement file.
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11.
For eVA Quick Quote solicitations, the Quick Quote is
automatically sent to all premium vendors registered for the commodity
code(s) contained in the solicitation, and the buyer cannot deselect any
premium vendors. Accordingly, Quick Quotes for solicitations set-aside
for DMBE-certified small business will be sent to the entire list of
premium vendors including those that are not DMBE certified small
businesses. Will changes be made to eVA Quick Quote allowing the buyer
to send the Quick Quote to DMBE certified small businesses only?
No, changes will not be made. The intent is for all
businesses to have visibility of the business opportunities set-aside
for small businesses. This approach will encourage the significant
number of small businesses that have not certified to do so and allow
large businesses to have visibility of opportunities to collaborate with
smaller businesses.
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12.
Are the purchases which are excluded from
competitive requirements under APSPM 1.5(b) and those excluded from eVA
under 14.9(b) also excluded from the set-aside requirement for purchases up to $50,000?
Exclusions listed in APSPM, Sections 1.5(b) and 14.9(b) are excluded
from set-aside requirements, except for Sections 14.9(b) (5) relating to
petty cash purchases and (17) relating to over the counter charge card
purchases that are made at the site of the sale and picked up by the
individual card holder.
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13.
Are hard copies of the APSPM available and are the references to the
chapter changes available as well?
A complete copy of the APSPM or individual chapters including changes
can be downloaded from the eVA website,
www.eva.virginia.gov - located
on the home page, click on the Buyer tab, and APSPM manual.
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14.
Regarding the set-aside process. Currently as Quick Quotes are issued in
eVA, e-mail notifications are sent to all vendors registered under the
commodity code selected. eVA does not block vendors who are not DMBE-certified
small businesses from responding to a set-aside. Therefore, responses
are received by vendors who are not DMBE-certified small businesses. The
summary of Quick Quotes may then show that a non-DMBE-certified small
business as the lowest quote and the lowest quote from a vendor who is a
DMBE-certified small business may not be fair and reasonable. In this
scenario does the buyer then remove the set-aside and re-solicit or can
they award to the non-small business?
If after research, and a written determination has been made that the
prices offered are not fair and reasonable (in accordance with APSPM
4.10), the set-aside may be withdrawn and the requirement re-solicited
as a non-set-aside.
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15.
A disparity occurs sometimes when searching for DMBE-certified small
businesses between eVA and DMBE. A search in eVA by commodity code may
give the name of a vendor who does not show up in DMBE under that
commodity code or the same name appearing in eVA. My comment is that
adding a search in DMBE by FIN would be a great help to cross reference
that a vendor's registration matches.
The DMBE website has been updated to allow searches by
company name, SWaM type, NIGP commodity code or description. The
database does not allow searches by FIN number.
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