[Code of Federal Regulations]
[Title 13, Volume 1]
[Revised as of January 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 13CFR125.7]

[Page 423-424]
 
                TITLE 13--BUSINESS CREDIT AND ASSISTANCE
 
                CHAPTER I--SMALL BUSINESS ADMINISTRATION
 
PART 125_GOVERNMENT CONTRACTING PROGRAMS--Table of Contents
 
Sec. 125.7  What is the Very Small Business program?

    (a) The Very Small Business (VSB) program is an extension of the 
small business set-aside program, administered by SBA as a pilot to 
increase opportunities for VSB concerns. Procurement requirements, 
including construction requirements, estimated to be between $2,500 and 
$50,000 must be reserved for eligible VSB concerns if the criteria in 
paragraph (c) of this section are met.
    (b) Definitions. (1) The term designated SBA district means the 
geographic area served by any of the following SBA district offices:
    (i) Albuquerque, NM, serving New Mexico;
    (ii) Los Angeles, CA, serving the following counties in California: 
Los Angeles, Santa Barbara, and Ventura;
    (iii) Boston, MA, serving Massachusetts;
    (iv) Louisville, KY, serving Kentucky;
    (v) Columbus, OH, serving the following counties in Ohio: Adams, 
Allen, Ashland, Athens, Auglaize, Belmont, Brown, Butler, Champaign, 
Clark, Clermont, Clinton, Coshocton, Crawford, Darke, Delaware, 
Fairfield, Fayette, Franklin, Gallia, Greene, Guernsey, Hamilton, 
Hancock, Hardin, Highland, Hocking, Holmes, Jackson, Knox, Lawrence, 
Licking, Logan, Madison, Marion, Meigs, Mercer, Miami, Monroe, 
Montgomery, Morgan, Morrow, Muskingum, Noble, Paulding, Perry, Pickaway, 
Pike, Preble, Putnam, Richland, Ross, Scioto, Shelby, Union, Van Wert, 
Vinton, Warren, Washington, and Wyandot;
    (vi) New Orleans, LA, serving Louisiana;
    (vii) Detroit, MI, serving Michigan;
    (viii) Philadelphia, PA, serving the State of Delaware and the 
following counties in Pennsylvania: Adams, Berks, Bradford, Bucks, 
Carbon, Chester, Clinton, Columbia, Cumberland, Dauphin, Delaware, 
Franklin, Fulton, Huntington, Juniata, Lackawanna, Lancaster, Lebanon, 
Lehigh, Luzerne, Lycoming, Mifflin, Monroe, Montgomery, Montour, 
Northampton, Northumberland, Philadelphia, Perry, Pike, Potter, 
Schuylkill, Snyder, Sullivan, Susquehanna, Tioga, Union, Wayne, Wyoming, 
and York;
    (ix) El Paso, TX, serving the following counties in Texas: Brewster, 
Culberson, El Paso, Hudspeth, Jeff Davis, Pecos, Presidio, Reeves, and 
Terrell; and
    (x) Santa Ana, CA, serving the following counties in California: 
Orange, Riverside, and San Bernadino.
    (2) The term very small business or VSB means a concern whose 
headquarters is located within the geographic area served by a 
designated SBA district and, together with its affiliates, has no more 
than 15 employees and has average annual receipts that do not exceed $1 
million. The terms concerns, affiliates, average annual receipts, and 
employees have the meaning given to them in Sec. Sec. 121.105, 121.103, 
121.104, and 121.106, respectively, of this chapter.
    (c)(1) A contracting officer must set aside for VSB concerns each 
procurement that has an anticipated dollar value between $2,500 and 
$50,000 if:
    (i) In the case of a procurement for manufactured or supply items:
    (A) The buying activity is located within the geographical area 
served by a designated SBA district, and
    (B) There is a reasonable expectation of obtaining offers from two 
or more responsible VSB concerns headquartered within the geographical 
area served by that designated SBA district that are competitive in 
terms

[[Page 424]]

of market prices, quality and delivery; or
    (ii) In the case of a procurement for other than manufactured or 
supply items:
    (A) The requirement will be performed within the geographical area 
served by a designated SBA district, and
    (B) There is a reasonable expectation of obtaining offers from two 
or more responsible VSB concerns headquartered within the geographical 
area served by that designated SBA district that are competitive in 
terms of market prices, quality and delivery.
    (2) The geographic areas served by the SBA Los Angeles and Santa Ana 
District Offices will be treated as one designated SBA district for the 
purposes of this section.
    (3) If the contracting officer determines that there is not a 
reasonable expectation of receiving at least two responsible offers from 
VSB concerns headquartered within the geographic area served by the 
applicable designated SBA district, he or she must include in the 
contract file the reason(s) for this determination, and solicit the 
procurement pursuant to the provisions of 48 CFR 19.502-2. SBA may 
appeal such determination using the same procedure described in 48 CFR 
19.505.
    (4) If the contracting officer receives only one acceptable offer 
from a responsible VSB concern in response to a VSB set-aside, the 
contracting officer will make an award to that firm. If the contracting 
officer receives no acceptable offers from responsible VSB concerns, he 
or she will withdraw the procurement and, if still valid, must resolicit 
it pursuant to the provisions of 48 CFR 19.502-2.
    (d) Where a procurement is set aside for VSB concerns, only those 
VSB concerns whose headquarters are located within the geographic area 
served by the applicable designated SBA district are eligible to submit 
offers in response to the solicitation.
    (e) Nothing in this section shall be construed to alter in any way 
the procedures by which procuring activities award contracts under the 
SBA's 8(a) Business Development program (see 13 CFR part 124).
    (f) This pilot program terminates on September 30, 2000. Any award 
under this program must be made on or before this date.

[63 FR 46642, Sept. 2, 1998]