DOD puts small-business breaks on hold

For the second year in a row, the Defense Department won't be giving small, disadvantaged businesses (SDBs) a boost in the procurement process.

The acting director of Defense procurement announced last Wednesday that the Pentagon would extend its suspension of all price evaluation adjustments until Feb. 23, 2001. The agency suspension started in February 1999.

DOD was able to hold off on adjustments for another year because the agency achieved its goal of awarding 5 percent of its contracts to SDBs in 1999. The contract break is intended to ensure that small businesses participate and successfully compete in the federal procurement process, according to a Small Business Administration spokeswoman.

Prior to the suspension, DOD allowed a 10 percent price adjustment to small businesses bidding on agency projects.

Title 10 of the U.S. code requires agencies, under Section 801 of the National Defense Authorization Act for fiscal 1999, to suspend price evaluation adjustments for SDBs for one year if the agency has reached a specified goal.

DOD will re-evaluate the suspension in 2001.

More information about SDBs is available at the Small Business Administration World Wide Web site at www.sba.gov.

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