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Small Business Program - Place of Performance

By Joel Hoffman on Wednesday, August 2, 2000 - 01:52 pm:

The phrase "applies only inside the United States..." means it applies to contracts awarded to a firm (US or foreign) for performance inside the United States, its territories and possesions, PR, Trust Territories and D.C.

The phrase also means that it does not apply to work to be performed in a location outside the US, territories, etc.

What else do you want to know? "WHY" it doesn't apply to projects located outside the US? Please identify a "hubzone", for instance, that the Small Business Administration or anyone else feels compelled to promote, in a foreign country? Do you want the US to provide SDB and SB set-asides or preferences, in competition with local, foreign, small businesses?

The foreign SDB set-aside idea was actually promoted, for a short while, about 6 years ago but the sponsor gave up after receiving an infinite amount of flak from the Agencies running the OCONUS programs, foreign governments, etc. It conflicted with numerous International agreements. Plus, I don't know of any heavily promoted program to equip an SB or SDB with the knowledge and tools to mobilize overseas, learn the local customs, laws, rules, business operations, etc. needed to successfully compete against the US international firms who have done that on their own or to compete against local firms in the host country.

JT, who do you consider to be "informed"? I worked foreign acquisitions for construction, A-E services and some JOC contracts for 14 years with the Corps of Engineers. Happy Sails!


By JT on Wednesday, August 2, 2000 - 12:54 pm:

General B.,

I'm both sorry and surprised that your question has not received more widespread comments. Usually this forum provides quick, multi-viewpoint, and informed responses. Sir, I don't know the answer to your question but maybe someone will still further expound upon this subject matter.


By Joel Hoffman on Tuesday, August 1, 2000 - 02:40 pm:

You are correct that the Part 19 socio-economic programs (except 19.6 COC and responsibility determination procedures), as a general rule, do not apply to contracts in foreign countries. Happy Sails! Joel


By TB on Tuesday, August 1, 2000 - 09:58 am:

FAR 19.000(b)states "This part, except for Subpart 19.6, applies only inside the United States, its territories and possessions, Puerto Rico, the Trust Territory of the Pacific Islands, and the District of Columbia. Subpart 19.6 applies worldwide." What exactly does "applies only inside the United States..." mean? Does this phrase refer to work performed in the U.S. or contracts awarded to firms in the U.S.? What if a U.S. firm is awarded a contract to be performed in a foreign country? My reading is FAR 19.000 does NOT apply. Is this interpretation correct?  

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