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Federal Acquisition Regulation (FAR)

James will award six contracts.
- Office supply contract with a cost to be expected at $200,000
- Furniture contract with a cost to be expected at $50,000
- Computer contract with a cost to be expected at $245,000
- The construction contract with a cost expected to be over $2 million
- The IT Services contract with a cost between $2 million and $4 million
- The computer destruction contract with a cost to be expected at $65,000

Should James set-aside any of the contracts for small businesses?

A) Yes, the computer destruction contract because FAR 19.502-2 states that purchases over $3000, but below the simplified acquisition threshold (SAT) of $150,000, must be set-aside for small business which limits the competition to only small businesses.
B) Yes, the computer contract because FAR 19.502-2 states that purchases over the SAT ($150,000) must be set-aside for small business, which limits the competition to only small businesses.
C) Yes, the office supply contract because FAR 19.502-2 states that purchases under $25,000 must be set-aside for small business, which limits the competition to only small businesses.
D) No, because FAR 6.203 states that purchases over $10,000 must be solicited from a single responsible source.

Solution Preview

A) Yes, the computer destruction contract because FAR 19.502-2 states that purchases over $3000, but below the simplified acquisition threshold (SAT) of $150,000, must be set-aside for small business which ...

Solution Summary

This solution explains if James should set aside any of the contracts for small businesses based on the details provided.

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