The Obama administration has told agencies to take new steps toward increasing opportunities for small contractors.

A memo from the Office of Federal Procurement Policy gives guidance to promote the use of set-asides on multiple award contracts. Congress authorized set-asides on GSA schedules and other multiple award contracts, and an interim rule permitting the set-asides took effect in November. The new OFPP administrator, Joe Jordan, and SBA Administrator Karen Mills outlined six steps agencies should take to ensure that contracting officers use the new authority:

1. Issue a memorandum to the acquisition workforce reminding them of the interim FAR rule on set-asides and encouraging use of these tools.

2. Consider requiring order set-asides under multiple award contracts if the agency is not currently meeting its small business goals.

3. Modify existing multiple-award contracts to provide for order set-asides.

4. Strengthen internal controls to document how the set-aside tools were considered.

5. Review SBA’s proposed rule providing guidance on how to use the set-asides.

6. Ensure the workforce is trained.

The House Small Business Committee found that nearly 15% of orders on GSA schedules have been set aside since the new rule became effective.

The OFPP memo also noted that some agencies are not abiding by the requirement that small purchases—those below the $150,000 simplified acquisition threshold—be set aside for small firms under the rule of two.

“At a minimum, agencies should remind their contracting components of responsibilities to set aside contracts whose value is equal to or less than the [simplified acquisition threshold] unless the rule of two is not met, to properly document the contract file when a set-aside is not used, and to maintain appropriate internal controls that ensure consistent application of these requirements,” the memo said.

Jordan and Mills also urged agencies to make small business contracting performance a factor in annual evaluations of senior acquisition executives. “Agencies that have implemented performance evaluations containing small business contracting goal elements report that senior level leadership accountability plays a critical role in ensuring that those agencies meet or exceed their small business contracting and socio-economic goals,” they said.

Writing on the White House blog, Jordan said the memo was his first act after taking over as OFPP administrator. He previously headed SBA’s small business contracting programs.