No Set-Asides Allowed on GSA Schedules The Federal Acquisition Regulation councils said contracting officers using GSA schedules may seek offers only from small businesses, but the councils refused to permit set-asides of task orders under the schedules. The final rule published in the June 18 Federal Register sets procedures for ordering services through GSA schedules. The councils amended the FAR to provide that buyers “may consider socio-economic status when identifying contractor(s) for consideration or competition for award of an order or BPA [blanket purchase agreement].” “This language provides the flexibility for agencies to conduct their market research focusing on small business concerns and providing them greater opportunity to compete for orders,” the councils said, adding that it “could foster even greater small business participation” in the schedules. The interagency group representing offices of small and disadvantaged business utilization had urged the councils to allow GSA schedule task orders to be set aside under the “rule of two,” to reserve all orders under $100,000 for small businesses and to give a 10% price advantage to small firms. “The councils concluded that these suggestions would fundamentally alter the schedules program in terms of the efficiency and effectiveness of the overall program by increasing the administrative burden on agencies without having demonstrated that the changes would, in fact, benefit small business over the long term,” the notice said. “In addition, the basic statutory authority for the program provides that contracts and orders be open to all sources. Creating a set-aside…would be inconsistent with the program’s basic operating authorities.” GSA says about 80% of the 14,000 schedule contractors are small businesses. In fiscal 2003, small businesses received approximately $9 billion, or 36% of total schedule sales. The rule is FAR case 1999-603.