Acquisition Policy Flash! 21-09 - Office of Acquisition and Logistics (OAL)
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Acquisition Policy Flash! 21-09

What's Changed?

Class Deviation from VA Acquisition Regulation Part 852—Solicitation Provisions and Contract Clauses

Purpose: To issue a VA Acquisition Regulation (VAAR) class deviation in accordance with Federal Acquisition Regulation (FAR) 1.404 and VAAR 801.404, Class deviations, to implement regulatory changes, as advised by the Civilian Agency Acquisition Council (CAAC) letter 2019-01, Supplement 1, issued July 2, 2020. This VAAR class deviation authorizes deviations from contract clauses 852.219-10, VA Notice of Total Service- Disabled Veteran-Owned Small Business Set-Aside; and 852.219-11, VA Notice of Total Veteran-Owned Small Business Set-Aside. This deviation partially supersedes previous class deviation issued July 12, 2019, to VAAR clauses 852.219-10 and 852.219-11 found in Attachment 10 of Class Deviation—Veterans First Contracting Program (VFCP 2016), dated July 25, 2016. The remaining text in both class deviations continue to be in effect.

VAAR Part Referenced VAAR 852.219-10 and 852.219-11.

Effective Date: Immediately.

Background: CAAC letter 2019-01 was issued to serve as consultation in accordance with FAR 1.404 allowing agencies to authorize a class deviation to implement regulatory changes made by the Small Business Administration (SBA) to limitations on subcontracting in its final rule published in the Federal Register at 81 FR 34243 on May 31, 2016. The final rule changed and standardized the limitations on subcontracting and the nonmanufacturer rule with which small businesses must comply under Government contracts awarded pursuant to the set-aside, sole source, or Historically Underutilized Business Zone price evaluation preference authorities of the Small Business Act.

As a result, VA issued Class Deviation from VA Acquisition Regulation Part 819—Small Business Programs and Part 852-Solicitation Provisions and Contract Clauses, dated July 12, 2019, to incorporate the SBA’s regulatory and legislative changes and clarify the applicability of limitations on subcontracting and nonmanufacturer requirements to contracts awarded under the VFCP. Since the issuance of CAAC letter 2019-01, FAR Case 2014-002, Set-Asides under Multiple Award Contracts was issued as a final rule and became effective on March 30, 2020. On July 2, 2020, the CAAC issued Supplement 1 supplementing and superseding guidance issued under their original consultation letter. These issuances significantly changed how the government applies legislative requirements related to limitations on subcontracting for small business and socio-economic programs, which VA must follow

Applicability: This class deviation applies to all VA contracting activities and is applicable to all VA contracts.

Action Required: Contracting officers shall comply with the attached class deviation to implement the aforementioned changes.

Additional Information: Questions or concerns should be addressed to the Office of Acquisition and Logistics (003A), Procurement Policy and Warrant Management Service (003A2A) via email at va.procurement.policy@va.gov or (202) 632-5288.