What should small businesses know about DOE management and operating contract competitions?

According to DOE’s DEAR Subpart 917.6, the subpart implements 48 CFR subpart 17.6 and applies to any Department of Energy management and operating contract. DOE states that its policy is to provide for full and open competition in the award of management and operating contracts. The same provision also says use of an M&O contract must be authorized by the Secretary. A contract may be extended at the end of its term without full and open competition only when the extension is justified under one of the statutory authorities identified in FAR 6.302 and authorized by the Secretary. On the bidder question, the cited text does not set out a small-business-only competition or any bidder eligibility rule beyond that DOE-wide competition policy. In other words, the source frames the competition as a DOE M&O award process, with a limited exception for certain extensions, rather than as a separate small-business program rule.

DOE’s preparation requirements are also specific. Under 970.1907-4, every management and operating contract must include a subcontracting plan that is effective for the term of the contract. The plan’s goals are negotiated annually when revised funding levels are determined, and any revision to the goals or other parts of the plan must be in writing, approved by the contracting officer, and made a material part of the contract. DOE’s clause at 970.5219 adds that the contractor must collect and report first-tier subcontract data through MOSRC, the DOE system used to support SBA reporting. The same clause says classified subcontracts are not reported, and subcontracts marked Controlled Unclassified Information are also not reported if restricted by category. In the purchasing rules, DOE requires written descriptions of the contractor’s purchasing system and methods, submission of the description for review and acceptance upon award or extension, advance notice for certain subcontracts, and HCA-set thresholds for review and approval. DOE also allows purchases from contractor-affiliated sources only when the purchasing function is independent, the same terms would apply to a third party, competition policies approved by the contracting officer are used, and the award is legally enforceable where the entities are separately incorporated.