printed by the Government Printing Office and sold through the Superintendent of Documents, Washington, D.C., 20402: Small Business Management Series, Aids Annuals Series, and the Starting and Managing Series.

(i) The Small Business Management Series volumes deal with general management topics which cannot adequately be treated in the Aids. These pamphlets run in length from 15 to 100 pages and are priced from 15 to 35 cents.

(ii) The Aids Annuals contain a year's production of Management, Technical, or Small Marketers Aids issued 2 years previously. In format they resemble the Small Business Management Series but are somewhat larger and higher priced.

(iii) The Starting and Managing Series volumes deal with matters which prospective enterprises should consider before launching new business ventures. They, too, resemble the Small Business Management Series in format and price. (c) Conference and inquiry services for small business. (1) Many operators of small business frequently have particular problems with which they need prompt assistance, and on a personal basis. SBA's management counseling program, carried on through both the field and Washington offices, is designed to provide such assistance.

(2) Hundreds of inquiries are received and answered each month. Many are on the same subject. To assist the field offices in preparing answers to these, counseling notes, which contain basic information on the subject involved, are prepared and distributed to all field offices. These are adapted to the local conditions and points of inquiry but save the research time and effort of field personnel.

(3) To assist further in securing needed information to solve problems, reference libraries are being set up and expanded in all Regional Offices and, to a lesser extent, in the Branch Offices. These libraries are not only for use by SBA personnel, but also for all businessmen, students of small business and practitioners alike.

§ 124.8-8 Opportunity Meetings.

Opportunity Meetings provide small manufacturers an opportunity to obtain first-hand information regarding items purchased by various Government agencies. The SBA and other Government agencies provide information regarding programs and assistance available to

small business concerns. Meetings are held in all parts of the country with particular emphasis on surplus labor areas. These meetings are sponsored principally by local civic organizations and Chambers of Commerce with SBA and other Government agencies serving as cosponsors.

§ 124.8-9 Surplus Labor Areas Pro

gram.

Under the Surplus Labor Areas Program the agency assists small firms in surplus labor areas to help them absorb some of the surplus labor. Community leaders and other interested parties meet with agency representatives to discuss assistance which SBA is authorized to render in such areas.

REGISTRATION OF FACILITIES OF SMALL COMPANIES

§ 124.8-10 Inventory of productive fa. cilities.

The inventory of productive facilities of small companies authorized by section 8 (b) (2) of the Small Business Act is used to make referrals for procurement, to assist small business concerns in being placed on appropriate bidders lists, and for mobilization purposes. It is utilized by SBA in the exercise of its subcontracting authority under section 8(a) (2) of the Small Business Act.

(a) Each Regional Office maintains a register of the small business firms who have listed their productive facilities for the geographic territory served by the office. A separate inventory is maintained by each SBA Regional Office.

(b) Small business concerns may voluntarily register their facilities with the SBA Regional Office serving the geographic area in which the home office of the concern is located. They may use SBA Form 166 for this purpose. However, use of this form is not mandatory and SBA Regional Offices will register the facilities upon receipt of information equivalent to that called for by SBA Form 166 without regard to the manner in which the information is submitted. All SBA field offices maintain a supply of SBA Form 166 and will furnish copies to any small business concern requesting copies.

(c) The registration should be made for all of the small business concern's facilities no matter where located. The

Regional Office wherein the form is filed will transmit the information to other SBA field offices where appropriate.

(d) SBA field offices recanvass concerns which register their facilities on a systematic basis for the purpose of maintaining a current inventory. However, concerns acquiring new or different facilities subsequent to registration should be prompt to notify the SBA Regional Office in which its facilities have been previously registered, of such acquisition, without waiting for a recanvass.

COORDINATION AND COOPERATION WITH
OTHER GOVERNMENT AGENCIES

§ 124.8-12 Coordination and cooperation with Government agencies. Under the authority of section 8(b) (3), (4) and (12) of the Small Business Act, SBA has entered into agreements to effectuate the statutory directive with the Department of Defense, Department of Commerce, General Services Administration, Department of Agriculture, Department of the Interior, Veterans Administration, Atomic Energy Commission, and the Post Office Department. In addition, SBA

(a) Maintains close liaison with purchasing offices to (1) eliminate features of purchase descriptions that prevent small business firms from competing or (2) obtain information concerning the necessity for use of limiting requirements.

(b) Considers proposals to broaden existing Federal or military specifications which appear to be restrictive.

(c) Obtains specifications from contracting offices.

(d) Identifies local reference sources of specifications, such as depository libraries.

(e) Identifies distribution points from which specifications may be obtained.

(f) Provides a set of packaging and packing specifications in its Regional Offices for reference purposes for small business firms.

(g) Provides guidance in the use of the index of specifications and standards issued by the Army, Navy, Air Force and General Services Administration.

(h) Reviews all proposed new or interim Federal specifications for the purpose of recommending elimination of any provisions that might be restrictive to small business concerns.

SUBCONTRACT ASSISTANCE FOR SMALL
BUSINESS

§ 124.8-13 Assistance available.

Section 8(b) (5) of the Small Business Act authorizes SBA to obtain information on methods and practices used by Government prime contractors in letting subcontracts and to encourage prime contractors to subcontract with small business concerns at fair and equitable terms and prices.

(a) There is available to small business concerns in SBA field offices

(1) Information and assistance on how to develop subcontract opportunities and lists of sources of contacts with prime contractors in the local area for use in subcontract work;

(2) Information concerning selected specialized items and equipment being procured by the military services, names and addresses of the prime contractors and major subcontractors, and a listing of the components, assemblies, subassemblies, and parts required in the production of these items and supporting equipment;

(3) Names and addresses of Atomic Energy Commission prime contractors located within subcontracting range of the firms seeking business;

(4) Names and addresses of other Government offices which may have information regarding specific subcontract opportunities.

(b) SBA field personnel maintain liaison with and visit prime contractors and Atomic Energy operations officers, reviewing their procurement plans and work schedules to encourage increased subcontracting with small business concerns. Subcontracting opportunities developed by such liaison and meetings are referred to those small business concerns which have requested assistance.

§ 124.8-14 How to obtain.

Small business concerns wishing help in obtaining subcontracts should file SBA Form 166 "Registration of Facilities" with the nearest SBA Branch or Regional Office. All SBA field offices maintain a supply of Form 166 and will furnish copies to any small business concern requesting copies.

CERTIFICATES OF COMPETENCY
Definition.

§ 124.8-15

A Certificate of Competency (COC) is a written instrument issued by SBA to

(a) Government contracting officers, upon determining that a small business qualifies for award in all respects other than capacity or credit to perform the contract, notifies SBA of such determination. Award is withheld by the contracting officer for a period up to 15 working days following the date of receipt by SBA of notice of such determination (with appropriate documentation) in order to permit SBA to investigate and certify as to the bidder's capacity and credit.

(b) Upon receipt of this notification, SBA personnel then contact the company concerned to inform it of the impending decision, and to offer an opportunity to apply to SBA for a COC. A concern wishing to apply to SBA for a COC is furnished a Form 74 which is filed with the SBA regional office for the geographic area within which he is located. Upon timely receipt of a COC application, a team of financial and technical personnel is sent to the firm to investigate the competency, as to capacity and credit, of the applicant to perform the proposed contract and make recommendations to the Regional Director.

(c) If the Regional Director's decision is negative, the COC is denied and both the firm and procuring activity are notified. If the Regional Director's decision is affirmative and the procurement is less than $250,000, the Regional Director issues a COC. For procurements in excess of $250,000, if the Regional Director recommends issuance of the Certificate, the Associate Administrator for Procurement and Management Assistance causes a review to be made and either issues or denies the Certificate. If the Associate Administrator's decision is negative, the firm and procuring activity are so informed; if affirmative, a letter, certifying the competency of the firm as to capacity and credit to perform the contract (the Certificate of Competency) is sent to the procuring activity and the applicant informed of such issuance by the regional office. By the terms of the Small Business

Act, the COC is conclusive on questions of capacity and credit. Contracting officers are authorized to award a contract without requiring the firm to meet any other requirement with respect to capacity and credit.

(d) The notification to an unsuccessful applicant will state the reasons for denial and inform the applicant that he may request a meeting with the appropriate SBA regional personnel to discuss the reasons for denial. Upon receipt of a request for such a meeting, the appropriate regional personnel will confer with the applicant and explain fully the reason for SBA's action. However, such conference will be for the sole purpose of enabling the applicant to improve or correct its capacity or credit and will not constitute a basis for reopening the case in which the Certificate was denied.

(e) After a COC is awarded and the contract is let to the applicant, SBA keeps a close watch on the progress. Monthly checks are made by SBA field personnel who report directly to the Central Office on the status of the contract. In this way SBA assistance is constantly available to the contractor.

(f) A manufacturing, construction, or service concern shall not be eligible for a COC unless it performs a significant portion of the contract, measured in dollar value, with its own facilities and personnel on its own payroll.

(g) A nonmanufacturing concern which submits bids or offers in its own name shall not be eligible for a COC unless the end items to be furnished under the contract will be manufactured by a small business concern in the United States.

[Amdt. 3, 35 F.R. 14987, Sept. 26, 1970]

MATERIALS AND EQUIPMENT ASSISTANCE § 124.8-17 Materials and equipment

assistance.

(a) SBA field offices will provide assistance to every small business applicant requesting SBA aid by contacting suppliers to improve or develop additional sources of supply.

(b) Small business concerns desiring such assistance should apply at the nearest SBA field office and supply specific information on the materials and equipment needed and whether application for assistance is made because of hardship or is based on a desire to expand.

SEC. 9 (a) Research and development are major factors in the growth and progress of industry and the national economy. The expense of carrying on research and development programs is beyond the means of many small-business concerns, and such concerns are handicapped in obtaining the benefits of research and development programs conducted at Government expense. These smallbusiness concerns are thereby placed at a competitive disadvantage. This weakens the competitive free enterprise system and prevents the orderly development of the national economy. It is the policy of the Congress that assistance be given to small-business concerns to enable them to undertake and to obtain the benefits of research and development in order to maintain and strengthen the competitive free enterprise system and the national economy.

(b) It shall be the duty of the AdminIstration, and it is hereby empowered

(1) To assist small-business concerns to obtain Government contracts for research and development;

(2) To assist small-business concerns to obtain the benefits of research and development performed under Government contracts or at Government expense; and

(3) To provide technical assistance to small-business concerns to accomplish the purposes of this section.

(c) The administration is authorized to consult and cooperate with all Government agencies and to make studies and recommendations to such agencies, and such agencies are authorized and directed to cooperate with the Administration in order to carry out and to accomplish the purposes of this section.

(d) (1) The Administrator is authorized to consult with representatives of smallbusiness concerns with a view to assisting and encouraging such firms to undertake joint programs for research and development

84-053-73-17

carried out through such corporate or other mechanisms as may be most appropriate for the purpose. Such joint programs may, among other things, include the following purposes:

(A) To construct, acquire, or establish laboratories and other facilities for the conduct of research;

(B) To undertake and utilize applied research;

(C) To collect research information related to a particular industry and disseminate it to participating members;

(D) To conduct applied research on a protected, proprietary, and contractual basis with member or nonmember firms, Government agencies, and others;

(E) To prosecute applications for patents and render patent services for participating members; and

(F) To negotiate and grant licenses under patents held under the Joint program, and to establish corporations designed to exploit particular patents obtained by it.

(2) The Administrator may, after consultation with the Attorney General and the Chairman of the Federal Trade Commission, and with the prior written approval of the Attorney General, approve any agreement between small-business firms providing for a joint program of research and development, if the Administrator finds that the joint program proposed will maintain and strengthen the free enterprise system and the economy of the Nation. The Administrator or the Attorney General may at any time withdraw his approval of the agreement and the joint program of research and development covered thereby, if he finds that the agreement or the joint program carried on under it is no longer in the best interests of the competitive free enterprise system and the economy of the Nation. A copy of the statement of any such finding and approval intended to be within the coverage of this subsection, and a copy of any modification or withdrawal of approval, shall be published in the FEDERAL REGISTER. The authority conferred by this subsection on the Administrator shall not be delegated by him.

(3) No act or omission to act pursuant to and within the scope of any joint program for research and development, under an agreement approved by the Administrator under this subsection, shall be construed to be within the prohibitions of the antitrust laws or the Federal Trade Commission Act. Upon publication in the FEDERAL REGISTER Of the notice of withdrawal of his approval of the agreement granted under this subsection, either by the Administrator or by the Attorney General, the provisions of this subsection shall not apply to any subsequent act or omission to act by reason of such agreement or approval.

§ 125.9-1 Procedures.

(a) Small business concerns desiring assistance under the Small Business Administration's research and develop

ment programs should contact the nearest SBA field office and give all pertinent information concerning their personnel, facilities and research accomplishments other than proprietary data.

(b) SBA field offices will have available for use and guidance of small concerns, information on technical fields of interest to the Government, and names of the specific offices of Government procurement agencies which are responsible for technical management of various research and development programs of the Government.

§ 125.9-2 Research and development pools; purposes.

Small concerns may form pools through such corporate or other mechanisms deemed most appropriate for the purpose.

Joint research and development programs conducted through small business research and development pools may, among other things, include the following purposes:

(a) To construct, acquire, or establish laboratories and other facilities for the conduct of research.

(b) To undertake and utilize applied research.

(c) To collect research information related to a particular industry and disseminate it to participating members.

(d) To conduct applied research on a protected, proprietary, and contractual basis with member or nonmember concerns, Government agencies, and others.

(e) To prosecute applications for patents and render patent services for participating members.

(f) To negotiate and grant licenses under patents held under the joint program, and to establish corporations designed to exploit particular patents obtained by it.

§ 125.9-3 Procedures for organizing a research and development pool.

(a) Concerns desiring to organize a research and development pool will file an application (Form 419) with detailed information to be included, with the local SBA Regional Office.

(b) Upon receipt of the application, the Regional Office will review the application as to its sufficiency and if it is fully completed will refer it to the Administrator for his action.

(c) On reviewing the application; the Administrator will consult with the Attorney General and the Chairman of the Federal Trade Commission on the

application under consideration for approval. Upon receiving the written approval of the Attorney General, the Administrator may approve any agreement between small business concerns providing for a joint program of research and development, if the Administrator finds that the joint program proposed will maintain and strengthen the free enterprise system and the economy of the Nation. A copy of the statement of any such finding and approval shall be published in the FEDERAL REGISTER.

§ 125.9-4 Types of research and development pools.

(a) Incorporated: A pool which has been incorporated by the member firms under the laws of a State.

(b) Unincorporated: A pool in which the activities are directed and controlled by an executive committee, and no action is taken on behalf of the pool without prior authorization or approval of the committee.

[Amdt. 1, 28 F.R. 12311, Nov. 21, 1963] § 125.9-5 Antitrust exemption.

No act or omission to act pursuant to and within the scope of any joint program for research and development, under an agreement approved by the Administrator, under this section, shall be construed to be within the prohibitions of the antitrust laws or the Federal Trade Commission Act. Upon publication in the FEDERAL REGISTER of the notice of withdrawal of the approval of the agreement granted under this subsection, either by the Administrator or by the Attorney General, the provisions of this subsection shall not apply to any subsequent act or omission to act by reason of such agreement or approval. § 125.9-6 Withdrawal of approval of a research and development pool.