Judith A. Roussel

Associate Administrator

Office of Government Contracting

U.S. Small Business Administration

Washington, DC 20416

Dear Ms. Roussel:

Enclosed are the Office of Personnel Management's (OPM) Fiscal Year 1999 small business contracting goals as requested by your letter dated October 19, 1998.

These goals will posted on the OPM home page at http://www.opm.gov/procure. We have set as our goal that 69.4 percent of all our prime contracting dollars will go to small business concerns during Fiscal Year 1999.

These goals are based upon historical information from Fiscal Year 1998 for our simplified acquisitions, information on our existing contracts for which we have exercised options, and projected new contract awards to be made during Fiscal Year 1999. Please note that these goals include orders to be placed against the General Services Administration's Federal Supply Schedules (FSS) as directed by your letter.

Enclosure 1 - Methods for Establishing Goals

Enclosure 2 - Small Business Goals for Fiscal Year 1999

We have not included the dollar value of purchase card orders in our procurement bases and goals. We have also included the subcontracting goals for the Federal Employees Health Benefits Program. These goals are based upon the agreement reached between the Small Business Administration and the OPM Retirement and Insurance Service.

If you have any questions or need additional information, please contact Fred Chatterton, Chief, Contracting Division at 202-606-1004.

Sincerely,

Kirke Harper

Director, Office of Contracting and Administrative Services

ENCLOSURE 1

The information provided for the Office of Personnel Management (OPM) small, small disadvantaged, Section 8(a), and woman owned/controlled contracting goals (presented as ENCLOSURE 2) has been developed with information from various sources. Report preparation procedures are detailed below.

A. Prime Contract Goals.

Prime contract goals for OPM's procurements were developed from Federal Procurement Data System (FPDS) information and from projections provided by OPM Program Offices. FPDS information is summarized from Standard Forms (SF) 279 and 281 information which is collected, reconciled, and input into the FPDS each quarter. These reports give baseline information from OPM simplified acquisitions and contract actions, including Federal Supply Schedule acquisitions.

This baseline information is modified to include Program Office estimates for new procurements in Fiscal Year 1999 as well as for estimates of activity levels of contracts which will be active in FY 1999. This information is gathered from responses to the Contracting Divisions Advanced Annual Procurement Planning Request memorandums distributed to all of OPM's Program Offices.

B. Subcontracting Goals.

Subcontracting goals are developed from SF 295 reports which are submitted annually to OPM's Contracting Division by all OPM prime contractors except health insurance carriers (separately reported as C., FEHBP Subcontracting Goals). The reports are summarized and are used as baseline information for the Subcontracting Goals report. OPM prime contractors also submit SF 294 reports which measure contractor accomplishments in meeting their established goals. Both reports are reviewed to isolate contractors who are not meeting their goals. Where appropriate, prime contractors are requested of supply reasons for failure to attain their goals.

Enclosure 2

SMALL BUSINESS GOALS FOR FY 1999

NOTES:

(1) These goals were developed from historical simplified acquisition information based on OPM's Fiscal Year 1998 results, information about existing OPM contracts for which options have been exercised, and projected new contract awards to be made during Fiscal Year 1999. These goals include orders placed against the General Service Administration's Federal Supply Schedule (FSS).

(2) Subcontracting goals for OPM's prime contractors (other than insurance firms) which are large business concerns. The goals were developed from information submitted by the contractors and discussions with those contractors about their small business subcontracting.

(3) Subcontracting goals for health insurance carriers which have contracts under OPM's Federal Employee Health Benefits Program (FEHBP). These goals are based on an agreement between the Small Business Administration and OPM's Office of Insurance Programs (OIP), administrator for the FEHBP.

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