What the Department of Labor Buys

IV. General Procurement Information

A. Implementing Regulations

B. DOL Procurement Offices

C. Contracting Process

D. Grants and Grantee Contracts

E. Financial Assistance for Business Development

F. Competition Advocacy Program

A. Implementing Regulations

The DOL procurement activities are governed by the Federal Acquisition Regulations (FAR), codified as Chapter 1 of Title 48, Code of Federal Regulations. The FAR implements the various statutes and regulations which impact upon the Federal contracting process. In addition to the FAR, the DOL follows it's own supplementary Department of Labor Acquisition Regulations (DOLAR) which covers matters peculiar to its specific needs. DOLAR is codified under Chapter 29 of Title 48. The objective of these two regulations is to ensure full and free competition with equal opportunity for all interested and qualified suppliers to compete for DOL contracts, and at the same time achievement of program objectives.

B. DOL Procurement Offices

The DOL acquisition process originates in the program office. The purchases actually take place through procurement offices located in the national office and in regional offices.

Purchases in regional offices are generally limited to awards within the small purchases range, except for the Job Corps Offices which are responsible for awarding contracts for the operation of Job Corps centers, and the MSHA regional acquisition offices.

In the National Office, ETA maintains a procurement office in order to acquire Job Corps center design and construction, research and analysis, and various other needs of the ETA program. MSHA maintains a procurement office for its needs. The OIG maintains a procurement office to acquire auditing services. OASAM, Office of Printing and Supply Management and the Departmental Library procurement offices respectively acquire printing services and publications. The OASAM Business Operations Center, Procurement Services Center is the central procurement office for the Department of Labor and acquires a full range of products and services for components of the Department not serviced by the offices listed above. Additionally, the Procurement Services Center acquires automated data processing and certain other products and services for ETA and OIG.

C. Contracting Process

The contracting process is usually initiated when a particular program office determines a requirement for goods and services and submits a request for such to the contracting activity. The request is then reviewed by the assigned contracting officer and the small business representative to determine the most appropriate, efficient, and economical method for making the purchase, taking into consideration the circumstances of each proposed acquisition. Some of the purchasing is accomplished through the use of priority sources such as Federal Supply Schedules, etc. A major portion, however, is purchased through commercial sources, utilizing simplified acquisition procedures, sealed bid, or negotiation as appropriate. Once a decision has been made to acquire the requirement through commercial sources, the contracting officer begins preparation of the appropriate solicitation document in the form of a Request for Quotation (RFQ), Invitation for Bids (IFB), or Request for Proposal (RFP), respectively. The solicitation document provides the prospective supplier basic information about what DOL wants to purchase and the contract provisions with which it must comply.

Requirements of $50,000 or less are usually purchased under simplified acquisition procedures, a method in which competition may be limited to a reasonable number of sources. Depending on the size of the proposed purchase, offers may be obtained orally or through more formal procedures, such as use of the form "Request for Quotations." The purchase may be made using purchase orders, or blanket purchase agreements. Often small purchases may be made using imprest funds or government issued credit cards.

The distinction in the sealed bid and negotiation methods is that sealed bidding employs competitive bids, public opening of bids, and awards. Its solicitation document, the Invitation for Bid, provides clearly defined specifications of the requirement and seeks from the offeror detailed obligations in performing the contract. In sealed bidding, awards are generally made to the responsive, responsible bidder with the lowest price.

Negotiation is designed to provide flexibility in filling the Government requirement as it permits the offerer to submit proposals, permits bargaining in the sense of discussion, persuasion, etc., and usually affords the offeror the opportunity to revise the offer before award of a contract. In negotiation, awards are generally made on the basis of price as well as technical merit or quality.

D. Grants and Grantee Contracts

The DOL provides financial assistance to state and local governments, and to certain public and private organizations (generally nonprofits) through grants for the purpose of implementing its programs in accordance with statutory mandates. While most grants are awarded to recipients as directed by statute, DOL has some discretion to award a few grants through full and open competition. All competitive grants are announced in the Federal Register, with the necessary information to enable an eligible applicant to apply.

The Department's largest grant program comes under the Job Training Partnership Act (JTPA), Public Law 97-300. JPTA provides for the establishment of a partnership relationship between state and local governments and the private sector to prepare youth and unskilled adults for entry into the labor force and to afford job training to economically disadvantaged individuals and other individuals who face significant employment barriers. The objective is to move the jobless into permanent self-sustaining employment.

It is the states' responsibility to provide management and administration of job training programs. Governors have approval authority over locally developed plans and are responsible for monitoring program compliance. In addition, public/private partnerships design training programs and deliver job and training services. The Employment and Training Administration awards funds through the JTPA to state and local governments and to public and private organizations to effectively implement and conduct education and training programs. The Veteran's Employment and Training Service also awards funds through the JPTA and other sources on both competitive and non-competitive bases.

• The Bureau of Labor Statistics awards funds to nonprofit organizations and educational institutions to conduct research and analysis of information related to the labor market and labor force for dissemination to policymakers and to the public.

• The Mine Safety and Health Administration provides funds to state coal mine inspection or other safety agencies to conduct health and safety programs for miners and other mining activity.

• The Occupational Safety and Health Administration awards funds to states for the development and operation of state occupational safety and health programs which involve standard setting, enforcement, training and education, consultation, and related activities; and to nonprofit organizations to conduct employer and employee occupational safety and health training programs.

On occasion, and to a lesser monetary extent than the agencies described above, the following agencies have awarded funds through grants for various purposes in accordance with their respective missions:

• The Office of Assistant Secretary for Policy (OASP)

• Bureau of International Labor Affairs (ILAB)

• Women's Bureau (WB)

E. Financial Assistance for Business Development

The DOL does not have a loan or grant program to provide financial assistance for developing a business. Inquires relating to such assistance should be directed to the Small Business Administration (SBA) in your local area.

F. Competition Advocacy Program

Each DOL procurement office strives to promote and provide full and open competition (consistent with the types of purchases being made) in compliance with Part 7 of Public Law 98-369, the Competition in Contracting Act of 1984. As such, the Secretary has appointed a competition advocate within the Department's Office of the Acquisition Advocate (BOC, OASAM), 202-219-9174, Room N-5425, to ensure that competition is promoted throughout the Department.