al breach of such contract or subcontract.

(e) The Small Business Administration is authorized to assist Federal agencies and businesses in complying with their responsibilities under subcontracting plans. The SBA may review any solicitation for any contract to be let, which would require a subcontracting plan, to determine the maximum practicable opportunity for small business concerns and small business concerns owned and controlled by socially and economically disadvantaged individuals to participate as subcontractors in the performance of any contract resulting from any solicitation, and submit its findings, which shall be advisory in nature, to the appropriate Federal agency.

(f) The Small Business Administration will evaluate compliance with subcontracting plans, either on a contract-by-contract basis, or in the case of contractors having multiple contracts on an aggregate basis. In the case of aggregate evaluation of contract plans, a statistical sampling of contracts will be performed to determine compliance or non-compliance. All cases of non-compliance will be referred by SBA regional offices with recommendations for Central Office final decision. Evaluation for compliance will be based upon the complete terms of the contract subcontracting plan. Due to the length of the contract, performance periods and the point of evaluations, compliance or non-compliance may either be interim or final.

(g) At the conclusion of each fiscal year, SBA shall submit to the Senate Select Committee on Small Business and the Committee on Small Business, House of Representatives, a report on subcontracting plans found acceptable by any Federal agency which SBA determines do not contain maximum practicable opportunities to participate in the performance of the contract. In addition, the report will furnish information concerning subcontracting plans found to be in non-compliance.

(h) Program Operation. To carry out the Subcontracting Assistance Program, SBA subcontracting specialists

(iv) Information and assistance on qualifications required to become eligible for inclusion on potential source listings of large business firms for future subcontract requirements;

(v) Names, addresses and telephone numbers of large business procurement representatives.

(2) SBA subcontract specialists perform the following additional duties:

(i) Assist large business, Government prime contractors and subcontractors, if requested and to the extent of available resources, in the compliance and formulation of contractually required subcontracting plans through the furnishing of potential sources;

(ii) Review subcontracting plans submitted by large business firms to Government contracting officials for approval and inclusion in major prime contracts and subcontracts;

(iii) Evaluate compliance by large business concerns with subcontracting plans incorporated into and made a material part of major prime contracts and subcontracts;

(iv) Evaluation of compliance by all concerns in their adherence to the clause entitled "Utilization of Small Business Concerns and Small Business Concerns Owned and Controlled by Socially and Economically Disadvantaged Individuals";

(v) Recommend potential small and disadvantaged business sources to large business firms and to Govern

ment officials for performance of subcontract requirements under major Government contracts and si contracts;

(vi) Maintain liaison with and visit large business Government prime contractors and subcontractors to assist, where requested and possible with available resources, in long term procurement plans for the purpose of encouraging increased utilization of small and disadvantaged business concerns as subcontractors;

(vii) Review and evaluate subcontracting regulations, procedures, policies, and instructions for impact on small and disadvantaged business;

(viii) Participate in conferences and training courses, public and Government, which provide information and counsel directed at increased small and disadvantaged business participation in subcontracting for Federal procurement requirement.

(3) The Associate Administrator for Procurement Assistance monitors performance, evaluates effectiveness and issues directives to implement the Subcontracting Assistance Program field operations. Management of the program is accomplished through:

(i) Establishment of program policy and procedural guidance and direction of SBA subcontracting specialists for daily interface with Government and industry officials at the field level to accomplish program objectives;

(ii) Studies and surveys conducted of the methods and practices employed by large business Government prime contractors and subcontractors;

(iii) Review and analysis of subcontracting plan compliance evaluation reports developed by SBA subcontracting specialists and reported to the Associate Administrator for Procurement Assistance; and

(iv) Compile the required reports to Congress.

[44 FR 60274, Oct. 19, 1979, as amended at 52 FR 48392, Dec. 22, 1987]

§ 125.10 Procurement Automated Source System (PASS).

Procurement Automated Source System. The SBA maintains an active Procurement Automated Source System (PASS) the primary basis for recommending potential small busi

ness concerns and small business concerns owned and controlled by socially and economically disadvantaged individuals as sources for both prime and subcontracting. The PASS is a nationwide computerized storage and retrieval bank.

(a) Inclusion in PASS. Concerns desirous of being included in the PASS should obtain SBA Form 1167, "PASS Company Profile," from the nearest SBA branch, district, or regional office. Instructions for filing are conveniently printed on Form 1167. If assistance should be required, it can be obtained from SBA field offices. The computerized inventory of small and disadvantaged business concerns is used to make referrals for procurements to assist those concerns in being placed on appropriate bidders' lists and for mobilization purposes, if required. Potential procurement opportunities may be local or nationwide. Once registered in the system, the company must update its data once a year to remain in the system. Potential sources may be obtained by small and large business and Government agencies.

(b) Access to PASS. Government agencies and nongovernmental organizations that provide substantial prime contracting and/or subcontracting opportunities to small business firms may be provided direct access to PASS if they so desire. All those with direct access to PASS (Pass users) will receive an identification number (PASS ID) and will be charged $24 per hour for PASS usage. Each fraction of an hour over and above the first hour will be charged on a pro rata basis. All users will be billed quarterly, and all fees will be paid directly to the private contractor selected by SBA to operate PASS. The contractor will bill SBA on a monthly basis for the operation of PASS in accordance with the current contract provisions. Each PASS ID entitles a direct access user to one PASS User Guide at no charge. Additional copies of the User Guides and copies for anyone without a PASS ID can be purchased from SBA or the contractor for $25 each. The on-line usage fee, User Guide fee and any other related fee may be changed by SBA from time to time as required to reflect increased

costs. Any fee change will be effective upon publication of a notice in the FEDERAL REGISTER.

[44 FR 60274, Oct. 19, 1979. Redesignated and amended at 52 FR 48392, Dec. 22, 1987; 53 FR 4009, Feb. 11, 1988; 54 FR 3773, Jan. 26, 1989]

§ 125.11 Technology assistance program.

(a) Section 9(a) of the Small Business Act states: "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 small business 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) Section 9(b) states: "It shall be the duty of the Administration (SBA), 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) Section 9(c) states: "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) Research and Development (R&D) Procurement Assistance. (1)

SBA will identify and register the capabilities of small R&D firms interested in Government contract opportunities. The procedure for cataloging the pertinent information on these firms will be through registration in the PASS. PASS is a computerized system designed to be instantaneously responsive to the requests of government agencies for the profiles of small firms that would be potential bidders on Government contracting opportunities. SBA will publish an annual directory of R&D firms contained in the PASS, and make appropriate distribution of this directory. SBA will periodically convene conferences with small R&D firms and other Federal agencies for the purpose of increasing the share of Government R&D contracts awarded to small business.

(2) Procedure. Small business concerns desiring to register in the PASS program should contact the nearest SBA field office and request a PASS Company Profile Form. The completed profile should be forwarded to the cognizant SBA regional office as described in the registration instructions. Registrations in the PASS program is a no-charge service for participating firms.

(e) Technology Transfer. (1) SBA, within existing resources, will assist small firms by identifying and transferring applicable and available technology for purposes which may include product development, process improvement, problem-solving, state-of-the-art information.

or

(2) Procedures. (i) Small business firms may request technology assistance at any SBA district or regional office. The majority of requests come from small business firms as a result of SBA information flyers which describe the services available. The Reader Service portion of the information flyer is completed by the small firm and forwarded to SBA for action.

(ii) SBA will make every effort to respond initially to these requests within 30 days. Whenever possible, this response will be in the form of personal or telephone contact with the appropriate individual at the requesting firm.

(iii) Where necessary, SBA will assist the firm to clearly and adequately

§ 128.7 Statutory provision.

SEC. 7(d). The Administration also is empowered to make grants to any State Government, or any agency thereof, State chartered development credit or finance corporations, land-grant colleges and universities, and colleges and schools of business, engineering, commerce, or agriculture for studies, research and counseling concerning the managing, financing, and operation of small-business enterprises and technical and statistical information necessary thereto in order to carry out the purposes of section 8(b)(1) by coordinating such information with existing information facilities within the State and by making such information available to State and local agencies. Only one such grant shall be made within any one State in any one year, and no such grant shall exceed an aggregate amount of $40,000. Such grants shall be made from the fund established in the Treasury by section 602(b) of the Small Business Investment Act of 1958.

§ 128.7-1 Scope.

(a) The regulations in this part govern the issuance of grants by the Small Business Administration for studies, research and counseling concerning the managing, financing and operation of small business enterprises

authorized by section 7(d) of the Small Business Act, as amended.

(b) Under section 7(d) of the Act, the Small Business Administration is authorized to make grants to finance the development and gathering of information relating to managing, financing and operation of small business enterprises. This information will be used to provide managerial aids to small business in accordance with the provisions of section 8(b)(1) of the Small Business Act, as amended. (See § 124.8 of this chapter.) This information will be coordinated with informational facilities within the States and made available to State and local agencies.

§ 128.7-2 Definitions.

As used in this part:

(a) Act means the Small Business Act (Pub. L. 85-536), as amended (Pub. L. 85-699).

(b) Administrator means the Administrator of SBA.

(c) Application means a written request for a grant on SBA Form 459.

(d) Counseling means consulting and advising with SBA for the purpose of developing information concerning the managing, financing and operation of small business enterprises, such information to be channeled through SBA for the use of national, State and local agencies and institutions listed in section 8(b)(1) of the Small Business Act.

(e) Director means the Director of the Office of Management and Research Assistance.

(f) Grant means a grant authorized under section 7(d) of the Act.

(g) Grant Agreement means the agreement contained in SBA Form 459 and any other conditions of the grant.

(h) Grantee means an institution to which a grant has been made.

(i) Institution means any State government or any agency thereof, any State chartered development credit or financial corporation, any college, any university, and any school of business, engineering, commerce or agriculture, either public or private.

(j) Project means a proposal, or its components when two or more areas of research are involved, and any

amendments thereto, approved by SBA.

(k) Project Director means the person assigned by an institution to supervise and be responsible for a research program under a grant.

(1) Proposal means a research program, which may include studies, submitted by an institution in its application for a grant under section 7(d) of the Act.

(m) Research means research, studies, and counseling which will result in information to be distributed by SBA, acting as a clearinghouse, to national, State, and local agencies and institutions listed in section 8(b)(1) of the Act. Research includes basic and secondary investigations.

(n) SBA means the Small Business Administration.

(0) Small business concern or Small business enterprise means a business concern which would qualify as a small business, as defined by SBA in part 121 of this chapter.

(p) State means the several States, the Territories and possessions of the United States, the Commonwealth of Puerto Rico and the District of Columbia.

(q) State government or agency thereof means departments, divisions or other designated organizations controlled and operated by the State including State government corporations.

(r) Studies means brief investigations of the economic background or problems of an industry or specific small business in its geographic locality but shall not include management or financial counseling or credit analysis.

(s) Year means the fiscal year beginning July 1 and ending June 30.

§ 128.7-3 Organization.

(a) The grant program authorized by section 7(d) of the Act is administered through the Office of Management and Research Assistance, Small Business Administration, Washington, DC 20416. The Director of this office is responsible for planning and coordinating small business management and research assistance programs and coordinating the activities of the Management Research Advisory Council.

(b) The Management Research Advisory Council is an advisory group established to examine and make recommendations with respect to the merits of an application for a grant and to furnish advice on the grant program. The function of said Council is purely advisory. The members of the Council are selected and appointed by the Administrator and serve at his pleasure and without compensation.

(c) All recommendations of the Management Research Advisory Council are submitted to the Administrator, who, in his discretion, shall determine which proposals shall be approved and which suggestions shall be put into practice.

§ 128.7-5 Purpose of a grant.

(a) A grant will be made by SBA only to finance research concerning the managing, financing and operation of small business enterprises to develop information or techniques which can be used by public or private organizations to aid small business enterprises, or to develop information which improves knowledge of the economy through research on the small business sector.

(b) No proposal nor portion of a proposal will be approved if its primary purpose is to provide information to be used to urge industry and trade located in one State to move to another. § 128.7-6 Amount of a grant.

No grant may exceed an aggregate amount of $40,000. Only one such grant may be made within any one State in any one year. SBA is not authorized to commit itself in any year to make a grant during subsequent years.