Overview
FAR 19.601 establishes the Small Business Administration’s (SBA) authority to issue Certificates of Competency (COC), which serve as a final appeal for small businesses deemed nonresponsible by a contracting officer. This section mandates that the SBA—not the contracting officer—has the ultimate authority to certify that a small business possesses the capability, integrity, and capacity to perform a specific government contract.
Key Rules
- Definition of COC: A certificate issued by the SBA stating that a small business is responsible for a specific contract, covering elements such as capability, capacity, credit, integrity, and limitations on subcontracting.
- Mandatory Referral: If a contracting officer (CO) finds an apparent successful small business offeror nonresponsible, the CO must refer the firm to the SBA for a COC determination, even if the next in line for the award is also a small business.
- Scope of Applicability: The COC program applies to all government acquisitions with the sole exception of 8(a) sole-source awards.
- Limitations on Subcontracting: A small business’s ability to comply with subcontracting limitations is treated as a matter of responsibility subject to the COC process.
- Nonmanufacturer Rule Exception: Determinations regarding whether a firm meets the definition of a "nonmanufacturer" are handled under FAR subpart 19.3, rather than the COC process.
- Global Reach: These requirements apply to all contracting officers, including those located overseas, when dealing with U.S. small business concerns.
Practical Implications
- The SBA acts as a "court of last resort" for small businesses, effectively stripping contracting officers of the final authority to deny a contract based on responsibility.
- Procurement timelines must account for the potential delay of an SBA referral (typically 15 business days) if the low-price or best-value small business offeror is initially found nonresponsible by the agency.