Overview
FAR 19.800 introduces the 8(a) Business Development Program, which authorizes the Small Business Administration (SBA) to enter into prime contracts with federal agencies and subcontract the work to eligible small business participants. It establishes the foundational authority for both competitive and sole-source 8(a) awards and defines the regulatory hierarchy for prioritizing these acquisitions.
Key Rules
- Contractual Structure: The SBA acts as the prime contractor and subcontracts performance to "8(a) participants," who are referred to as "8(a) contractors" once they are performing on a contract.
- Award Methods: Contracts can be awarded to the SBA for performance by 8(a) firms on either a competitive or a sole-source basis.
- SBA Certification: The SBA must certify to the requesting agency that it is competent and responsible to perform the specific contract.
- Order of Precedence: For acquisitions exceeding the Simplified Acquisition Threshold (SAT), Contracting Officers (COs) are required to consider 8(a) set-asides or sole-source awards before considering general small business set-asides.
- Delegated Authority: If the SBA has delegated its contract execution authority directly to an agency, the CO must follow specific agency supplements and policy directives.
Practical Implications
- Priority in Planning: Contracting Officers must perform 8(a) market research early in the acquisition process, as the program carries a higher regulatory priority than general small business set-asides for requirements above the SAT.
- Streamlined Contracting: The ability to award sole-source contracts through the SBA provides agencies with a powerful tool to meet socioeconomic goals and reduce procurement lead times compared to full-and-open competitions.