Overview
This section prescribes the procedures for federal agencies to evaluate potential 8(a) requirements and formally "offer" them to the Small Business Administration (SBA), as well as the timelines and criteria for the SBA’s formal "acceptance" of those requirements into the 8(a) Business Development Program. It establishes the mandatory administrative steps required to legally bridge a requirement from an agency to an 8(a) participant.
Key Rules
- Agency Evaluation: Before offering a requirement, the agency must evaluate the work's suitability, focusing on quantities, delivery requirements, past performance problems, and whether the work was previously performed via small business set-asides.
- The Offering Letter: Agencies must submit a formal offering letter to the SBA containing 16 specific data points, including the NAICS code, estimated dollar value (including options), acquisition history, and a statement that no prior public solicitation has been issued for the requirement.
- SBA Acceptance Timelines: For acquisitions above the Simplified Acquisition Threshold (SAT), the SBA has 10 working days to respond; for those at or below the SAT, the timeline is 2 working days. Silence from the SBA after specific follow-up periods can sometimes be treated as "deemed" acceptance.
- NAICS Code Oversight: The SBA reviews and must agree with the agency’s assigned NAICS code; if they cannot agree, the SBA may appeal the determination to the head of the agency or the SBA Office of Hearings and Appeals.
- Sole Source Matching: If an agency nominates a specific 8(a) firm, the SBA will normally accept it if the firm is eligible; if no firm is nominated, the SBA will select one based on business development needs and equitable distribution.
- Repetitive and Multi-Agency Contracts:
- Repetitive acquisitions require new offers and acceptances each time.
- BOAs and BPAs require an offering and acceptance for the agreement itself and for each individual order.
- Individual orders under 8(a) set-aside IDIQ contracts generally do not require separate offers and acceptances once the master contract is accepted.
Practical Implications
- Procurement Lead Time: Contracting Officers must build the mandatory 10-day SBA review period into their acquisition schedules to avoid delays in award.
- Graduation and Eligibility: Under IDIQ contracts, an 8(a) firm can often continue to receive new orders even after "graduating" from the program, though the agency’s ability to claim small business goal credit may be restricted if the firm re-represents as "other than small."
- The "Once 8(a)" Rule: The rigorous evaluation of repetitive acquisitions ensures that once a requirement enters the 8(a) program, it generally remains there unless the SBA agrees to release it.