Overview
This section outlines the criteria and procedures for conducting competitive acquisitions restricted to 8(a) program participants, establishing mandatory dollar thresholds for competition and the process for verifying firm eligibility.
Key Rules
- Mandatory Competition Thresholds: Acquisitions must be competed among 8(a) participants if there is a reasonable expectation of at least two offers at a fair market price and the value (including options) exceeds $8.5 million for manufacturing or $5.5 million for all other industry codes.
- Sole Source Exceptions: Requirements exceeding these thresholds may still be awarded via sole source if there is no expectation of competition or if the award is made to an entity owned by an Indian Tribe or an Alaska Native Corporation (ANC).
- Anti-Bundling/Splitting: Agencies are expressly prohibited from dividing a single requirement into smaller packages to circumvent the competitive thresholds in favor of sole source awards.
- SBA Eligibility Determination: The SBA verifies the eligibility of only the "apparent successful offeror" after evaluations are complete; they must provide this determination within five working days.
- Joint Ventures: The SBA does not formally "certify" joint ventures into the 8(a) program or "approve" them for competitive awards, though the Contracting Officer must still consider them for award and the SBA must verify the eligibility of the 8(a) participant within the venture.
- Below-Threshold Competition: Competition for requirements valued below the thresholds is permitted only with the approval of the SBA Associate Administrator for Business Development.
Practical Implications
- Procurement Strategy: Contracting Officers must perform diligent market research to determine if the "rule of two" applies, as crossing the $5.5M/$8.5M threshold triggers a mandatory shift from simplified sole-source procedures to a formal competitive solicitation.
- Efficiency in Evaluation: Because the SBA only determines eligibility for the apparent winner, the government avoids the administrative burden of vetting every bidder, but must be prepared to move to the next highest-evaluated offeror if the winner is found ineligible.