Overview
This section establishes the regulatory framework for determining the price of 8(a) contracts, ensuring they are priced according to standard federal practices while mandating that no award exceeds a determined fair market price.
Key Rules
- Adherence to FAR Subpart 15.4: Contracting officers must price 8(a) contracts using the same "Contract Pricing" principles applied to other federal acquisitions, including the requirement for certified cost or pricing data when applicable.
- Fair Market Price Ceiling: An 8(a) contract—whether sole source or competitive—cannot be awarded if the cost to the agency exceeds a "fair market price."
- Audit Assistance: In sole source acquisitions, the contracting agency is required to provide the SBA with available audit assistance to help determine if a proposed price is fair and reasonable.
- Transparency and Timelines: If requested by the SBA, the contracting officer must provide the data used to calculate the fair market price within 10 working days.
- SBA Concurrence and Appeals: The SBA must agree with both the negotiated price and the estimated fair market price; if a disagreement arises, the SBA has the right to appeal the decision under FAR 19.810.
Practical Implications
- Contracting officers must maintain robust documentation for their "Fair Market Price" estimates, as the SBA has the authority to review and contest the data used in the calculation.
- 8(a) contractors are not exempt from rigorous pricing scrutiny; they must be prepared to provide certified cost or pricing data and undergo audits similar to any other contractor under FAR Part 15.