Overview
FAR 19.808 details the procedural requirements and limitations for negotiating contracts within the 8(a) Business Development Program, distinguishing between the oversight required for sole-source awards and the protocols for competitive acquisitions. It defines the SBA's role as an intermediary and sets specific thresholds for justification and eligibility.
Key Rules
- Sole-Source Threshold and Justification: Sole-source 8(a) awards exceeding $30 million require a formal justification in accordance with FAR 6.303 before the SBA can accept the requirement for negotiation.
- SBA Negotiation Authority: For sole-source actions, the SBA is responsible for initiating negotiations within the agency's timeframe; however, the SBA may authorize the Contracting Officer (CO) to negotiate directly with the participant.
- Contract Approval: Regardless of who conducts the negotiations, the SBA must approve the final 8(a) sole-source contract before it can be officially awarded.
- Eligibility Timing: A firm must be an active participant in the 8(a) program at the time of award and must qualify as a small business under the NAICS code assigned to the contract.
- Follow-on Restrictions: Entities owned by Alaskian Native Corporations (ANCs), Tribes, Native Hawaiian Organizations (NHOs), or Community Development Corporations (CDCs) cannot receive a sole-source follow-on contract if the predecessor contract was performed by another firm owned by the same parent organization.
- Competitive Negotiation Timing: In competitive 8(a) acquisitions, the CO negotiates directly with participants, but beginning these negotiations before the SBA formally accepts the requirement into the 8(a) program may result in the SBA rejecting the acquisition.
Practical Implications
- Coordination and Timelines: Contracting Officers must maintain tight communication with the SBA, as the agency has the right to move the acquisition to other sources if the SBA does not initiate negotiations within agreed-upon windows.
- Compliance Risk: Agencies must avoid "jumping the gun" on competitive 8(a) discussions; initiating formal negotiations before SBA acceptance can jeopardize the entire procurement strategy.
- Large Award Scrutiny: The $30 million J&A requirement for sole-source awards ensures that high-value non-competitive 8(a) contracts receive a level of transparency and administrative review similar to other sole-source justifications.