Overview
This section outlines the administrative requirements for managing 8(a) contracts, focusing on documentation distribution, technical support, and strict eligibility maintenance regarding contract options and changes in firm ownership.
Key Rules
- Administration Assignment: The contracting officer must assign administration functions based on the contractor's geographic location using the Federal Directory of Contract Administration Services Components.
- Distribution Requirements: Copies of all contracts and modifications must be provided to both the Small Business Administration (SBA) and the 8(a) contractor following the timelines in FAR 4.201.
- Technical Assistance: Agencies should provide production and technical support, including help identifying and correcting product deficiencies, to the extent resources allow.
- Five-Year Eligibility Check: For contracts exceeding five years, the contracting officer must verify the contractor’s SBA certification in DSBS or SAM within 120 days prior to the end of the fifth year. If the firm is no longer certified, the option cannot be exercised.
- Ownership Transfer and Termination: Contracts must be terminated for convenience if the 8(a) firm transfers ownership or control, unless a waiver is obtained from the SBA Administrator.
- Waiver Timelines: Requests for ownership-transfer waivers must generally be submitted to the SBA before the transfer occurs, or within 60 days in cases of death or incapacity.
Practical Implications
- Proactive Compliance: Contracting officers must set alerts for the five-year mark on long-term 8(a) awards, as exercising an option for a decertified firm is a regulatory violation.
- M&A Constraints: 8(a) contractors undergoing a merger or acquisition must coordinate closely with the SBA and the contracting officer well in advance of the transaction to prevent the mandatory termination of their active government contracts.