Overview
This section defines the mandatory criteria and procedures Contracting Officers (CO) must use to determine if a prospective contractor is "responsible" and eligible for a contract award. It establishes a comprehensive framework for evaluating a firm's financial capability, past performance, business ethics, and operational resources.
Key Rules
- General Standards: To be deemed responsible, a contractor must have adequate financial resources, the ability to meet delivery schedules, a satisfactory performance record, a satisfactory record of integrity/ethics, and the necessary technical/organizational skills and equipment.
- Special Standards: COs may develop additional, specific standards for acquisitions requiring unusual expertise or specialized facilities, provided they are identified in the solicitation.
- Past Performance Presumption: A prospective contractor that has been "seriously deficient" in recent contract performance is presumed nonresponsible unless the CO determines the failure was beyond their control or corrective action was taken.
- Small Business Referrals: If a CO finds a small business nonresponsible, they must refer the matter to the Small Business Administration (SBA) for a final determination via the Certificate of Competency (COC) process.
- FAPIIS Review: For awards exceeding the simplified acquisition threshold, COs must review the Federal Awardee Performance and Integrity Information System (FAPIIS) to evaluate the contractor's integrity and performance history over the previous five years.
- Subcontractor Responsibility: While prime contractors are generally responsible for vetting their subcontractors, the CO may choose to evaluate subcontractors directly if it is in the Government's interest.
- Tax and Felony Disclosures: Specific certifications are required regarding delinquent tax liability and felony convictions; affirmative disclosures may require referral to agency suspending and debarring officials.
Practical Implications
- Pass/Fail Barrier: Responsibility is a "pass/fail" determination made independently of the technical evaluation; even a high-scoring or low-priced offeror will be disqualified if they cannot prove financial or ethical viability.
- Documentation and Due Diligence: Contractors must be prepared to provide "acceptable evidence" of their ability to obtain resources (such as commitment letters for equipment or financing) and must actively manage their CPARS/FAPIIS profiles to mitigate any negative performance data.