19.203 Relationship among small business programs
Source: FAR 19.203 on acquisition.gov
There is no order of precedence among the major small business programs, and contracting officers must consider all options based on acquisition value, market research, and agency goals.
Overview
FAR 19.203 clarifies how contracting officers should navigate the various small business programs when planning acquisitions. It establishes that there is no hierarchy among the 8(a), HUBZone, SDVOSB, and WOSB programs, and provides guidance on how to prioritize these programs relative to small business set-asides and full and open competition, depending on the acquisition's dollar value. The section also emphasizes the importance of market research and agency small business goals in selecting the appropriate program.
Key Rules
- No Precedence Among Socioeconomic Programs
- The 8(a), HUBZone, SDVOSB, and WOSB programs are considered equal; no program takes priority over another.
- Acquisitions at or Below the Simplified Acquisition Threshold (SAT)
- Small business set-aside requirements do not prevent awards under any of the four socioeconomic programs.
- Acquisitions Above the SAT
- Contracting officers must first consider the four socioeconomic programs before a general small business set-aside. Requirements accepted into the 8(a) Program must remain unless released by the SBA.
- Program Selection Criteria
- Decisions should be based on market research and agency progress toward small business goals.
- Set-Aside Priority
- Small business set-asides take precedence over full and open competition.
Responsibilities
- Contracting Officers: Must evaluate all applicable small business programs, conduct market research, consider agency goals, and follow proper order of consideration based on acquisition value.
- Contractors: Should understand eligibility and positioning within each program to maximize opportunities.
- Agencies: Must track and report progress toward small business goals and ensure compliance with program selection procedures.
Practical Implications
- This section ensures fair consideration for all small business programs and prevents favoritism. Contracting officers must document their decision-making process, especially regarding market research and program selection. Missteps can lead to protests or missed opportunities for eligible small businesses.
(a) General. There is no order of precedence among the 8(a) Program (subpart 19.8), HUBZone Program (subpart 19.13), Service-Disabled Veteran-Owned Small Business (SDVOSB) Program (subpart 19.14), or the Women-Owned Small Business (WOSB) Program (subpart 19.15).
(b) At or below the simplified acquisition threshold. For acquisitions of supplies or services that have an anticipated dollar value above the micro-purchase threshold, but at or below the simplified acquisition threshold, the requirement at 19.502-2(a) to set aside acquisitions for small business concerns does not preclude the contracting officer from awarding a contract to a small business under the 8(a) Program, HUBZone Program, SDVOSB Program, or WOSB Program.
(c) Above the simplified acquisition threshold. For acquisitions of supplies or services that have an anticipated dollar value exceeding the simplified acquisition threshold definition at 2.101, the contracting officer shall first consider an acquisition for the small business socioeconomic contracting programs (i.e., 8(a), HUBZone, SDVOSB, or WOSB programs) before considering a small business set-aside (see 19.502-2(b)). However, if a requirement has been accepted by the SBA under the 8(a) Program, it must remain in the 8(a) Program unless the SBA agrees to its release in accordance with 13 CFR parts 124, 126, 127, and 128.
(d) In determining which socioeconomic program to use for an acquisition, the contracting officer should consider, at a minimum-
(1) Results of market research that was done to determine if there are socioeconomic firms capable of satisfying the agency’s requirement; and
(2) Agency progress in fulfilling its small business goals.
(e) Small business set-asides have priority over acquisitions using full and open competition. See requirements for establishing a small business set-aside at subpart 19.5.