19.502-8 Rejecting Small Business Administration recommendations
Source: FAR 19.502-8 on acquisition.gov
Contracting officers must promptly notify and allow the SBA to appeal any rejection of its recommendations, suspending acquisition actions during the process unless overriding public interest is documented.
Overview
FAR 19.502-8 outlines the procedures contracting officers must follow when rejecting recommendations from the Small Business Administration (SBA) regarding small business set-asides or related matters. It establishes strict timelines for notifications, appeals, and decisions, ensuring that the SBA has an opportunity to contest rejections and escalate appeals up to the agency head if necessary. The regulation also provides for suspension of acquisition actions during the appeal process, unless the contracting officer determines that proceeding is in the public interest, in which case a written justification must be provided to the SBA.
Key Rules
- Notification of Rejection
- Contracting officers must notify the SBA in writing within 5 working days if they reject an SBA recommendation.
- SBA Appeal Process
- The SBA Procurement Center Representative (PCR) may appeal the rejection to the head of the contracting activity within 2 working days of receiving notice.
- Suspension of Acquisition
- Contracting officers must suspend acquisition actions during the appeal process until a decision is rendered.
- Further SBA Appeals
- If the head of the contracting activity upholds the rejection, the SBA may request further suspension and appeal to the agency head within 15 working days.
- Final Agency Decision
- The agency head must respond to the SBA within 30 working days, and this decision is final.
- Public Interest Exception
- If proceeding is deemed in the public interest, the contracting officer may bypass suspension but must document and notify the SBA.
Responsibilities
- Contracting Officers: Must provide timely written notifications, suspend acquisition actions as required, and document any public interest determinations.
- Contractors: Should be aware that acquisitions may be delayed due to SBA appeals and should monitor for potential changes in acquisition status.
- Agencies: Must ensure timely decisions at each appeal stage and maintain proper documentation and communication with the SBA.
Practical Implications
- This section ensures transparency and due process when SBA recommendations are rejected, providing multiple opportunities for review and appeal. Contractors should anticipate possible delays in acquisitions subject to SBA involvement and ensure compliance with all notification and documentation requirements to avoid procedural errors.
(a) If the contracting officer rejects a recommendation of the SBA, written notice shall be furnished to the appropriate SBA representative within 5 working days of the contracting officer's receipt of the recommendation.
(b) The SBA PCR (or, if a PCR is not assigned, see 19.402(a)) may appeal the contracting officer's rejection to the head of the contracting activity within 2 working days after receiving the notice (except see 19.1305(d), 19.1405(e), and 19.1505(i)). The head of the contracting activity shall render a decision in writing, and provide it to the SBA representative within 7 working days. Pending issuance of a decision to the SBA representative, the contracting officer shall suspend action on the acquisition.
(c) If the head of the contracting activity agrees that the contracting officer’s rejection was appropriate-
(1) Within 2 working days, the SBA procurement center representative (or, if a procurement center representative is not assigned, see 19.402(a)) may request the contracting officer to suspend action on the acquisition until the SBA Administrator appeals to the agency head (see paragraph (f) of this section); and
(2) The SBA must be allowed 15 working days after making such a written request, within which the Administrator of SBA–
(i) May appeal to the Secretary of the Department concerned; and
(ii) Must notify the contracting officer whether the further appeal has, in fact, been taken. If notification is not received by the contracting officer within the 15-day period, it is deemed that the SBA request to suspend the contract action has been withdrawn and that an appeal to the Secretary was not taken.
(d) When the contracting officer has been notified within the 15-day period that the SBA has appealed to the agency head, the head of the contracting activity (or designee) shall forward justification for its decision to the agency head. The contracting officer shall suspend contract action until notification is received that the SBA appeal has been settled.
(e) The agency head shall reply to the SBA within 30 working days after receiving the appeal. The decision of the agency head shall be final.
(f) A request to suspend action on an acquisition need not be honored if the contracting officer determines that proceeding to contract award and performance is in the public interest. The contracting officer shall include in the contract file a statement of the facts justifying the determination, and shall promptly notify the SBA representative of the determination and provide a copy of the justification.