Procedures
FAR 19.602 establishes mandatory procedures for referring small businesses to the SBA for a Certificate of Competency, ensuring fair consideration before denying contract awards based on responsibility.
Overview
FAR 19.602 outlines the procedures for handling situations where a small business's responsibility is questioned during the federal contracting process. This section details the steps contracting officers must follow when referring a small business to the Small Business Administration (SBA) for a Certificate of Competency (COC), the process for issuing or denying a COC, resolving disputes between the agency and the SBA, and the requirements for awarding the contract. The procedures ensure that small businesses are given a fair opportunity to demonstrate their responsibility and capability to perform government contracts, in accordance with federal policy.
Key Rules
- Referral to SBA (19.602-1)
- Contracting officers must refer small businesses found non-responsible to the SBA for a COC determination before denying award.
- Issuing or Denying a COC (19.602-2)
- The SBA reviews the referral and decides whether to issue or deny a COC, which determines the small business's eligibility for award.
- Resolving Differences (19.602-3)
- Procedures are provided for resolving disagreements between the contracting agency and the SBA regarding responsibility determinations.
- Awarding the Contract (19.602-4)
- The contract must be awarded to the small business if the SBA issues a COC, unless there are other valid reasons for non-award.
Responsibilities
- Contracting Officers: Must follow referral procedures, cooperate with SBA, and comply with COC decisions.
- Contractors: Small businesses must provide necessary documentation to the SBA and respond to COC inquiries.
- Agencies: Must respect SBA's authority in COC matters and resolve disputes per FAR procedures.
Practical Implications
- Ensures small businesses are not unfairly excluded from contracting opportunities.
- Provides a formal process for challenging responsibility determinations.
- Failure to follow these procedures can result in protest or legal challenge, making compliance critical for both agencies and contractors.