19.602-2
Issuing or denying a Certificate of Competency (COC)
FAR 19.602-2 establishes a structured, time-sensitive process for small businesses to challenge nonresponsibility findings through the SBA’s Certificate of Competency program, ensuring fair consideration for federal contracts.
Overview
FAR 19.602-2 outlines the procedures the Small Business Administration (SBA) follows when issuing or denying a Certificate of Competency (COC) to a small business that has been found nonresponsible by a contracting officer. The regulation details the steps, timelines, and decision points for both the SBA and contracting agencies, ensuring small businesses have a fair opportunity to demonstrate their responsibility and eligibility for federal contracts.
Key Rules
- Notification and Application Opportunity
- The SBA Area Office must inform the small business of the contracting officer’s nonresponsibility determination and offer the chance to apply for a COC within 15 business days.
- Facility Review and Evaluation
- Upon receiving a complete application, the SBA may visit the applicant’s facility and is not limited to reviewing only the cited deficiencies.
- Consideration of Additional Nonresponsibility Issues
- The SBA may deny a COC for reasons not originally cited by the contracting officer.
- COC Issuance for Contracts ≤ $25M
- If the Area Director supports issuing a COC, the contracting officer can accept, request further review, or appeal (with limitations for contracts ≤ $100,000).
- Notification of Outcome
- Both the small business and contracting officer are notified of the final decision.
- Contracts > $25M
- Recommendations for COCs on contracts over $25 million are referred to SBA Headquarters.
Responsibilities
- Contracting Officers: Must cooperate with SBA, review rationale, and provide additional information if needed.
- Contractors (Small Businesses): Must apply for a COC promptly and provide all required documentation.
- Agencies: Must coordinate with SBA and adhere to specified timelines and procedures.
Practical Implications
- This section ensures small businesses have a formal process to contest nonresponsibility findings and potentially secure contract awards. Timely communication and thorough documentation are critical. Delays or incomplete applications can jeopardize a small business’s chance to obtain a COC. Contracting officers must be prepared to justify their determinations and respond to SBA requests, especially for contracts near key value thresholds.