19.703
Eligibility requirements for participating in the program
Prime contractors must ensure subcontractors accurately represent their size and socioeconomic status, follow specific procedures for ANC and Indian tribe subcontracts, and be prepared for potential status challenges or protests.
Overview
FAR 19.703 outlines the eligibility requirements for subcontractors participating in the Small Business Subcontracting Program. It specifies how businesses must represent their size and socioeconomic status, the process for prime contractors to accept these representations, and the procedures for challenging such claims. The section also provides special rules for subcontracts awarded to Alaska Native Corporations (ANCs) and Indian tribes, including how these subcontracts count toward subcontracting goals and the process for designating which contractor receives credit. Additionally, it addresses the process for protesting a subcontractor’s size or socioeconomic status.
Key Rules
- Self-Representation Requirements
- Subcontractors must self-certify as a small business or specific socioeconomic category and meet the relevant definitions and size standards for the NAICS code assigned by the prime contractor.
- Acceptance of Representations
- Prime contractors may accept written or SAM-based representations unless there is reason to question them, but cannot require SAM registration solely for this purpose.
- Good Faith Reliance
- Prime contractors acting in good faith are not liable for subcontractor misrepresentations regarding size or status.
- Protest Procedures
- Any party may challenge a subcontractor’s size or status via protest, following specific CFR procedures.
- Special Rules for ANCs and Indian Tribes
- Subcontracts to ANCs or Indian tribes count toward goals regardless of size, with specific designation and notification requirements.
Responsibilities
- Contracting Officers: Must process protests, ensure proper crediting for ANC/Indian tribe subcontracts, and monitor compliance.
- Contractors (Primes): Must verify and accept subcontractor representations, follow designation and notification rules for ANC/Indian tribe subcontracts, and respond to protests.
- Subcontractors: Must accurately represent their size and status and provide timely documentation if required.
Practical Implications
- Ensures only eligible businesses are counted toward subcontracting goals, protecting program integrity.
- Prime contractors must have processes to verify and document subcontractor status, and be aware of protest procedures.
- Special attention is needed for ANC and Indian tribe subcontracts to ensure proper credit and compliance with notification timelines.