19.707 The Small Business Administration’s role in carrying out the program
Source: FAR 19.707 on acquisition.gov
The SBA provides oversight and advisory support for subcontracting plans but cannot dictate subcontracting decisions or administer individual contracts.
Overview
FAR 19.707 outlines the specific roles and limitations of the Small Business Administration (SBA) in the execution of the Small Business Subcontracting Program. The section clarifies how the SBA assists both government agencies and contractors with subcontracting plans, reviews certain solicitations and contractual documents, and evaluates compliance with subcontracting plans. However, it also establishes clear boundaries, stating that the SBA cannot dictate subcontracting levels, specify subcontract recipients, or administer individual contracts.
Key Rules
- SBA Assistance
- The SBA may help agencies and contractors fulfill their subcontracting plan responsibilities.
- SBA Review of Solicitations
- The SBA can review solicitations meeting the thresholds in FAR 19.702(a)(1)(i) or (ii) within 5 working days before issuance.
- SBA Review of Subcontracting Plans
- The SBA may review negotiated contractual documents and subcontracting plans within 5 working days before execution, providing advisory recommendations to contracting officers.
- SBA Evaluation of Compliance
- The SBA can evaluate contractor compliance with subcontracting plans on a contract-by-contract or aggregate basis.
- SBA Limitations
- The SBA cannot prescribe subcontracting amounts, specify subcontract recipients, or administer individual contracts or subcontracts.
Responsibilities
- Contracting Officers: Must consider SBA recommendations and facilitate SBA reviews within specified timeframes.
- Contractors: Should cooperate with SBA reviews and ensure compliance with subcontracting plans.
- Agencies: Should coordinate with the SBA for reviews and compliance evaluations as required.
Practical Implications
- This section ensures SBA oversight and support without granting it direct control over subcontracting decisions, maintaining a balance between guidance and contractor autonomy. Contractors and agencies must be prepared for timely SBA reviews and compliance checks, but retain decision-making authority over subcontracting specifics.
(a) Under the program, the SBA may-
(1) Assist both Government agencies and contractors in carrying out their responsibilities with regard to subcontracting plans;
(2) Review (within 5 working days) any solicitation that meets the dollar threshold in 19.702(a)(1)(i) or (ii) before the solicitation is issued;
(3) Review (within 5 working days) before execution any negotiated contractual document requiring a subcontracting plan, including the plan itself, and submit recommendations to the contracting officer, which shall be advisory in nature; and
(4) Evaluate compliance with subcontracting plans, either on a contract-by-contract basis, or, in the case of contractors having multiple contracts, on an aggregate basis.
(b) The SBA is not authorized to-
(1) Prescribe the extent to which any contractor or subcontractor shall subcontract,
(2) Specify concerns to which subcontracts will be awarded, or
(3) Exercise any authority regarding the administration of individual prime contracts or subcontracts.