19.804-3
SBA acceptance
SBA must promptly accept or reject 8(a) program offers, with clear timelines and escalation procedures, ensuring timely contract awards and proper participant selection.
Overview
FAR 19.804-3 outlines the procedures and timelines for the Small Business Administration (SBA) to accept requirements into the 8(a) Business Development Program after receiving an offering letter from a contracting office. It details the response deadlines based on whether the acquisition exceeds or is at/below the simplified acquisition threshold, the process for assumed acceptance if SBA does not respond, and the review of NAICS code assignments. The section also covers how sole source 8(a) awards are handled, including SBA's role in participant selection and joint venture approval.
Key Rules
- SBA Response Timelines
- SBA must respond within 10 working days for contracts above the simplified acquisition threshold, and within 2 working days for contracts at or below the threshold. Extensions may be granted.
- Assumed Acceptance
- If SBA does not respond within the specified period, the contracting office may escalate or assume acceptance and proceed with award, depending on the contract value and circumstances.
- NAICS Code Review
- SBA reviews the NAICS code assigned by the contracting officer and may challenge or appeal if there is disagreement.
- Sole Source 8(a) Awards
- SBA determines participant eligibility, may participate in negotiations, and must approve joint ventures for sole source awards. SBA selects participants if the contracting officer does not nominate one.
Responsibilities
- Contracting Officers: Submit offering letters, assign NAICS codes, nominate participants (if applicable), and follow up on SBA responses.
- Contractors (8(a) participants): Ensure eligibility and compliance with 8(a) requirements, especially for joint ventures.
- SBA: Review and accept/reject requirements, review NAICS codes, select participants, and approve joint ventures.
Practical Implications
- Ensures timely processing of 8(a) program offers and clarifies escalation paths if SBA does not respond.
- Highlights the importance of accurate NAICS code assignment and the potential for disputes.
- Outlines the process for sole source awards, including participant selection and joint venture approval, which can impact award timelines and eligibility.