19.804-6
Indefinite delivery contracts
FAR 19.804-6 clarifies when SBA offers and acceptances are required for 8(a) orders under indefinite delivery contracts and outlines how contractor status changes affect agency small business credit.
Overview
FAR 19.804-6 addresses the procedures and requirements for issuing orders under indefinite delivery contracts (including multiple-award, IDIQ, and Federal Supply Schedules) that involve 8(a) program participants. It clarifies when separate SBA offers and acceptances are required for individual orders, the conditions for sole source orders, and how agencies may take credit toward small business goals. The section also covers the implications when an 8(a) contractor exits the program or changes size status.
Key Rules
- Offers and Acceptances for Orders
- No separate SBA offer and acceptance is needed for individual orders under 8(a) set-aside multiple-award contracts if competed among all 8(a) holders; otherwise, offers and acceptances are required.
- Sole Source Orders
- Contracting officers may issue sole source orders under 8(a) set-aside contracts if the order is below the 19.805-1(a)(2) thresholds and proper offering/acceptance procedures are followed.
- Direct Orders under Reserved Contracts
- Direct orders to a single 8(a) contractor are allowed under reserved contracts if the order is below $7 million (manufacturing) or $4.5 million (other), and offering/acceptance procedures are followed.
- Orders After 8(a) Exit
- 8(a) contractors may continue to receive orders after exiting the program or changing size status, but agency credit for small business goals may be affected.
- Credit Toward Small Business Goals
- Agencies may continue to claim credit for orders to 8(a) contractors post-exit, unless the contractor rerepresents as other than small or receives an SBA waiver after ownership/control changes.
Responsibilities
- Contracting Officers: Ensure proper offer/acceptance procedures, monitor order thresholds, and track contractor status for credit purposes.
- Contractors: Comply with size/status representations and understand implications of program exit.
- Agencies: Maintain accurate reporting for small business goal credit and monitor contractor eligibility.
Practical Implications
- This section streamlines order placement under 8(a) IDIQ contracts and clarifies when SBA involvement is needed. It helps agencies and contractors understand ongoing eligibility and credit implications, reducing administrative burden and potential compliance errors.