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 how agencies can continue to take small business credit after a contractor exits the 8(a) program.
Overview
FAR 19.804-6 addresses the procedures and requirements for issuing orders under indefinite delivery contracts (such as IDIQs, GWACs, 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 can continue to take credit for awards to 8(a) contractors even after they exit the 8(a) program or become other than small. The section also outlines the value thresholds and procedural requirements for issuing orders directly to 8(a) contractors.
Key Rules
- Offers and Acceptances
- No separate SBA offer and acceptance is needed for individual orders under multiple-award contracts set aside for exclusive 8(a) competition, as long as all 8(a) contract holders can compete. Offers and acceptances are required for orders under contracts not exclusively set aside for 8(a).
- Sole Source Orders
- Contracting officers may issue sole source orders under certain value thresholds if the contract was set aside for 8(a) competition and proper offering/acceptance procedures are followed.
- Direct Orders to 8(a) Contractors
- Direct orders may be issued to a single 8(a) contractor under specific value thresholds and procedural requirements.
- Continued Eligibility
- 8(a) contractors may continue to receive orders even after leaving the 8(a) program or becoming other than small.
- Credit Toward Goals
- Agencies may continue to count orders toward small business goals unless the contractor rerepresents as other than small or certain ownership changes occur.
Responsibilities
- Contracting Officers: Must determine when offers and acceptances are required, follow value thresholds, and ensure proper procedures for sole source and direct orders. Must track contractor status for credit toward small business goals.
- Contractors: Must comply with size and eligibility representations and notify of changes in status or ownership.
- Agencies: Must monitor and report on small business credit, and adjust reporting if contractor status changes.
Practical Implications
- Ensures clarity on when SBA involvement is needed for orders under 8(a) contracts.
- Helps agencies and contractors understand how continued eligibility and credit work after program exit or status change.
- Common pitfalls include failing to follow offer/acceptance procedures or misreporting small business credit after status changes.