Sole source
Sole-source 8(a) contracts over $25 million require formal justification, and only current, eligible 8(a) participants can receive such awards under strict negotiation and eligibility rules.
Overview
FAR 19.808-1 outlines the procedures and requirements for awarding sole-source contracts under the 8(a) Business Development Program. It sets specific conditions for when the Small Business Administration (SBA) can accept and negotiate sole-source 8(a) contracts, including a $25 million threshold that requires a formal justification. The section details the roles of the SBA and the contracting agency in negotiations, the necessity for the 8(a) participant to be a current program member and to certify its small business status, and restrictions on follow-on contracts for certain entity-owned 8(a) firms. These rules ensure transparency, proper justification, and compliance with program intent when awarding sole-source contracts to 8(a) participants.
Key Rules
- Justification for Large Sole-Source Awards
- Sole-source 8(a) contracts over $25 million require a justification per FAR 6.303 before SBA can accept them for negotiation.
- SBA Negotiation Timelines
- SBA must initiate negotiations within the agency-established timeframe, or the agency may proceed with other sources after notifying SBA.
- SBA Participation in Negotiations
- SBA should participate in contract negotiations, but may authorize direct negotiations between the agency and the 8(a) participant; SBA must approve the contract before award.
- Small Business Representation
- 8(a) participants must certify their small business status according to the NAICS code assigned to the contract.
- Current 8(a) Program Participation
- The awardee must be a current 8(a) participant at the time of award.
- Restrictions on Follow-On Contracts
- Entity-owned 8(a) firms (e.g., ANC, Indian Tribe, NHO, CDC) cannot receive a follow-on sole-source contract if the predecessor was performed by another entity-owned 8(a) participant from the same parent entity.
Responsibilities
- Contracting Officers: Ensure justifications for large awards, coordinate negotiation timelines, verify 8(a) status and eligibility, and comply with follow-on contract restrictions.
- Contractors (8(a) participants): Certify small business status, maintain current 8(a) program participation, and be aware of entity-owned follow-on restrictions.
- Agencies: Oversee negotiation process, ensure compliance with justification and eligibility requirements, and notify SBA if proceeding with other sources.
Practical Implications
- This section ensures sole-source 8(a) contracts are awarded transparently and only to eligible firms, with additional scrutiny for large awards. Failure to follow these requirements can result in delays, ineligibility, or protest. Contractors and agencies must coordinate closely with SBA and maintain thorough documentation to ensure compliance.