Preaward considerations
FAR 19.809 ensures 8(a) contractors are properly vetted before award and mandates compliance with subcontracting and nonmanufacturer rules to protect program integrity.
Overview
FAR 19.809 addresses preaward considerations specific to contracts under the Small Business Administration’s (SBA) 8(a) Program. It highlights two main areas: the preaward survey process and the application of limitations on subcontracting and the nonmanufacturer rule. The preaward survey is used to assess the capability, responsibility, and eligibility of 8(a) participants before contract award. Additionally, this section ensures that 8(a) contractors comply with statutory requirements limiting the amount of work that can be subcontracted and, for supply contracts, the nonmanufacturer rule. These requirements are designed to ensure that the benefits of the 8(a) program flow primarily to eligible small businesses and not to large subcontractors or suppliers.
Key Rules
- Preaward Survey
- Contracting officers may conduct a preaward survey to evaluate the 8(a) participant’s ability to perform the contract, including technical, financial, and management capabilities.
- Limitations on Subcontracting and Nonmanufacturer Rule
- 8(a) contractors must comply with limitations on subcontracting, ensuring a certain percentage of work is performed by the 8(a) firm itself, and, for supply contracts, must adhere to the nonmanufacturer rule unless an exception applies.
Responsibilities
- Contracting Officers: Must ensure preaward surveys are conducted when necessary and verify compliance with subcontracting and nonmanufacturer rules.
- Contractors: Must demonstrate capability during preaward surveys and comply with all subcontracting and nonmanufacturer requirements.
- Agencies: Oversee compliance and coordinate with the SBA as needed.
Practical Implications
- Ensures only qualified 8(a) firms receive awards and that program benefits are not diverted to large businesses through excessive subcontracting.
- Contractors should be prepared for preaward scrutiny and maintain documentation to prove compliance.
- Noncompliance can result in ineligibility for award or contract termination.