19.812 Contract administration
Source: FAR 19.812 on acquisition.gov
FAR 19.812 mandates strict contract administration, status verification, and notification procedures to ensure 8(a) contracts remain compliant throughout their lifecycle.
Overview
FAR 19.812 outlines the contract administration requirements for contracts awarded under the 8(a) Business Development Program. It details the responsibilities of contracting officers and agencies in assigning contract administration, distributing contract documents, providing technical assistance, verifying 8(a) status for long-term contracts, and handling ownership or control changes of 8(a) contractors. The regulation ensures that 8(a) contracts are properly managed and that both the Small Business Administration (SBA) and 8(a) contractors are kept informed throughout the contract lifecycle.
Key Rules
- Assignment of Contract Administration
- Contracting officers must assign contract administration functions based on the 8(a) contractor’s location, referencing the Federal Directory of Contract Administration Services Components.
- Distribution of Contracts and Modifications
- Agencies must distribute copies of contracts and modifications to both the SBA and the 8(a) contractor according to FAR Part 4 and within specified timeframes.
- Production and Technical Assistance
- Agencies should provide production and technical assistance to 8(a) contractors, including identifying deficiencies and suggesting corrective actions when appropriate.
- Verification of 8(a) Status for Long-Term Contracts
- For contracts exceeding five years, the contracting officer must verify the contractor’s 8(a) status in DSBS or SAM within 120 days before the end of the fifth year; options cannot be exercised if the contractor is no longer SBA-certified.
- Ownership or Control Changes
- If an 8(a) contractor transfers ownership or control, the contract must be terminated for convenience unless the SBA Administrator waives this requirement. Waiver requests must be timely, and specific notification and action steps are required.
Responsibilities
- Contracting Officers: Assign administration, ensure timely distribution of documents, verify 8(a) status, and manage ownership/control changes per regulation.
- Contractors: Notify SBA and contracting officer of ownership/control changes and request waivers as needed.
- Agencies: Provide technical assistance and comply with distribution and notification requirements.
Practical Implications
- Ensures proper oversight and continuity in 8(a) contracts.
- Prevents unauthorized continuation of contracts with firms no longer eligible for 8(a) status.
- Requires proactive communication and documentation to avoid compliance pitfalls, especially regarding contract modifications and ownership changes.
(a) The contracting officer shall assign contract administration functions, as required, based on the location of the 8(a) contractor (see Federal Directory of Contract Administration Services Components (available via the Internet at https://piee.eb.mil/pcm/xhtml/unauth/index.xhtml" target="_blank">https://piee.eb.mil/pcm/xhtml/unauth/index.xhtml )).
(b) The agency shall distribute copies of the contract(s) in accordance with part 4. All contracts and modifications, if any, shall be distributed to both the SBA and the 8(a) contractor in accordance with the timeframes set forth in 4.201.
(c) To the extent consistent with the contracting activity’s capability and resources, 8(a) contractors furnishing requirements shall be afforded production and technical assistance, including, when appropriate, identification of causes of deficiencies in their products and suggested corrective action to make such products acceptable.
(d) For 8(a) contracts exceeding 5 years including options, the contracting officer shall verify in DSBS or SAM that the concern is an SBA-certified 8(a) participant no more than 120 days prior to the end of the fifth year of the contract. If the concern is not an SBA-certified 8(a) participant, the contracting officer shall not exercise the option (see https://www.ecfr.gov/current/title-13/section-124.521#p-124.521(e)(2)" target="_blank">13 CFR 124.521(e)(2)).
(e) An 8(a) contract, whether in the base or an option year, must be terminated for convenience if the 8(a) contractor to which it was awarded transfers ownership or control of the firm or if the contract is transferred or novated for any reason to another firm, unless the Administrator of the SBA waives the requirement for contract termination (13 CFR 124.515). The Administrator may waive the termination requirement only if certain conditions exist. Moreover, a waiver of the requirement for termination is permitted only if the 8(a) contractor's request for waiver is made to the SBA prior to the actual relinquishment of ownership or control, except in the case of death or incapacity where the waiver must be submitted within 60 calendar days after such an occurrence. The clauses in the contract entitled "Special 8(a) Contract Conditions" and "Special 8(a) Subcontract Conditions" require the SBA and the 8(a) subcontractor to notify the contracting officer when ownership of the firm is being transferred. When the contracting officer receives information that an 8(a) contractor is planning to transfer ownership or control to another firm, the contracting officer shall take action immediately to preserve the option of waiving the termination requirement. The contracting officer shall determine the timing of the proposed transfer and its effect on contract performance and mission support. If the contracting officer determines that the SBA does not intend to waive the termination requirement, and termination of the contract would severely impair attainment of the agency's program objectives or mission, the contracting officer shall immediately notify the SBA in writing that the agency is requesting a waiver. Within 15 business days thereafter, or such longer period as agreed to by the agency and the SBA, the agency head must either confirm or withdraw the request for waiver. Unless a waiver is approved by the SBA, the contracting officer must terminate the contract for convenience upon receipt of a written request by the SBA. This requirement for a convenience termination does not affect the Government's right to terminate for default if the cause for termination of an 8(a) contract is other than the transfer of ownership or control.