19.812
Contract administration
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.