19.816
Exiting the 8(a) program
Contractors exiting or suspended from the 8(a) program cannot receive new 8(a) contracts, but must fulfill existing obligations, with limited exceptions for competitive awards and government interest determinations.
Overview
FAR 19.816 outlines the rules and obligations for contractors exiting the 8(a) Business Development Program. When a contractor leaves the 8(a) program, it cannot receive new 8(a) contracts but must fulfill all existing contractual obligations, including any priced options. If a contractor is suspended from the program, it is generally barred from new 8(a) awards unless a special determination is made by the agency head and adopted by the SBA. Contractors that have completed their 8(a) term may still be eligible for competitive 8(a) contracts if they were eligible at the time of the solicitation and continue to meet all other requirements. The section also references relevant SBA regulations for further guidance on exiting the program.
Key Rules
- Ineligibility for New 8(a) Contracts After Exit
- Contractors exiting the 8(a) program cannot receive new 8(a) contracts but must complete existing ones and any priced options.
- Suspension from 8(a) Program
- Suspended contractors are ineligible for new 8(a) contracts unless a government interest determination is made and adopted by SBA.
- Eligibility for Competitive 8(a) Contracts Post-Term
- Contractors who completed their 8(a) term may still win competitive 8(a) contracts if they were eligible at the solicitation date and meet all other criteria.
- Reference to SBA Regulations
- Contractors and agencies must consult 13 CFR 124.301-305 and 124.507(d) for detailed exit procedures and requirements.
Responsibilities
- Contracting Officers: Ensure contractors exiting or suspended from 8(a) are not awarded new 8(a) contracts unless exceptions apply; verify eligibility for competitive 8(a) awards.
- Contractors: Complete all existing 8(a) contracts and options; understand eligibility status for future 8(a) opportunities; comply with SBA exit regulations.
- Agencies: Make and document determinations for exceptions; coordinate with SBA as required.
Practical Implications
- This section ensures the integrity of the 8(a) program by restricting access to new contracts after exit or suspension, while protecting the government’s interests in contract completion. Contractors must be vigilant about their program status and eligibility, and agencies must follow proper procedures for exceptions and ongoing contract management.