52.219-11
Special 8(a) Contract Conditions
FAR 52.219-11 ensures that 8(a) contracts are administered properly, with clear roles for SBA, agencies, and subcontractors, and mandates direct payment and notification procedures to protect 8(a) program integrity.
Overview
FAR 52.219-11 outlines the special contract conditions applicable to contracts awarded under the Small Business Administration’s (SBA) 8(a) program. This clause establishes the roles and responsibilities of the SBA, the contracting agency, and the 8(a) subcontractor. It ensures that supplies or services are provided by eligible 8(a) firms, details procedures for contract termination if a subcontract is not awarded, and delegates contract administration to the contracting agency (except for novation agreements). The clause also covers payment procedures, dispute rights, and notification requirements regarding changes in ownership or control of the 8(a) firm.
Key Rules
- SBA Subcontracting Requirement
- SBA must subcontract with an eligible 8(a) concern to fulfill contract requirements.
- Termination Provisions
- If a subcontract is not awarded, the contract may be terminated without cost to either party.
- Delegation of Administration
- The contracting agency administers the subcontract, but must notify SBA before terminating the subcontractor for default or convenience.
- Direct Payment
- Payments are made directly to the 8(a) subcontractor by the contracting agency.
- Dispute Rights
- The 8(a) subcontractor has the right to appeal Contracting Officer decisions under the Disputes clause.
- Ownership Change Notification
- SBA must notify the Contracting Officer if the 8(a) firm’s ownership or control is changing.
Responsibilities
- Contracting Officers: Administer the subcontract, provide advance notice to SBA before termination, and make payments directly to the subcontractor.
- Contractors (8(a) firms): Notify SBA of any planned changes in ownership or control.
- Agencies: Oversee contract administration and ensure compliance with 8(a) program requirements.
Practical Implications
- This clause ensures that 8(a) contracts are properly managed and that eligible small businesses benefit from the program.
- It clarifies administrative authority and dispute processes, reducing confusion between SBA, agencies, and contractors.
- Failure to follow notification or payment procedures can result in compliance issues or contract disputes.