52.219-11 Special 8(a) Contract Conditions
Source: FAR 52.219-11 on acquisition.gov
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.
As prescribed in 19.811-3(a), insert the following clause:
Special 8(a) Contract Conditions (Jan 2017)
The Small Business Administration (SBA) agrees to the following:
(a) To furnish the supplies or services set forth in this contract according to the specifications and the terms and conditions hereof by subcontracting with an eligible concern pursuant to the provisions of section 8(a) of the Small Business Act, as amended (http://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title15-section637(a)&num=0&edition=prelim" target="_blank">15 U.S.C. 637(a)).
(b) That in the event SBA does not award a subcontract for all or a part of the work hereunder, this contract may be terminated either in whole or in part without cost to either party.
(c) Except for novation agreements, delegate to the _________ [insert name of contracting agency] the responsibility for administering the subcontract to be awarded hereunder with complete authority to take any action on behalf of the Government under the terms and conditions of the subcontract; provided, however, that the _________ [insert name of contracting agency] shall give advance notice to the SBA before it issues a final notice terminating the right of a subcontractor to proceed with further performance, either in whole or in part, under the subcontract for default or for the convenience of the Government.
(d) That payments to be made under any subcontract awarded under this contract will be made directly to the subcontractor by the ___________ [insert name of contracting agency].
(e) That the subcontractor awarded a subcontract hereunder shall have the right of appeal from decisions of the Contracting Officer cognizable under the "Disputes" clause of said subcontract.
(f) To notify the _________ [insert name of contracting agency] Contracting Officer immediately upon notification by the subcontractor that the owner or owners upon whom 8(a) eligibility was based plan to relinquish ownership or control of the concern.
(End of clause)