52.219-17 Section 8(a) Award
Source: FAR 52.219-17 on acquisition.gov
FAR 52.219-17 establishes the roles, responsibilities, and procedures for administering and performing 8(a) contracts, ensuring compliance and protection for all parties involved.
Overview
FAR 52.219-17, Section 8(a) Award, outlines the contractual relationship and obligations when a contract is awarded under the Small Business Administration's (SBA) 8(a) program. This clause is inserted into contracts as prescribed by FAR 19.811-3(c) and establishes the roles of the SBA, the contracting agency, and the 8(a) subcontractor. It clarifies that the SBA is the prime contractor but subcontracts performance to the eligible 8(a) firm, delegates contract administration to the contracting agency (with some exceptions), and sets forth payment and notification procedures. The clause also ensures the 8(a) subcontractor's right to appeal under the "Disputes" clause and requires immediate notification if ownership or control changes that affect 8(a) eligibility.
Key Rules
- SBA as Prime Contractor
- SBA enters into the contract and subcontracts performance to the eligible 8(a) firm.
- Delegation of Administration
- Contract administration is delegated to the contracting agency, except for novation agreements, with advance notice to SBA required before termination actions.
- Direct Payment to Subcontractor
- Payments are made directly to the 8(a) subcontractor by the contracting agency.
- Notification of Ownership Changes
- SBA must notify the contracting officer if the 8(a) firm's ownership or control changes.
- Right of Appeal
- The 8(a) subcontractor may appeal contracting officer decisions under the "Disputes" clause.
- Subcontractor Performance
- The 8(a) firm agrees to fulfill all contract requirements on behalf of the SBA.
Responsibilities
- Contracting Officers: Administer the contract, provide advance notice to SBA before termination, and make payments directly to the 8(a) subcontractor.
- Contractors (8(a) firms): Perform all contract requirements, notify SBA of ownership/control changes, and may appeal disputes.
- Agencies: Oversee contract administration and ensure compliance with notification and payment procedures.
Practical Implications
- This clause ensures clear delineation of roles and responsibilities in 8(a) contracts, protecting both the government and the 8(a) firm.
- It is critical for 8(a) firms to maintain eligibility and communicate changes promptly.
- Contracting officers must follow notification and payment protocols to avoid compliance issues.
As prescribed in 19.811-3(c), insert the following clause:
Section8(a) Award (Oct 2019)
(a) By execution of a contract, the Small Business Administration (SBA) agrees to the following:
(1) To furnish the supplies or services set forth in the contract according to the specifications and the terms and conditions by subcontracting with the Offeror who has been determined an eligible concern pursuant to the provisions of section8(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)).
(2) Except for novation agreements, delegates to the ______ [insert name of contracting activity]the responsibility for administering the contract with complete authority to take any action on behalf of the Government under the terms and conditions of the contract; provided, however that the contracting agency shall give advance notice to the SBA before it issues a final notice terminating the right of the subcontractor to proceed with further performance, either in whole or in part, under the contract.
(3) That payments to be made under the contract will be made directly to the subcontractor by the contracting activity.
(4) 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.
(5) That the subcontractor awarded a subcontract hereunder shall have the right of appeal from decisions of the cognizant Contracting Officer under the "Disputes" clause of the subcontract.
(b) The offeror/subcontractor agrees and acknowledges that it will, for and on behalf of the SBA, fulfill and perform all of the requirements of the contract.
(End of clause)