52.219-18 Notification of Competition Limited to Eligible 8(a) Participants
Source: FAR 52.219-18 on acquisition.gov
Only SBA-certified 8(a) participants or eligible joint ventures may compete for contracts under this clause, and strict eligibility and notification requirements apply.
Overview
FAR 52.219-18 establishes requirements for solicitations and awards limited to eligible 8(a) program participants. This clause ensures that only small businesses certified by the SBA for the 8(a) program, or eligible joint ventures, may compete for certain contracts. It outlines eligibility criteria, representation requirements, and procedures for contract award and notification of stock transfers. The clause also provides an Alternate I for competitions restricted to specific SBA regions or districts.
Key Rules
- Eligibility for Offers
- Only SBA-certified 8(a) small businesses, or qualifying joint ventures (including mentor-protégé arrangements), may submit offers. Each must meet business plan and activity target requirements.
- Offeror Representation
- By submitting an offer, the contractor certifies compliance with all eligibility criteria.
- Award Process
- Awards are made to the SBA, which subcontracts to the selected 8(a) participant. Joint ventures may be considered, but SBA does not approve them for competitive awards.
- Notification of Stock Transfer
- The SBA contractor must immediately notify the contracting officer of any agreement to transfer stock.
- Alternate I (Regional/District Limitation)
- If competition is limited to specific SBA regions/districts, the offeror’s business plan must be serviced by the designated SBA office.
Responsibilities
- Contracting Officers: Ensure only eligible 8(a) participants are solicited, verify representations, and insert appropriate regional/district information if Alternate I applies.
- Contractors: Certify eligibility, comply with business plan requirements, and notify of any stock transfers.
- Agencies: Oversee compliance and coordinate with SBA on awards and eligibility.
Practical Implications
- This clause ensures fair competition among eligible 8(a) firms and maintains program integrity. Contractors must be vigilant about eligibility and reporting requirements, especially regarding joint ventures and stock transfers. Failure to comply can result in ineligibility or contract termination.
As prescribed in 19.811-3(d), insert the following clause:
Notification of Competition Limited to Eligible 8(a) Participants (Oct 2022)
(a) Offers are solicited only from—
(1) Small business concerns expressly certified by the Small Business Administration (SBA) for participation in SBA's 8(a) program and which meet the following criteria at the time of submission of offer—
(i) The Offeror is in conformance with the 8(a) support limitation set forth in its approved business plan; and
(ii) The Offeror is in conformance with the Business Activity Targets set forth in its approved business plan or any remedial action directed by SBA;
(2) A joint venture, in which at least one of the 8(a) program participants that is a party to the joint venture complies with the criteria set forth in paragraph (a)(1) of this clause, that complies with https://www.ecfr.gov/current/title-13/section-124.513#p-124.513(c)" target="_blank">13 CFR 124.513(c); or
(3) A joint venture—
(i) That is comprised of a mentor and an 8(a) protégé with an approved mentor-protégé agreement under the 8(a) program;
(ii) In which at least one of the 8(a) program participants that is a party to the joint venture complies with the criteria set forth in paragraph (a)(1) of this clause; and
(iii) That complies with https://www.ecfr.gov/current/title-13/section-124.513#p-124.513(c)" target="_blank">13 CFR 124.513(c).
(b) By submission of its offer, the Offeror represents that it meets the applicable criteria set forth in paragraph (a) of this clause.
(c) Any award resulting from this solicitation will be made to the Small Business Administration, which will subcontract performance to the successful 8(a) offeror selected through the evaluation criteria set forth in this solicitation. A contracting officer may consider a joint venture for contract award. SBA does not approve joint ventures for competitive awards, but see https://www.ecfr.gov/current/title-13/section-124.501#p-124.501(g)" target="_blank">13 CFR 124.501(g) for SBA's determination of participant eligibility.
(d) The ____________ [insert name of SBA's contractor]will notify the____________ [insert name of contracting agency]Contracting Officer in writing immediately upon entering an agreement (either oral or written) to transfer all or part of its stock.
(End of clause)
Alternate I (Mar 2023). If the competition is to be limited to 8(a) participants within one or more specific SBA regions or districts, add the following paragraph (a)(1)(iii) to paragraph (a) of the clause:
(iii) The offeror's approved business plan is on the file and serviced by __ [ Contracting Officer completes by inserting the appropriate SBA District and/or Area Office(s) as identified by the SBA].