Utilization of Small Business Concerns
Prime contractors must actively provide maximum practicable subcontracting opportunities to all categories of small business concerns and verify their status in accordance with federal regulations.
Overview
FAR 52.219-8 requires contractors to ensure that small business concerns—including veteran-owned, service-disabled veteran-owned, HUBZone, small disadvantaged, and women-owned small businesses—have the maximum practicable opportunity to participate in federal contracts and subcontracts. The clause defines each type of small business concern, outlines the policy for their inclusion, and sets forth requirements for prime contractors to establish procedures for timely payment to these businesses. It also details how contractors should verify the status of their small business subcontractors and clarifies liability protections for good faith reliance on subcontractor representations. Joint ventures are addressed, specifying when they qualify as small or HUBZone concerns. Contractors must cooperate with SBA or agency compliance studies and ensure their subcontracting practices align with federal policy.