FAR Subpart 19.8- Contracting with
the Small Business Administration
(The 8(a) Certified Business Program)
19.800 General.
- (a) Section 8(a) of the Small Business Act (15 U.S.C.
637(a)) established a program that authorizes the Small
Business Administration (SBA) to enter into all types of
contracts with other agencies and let subcontracts for performing
those contracts to firms eligible for program participation.
The SBA's subcontractors are referred to as "8(a) contractors."
- (b) Contracts may be awarded to the SBA for performance
by eligible 8(a) firms on either a sole source or competitive
basis.
- (c) When, acting under the authority of the program, the
SBA certifies to an agency that the SBA is competent and
responsible to perform a specific contract, the contracting
officer is authorized, in the contracting officer's discretion,
to award the contract to the SBA based upon mutually agreeable
terms and conditions.
- (d) The SBA refers to this program as the 8(a) Business
Development (BD) Program.
- (e) Before deciding to set aside an acquisition in accordance
with Subpart 19.5, 19.13, or 19.14, the contracting officer
should review the acquisition for offering under the 8(a)
Program. If the acquisition is offered to the SBA, SBA regulations
(13 CFR 126.607(b)) give first priority to HUBZone 8(a)
concerns.
- (f) When SBA has delegated its 8(a) Program contract execution
authority to an agency, the contracting officer must refer
to its agency supplement or other policy directives for
appropriate guidance.
19.801 [Reserved]
19.802 Selecting concerns for the 8(a)
Program.
Selecting concerns for the 8(a) Program is the responsibility
of the SBA and is based on the criteria established in 13
CFR 124.101-112.
19.803 Selecting acquisitions for the
8(a) Program.
Through their cooperative efforts, the SBA and an agency match
the agency's requirements with the capabilities of 8(a) concerns
to establish a basis for the agency to contract with the SBA
under the program. Selection is initiated in one of three
ways-
- (a) The SBA advises an agency contracting activity through
a search letter of an 8(a) firm's capabilities and asks
the agency to identify acquisitions to support the firm's
business plans. In these instances, the SBA will provide
at least the following information in order to enable the
agency to match an acquisition to the firm's capabilities:
- Identification of the concern and its owners.
- Background information on the concern, including any
and all information pertaining to the concern's technical
ability and capacity to perform.
- The firm's present production capacity and related
facilities.
- The extent to which contracting assistance is needed
in the present and the future, described in terms that
will enable the agency to relate the concern's plans
to present and future agency requirements.
- If construction is involved, the request shall also
include the following:
- (i) The concern's capabilities in and qualifications
for accomplishing various categories of maintenance,
repair, alteration, and construction work in specific
categories such as mechanical, electrical, heating
and air conditioning, demolition, building, painting,
paving, earth work, waterfront work, and general
construction work.
- (ii) The concern's capacity in each construction
category in terms of estimated dollar value ( e.g.,
electrical, up to $100,000).
- (b) The SBA identifies a specific requirement for a particular
8(a) firm or firms and asks the agency contracting activity
to offer the acquisition to the 8(a) Program for the firm(s).
In these instances, in addition to the information in paragraph
(a) of this section, the SBA will provide-
- A clear identification of the acquisition sought;
e.g., project name or number;
- A statement as to how any additional needed facilities
will be provided in order to ensure that the firm will
be fully capable of satisfying the agency's requirements;
- If construction, information as to the bonding capability
of the firm(s); and
- Either-
- (i) If sole source request-
- (A) The reasons why the firm is considered
suitable for this particular acquisition; e.g.,
previous contracts for the same or similar supply
or service; and
- (B) A statement that the firm is eligible
in terms of NAICS code, business support levels,
and business activity targets; or
- (ii) If competitive, a statement that at least
two 8(a) firms are considered capable of satisfying
the agency's requirements and a statement that the
firms are also eligible in terms of the NAICS code,
business support levels, and business activity targets.
If requested by the contracting activity, SBA will
identify at least two such firms and provide information
concerning the firms' capabilities.
- (c) Agencies may also review other proposed acquisitions
for the purpose of identifying requirements which may be
offered to the SBA. Where agencies independently, or through
the self marketing efforts of an 8(a) firm, identify a requirement
for the 8(a) Program, they may offer on behalf of a specific
8(a) firm, for the 8(a) Program in general, or for 8(a)
competition (but see 19.800(e)).
19.804 Evaluation, offering, and acceptance.
19.804-1 Agency evaluation.
In determining the extent to which a requirement should be
offered in support of the 8(a) Program, the agency should
evaluate-
- (a) Its current and future plans to acquire the specific
items or work that 8(a) contractors are seeking to provide,
identified in terms of-
- Quantities required or the number of construction
projects planned; and
- Performance or delivery requirements, including required
monthly production rates, when applicable;
- (b) Its current and future plans to acquire items or work
similar in nature and complexity to that specified in the
business plan;
- (c) Problems encountered in previous acquisitions of the
items or work from the 8(a) contractors and/or other contractors;
- (d) The impact of any delay in delivery;
- (e) Whether the items or work have previously been acquired
using small business set-asides; and
- (f) Any other pertinent information about known 8(a) contractors,
the items, or the work. This includes any information concerning
the firms' capabilities. When necessary, the contracting
agency shall make an independent review of the factors in
19.803(a) and other aspects of the firms' capabilities which
would ensure the satisfactory performance of the requirement
being considered for commitment to the 8(a) Program.
19.804-2 Agency offering.
- (a) After completing its evaluation, the agency must notify
the SBA of the extent of its plans to place 8(a) contracts
with the SBA for specific quantities of items or work. The
notification must identify the time frames within which
prime contract and subcontract actions must be completed
in order for the agency to meet its responsibilities. The
notification must also contain the following information
applicable to each prospective contract:
- A description of the work to be performed or items
to be delivered, and a copy of the statement of work,
if available.
- The estimated period of performance.
- The NAICS code that applies to the principal nature
of the acquisition.
- The anticipated dollar value of the requirement, including
options, if any.
- Any special restrictions or geographical limitations
on the requirement (for construction, include the location
of the work to be performed).
- Any special capabilities or disciplines needed for
contract performance.
- The type of contract anticipated.
- The acquisition history, if any, of the requirement,
including the names and addresses of any small business
contractors that have performed this requirement during
the previous 24 months.
- A statement that prior to the offering no solicitation
for the specific acquisition has been issued as a small
business, HUBZone, or service-disabled veteran-owned
small business set-aside and that no other public communication
(such as a notice through the Governmentwide point of
entry (GPE)) has been made showing the contracting agency's
clear intention to set-aside the acquisition for small
business, HUBZone small business, or service-disabled
veteran-owned small business concerns.
- Identification of any particular 8(a) concern designated
for consideration, including a brief justification,
such as-
- (i) The 8(a) concern, through its own efforts,
marketed the requirement and caused it to be reserved
for the 8(a) Program; or
- (ii) The acquisition is a follow-on or renewal
contract and the nominated concern is the incumbent.
- Bonding requirements, if applicable.
- Identification of all known 8(a) concerns, including
HUBZone 8(a) concerns, that have expressed an interest
in being considered for the specific requirement.
- Identification of all SBA field offices that have
asked for the acquisition for the 8(a) Program.
- A request, if appropriate, that a requirement with
an estimated contract value under the applicable competitive
threshold be awarded as an 8(a) competitive contract
(see 19.805-1(d)).
- A request, if appropriate, that a requirement with
a contract value over the applicable competitive threshold
be awarded as a sole source contract (see 19.805-1(b)).
- Any other pertinent and reasonably available data.
- (b)
- An agency offering a construction requirement
should submit it to the SBA District Office
for the geographical area where the work is
to be performed.
- Sole source requirements, other than construction,
should be forwarded directly to the district
office that services the nominated firm. If
the contracting officer is not nominating a
specific firm, the offering letter should be
forwarded to the district office servicing the
geographical area in which the contracting office
is located.
- (c) All requirements for 8(a) competition, other
than construction, should be forwarded to the district
office servicing the geographical area in which
the contracting office is located. All requirements
for 8(a) construction competition should be forwarded
to the district office servicing the geographical
area in which all or the major portion of the construction
is to be performed. All requirements, including
construction, must be synopsized through the GPE.
For construction, the synopsis must include the
geographical area of the competition set forth in
the SBA's acceptance letter.
19.804-3 SBA acceptance.
- (a) Upon receipt of the contracting agency's offer, the
SBA will determine whether to accept the requirement for
the 8(a) Program. The SBA's decision whether to accept the
requirement will be transmitted to the contracting agency
in writing within 10 working days of receipt of the offer
if the contract is likely to exceed the simplified acquisition
threshold and within 2 days of receipt if the contract is
at or below the simplified acquisition threshold. The contracting
agency may grant an extension of these time periods. If
SBA does not respond to an offering letter within 10 days,
the contracting activity may seek SBA's acceptance through
the Associate Administrator (AA)/8(a)BD.
- (b) If the acquisition is accepted as a sole source, the
SBA will advise the contracting activity of the 8(a) firm
selected for negotiation. Generally, the SBA will accept
a contracting activity's recommended source.
- (c) For acquisitions not exceeding the simplified acquisition
threshold, when the contracting activity makes an offer
to the 8(a) Program on behalf of a specific 8(a) firm and
does not receive a reply to its offer within 2 days, the
contracting activity may assume the offer is accepted and
proceed with award of an 8(a) contract.
- (d) As part of the acceptance process, SBA will review
the appropriateness of the NAICS code designation assigned
to the requirement by the contracting activity.
- SBA will not challenge the NAICS code assigned to
the requirement by the contracting activity if it is
reasonable, even though other NAICS codes may also be
reasonable.
- If SBA and the contracting activity are unable to
agree on a NAICS code designation for the requirement,
SBA may refuse to accept the requirement for the 8(a)
Program, appeal the contracting officer's determination
to the head of the agency pursuant to 19.810, or appeal
the NAICS code designation to the SBA Office of Hearings
and Appeals under Subpart C of 13 CFR part 134.
19.804-4 Repetitive acquisitions.
In order for repetitive acquisitions to be awarded through
the 8(a) Program, there must be separate offers and acceptances.
This allows the SBA to determine-
- (a) Whether the requirement should be a competitive 8(a)
award;
- (b) A nominated firm's eligibility, whether or not it
is the same firm that performed the previous contract;
- (c) The effect that contract award would have on the equitable
distribution of 8(a) contracts; and
- (d) Whether the requirement should continue under the
8(a) Program.
19.804-5 Basic ordering agreements.
- (a) The contracting activity must offer, and SBA must
accept, each order under a basic ordering agreement (BOA)
in addition to offering and accepting the BOA itself.
- (b) SBA will not accept for award on a sole-source basis
any order that would cause the total dollar amount of orders
issued under a specific BOA to exceed the competitive threshold
amount in
19.805-1.
- (c) Once an 8(a) concern's program term expires, the concern
otherwise exits the 8(a) Program, or becomes other than
small for the NAICS code assigned under the BOA, SBA will
not accept new orders for the concern.
19.804-6 Multiple award and Federal Supply
Schedule contracts.
- (a) Separate offers and acceptances must not be made for
individual orders under multiple award or Federal Supply
Schedule (FSS) contracts. SBA's acceptance of the original
multiple award or FSS contract is valid for the term of
the contract.
- (b) The requirements of 19.805-1 do not apply to individual
orders that exceed the competitive threshold as long as
the original contract was competed.
- (c) An 8(a) concern may continue to accept new orders
under a multiple award or FSS contract even after a concern's
program term expires, the concern otherwise exits the 8(a)
Program, or the concern becomes other than small for the
NAICS code assigned under the contract.
19.805 Competitive 8(a).
19.805-1 General.
- (a) Except as provided in paragraph (b) of this subsection,
an acquisition offered to the SBA under the 8(a) Program
shall be awarded on the basis of competition limited to
eligible 8(a) firms if-
- There is a reasonable expectation that at least two
eligible and responsible 8(a) firms will submit offers
and that award can be made at a fair market price; and
- The anticipated total value of the contract, including
options, will exceed $5,000,000 for acquisitions assigned
manufacturing North American Industry Classification
System (NAICS) codes and $3,000,000 for all other acquisitions.
- (b) Where an acquisition exceeds the competitive threshold,
the SBA may accept the requirement for a sole source 8(a)
award if-
- There is not a reasonable expectation that at least
two eligible and responsible 8(a) firms will submit
offers at a fair market price; or
- SBA accepts the requirement on behalf of a concern
owned by an Indian tribe or an Alaska Native Corporation.
- (c) A proposed 8(a) requirement with an estimated value
exceeding the applicable competitive threshold amount shall
not be divided into several requirements for lesser amounts
in order to use 8(a) sole source procedures for award to
a single firm.
- (d) The SBA Associate Administrator for 8(a) Business
Development (AA/8(a)BD) may approve an agency request for
a competitive 8(a) award below the competitive thresholds.
Such requests will be approved only on a limited basis and
will be primarily granted where technical competitions are
appropriate or where a large number of responsible 8(a)
firms are available for competition. In determining whether
a request to compete below the threshold will be approved,
the AA/8(a)BD will, in part, consider the extent to which
the requesting agency is supporting the 8(a) Program on
a noncompetitive basis. The agency may include recommendations
for competition below the threshold in the offering letter
or by separate correspondence to the AA/8(a)BD.
19.805-2 Procedures.
- (a) Offers shall be solicited from those sources identified
in accordance with 19.804-3.
- (b) The SBA will determine the eligibility of the firms
for award of the contract. Eligibility will be determined
by the SBA as of the time of submission of initial offers
which include price. Eligibility is based on Section 8(a)
Program criteria.
- In sealed bid acquisitions, upon receipt of offers,
the contracting officer will provide the SBA a copy
of the solicitation, the estimated fair market price,
and a list of offerors ranked in the order of their
standing for award ( i.e., first low, second low, etc.)
with the total evaluated price for each offer, differentiating
between basic requirements and any options. The SBA
will consider the eligibility of the first low offeror.
If the first low offeror is not determined to be eligible,
the SBA will consider the eligibility of the next low
offeror until an eligible offeror is identified. The
SBA will determine the eligibility of the firms and
advise the contracting officer within 5 working days
after its receipt of the list of bidders. Once eligibility
has been established by the SBA, the successful offeror
will be determined by the contracting activity in accordance
with normal contracting procedures.
- In negotiated acquisition, the SBA will determine
eligibility when the successful offeror has been established
by the agency and the contract transmitted for signature
unless a referral has been made under 19.809, in which
case the SBA will determine eligibility at that point.
- (c) In any case in which a firm is determined to be ineligible,
the SBA will notify the firm of that determination.
- (d) The eligibility of an 8(a) firm for a competitive
8(a) award may not be challenged or protested by another
8(a) firm or any other party as part of a solicitation or
proposed contract award. Any party with information concerning
the eligibility of an 8(a) firm to continue participation
in the 8(a) Program may submit such information to the SBA
in accordance with 13 CFR 124.517.
19.806 Pricing the 8(a) contract.
- (a) The contracting officer shall price the 8(a) contract
in accordance with Subpart 15.4. If required by Subpart
15.4, the SBA shall obtain cost or pricing data from the
8(a) contractor. If the SBA requests audit assistance to
determine the reasonableness of the proposed price in a
sole source acquisition, the contracting activity shall
furnish it to the extent it is available.
- (b) An 8(a) contract, sole source or competitive, may
not be awarded if the price of the contract results in a
cost to the contracting agency which exceeds a fair market
price.
- (c) If requested by the SBA, the contracting officer shall
make available the data used to estimate the fair market
price within 10 working days.
- (d) The negotiated contract price and the estimated fair
market price are subject to the concurrence of the SBA.
In the event of a disagreement between the contracting officer
and the SBA, the SBA may appeal in accordance with 19.810.
19.807 Estimating fair market price.
- (a) The contracting officer shall estimate the fair market
price of the work to be performed by the 8(a) contractor.
- (b) In estimating the fair market price for an acquisition
other than those covered in paragraph (c) of this section,
the contracting officer shall use cost or price analysis
and consider commercial prices for similar products and
services, available in-house cost estimates, data (including
cost or pricing data) submitted by the SBA or the 8(a) contractor,
and data obtained from any other Government agency.
- (c) In estimating a fair market price for a repeat purchase,
the contracting officer shall consider recent award prices
for the same items or work if there is comparability in
quantities, conditions, terms, and performance times. The
estimated price should be adjusted to reflect differences
in specifications, plans, transportation costs, packaging
and packing costs, and other circumstances. Price indices
may be used as guides to determine the changes in labor
and material costs. Comparison of commercial prices for
similar items may also be used.
19.808 Contract negotiation.
19.808-1 Sole source.
- (a) The SBA is responsible for initiating negotiations
with the agency within the time established by the agency.
If the SBA does not initiate negotiations within the agreed
time and the agency cannot allow additional time, the agency
may, after notifying the SBA, proceed with the acquisition
from other sources.
- (b) The SBA should participate, whenever practicable,
in negotiating the contracting terms. When mutually agreeable,
the SBA may authorize the contracting activity to negotiate
directly with the 8(a) contractor. Whether or not direct
negotiations take place, the SBA is responsible for approving
the resulting contract before award.
19.808-2 Competitive.
In competitive 8(a) acquisitions subject to Part 15, the contracting
officer conducts negotiations directly with the competing
8(a) firms. Conducting competitive negotiations among 8(a)
firms prior to SBA's formal acceptance of the acquisition
for the 8(a) Program may be grounds for SBA's not accepting
the acquisition for the 8(a) Program.
19.809 Preaward considerations.
The contracting officer should request a preaward survey of
the 8(a) contractor whenever considered useful. If the results
of the preaward survey or other information available to the
contracting officer raise substantial doubt as to the firm's
ability to perform, the contracting officer must refer the
matter to SBA for Certificate of Competency consideration
under Subpart 19.6.
19.810 SBA appeals.
- (a) The SBA Administrator may submit the following matters
for determination to the agency head if the SBA and the
contracting officer fail to agree on them:
- The decision not to make a particular acquisition
available for award under the 8(a) Program.
- A contracting officer's decision to reject a specific
8(a) firm for award of an 8(a) contract after SBA's
acceptance of the requirement for the 8(a) Program.
- The terms and conditions of a proposed 8(a) contract,
including the contracting activity's NAICS code designation
and estimate of the fair market price.
- (b) Notification of a proposed appeal to the agency head
by the SBA must be received by the contracting officer within
5 working days after the SBA is formally notified of the
contracting officer's decision. The SBA will provide the
agency Director for Small and Disadvantaged Business Utilization
a copy of this notification of the intent to appeal. The
SBA must send the written appeal to the head of the contracting
activity within 15 working days of SBA's notification of
intent to appeal or the contracting activity may consider
the appeal withdrawn. Pending issuance of a decision by
the agency head, the contracting officer must suspend action
on the acquisition. The contracting officer need not suspend
action on the acquisition if the contracting officer makes
a written determination that urgent and compelling circumstances
that significantly affect the interests of the United States
will not permit waiting for a decision.
- (c) If the SBA appeal is denied, the decision of the agency
head shall specify the reasons for the denial, including
the reasons why the selected firm was determined incapable
of performance, if appropriate. The decision shall be made
a part of the contract file.
19.811 Preparing the contracts.
19.811-1 Sole source.
- (a) The contract to be awarded by the agency to the SBA
shall be prepared in accordance with agency procedures and
in the same detail as would be required in a contract with
a business concern. The contracting officer shall use the
Standard Form 26 as the award form, except for construction
contracts, in which case the Standard Form 1442 shall be
used as required in
36.701(b).
- (b) The agency shall prepare the contract that the SBA
will award to the 8(a) contractor in accordance with agency
procedures, as if the agency were awarding the contract
directly to the 8(a) contractor, except for the following:
- The award form shall cite 41 U.S.C. 253(c)(5) or
10 U.S.C. 2304(c)(5) (as appropriate) as the authority
for use of other than full and open competition.
- (2) Appropriate clauses shall be included, as necessary,
to reflect that the contract is between the SBA and
the 8(a) contractor.
- (3) The following items shall be inserted by the SBA:
- (i) The SBA contract number.
- (ii) The effective date.
- (iii) The typed name of the SBA's contracting
officer.
- (iv) The signature of the SBA's contracting officer.
- (v) The date signed.
- The SBA will obtain the signature of the 8(a) contractor
prior to signing and returning the prime contract to
the contracting officer for signature. The SBA will
make every effort to obtain signatures and return the
contract, and any subsequent bilateral modification,
to the contracting officer within a maximum of 10 working
days.
- (c) Except in procurements where the SBA will make advance
payments to its 8(a) contractor, the agency contracting
officer may, as an alternative to the procedures in paragraphs
(a) and (b) of this subsection, use a single contract document
for both the prime contract between the agency and the SBA
and its 8(a) contractor. The single contract document shall
contain the information in paragraphs (b) (1), (2), and
(3) of this subsection. Appropriate blocks on the Standard
Form (SF) 26 or 1442 will be asterisked and a continuation
sheet appended as a tripartite agreement which includes
the following:
- Agency acquisition office, prime contract number,
name of agency contracting officer and lines for signature,
date signed, and effective date.
- The SBA office, the SBA contract number, name of the
SBA contracting officer, and lines for signature and
date signed.
- Name and lines for the 8(a) subcontractor's signature
and date signed.
- For acquisitions not exceeding the simplified acquisition
threshold, the contracting officer may use the alternative
procedures in paragraph (c) of this subsection with the
appropriate simplified acquisition forms.
19.811-2 Competitive.
- (a) The contract will be prepared in accordance with 14.408-1(d),
except that appropriate blocks on the Standard Form 26 or
1442 will be asterisked and a continuation sheet appended
as a tripartite agreement which includes the following:
- The agency contracting activity, prime contract number,
name of agency contracting officer, and lines for signature,
date signed, and effective date.
- The SBA office, the SBA subcontract number, name of
the SBA contracting officer and lines for signature
and date signed.
- (b) The process for obtaining signatures shall be as specified
in 19.811-1(b)(4).
19.811-3 Contract clauses.
- (a) The contracting officer shall insert the clause at
52.219-11, Special 8(a) Contract Conditions, in contracts
between the SBA and the agency when the acquisition is accomplished
using the procedures of 19.811-1(a) and (b).
- (b) The contracting officer shall insert the clause at
52.219-12, Special 8(a) Subcontract Conditions, in contracts
between the SBA and its 8(a) contractor when the acquisition
is accomplished using the procedures of 19.811-1(a) and
(b).
- (c) The contracting officer shall insert the clause at
52.219-17, Section 8(a) Award, in competitive solicitations
and contracts when the acquisition is accomplished using
the procedures of 19.805 and in sole source awards which
utilize the alternative procedure in 19.811-1(c).
- (d) The contracting officer shall insert the clause at
52.219-18, Notification of Competition Limited to Eligible
8(a) Concerns, in competitive solicitations and contracts
when the acquisition is accomplished using the procedures
of 19.805.
- The clause at 52.219-18 with its Alternate I will
be used when competition is to be limited to 8(a) concerns
within one or more specific SBA districts pursuant to
19.804-2.
- The clause at 52.219-18 with its Alternate II will
be used when the acquisition is for a product in a class
for which the Small Business Administration has waived
the nonmanufacturer rule (see 19.102(f)(4) and (5)).
- (e) The contracting officer shall insert the clause at
52.219-14, Limitations on Subcontracting, in any solicitation
and contract resulting from this subpart.
19.812 Contract administration.
- (a) The contracting officer shall assign contract administration
functions, as required, based on the location of the 8(a)
contractor (see Federal Directory of Contract Administration
Services Components (available via the Internet at http://www.dcma.mil/casbook/casbook.htm)).
- (b) The agency shall distribute copies of the contract(s)
in accordance with Part 4. All contracts and modifications,
if any, shall be distributed to both the SBA and the firm
in accordance with the timeframes set forth in 4.201.
- (c) To the extent consistent with the contracting activity's
capability and resources, 8(a) contractors furnishing requirements
shall be afforded production and technical assistance, including,
when appropriate, identification of causes of deficiencies
in their products and suggested corrective action to make
such products acceptable.
- (d) An 8(a) contract, whether in the base or an option
year, must be terminated for convenience if the 8(a) concern
to which it was awarded transfers ownership or control of
the firm or if the contract is transferred or novated for
any reason to another firm, unless the Administrator of
the SBA waives the requirement for contract termination
(13 CFR 124.515). The Administrator may waive the termination
requirement only if certain conditions exist. Moreover,
a waiver of the requirement for termination is permitted
only if the 8(a) firm's request for waiver is made to the
SBA prior to the actual relinquishment of ownership or control,
except in the case of death or incapacity where the waiver
must be submitted within 60 days after such an occurrence.
The clauses in the contract entitled "Special 8(a)
Contract Conditions" and "Special 8(a) Subcontract
Conditions" require the SBA and the 8(a) subcontractor
to notify the contracting officer when ownership of the
firm is being transferred. When the contracting officer
receives information that an 8(a) contractor is planning
to transfer ownership or control to another firm, the contracting
officer must take action immediately to preserve the option
of waiving the termination requirement. The contracting
officer should determine the timing of the proposed transfer
and its effect on contract performance and mission support.
If the contracting officer determines that the SBA does
not intend to waive the termination requirement, and termination
of the contract would severely impair attainment of the
agency's program objectives or mission, the contracting
officer should immediately notify the SBA in writing that
the agency is requesting a waiver. Within 15 business days
thereafter, or such longer period as agreed to by the agency
and the SBA, the agency head must either confirm or withdraw
the request for waiver. Unless a waiver is approved by the
SBA, the contracting officer must terminate the contract
for convenience upon receipt of a written request by the
SBA. This requirement for a convenience termination does
not affect the Government's right to terminate for default
if the cause for termination of an 8(a) contract is other
than the transfer of ownership or control.
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