Contracting Cone

Return to Contracting Cone

FAR Based Strategies

Ordering under the Federal Supply Schedule
Acquisition of Commercial Products and Commercial Services
Simplified Procedures for Noncommercial Acquisitions
Contracting by Negotiation
Indefinite-Delivery Contracts
Letter Contracts
Agreements
Small Business
Broad Agency Announcement
Commercial Solutions Opening

Statutory Strategies

SBIR/STTR Programs
Other Transactions
Procurement for Experiments
R&D Agreements
Cooperative R&D Agreement
Partnership Intermediary Agreement
Technology Investment Agreement
Contract Type Matrix

Direct 8(a) Awards
FAR 19.108 / FAR 19.108-7

Direct 8(a) awards are sole-source awards made through the 8(a) Business Development Program. Under RFO FAR Part 19, the 8(a) Program is addressed at FAR 19.108, and competitive and sole-source 8(a) policy is addressed at FAR 19.108-7. An 8(a) sole-source award may be used when the acquisition is accepted into the 8(a) Program by SBA, the 8(a) participant is eligible and responsible, and award can be made at a fair market price.

Under RFO FAR 19.108-7, an acquisition offered to SBA under the 8(a) Program must be competed among eligible 8(a) participants when there is a reasonable expectation that at least two eligible and responsible 8(a) participants will submit offers, award can be made at a fair market price, and the anticipated value exceeds the applicable competitive threshold: $8.5 million for manufacturing NAICS codes or $5.5 million for all other acquisitions. Above those thresholds, SBA may accept a sole-source 8(a) award only after the contracting officer complies with the requirements for other than full and open competition at FAR 6.103.

For DoD, Class Deviation 2020-O0009 implements Section 823 of the FY 2020 NDAA and authorizes 8(a) sole-source awards valued at $100 million or less without a justification and approval. For DoD 8(a) sole-source awards exceeding $100 million, the approval authority for the justification is the head of the procuring activity. The deviation states it remains in effect until incorporated into the DFARS or otherwise rescinded.

 

Common Applications

  • Supplies and services
  • Defense business systems
  • Mission solutions and technologies
  • IT software, products, and services
  • Research and development
  • Advisory and assistance services
  • Engineering services
  • Special studies
  • Requirements suitable for award through the 8(a) Business Development Program

 

 

Pros

Cons
Can reduce procurement lead time when a sole-source 8(a) award is authorized. Some 8(a) firms may have limited capacity, business systems, or accounting systems for complex requirements.
Supports small disadvantaged business participation and agency socioeconomic goals. A requirement accepted into the 8(a) Program generally remains in the 8(a) Program for follow-on requirements unless SBA agrees to release it.
May provide access to innovative and flexible small business solutions. Eligibility, SBA acceptance, fair market price, and program requirements must be carefully documented.
DoD’s class deviation provides increased flexibility for 8(a) sole-source awards up to $100 million. Awards exceeding the applicable DoD deviation threshold require a justification and higher-level approval.

Restrictions

  • Requires SBA offering and acceptance into the 8(a) Program.
  • The selected 8(a) participant must be eligible and responsible.
  • Award must be made at a fair market price.
  • Under RFO FAR 19.108-7, acquisitions above the competitive thresholds generally must be competed among eligible 8(a) participants unless sole-source award is otherwise authorized and justified.
  • A proposed 8(a) requirement exceeding the applicable competitive threshold may not be divided into smaller requirements to use sole-source 8(a) procedures.
  • For DoD, 8(a) sole-source awards valued at $100 million or less may be made without a J&A under Class Deviation 2020-O0009; awards exceeding $100 million require approval by the head of the procuring activity.
  • Follow-on requirements accepted into the 8(a) Program generally remain in the 8(a) Program unless a mandatory source applies, the follow-on will be set aside under HUBZone, SDVOSB, or WOSB programs, or SBA agrees to release the requirement.

Resources