8a sole source award threshold

8(a) Direct Award/Sole Source Awards Advantages. Within the SBA 8(a) program, Small Disadvantaged Businesses qualifying for 8(a) status who are owned by an Alaskan Tribal entity are entitled to unique privileges and benefits. The sole source justification should include adequate information to address the elements below. Knowing how to reach the end result of getting sole source government contracts is a constant problem for many companies trying to be a sole supplier across the U.S. On the other hand, the contracting officer is not required to contract directly with the SBA if she is making a sole source justification contract award for other small businesses not in the 8(a) Program. On October 15, the Federal Acquisition Regulatory Council (FAR Council), issued a proposed rule to clarify contracting officer and agency responsibilities when justifying sole source awards exceeding $22 million dollars made through the Small Business Administration’s 8(a) program. Chantilly, VA 20151 Such links are only for the convenience of the reader, user or browser; the ABA and its members do not recommend or endorse the contents of the third-party sites. Not in Control of Your SDVOSB Business? As it stands, FAR Part 19 allows contracting officers to award sole source contracts to 8(a)s, SDVOSBs, HUBZones and WOSBs under certain conditions. For example, let’s suppose that a solicitation calls for bottled water manufacturing under NAICS code 312112. FIND OUT MORE ABOUT JUSTIFICATION AND APPROVALS. Under the SBA regulations and FAR part 19.806, SBA 8a government contractors have certain thresholds/ limits to where they can get a single source contract. Common Perceptions By 8(a) Sole Supplier Small Businesses: Small businesses must understand that the SBA is not mandated to go out and find contracts for 8(a) certified companies. On January 16, 2019, H.R. For help with structuring your company for government sole source contracts with the government under the SBA 8a Contracts Program, or help with your existing contract call our government small business contract consultants and lawyers at 1-866-601-5518. award, where the contracted cost exceeds the Simplified Acquisition Threshold of $150,000. Or need help with a government contracting legal issue? FAR 19.805-1(b)(2), or • On behalf of a Native Hawaiian Owned (NHO) organization. The content on this posting is provided "as is;" no representations are made that the content is error-free. This website uses cookies to improve your experience. H.R. Effective March 17,2020, Class Deviation 2020-O0009, implementing Section 823 of the National Defense Authorization Act for Fiscal Year 2020 (Pub. You can read the memo here. Under H.R. Addressing Agency Source Selection Plan in GAO Bid Protest, Buying From a Single Source Government Contracting Decision, Urgent and Compelling Circumstances in Government Contracting, government small business contract consultants. L. 116-92), authorizes sole source 8(a) awards valued at $100 million or less without a justification and approval. The government contracting agreement is not required to seek out a single supplier. Your company should develop a concise strategic plan that incorporate the relevant FAR regulations for getting 8a sole source contracts. All liability with respect to actions taken or not taken based on the contents of this site are hereby expressly disclaimed. Addressing Agency Source Selection Plan in GAO Bid Protest. Understand the benefits of SBA and FAR requirements and getting 8a sole source contracts with the government. THRESHOLDS FOR 8(a) SOLE SOURCE AWARDS As of this writing, the dollar threshold for possible sole source award under the 8(a) BD Program is $6.5 million or less for procurements assigned manufacturing NAICS codes, and $4 million or less for procurements assigned all other NAICS codes. Half of the bills that received a vote became law. 190, a sole source contract under FAR Part 19 may not exceed certain dollar thresholds. Readers of this website should contact their attorney to obtain advice with respect to any particular legal matter. The “anticipated award” is only addressing the $5 million price tag of year one. 721 Depot Drive Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. Nothing posted on this blog constitutes or substitutes for legal advice, which can only be obtained from a personal consultation with a qualified attorney. Understandably, the Army wants a constant supply of this water for soldiers, and would like to award to an SDVOSB. 190. There are agency negotiation timeliness that might come into play when it comes to getting government contracts. The revisions directly address recommendations from a December 2012 Government Accountability … 190, if passed in its current form, would be a substantial shift from existing practice. 4501 Singer Court While the 2010 NDAA required justification and approval for 8(a) Program sole-source awards valued at or above $20 million (later increased to $22 million), Section 823 of the 2020 NDAA increases this threshold to $100 million. The House recently passed a bill called the “Expanding Contracting Opportunities for Small Businesses Act of 2019.” If the bill becomes law, we will see a dramatic expansion in the size of sole source contracts for SDVOSBs, WOSBs, and HUBZones. Sole-source contracting above the $4M threshold (13CFR §124.506(b)) Sole-source contracting up to $100M without justification and authorization (13CFR §124.506(b)(5)) Awards that cannot be protested (13CFR §124.517(a)) Advantages of Working with Tukuh Technologies. The contract allows for the potential of five, one-year options valued at $4 million each. Except in the 8(a) Program and VA SDVOSB/VOSB program, a CO may not sole source under FAR Part 19 if there are likely two or more qualified concerns likely to submit offers. We assist federal small businesses and large DoD contractors in Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Illinois, Indiana, Kansas, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Mexico, New York, North Carolina, Ohio, Oklahoma, Pennsylvania, Rhode Island, South Carolina, Tennessee, Texas, U.S. Virgin Islands, Utah, Vermont, Virginia, Washington, Washington, DC, West Virginia, Wisconsin, and Wyoming. Anchorage, AK 99501 If you are a small business, or 8a certified company, you can receive a sole source contract so long as the regulations allow for it. 8(a) participants can receive sole – source contracts, up to a ceiling of $4 million for goods and services and $6.5 million for manufacturing; Fast and simple procurement and operational execution; Typically supports social economical organizational goals This blog is for educational purposes only. No reader, user, or browser of this site should act or refrain from acting on the basis of information on this site without first seeking legal advice from counsel in the relevant jurisdiction. As the bill states, it would “eliminate the inclusion of option years in the award price for sole source contracts,” basing the threshold only on the base period of the contract. The specific legal authorities providing these advantages are: Metro DC Area The significance of H.R. The views expressed at, or through, this site are those of the individual authors writing in their individual capacities only – not those of their respective employers, the ABA, or committee/task force as a whole. These changes may be welcome, especially by concerns that hold unique manufacturing patents or are otherwise uniquely positions in their industry or geographic region. DFARS 219.805-1(b)(2)(A) Email us or give us a call at 785-200-8919. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. 13 CFR 124.506(b)‐ Alaskan Tribal entities are not subject to the standard $4M dollar threshold limitations on sole‐source contract awards that are applicable to other 8(a) entities. The better approach is to market your capabilities to the specific agency that may have forecasted projects. This exceeds the $6.5 million threshold established under 13 C.F.R. These cookies do not store any personal information. It does not matter that there is the potential for $20 million in options. FAR regulations allow the contracting officer to utilize the statutes in order to serve the government’s interest. Section 823 of the 2020 NDAA increases the threshold for justification and approval for 8(a) Program sole-source awards. Under current law, when calculating the award price of a sole source contract issued under FAR Part 19, the CO must include the anticipated price of all options.

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