[Code of Federal Regulations]

[Title 13, Volume 1]

[Revised as of January 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 13CFR124.506]



[Page 395-396]

 

                TITLE 13--BUSINESS CREDIT AND ASSISTANCE

 

                CHAPTER I--SMALL BUSINESS ADMINISTRATION

 

PART 124_8(a) BUSINESS DEVELOPMENT/SMALL DISADVANTAGED BUSINESS STATUS 

DETERMINATIONS--Table of Contents

 

                   Subpart A_8(a) Business Development

 

Sec. 124.506  At what dollar threshold must an 8(a) procurement be 

competed among eligible Participants?



    (a) Competitive thresholds. (1) A procurement offered and accepted 

for the 8(a) BD program must be competed among eligible Participants if:

    (i) There is a reasonable expectation that at least two eligible 

Participants will submit offers at a fair market price;

    (ii) The anticipated award price of the contract, including options, 

will exceed $5,000,000 for contracts assigned manufacturing SIC codes 

and $3,000,000 for all other contracts; and

    (iii) The requirement has not been accepted by SBA for award as a 

sole source 8(a) procurement on behalf of a tribally-owned or ANC-owned 

concern.

    (2) For all types of contracts, the applicable competitive threshold 

amounts will be applied to the procuring activity estimate of the total 

value of the contract, including all options. For indefinite delivery or 

indefinite quantity type contracts, the thresholds are applied to the 

maximum order amount authorized.

    (3) Where the estimate of the total value of a proposed 8(a) 

contract is less than the applicable competitive threshold amount and 

the requirement is accepted as a sole source requirement on that basis, 

award may be made even though the contract price arrived at through 

negotiations exceeds the competitive threshold, provided that the 

contract price is not more than ten percent greater than the competitive 

threshold amount.



    Example to paragraph (a)(3). If the anticipated award price for a 

professional services requirement is determined to be $2.7 million and 

it is accepted as a sole source 8(a) requirement on that basis, a sole 

source award will be valid even if the contract price arrived at after 

negotiation is $3.1 million.



    (4) A proposed 8(a) requirement with an estimated value exceeding 

the applicable competitive threshold amount may not be divided into 

several separate procurement actions for lesser amounts in order to use 

8(a) sole source procedures to award to a single contractor.

    (b) Exemption from competitive thresholds for Participants owned by 

Indian tribes. SBA may award a sole source 8(a) contract to a 

Participant concern owned and controlled by an Indian tribe or an ANC 

where the anticipated value of the procurement exceeds the applicable 

competitive threshold if SBA has not accepted the requirement into the 

8(a) BD program as a competitive procurement. There is no requirement 

that a procurement must be competed whenever possible before it can be 

accepted on a sole source basis for a tribally-owned or ANC-owned 

concern, but a procurement may not be removed from competition to award 

it to a tribally-owned or ANC-owned concern on a sole source basis.

    (c) Competition below thresholds. The AA/8(a)BD, on a nondelegable 

basis, may approve a request from a procuring activity to compete a 

requirement that is below the applicable competitive threshold amount 

among eligible Participants.

    (1) This authority will be used primarily when technical 

competitions



[[Page 396]]



are appropriate or when a large number of potential awardees exist.

    (2) The AA/8(a)BD may consider whether the procuring activity has 

made and will continue to make available a significant number of its 

contracts to the 8(a) BD program on a noncompetitive basis.

    (3) The AA/8(a)BD may deny a request if the procuring activity 

previously offered the requirement to the 8(a) BD program on a 

noncompetitive basis and the request is made following the inability of 

the procuring activity and the potential sole source awardee to reach an 

agreement on price or some other material term or condition.

    (d) Sole source above thresholds. Where a contract opportunity 

exceeds the applicable threshold amount and there is not a reasonable 

expectation that at least two eligible 8(a) Participants will submit 

offers at a fair price, the AA/8(a)BD may accept the requirement for a 

sole source 8(a) award if he or she determines that an eligible 

Participant in the 8(a) portfolio is capable of performing the 

requirement at a fair price.