[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: 13CFR124.514]



[Page 402-403]

 

                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. 124.514  Exercise of 8(a) options and modifications.



    (a) Unpriced options. The exercise of an unpriced option is 

considered to be a new contracting action.

    (1) If a concern has graduated or been terminated from the 8(a) BD 

program or is no longer small under the size standard corresponding to 

the SIC code for the requirement, negotiations to price the option 

cannot be entered into and the option cannot be exercised.



[[Page 403]]



    (2) If the concern is still a Participant and otherwise eligible for 

the requirement on a sole source basis, the procuring activity 

contracting officer may negotiate price and exercise the option provided 

the option, considered a new contracting action, meets all regulatory 

requirements, including the procuring activity's offering and SBA's 

acceptance of the requirement for the 8(a) BD program.

    (3) If the estimated fair market price of the option exceeds the 

applicable threshold amount set forth in Sec. 124.506, the requirement 

must be competed as a new contract among eligible Participants.

    (b) Priced options. The procuring activity contracting officer may 

exercise a priced option to an 8(a) contract whether the concern that 

received the award has graduated or been terminated from the 8(a) BD 

program or is no longer eligible if to do so is in the best interests of 

the Government.

    (c) Modifications beyond the scope. A modification beyond the scope 

of the initial 8(a) contract award is considered to be a new contracting 

action. It will be treated the same as an unpriced option as described 

in paragraph (a) of this section.

    (d) Modifications within the scope. The procuring activity 

contracting officer may exercise a modification within the scope of the 

initial 8(a) contract whether the concern that received the award has 

graduated or been terminated from the 8(a) BD program or is no longer 

eligible if to do so is in the best interests of the Government.