SBA 8(a) (Sole Source)
The Government is allowed to make a Direct Award (also known as Sole Source) to eTRANSERVICES under the following Small Business programs according to FAR Part 19. Contracts may be awarded either directly or utilizing an existing contract vehicle (such as a GSA MAS Schedule).
SBA 8(a) Business Development (BD) Program
The SBA 8(a) Business Development (BD) Program was designed to simplify the federal procurement process for certified business participants and to enable federal government Program Managers to save time, effort, and cost in the procurement process and to protect the interest of small business concerns. The program serves to preserve free competitive enterprises and to maintain and strengthen the overall economy of our nation. Contracting Officers generally have more comfort with a program that is more established, and they’ve had a chance to use successfully for longer. Of the four set aside programs, the 8(a) program represents the least risk.
Here’s why, at FAR Subpart 19.8:
- 19.800 General (a) – (c)
Section 8(a) of the Small Business Act (15 U.S.C. 637(a) (link is external)) established a program that authorizes the Small Business Administration (SBA) to enter into all types of contracts with other agencies and award subcontracts for performing those contracts to firms eligible for program participation. The SBA’s subcontractors are referred to as “8(a) contractors.” Contracts may be awarded to the SBA for performance by eligible 8(a) firms on either a sole source or competitive basis.
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.
With projects up to $4.5 Million, the 8(a) BD Program allows for direct contracting without a lengthy competitive process.
Service-Disabled Veteran Owned Small Business (SDVOSB)
According to FAR Part 19.1406(a), a contracting officer is allowed to consider a contract award to a SDVOSB concern on a sole source basis before considering small business set-asides provided none of the exclusions from FAR Part 19.1404 apply and:
- The contracting officer does not have a reasonable expectation that offers would be received from two or more SDVOSB companies;
- The anticipated award price of the contract, including options, will not exceed either $7 million for a requirement within the NAICS codes for manufacturing; or $4 million for a requirement within any other NAICS code;
- The requirement is not currently being performed by an 8(a) participant under the provisions of FAR Part 19.8 or has been accepted as a requirement by SBA under FAR Part 19.8;
- Award can be made at a fair and reasonable price.
Why choose eTRANSERVICES for a Sole Source award?
Choosing eTRANSERVICES allows your organization to work directly with a company that is both experienced and efficient in consulting to develop and implement business, technology and engineering initiatives, and we provide you with two choices for meeting your Agency’s small business goals. However, the benefits of awarding a contract utilizing the 8(a) program are:
- Significantly faster procurement process – start the project in days instead of months
- Ability to procure both goods and services
- Streamlined approach to the project – due to reduction in bureaucracy
What process should I follow for an 8(a) award to take advantage of the benefits listed above?
Step 1
- We have provided a drafted letter as follows, which is in compliance with FAR Part 19.804-2
- Email your “Letter of Intent” to award the procurement to the Richmond SBA for acceptance (Email address: RDOfferLetters@sba.gov)
Step 2
- Obtain SBA Acceptance (FAR 19.804-3 & 13 CFR 124.503(a))
- SBA’s “Letter of Acceptance” will be responded to within the following timelines:
- Within 2 working days of receipt for contracts at or less than the Simplified Acquisition Threshold (SAT) (FAR Part 2.101(b))
- Within 10 working days for procurements greater than SAT
- SBA’s “Letter of Acceptance” will be responded to within the following timelines:
Sole Source Procurements
Greater than SAT and up to $4,000,000 for SDVOSB and $4,500,000 for 8(a)
- Offering and acceptance is required.
- If SBA does not respond to the letter of acceptance within ten working days, the contracting office may seek SBA’s acceptance through the Associate Administrator for Business Development. For the 8(a) program, the contracting office may assume that SBA has accepted the requirement if it does not receive a reply from the Associate Administrator for Business Development within five calendar days of receipt of the contracting office’s request.