A statement that prior to the offering, no solicitation for the specific acquisition has been issued as a small business set- aside, or as a small disadvantaged business set- aside, if applicable. Avoid Sole & Single Source Procurement. MCB complained, in part, that in its offering letter, the Air Force should have explained that it was nominating US2 rather than MCB based on an informal assessment of the technical capabilities of the vendors, which led the agency to question MCB’s ability to comply with certain agency requirements. The sole source approval request only needs to meet When a procuring activity contracting officer indicates his or her formal intent to award a procurement requirement, 13 CFR 124.502- 3 (c), as an 8(a) contract by submitting a written offering letter to SBA. Although a procuring agency must provide the SBA with some justification as to why it selected a particular 8(a) company for a sole source contract, that justification can be very brief. conducting a market survey), is capable of delivering the required product or service. The Senior Procurement Executive must approve any 8(a) sole source justifications in excess of this amount, and excepting the Department of Defense, may not delegate his authority to do so. A sole source justification is required for every purchase over the Direct Buy Limit ($10,000) unless the purchase is being made from an existing contract, the supplier is specifically named in the grant award, or the purchase is being competitively solicited. All Rights Reserved. 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. Key aspects of the proposed rule are highlighted below: As this justification remains mandatory for large, sole source 8(a) awards, and must be posted publicly, where an agency does not follow the aforementioned requirements, 8(a) vendors may have valid grounds to protest the award decision. Identification of all Participants that have expressed an interest in being considered for the acquisition. MCB filed a GAO bid protest challenging the sole source award to US2. For 8(a) sole-source awards over $100 million a contractor must provide a … But if you are dealing with single source procurement, your options are much less restricted, since it is less difficult to change suppliers . Sole source: can be called as a agent/agency for the required products, which others do not have, or does not deal in. The SIC (NAICS) code that applies to the principal nature of the acquisition. A sole source purchase means that only one supplier (source), to the best of the requester's knowledge and belief, based upon thorough research, (i.e. Fax: (888) 897-7307, 590 Tahoe Keys Blvd, South Lake Tahoe, CA 96150, ©document.write(new Date().getFullYear()) JYG Innovations. Privacy Statement, 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, Open negotiations which allows for seamless program integration. Dayton, OH 45414 An offering letter must contain the following information: Jill Nagy-Reynolds GAO also noted a corresponding increase in the number of competitively awarded high value 8(a) contracts. Below is a checklist intended to help evaluate sole source requests. All Rights Reserved. This is at least partly due to abuses Involving the awarding of federal contracts noncompetltlvely (sole source) to one firm when others should have been given the opportunity to compete for government business. If no history, it must say “New” requirement. The top solution is not to enter into a sole or single source procurement situation in the first place. Previously, there was no explicit requirement in the FAR for agencies to share the justification with SBA for review. Avoid Sole & Single Source Procurement. While the FAR Council published implementing regulations in April 2012, as noted in the 2012 GAO report, a number of agencies had difficulty complying with the new requirements, which differ from those governing other sole source justifications. The rule clarifies that agencies must use the 8(a) sole source justification specified in FAR 6.303-2 when it is applicable — they may not substitute another justification for other than full and open competition set forth at FAR 6.302, such as unusual and compelling urgency. In addition, a copy of the itemized budget for the contract amount should be attached to the Sole Source Approval GAN. SBA Columbus District Office, 6450 Poe Avenue, Suite 103 [1] Some agency officials at least partly attributed these declines to the new regulations. The revisions directly address recommendations from a December 2012 Government Accountability Office (GAO) report titled, “Slow Start to Implementation of Justifications for 8(a) Sole-Source Contracts,” which, among other things, highlighted agency “confusion” about the existing justification requirements in the FAR. FAR 6.302-5(b)(4) applies to sole source awards under the 8(a) Program. The type of contract to be awarded, such as Firm Fixed Price, Cost Reimbursement, or Time & Materials. 80 Fed. The 8(a) sole source justification requirement for high value contracts is a statutory mandate, established by Section 811 of the FY 2010 National Defense Authorization Act, presumably to ensure that these high value awards are in the government’s best interest. Any other information that the procuring activity deems relevant or which SBA requests. A sole source is defined as the only supplier that can provide you with the goods or products you need. The names and addresses of any small business contractors that have performed on this requirement during the previous 24 months. Business Opportunity Specialist, 8(a) Agencies have broad discretion when it comes to issuing 8(a) sole source contract awards. Possible Solutions to Sole & Single Source Procurement 1. In subsequent GAO reports (published in September 2014 and in June 2016) reviewing the number of DoD issued 8(a) awards exceeding $20 million dollars, GAO identified a significant decline in high value sole source awards to 8(a) firms since implementation of the justification requirement in the Federal Acquisition Regulation (FAR). And, that no public communication (such as FedBizOps) has been made showing the procuring activity’s clear intent to use any of these means of procurement. Identification of all SBA field offices, which have requested that the requirement be awarded through the 8(a) BD Program. As the justification may only explain why non-competitive sole source procedures are used when selecting among 8(a) firms, a non-8(a) vendor could have difficulty proving that it would otherwise be eligible for award. Government Contracts Regulatory Compliance, December 2012 Government Accountability Office (GAO) report, FY 2010 National Defense Authorization Act. The sole source approval request only needs to meet A request, if appropriate, that a requirement whose estimate contract value is under the applicable competitive threshold, be awarded as an 8(a) competitive contract.
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