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FAR 19 Small Business Clauses Updated:
"Rule of Two" survives, but FAR 2.0 takes a bite out of the strength of the 8(a) Business Development Program
With a red pen in hand, the Federal Government is undergoing a massive editing process of the Federal Acquisition Regulations. The Revolutionary FAR Overhaul, known as FAR 2.0, is changing the way federal contracting officers buy what they need to meet their agency’s needs. Small businesses and their advocates have been waiting for the section of the FAR regulating small business participation in the marketplace (FAR 19) to be updated to see what small business initiatives will stay and what will be redlined out.
Published last Friday, the updated FAR reinforces that it is the Government’s policy to provide maximum practicable opportunities in its acquisitions to small businesses, 8(a) participants, and other small business socioeconomic categories (i.e. Service Disabled Veteran Owned Small Business, HUBZone small business, Small Disadvantaged Business, and Women Owned Small Business concerns).
To this end, the new FAR retains the Rule of Two that enhances set-asides for small and socioeconomic designated firms on contracts. For orders under multiple award contracts, the FAR clarifies that it is at the contracting officer’s discretion.
However, FAR 2.0 does take a bite out of the 8a program in two ways. First, the 8a program currently allows government to issue sole source contracts below a $5.5m threshold, but the new FAR requires contracting officers to try to issue a competitive solicitation on existing multiple award contracts prior to pursing a sole source. Second, FAR 2.0 allows an agency to move an 8a contract to another socioeconomic program without receiving permission from the SBA. Historically, SBA had to grant the release from the 8a program.
The FAR 2.0 will be adopted by specific agencies using the Deviation process. Watch your contracts and view the deviations and FAR 2.0 at this site. To discuss how these changes impact your strategy for winning federal work, ask your APEX Accelerator!
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