Subpart 19.6 - Certificates of Competency

and Determinations of Responsibility

Parent topic: Part 19 - Small Business Programs

19.601 General.

(a) A Certificate of Competency (COC) is the certificate issued by the Small Business Administration

(SBA) stating that the holder is responsible (with respect to all elements of responsibility, including,

but not limited to, capability, competency, capacity, credit, integrity, perseverance, tenacity, and

limitations on subcontracting) for the purpose of receiving and performing a specific Government

contract.

(b) The COC program empowers the SBA to certify to Government contracting officers as to all

elements of responsibility of any small business concern to receive and perform a specific

Government contract. The COC program does not extend to questions concerning regulatory

requirements imposed and enforced by other Federal agencies.

(c) The COC program is applicable to all Government acquisitions except for 8(a) sole-source

awards. A contracting officer shall, upon determining an apparent successful small business offeror

to be nonresponsible, refer that small business to the SBA for a possible COC, even if the next

acceptable offer is from a small business.

(d) When a solicitation requires a small business to adhere to the limitations on subcontracting, a

contracting officer’s finding that a small business cannot comply with the limitation shall be treated

as an element of responsibility and shall be subject to the COC process. When a solicitation requires

a small business to adhere to the definition of a nonmanufacturer, a contracting officer’s

determination that the small business does not comply shall be processed in accordance with

subpart 19.3.

(e) Contracting officers, including those located overseas, are required to comply with this subpart

for U.S. small business concerns.

(f) For the purpose of receiving a COC on an unrestricted acquisition, a small business

nonmanufacturer may furnish any end item produced or manufactured in the United States or its

outlying areas.

19.602 Procedures.

19.602-1 Referral.

(a) Upon determining and documenting that an apparent successful small business offeror lacks

certain elements of responsibility (including, but not limited to, capability, competency, capacity,

credit, integrity, perseverance, tenacity, and limitations on subcontracting, but for sureties see

28.101-3(f) and 28.203-1(e)), the contracting officer shall-
(1) Withhold contract award (see 19.602-3); and

(2) Refer the matter to the cognizant SBA Government Contracting Area Office (Area Office) serving

the area in which the headquarters of the offeror is located, in accordance with agency procedures,

except that referral is not necessary if the small business concern-

(i) Is determined to be unqualified and ineligible because it does not meet the standard in

9.104-1(g), provided, that the determination is approved by the chief of the contracting office; or

(ii) Is suspended or debarred under Executive Order 11246 or subpart 9.4.

(b) If a partial set-aside is involved, the contracting officer shall refer to the SBA the entire quantity

to which the concern may be entitled, if responsible.

(c) The referral shall include-

(1) A notice that a small business concern has been determined to be nonresponsible, specifying the

elements of responsibility the contracting officer found lacking; and

(2) If applicable, a copy of the following:

(i) Solicitation.

(ii) Final offer submitted by the concern whose responsibility is at issue for the procurement.

(iii) Abstract of bids or the contracting officer’s price negotiation memorandum.

(iv) Preaward survey.

(v) Technical data package (including drawings, specifications and statement of work).

(vi) Any other justification and documentation used to arrive at the nonresponsibility determination.

(d) For any single acquisition, the contracting officer shall make only one referral at a time

regarding a determination of nonresponsibility.

(e) Contract award shall be withheld by the contracting officer for a period of 15 business days (or

longer if agreed to by the SBA and the contracting officer) following receipt by the appropriate SBA

Area Office of a referral that includes all required documentation.

19.602-2 Issuing or denying a Certificate of Competency (COC).

Within 15 business days (or a longer period agreed to by the SBA and the contracting agency) after

receiving a notice that a small business concern lacks certain elements of responsibility, the SBA

Area Office will take the following actions:

(a) Inform the small business concern of the contracting officer’s determination and offer it an

opportunity to apply to the SBA for a COC. (A concern wishing to apply for a COC should notify the

SBA Area Office serving the geographical area in which the headquarters of the offeror is located.)

(b) Upon timely receipt of a complete and acceptable application, elect to visit the applicant’s facility

to review its responsibility.
(1) The COC review process is not limited to the areas of nonresponsibility cited by the contracting

officer.

(2) The SBA may, at its discretion, independently evaluate the COC applicant for all elements of

responsibility, but may presume responsibility exists as to elements other than those cited as

deficient.

(c) Consider denying a COC for reasons of nonresponsibility not originally cited by the contracting

officer.

(d) When the Area Director determines that a COC is warranted (for contracts valued at $25,000,000

or less), notify the contracting officer and provide the following options:

(1) Accept the Area Director’s decision to issue a COC and award the contract to the concern. The

COC issuance letter will then be sent, including as an attachment a detailed rationale for the

decision; or

(2) Ask the Area Director to suspend the case for one or more of the following purposes:

(i) To permit the SBA to forward a detailed rationale for the decision to the contracting officer for

review within a specified period of time.

(ii) To afford the contracting officer the opportunity to meet with the Area Office to review all

documentation contained in the case file and to attempt to resolve any issues.

(iii) To submit any information to the SBA Area Office that the contracting officer believes the SBA

did not consider (at which time, the SBA Area Office will establish a new suspense date mutually

agreeable to the contracting officer and the SBA).

(iv) To permit resolution of an appeal by the contracting agency to SBA Headquarters under

19.602-3. However, there is no contracting officer’s appeal when the Area Office proposes to issue a

COC valued at $100,000 or less.

(e) At the completion of the process, notify the concern and the contracting officer that the COC is

denied or is being issued.

(f) Refer recommendations for issuing a COC on contracts greater than $25,000,000 to SBA

Headquarters.

19.602-3 Resolving differences between the agency and the Small Business

Administration.

(a) COCs valued between $100,000 and $25,000,000.

(1) When disagreements arise about a concern’s ability to perform, the contracting officer and the

SBA shall make every effort to reach a resolution before the SBA takes final action on a COC. This

shall be done through the complete exchange of information and in accordance with agency

procedures. If agreement cannot be reached between the contracting officer and the SBA Area

Office, the contracting officer shall request that the Area Office suspend action and refer the matter

to SBA Headquarters for review. The SBA Area Office shall honor the request for a review if the
contracting officer agrees to withhold award until the review process is concluded. Without an

agreement to withhold award, the SBA Area Office will issue the COC in accordance with applicable

SBA regulations.

(2) SBA Headquarters will furnish written notice to the procuring agency’s Director of the, Office of

Small and Disadvantaged Business Utilization (OSDBU) or, for the Department of Defense, the

Director of the Office of Small Business Programs, or other designated official (with a copy to the

contracting officer) that the case file has been received and that an appeal decision may be

requested by an authorized official.

(3) If the contracting agency decides to file an appeal, it must notify SBA Headquarters through its

procuring agency’s Director, OSDBU, or other designated official, within 10 business days (or a time

period agreed upon by both agencies) that it intends to appeal the issuance of the COC.

(4) The appeal and any supporting documentation shall be filed by the procuring agency’s Director,

OSDBU, or other designated official, within 10 business days (or a period agreed upon by both

agencies) after SBA Headquarters receives the agency’s notification in accordance with paragraph

(a)(3) of this subsection.

(5) The SBA Associate Administrator for Government Contracting will make a final determination, in

writing, to issue or to deny the COC.

(b) SBA Headquarters’ decisions on COCs valued over $25,000,000.

(1) Prior to taking final action, SBA Headquarters will contact the contracting agency and offer it the

following options:

(i) To request that the SBA suspend case processing to allow the agency to meet with SBA

Headquarters personnel and review all documentation contained in the case file; or

(ii) To submit to SBA Headquarters for evaluation any information that the contracting agency

believes has not been considered.

(2) After reviewing all available information, the SBA will make a final decision to either issue or

deny the COC.

(c) Reconsideration of a COC after issuance.

(1) The SBA reserves the right to reconsider its issuance of a COC, prior to contract award, if-

(i) The COC applicant submitted false information or omitted materially adverse information; or

(ii) The COC has been issued for more than 60 days (in which case the SBA may investigate the

firm’s current circumstances).

(2) When the SBA reconsiders and reaffirms the COC, the procedures in subsection 19.602-2 do not

apply.

(3) Denial of a COC by the SBA does not preclude a contracting officer from awarding a contract to

the referred concern, nor does it prevent the concern from making an offer on any other

procurement.
19.602-4 Awarding the contract.

(a) If new information causes the contracting officer to determine that the concern referred to the

SBA is actually responsible to perform the contract, and award has not already been made under

paragraph (c) of this subsection, the contracting officer shall reverse the determination of

nonresponsibility, notify the SBA of this action, withdraw the referral, and proceed to award the

contract.

(b) The contracting officer shall award the contract to the concern in question if the SBA issues a

COC after receiving the referral. An SBA-certified concern shall not be required to meet any other

requirements of responsibility. SBA COC’s are conclusive with respect to all elements of

responsibility of prospective small business contractors. Where SBA issues a COC, the contracting

officer may decide not to award to that offeror for reasons unrelated to responsibility.

(c) The contracting officer shall proceed with the acquisition and award the contract to another

appropriately selected and responsible offeror if the SBA has not issued a COC within 15 business

days (or a longer period of time agreed to with the SBA) after receiving the referral.