Two years later, the SDPA was recast into the SBA by the Small Business Act of 1953. The purpose of the COC program is to ensure that small businesses, especially those newly entering into the Federal marketplace, receive a fair share of Government contracts. This, in turn, helps the Government to supplement and diversify its sources of supplies and services. Where SBA issues a COC, the Small Business Act directs contracting officers to accept the certification as conclusive and precludes the contracting officer from requiring the firm to meet any other requirements of responsibility. Capacity is a term of art in Government procurement and has been defined as the overall ability to meet quantity, quality and delivery requirements of a contract.
Credit is defined as the financial capability to perform a contract, plus other commitments.
In 1977, Congress significantly enhanced the COC program by authorizing SBA to issue COCs with respect to all elements of responsibility including perseverance, integrity, and tenacity. These additional elements of responsibility were distinct from the original issues involving capacity and credit. In addition, Congress authorized SBA to review a small business's eligibility for award of a contract under the provisions of the Walsh-Healey Public Contracts Act. Walsh-Healey required that a contractor be either a manufacturer or regular dealer in the materials, supplies, or services it provides to the Government or uses during the performance of a Government contract. There was a perception in Congress that contracting officers were finding small businesses ineligible under Walsh-Healey to avoid awarding them contracts.