Source: http://www.hq.nasa.gov/office/procurement/regs/pic98-10.html
Timestamp: 2014-04-24 21:06:50
Document Index: 259815607

Matched Legal Cases: ['art 19', 'art 12', 'art 13', 'art 14', 'art 15', 'art 36', 'art 14', 'art 15', 'art 12', 'art 13', 'art 36']

PIC 98-10
June 1, 1998 NASA AND SBA MEMORANDUM OF
UNDERSTANDING (MOU) TO ALLOW DIRECT CONTRACTING WITH 8(A) FIRMS
PURPOSE: A FAR deviation to implement the NASA/SBA MOU that
enables NASA contracting officers to contract directly with 8(a) contractors and
streamline the 8(a) contracting process. BACKGROUND: On May 6, 1998, an MOU was executed between the
SBA and NASA which establishes streamlined procedures for expediting the award
requirements pursuant to Section 8(a) of the Small Business Act (15 U.S.C.
637(a), as amended). The objectives of the MOU are threefold: 1. To reduce the interval between the time NASA sends an offering letter to
SBA and SBA acceptance of the offering to a maximum of five (5) workdays.
2. To eliminate SBA approval of contracts and purchase orders executed under
the authority of this MOU. 3. To establish a uniform policy and procedure regarding application of
Simplified Acquisition Procedures (SAP) to the 8(a) contracting process, when
applicable. Procedures and guidance have been prepared to implement this MOU and are
enclosed. The FAR text enclosed has been revised to reflect the FAR class
deviation impact on the pertinent sections. Insertions are bold and the deleted
text is lined-out. GUIDANCE: This class deviation is mandatory for all
requirements generated after the effective date of this PIC. Ongoing
requirements may be converted to these procedures with the written concurrence
of the SBA field office with cognizance. EFFECTIVE DATE: This PIC is effective as dated, and
automatically expires May 6, 1999, unless extended, superseded or canceled. HEADQUARTERS CONTACT: Chris Jedrey, Code HK, (202) 358-0483;
or Tony Diamond, Code K, (202) 358-2088.
Tom Luedtke Deputy Associate Administrator for Procurement Enclosure Subpart 19.8--Contracting with the
Small Business Administration (The 8(a) Program) 19.800 General. (No Change) 19.801 [Reserved] NASA/SBA Memorandum of Understanding.
[(a) By Memorandum of Understanding (MOU) dated May 6, 1998, between the
Small Business Administration (SBA) and NASA, the SBA delegated to each NASA
installation and to NASA contracting officers, its authority under section
8(a)(1)(A) of the Small Business Act to enter into section 8(a) prime
contracts, and its authority under section 8(a)(1)(B) of the Small Business Act
to award the performance of those contracts to eligible section 8(a) program
participants. This authority is being delegated on a pilot test basis and shall
expire on May 6, 1999 unless the MOU is renewed by mutual agreement between
NASA and SBA. (b) The MOU provides for the award of both contracts and purchase orders.
It encompasses all competitive and non-competitive requirements offered and
accepted by SBA into the 8(a) program including but not limited to: Acquisition
of Commercial Items (FAR Part 12); awards under the Simplified Acquisition
Procedures (FAR Part 13); awards resulting from Sealed Bidding (FAR Part 14);
Contracting by Negotiation (FAR Part 15); and Construction and Architect
Engineer Contracts (FAR Part 36). (c) The MOU provides that NASA may award contracts and purchase orders
directly to the 8(a) participant. An SBA signature on the contract or purchase
order is not required. Awards may be made on a sole source basis or as a result
of competition.] 19.802 Selecting concerns for the 8(a) Program. (No Change) 19.803 Selecting acquisitions for the 8(a) Program. (No Change) 19.804 Evaluation, offering, and acceptance. 19.804-1 Agency evaluation. (No Change) 19.804-2 Agency offering. ((a)-(c) No Change) [(d) During the period of the MOU identified in 19.801, the notification
shall clearly indicate that the offer is being processed under the MOU. All
notifications should be faxed or e-mailed to the SBA when possible and, in
addition to the information required by FAR 19.804-2 (a)-(c), shall specify:
(1) that under the MOU, an SBA acceptance or rejection of the offer is
required to be transmitted to NASA within 5 working days of receipt of the
offer. The letter should request that the SBA response be faxed or e-mailed to
NASA; (2) for sole source offers, that acceptance shall include a size
verification and a determination of the 8(a) participant's program eligibility,
and that upon acceptance, the contracting officer will solicit a proposal,
conduct negotiations, and make award directly to the 8(a) firm; or (3) for competitive offers, that upon acceptance, the contracting officer
will solicit offers and conduct source selection. The contracting officer will,
upon selecting an 8(a) contractor, submit the contractor's name, address and
telephone number to SBA for eligibility verification. The notice should
be faxed or e-mailed to SBA if possible. SBA has 5 working days to transmit to
NASA that the 8(a) firm selected is eligible for award. Upon confirmation of
eligibility by SBA or after the 5 working days have elapsed, the contracting
officer may award a contract directly to the selected 8(a) program
participant.] 19.804-3 SBA acceptance. ((a) and (b) No Change) [(c) For requirements processed under the MOU cited in 19.801, SBA's
acceptance is required to be transmitted to NASA within 5 working days. If an
offer letter has not been accepted within the 5 working days, NASA contracting
officers may assume acceptance of the 8(a) acquisition and may continue with
the 8(a) procurement process.] 19.804-4 Repetitive acquisitions. (No Change) 19.805 Competitive 8(a). 19.805-1 General. (No Change) 19.805-2 Procedures. (a) Competitive 8(a) acquisitions shall be conducted by contracting agencies
by using sealed bids (see Part 14) or competitive proposals (see Part 15).
[Competitive 8(a) acquisitions under the MOU identified in 19.801 may also be
conducted by using Commercial Items procedures (FAR Part 12), Simplified
Acquisition Procedures (FAR Part 13) or Construction and Architect Engineer
Contracts (FAR Part 36). Announcement of the 8(a) solicitations shall be made
in the Commerce Business Daily and on the Internet, and a copy sent to the
SBA's coordinating office.] ((b)-(e) No Change) 19.806 Pricing the 8(a) contract. ((a)-(d) No Change) [(e) For requirements processed under the MOU identified in 19.801, SBA
concurrence in the negotiated price is not required. However, except for
purchase orders, the contracting officer shall notify the SBA prior to
withdrawing a requirement from the 8(a) program due to failure to agree on
price or other terms and conditions.] 19.807 Estimating fair market price. (No Change) 19.808 Contract negotiation. 19.808-1 Sole source. ((a) and (b) No Change) [(c) For requirements processed under the MOU identified in 19.801: (1) the contracting officer is responsible for initiating and conducting
negotiations; (2) the agency may negotiate directly with the 8(a) contractor; however,
if requested by the 8(a) participant, the SBA may participate in negotiations;
and (3) SBA approval of the contract is not required.] 19.808-2 Competitive. (No Change) 19.809 Preaward considerations. (No Change) 19.810 SBA appeals. (No Change) 19.811 Preparing the contracts. 19.811-1 Sole source. (a) The contract to be awarded by the agency to the SBA shall be prepared
in accordance with agency procedures and in the same detail as would be
required in a contract with a business concern. The contracting officer shall
use the Standard Form 26 as the award form, except for construction contracts,
in which case the Standard Form 1442 shall be used as required in 36.701(b).
[Awards under the MOU identified in 19.801 may be made directly to the 8(a)
contractor and award documents shall be prepared in accordance with procedures
established for non-8(a) contracts and purchase orders, using any authorized
award form or equivalent electronic forms. The "Issued by" block
shall identify the awarding NASA office. The section 8(a) participant's name
and address shall be listed as the contractor.] (b) [Reserved] The agency shall prepare the contract that the SBA
will award to the 8(a) contractor in accordance with agency procedures, as if
the agency were awarding the contract directly to the 8(a) contractor, except
for the following: (1) The award form shall cite 41 U.S.C. 253(c)(5) or 10 U.S.C. 2304(c)(5)
(as appropriate) as the authority for use of other than full and open
competition. (2) Appropriate clauses shall be included, as necessary, to reflect that
the contract is between the SBA and the 8(a) contractor. (3) The following items shall be inserted by the SBA: (i) The SBA contract number. (ii) The effective date. (iii) The typed name of the SBA's contracting officer. (iv) The signature of the SBA's contracting officer. (v) The date signed. (4) The SBA will obtain the signature of the 8(a) contractor prior to
signing and returning the prime contract to the contracting officer for
signature. The SBA will make every effort to obtain signatures and return the
contract, and any subsequent bilateral modification, to the contracting officer
within a maximum of 10 working days. (c) Except in procurements where the SBA will make advance payments to
its 8(a) contractor, the agency contracting officer may, as an alternative to
the procedures in paragraphs (a) and (b) of this subsection, use a single
contract document for both the prime contract between the agency and the SBA
and its 8(a) contractor. The single contract document shall contain the
information in paragraphs (b) (1), (2), and (3) of this subsection. Appropriate
blocks on the Standard Form (SF) 26 or 1442 will be asterisked and a
continuation sheet appended which includes the following: (1) Agency acquisition office, prime contract number, name of agency
contracting officer and lines for signature, date signed, and effective date. (2) The SBA office, the SBA contract number, name of the SBA contracting
officer, and lines for signature and date signed. (3) Name and lines for the 8(a) subcontractor's signature and date
signed. [(c)For direct awards made under the MOU identified in 19.801 the
contract shall: (1) Cite 10 U.S.C. 2304(c)(5) as the authority for use of other than full
and open competition; (2) Include the clause at 52.219-11 (Deviation) which allows for direct
award to the 8(a) contractor and identification of the cognizant SBA district
office for the 8(a) contractor; (3) Not include an SBA contract number or signature; and, (4) Include the name of the NASA Center/Installation in the NASA
contracting officer title in the signature block; (d) The contracting Officer must provide an executed copy of the contract
to the SBA servicing District Office.] 19.811-2 Competitive. (a) [Awards made under the MOU shall be prepared in accordance with
19.811-1.] The contract will be prepared in accordance with 14.408-1(d),
except that appropriate blocks on the Standard Form 26 or 1442 will be
asterisked and a continuation sheet appended which includes the following: (1) The agency contracting activity, prime contract number, name of
agency contracting officer, and lines for signature, date signed, and effective
date. (2) The SBA office, the SBA subcontract number, name of the SBA
contracting officer and lines for signature and date signed. (b) The process for obtaining signatures shall be as specified in
19.811-1(b)(4). 19.811-3 Contract clauses. (a) [The contracting officer shall insert the clause at 52.219-11,
Special 8(a) Contract Conditions (DEVIATION), in direct award contracts and
purchase orders processed under the MOU cited at 19.801.] The
contracting officer shall insert the clause at 52.219-11, Special 8(a) Contract
Conditions, in contracts between the SBA and the agency when the acquisition is
accomplished using the procedures of 19.811-1(a) and (b). (b) [Reserved] The contracting officer shall insert the clause at
52.219-12, Special 8(a) Subcontract Conditions, in contracts between the SBA
and its 8(a) contractor when the acquisition is accomplished using the
procedures of 19.811-1(a) and (b). (c) [Reserved] The contracting officer shall insert the clause at
52.219-17, Section 8(a) Award, in competitive solicitations and contracts when
the acquisition is accomplished using the procedures of 19.805 and in sole
source awards which utilize the alternative procedure in 19.811-1(c). (d) The contracting officer shall insert the clause at 52.219-18,
Notification of Competition Limited to Eligible 8(a) Concerns [(Deviation)],
in competitive solicitations and contracts when the acquisition is accomplished
using the procedures of 19.805 [the MOU identified in 19.801]. (1) The [NASA deviation to the] clause at 52.219-18 with its
Alternate I will be used when competition is to be limited to 8(a) concerns
within one or more specific SBA districts pursuant to 19.804-2. (2) The [NASA deviation to the] clause at 52.219-18 with its
Alternate II will be used when the acquisition is for a product in a class for
which the Small Business Administration has waived the nonmanufacturer rule
(see 19.102(f)(4) and (5)). (e) (No Change) 19.812 Contract administration. ((a) -(c) No Change) (d) Section 407 of Public Law 100-656 requires that an 8(a) contract be
terminated for convenience if the 8(a) concern to which it was awarded
transfers ownership or control of the firm, unless the Administrator of the
SBA, on a nondelegable basis, waives the requirement for contract termination.
The Administrator may waive the termination requirement only if certain
conditions exist. Moreover, a waiver of the statutory requirement for
termination is permitted only if the 8(a) firm's request for waiver is made to
the SBA prior to the actual relinquishment of ownership or control. The clauses
in the contract entitled "Special 8(a) Contract Conditions [(Deviation)]"
and "Special 8(a) Subcontract Conditions" requires the [8(a)
contractor] SBA and the 8(a) subcontractor to notify the contracting
officer [and SBA] when ownership of the firm is being transferred. When
the contracting officer receives information that an 8(a) contractor is
planning to transfer ownership or control to another firm, action must be taken
immediately to preserve the option of waiving the termination requirement. The
contracting officer should determine the timing of the proposed transfer and
its effect on contract performance and mission support. If the contracting
officer determines that the SBA does not intend to waive the termination
requirement, and termination of the contract would severely impair attainment
of the agency's program objectives or mission, the contracting officer should
immediately notify the SBA in writing that the agency is requesting a waiver.
Within 15 business days thereafter, or such longer period as agreed to by the
agency and the SBA, the agency head shall either confirm or withdraw the
request for waiver. Unless a waiver is approved by the SBA, the contracting
officer shall terminate the contract for convenience upon receipt of a written
request by the SBA. This statutory requirement for a convenience termination
does not affect the Government's right to terminate for default if the cause
for termination of an 8(a) contract is other than the transfer of ownership or
control. 52.219-11 Special 8(a) Contract Conditions. As prescribed in 19.811-3(a), insert the following clause: Special 8(a) Contract Conditions (Feb
1990) [(Deviation)]
The Small Business Administration (SBA) agrees to the following: (a) To furnish the supplies or services set forth in this contract according
to the specifications and the terms and conditions hereof by subcontracting
with an eligible concern pursuant to the provisions of section 8(a) of the
Small Business Act, as amended (15 U.S.C. 637(a)). (b) That in the event SBA does not award a subcontract for all or a part
of the work hereunder, this contract may be terminated either in whole or in
part without cost to either party. (c) Except for novation agreements and advance payments, delegate to the
_________ [insert name of contracting agency] the responsibility for
administering the subcontract to be awarded hereunder with complete authority
to take any action on behalf of the Government under the terms and conditions
of the subcontract; provided, however, that the _________ [insert name of
contracting agency] shall give advance notice to the SBA before it issues a
final notice terminating the right of a subcontractor to proceed with further
performance, either in whole or in part, under the subcontract for default or
for the convenience of the Government. (d) That payments to be made under any subcontract awarded under this
contract will be made directly to the subcontractor by the ___________ [insert
name of contracting agency]. (e) That the subcontractor awarded a subcontract hereunder shall have the
right of appeal from decisions of the Contracting Officer cognizable under the
"Disputes" clause of said subcontract. (f) To notify the _________ [insert name of contracting agency]
Contracting Officer immediately upon notification by the subcontractor that the
owner or owners upon whom 8(a) eligibility was based plan to relinquish
ownership or control of the concern. [(a) This contract is issued as a direct award between the contracting
activity and the 8(a) contractor pursuant to a Memorandum of Understanding
between the Small Business Administration (SBA) and the National Aeronautics
and Space Administration. Accordingly, the SBA is not a party to this contract.
SBA does retain responsibility for 8(a) certification, 8(a) eligibility determinations
and related issues, and providing counseling and assistance to the 8(a)
contractor under the 8(a) program. The cognizant SBA district office is: ________________________________________ ________________________________________ ________________________________________ ________________________________________ [insert name and address of cognizant SBA office] (b) The contracting activity is responsible for administering the
contract and taking any action on behalf of the Government under the terms and
conditions of the contract; provided, however, that the contracting activity
shall give advance notice to the SBA before it issues a final notice
terminating performance, either in whole or in part, under the contract. The
contracting activity shall also coordinate with the SBA prior to processing any
novation agreement. The contracting activity may assign contract administration
functions to a contract administration office. (c) The contractor agrees: (1) to notify the Contracting Officer, simultaneous with its notification
to SBA (as required by SBA's 8(a) regulations), when the owner or owners upon
whom 8(a) eligibility is based plan to relinquish ownership or control of the
concern. Consistent with Section 407 of Public Law 100-656, transfer of
ownership or control shall result in termination of the contract for
convenience, unless SBA waives the requirement for termination prior to the
actual relinquishing of ownership and control. (2) it will not subcontract the performance of any of the requirements of
this contract without the prior written approval of the SBA and the Contracting
Officer.] (End of clause) 52.219-12 Special 8(a) Subcontract Conditions. As prescribed in 19.811-3(b), insert the following clause: Special 8(a) Subcontract Conditions
(FEB 1990) (a) The Small Business Administration (SBA) has entered into Contract
No.________ [insert number of contract] with the ____________ [insert name of
contracting agency] to furnish the supplies or services as described therein. A
copy of the contract is attached hereto and made a part hereof. (b) The ___________ [insert name of subcontractor], hereafter referred to
as the subcontractor, agrees and acknowledges as follows: (1) That it will, for and on behalf of the SBA, fulfill and perform all
of the requirements of Contract No. ______ [insert number of contract] for the
consideration stated therein and that it has read and is familiar with each and
every part of the contract. (2) That the SBA has delegated responsibility, except for novation
agreements and advance payments, for the administration of this subcontract to
the _______ [insert name of contracting agency] with complete authority to take
any action on behalf of the Government under the terms and conditions of this subcontract. (3) That it will not subcontract the performance of any of the
requirements of this subcontract to any lower tier subcontractor without the
prior written approval of the SBA and the designated Contracting Officer of the
_______ [insert name of contracting agency]. (4) That it will notify the __________ [insert name of contracting
agency] Contracting Officer in writing immediately upon entering an agreement
(either oral or written) to transfer all or part of its stock or other ownership
interest to any other party. (c) Payments, including any progress payments under this subcontract,
will be made directly to the subcontractor by the ______ [insert name of
contracting agency]. (End of clause) 52.219-13 [Reserved] 52.219-17 Section 8(a) Award. As prescribed in 19.811-3(c), insert the following clause: Section 8(a) Award (Dec 1996) (a) By execution of a contract, the Small Business Administration (SBA)
agrees to the following: (1) To furnish the supplies or services set forth in the contract
according to the specifications and the terms and conditions by subcontracting
with the Offeror who has been determined an eligible concern pursuant to the
(2) Except for novation agreements and advance payments, delegates to the
______ [insert name of contracting activity] the responsibility for
administering the contract with complete authority to take any action on behalf
of the Government under the terms and conditions of the contract; provided,
however that the contracting agency shall give advance notice to the SBA before
it issues a final notice terminating the right of the subcontractor to proceed
with further performance, either in whole or in part, under the contract. (3) That payments to be made under the contract will be made directly to
the subcontractor by the contracting activity. (4) To notify the ___________ [insert name of contracting agency]
ownership or control of the concern. (5) That the subcontractor awarded a subcontract hereunder shall have the
right of appeal from decisions of the cognizant Contracting Officer under the
"Disputes" clause of the subcontract. (b) The offeror/subcontractor agrees and acknowledges that it will, for
and on behalf of the SBA, fulfill and perform all of the requirements of the
contract. (c) The offeror/subcontractor agrees that it will not subcontract the
performance of any of the requirements of this subcontract to any lower tier
subcontractor without the prior written approval of the SBA and the cognizant
Contracting Officer of the ______________ [insert name of contracting agency]. (End of clause) 52.219-18 Notification of Competition Limited to Eligible 8(a) Concerns. As prescribed in 19.811-3(d), insert the following clause: Notification of Competition Limited
to Eligible 8(a) Concerns (Jan 1997) [Deviation] (a) Offers are solicited only from small business concerns expressly
certified by the Small Business Administration (SBA) for participation in the
SBA's 8(a) Program and which meet the following criteria at the time of
submission of offer-- (1) SIC code ___*___ is specifically included in the Offeror's approved
business plan; (2) The Offeror is in conformance with the 8(a) support limitation set forth
in its approved business plan; and (3) The Offeror is in conformance with the Business Activity Targets set
forth in its approved business plan or any remedial action directed by the SBA.
(b) By submission of its offer, the Offeror represents that it meets all of
the criteria set forth in paragraph (a) of this clause. (c) [Any award resulting from this solicitation will be made directly by
the Contracting Officer to the successful 8(a) offeror selected through the
evaluation criteria set forth in this solicitation.] Any award resulting
from this solicitation will be made to the Small Business Administration, which
will subcontract performance to the successful 8(a) offeror selected through
the evaluation criteria set forth in this solicitation. (d)(1) Agreement. A small business concern submitting an offer in its own
name agrees to furnish, in performing the contract, only end items manufactured
or produced by small business concerns in the United States. The term
"United States" includes its territories and possessions, the
Commonwealth of Puerto Rico, the trust territory of the Pacific Islands, and
the District of Columbia. If this procurement is processed under simplified
acquisition procedures and the total amount of this contract does not exceed
$25,000, a small business concern may furnish the product of any domestic firm.
This subparagraph does not apply in connection with construction or service
contracts. (2) The ____________ [insert name of SBA's contractor] will notify the
____________ [insert name of contracting agency] Contracting Officer in writing
immediately upon entering an agreement (either oral or written) to transfer all
or part of its stock or other ownership interest to any other party. (End of clause) [*Insert SIC code assigned to the acquisition by the contracting activity.] Alternate I (Nov 1989). If the competition is to be limited to 8(a)
concerns within one or more specific SBA regions or districts, add the
following subparagraph (a)(4) to paragraph (a) of the clause: (4) The offeror's approved business plan is on the file and serviced by
________ [Contracting Officer completes by inserting the appropriate SBA
District and/or Regional Office(s) as identified by the SBA]. Alternate II (Dec 1996). When the acquisition is for a product in a
class for which the Small Business Administration has determined that there are
no small business manufacturers or processors in the Federal market in
accordance with 19.502-2(c), delete subparagraph (d)(1).