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SBA 8 a Proposals

Although government contracting agencies can consider subcontractor experience in proposals, there is no mandatory requirement to do so. A government contracting agency need not consider subcontractor experience where the solicitation contemplates award of a service contract to a section 8 a firm, and includes the provision at Federal Acquisition Regulation (FAR) sect. 52.219-14, which imposes a limitation on subcontracting to an amount less than 50 percent of the cost of contract performance.

In such cases, the agency properly may determine that only the offeror’s own capabilities are relevant for purposes of discriminating among the proposals. Since the RFP here provided for award of a service contract and contained the cited FAR provision, the agency could limit its evaluation to the prime contractor’s capabilities.

Whether or not you are an 8 a certified business, submitting government proposals must be done with caution. Understanding the rules of engagement can save a substantial amount of legal costs in filing bid protests or similar actions. When submitting government proposals, a better strategy would be to convince the contracting agency why they should seriously consider your proposed subcontractor’s past performance. Never wait until the decision is made to challenge it.  It might be too late.

In North State Resources, Inc., B-282140, June 7, 1999, the court made a similar ruling. If you are a government contractor, you must find help when submitting government proposals. The rules do not change even if you are an SBA 8 a contractor.

For information and assistance, contact Watson & Associates or call 866-601-5518.

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