8(a) SOLE SOURCE DIRECT AWARD PROCESS

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For the Contracting Shop:

The federal government's goal is to award five percent of all prime and subcontracting dollars to small, disadvantaged businesses each year. To help meet that goal, you can make set-asides awards for businesses that participate in the 8(a) Business Development program.

Your responsibilities as a contracting officer in connection with the 8(a) Business Development program are outlined in Title 13 Part 124 Subpart A of the Code of Federal Regulations (CFR) (https://www.ecfr.gov/current/title-13/chapter-I/part-124?toc=1 ) and the Federal Acquisition Regulation (FAR) (https://www.acquisition.gov/far/html/Subpart%2019_8.html ).

You can award a sole-source 8(a) contract if:

• You determine that the qualified small business is responsible.
• The resulting contract can be awarded at a fair market price.
• The government estimate does not exceed $7 million for manufacturing requirements or $4 million for all other requirements (There's an exception to this rule for entity-owned businesses)

Contracts worth less than $150,000 are automatically set aside for small businesses. If possible, you can choose to set it aside specifically for businesses in socio-economic programs like the 8(a) programs. 

Both the SBA’s regulations (https://www.ecfr.gov/current/title-13/chapter-I/part-125/section-125.2 ) and the FAR ( https://www.acquisition.gov/far/html/Subpart%2019_5.html ) require you to consider socio-economic programs first for set-aside contracts worth $150,000 or more. There is no order of preference among the programs. 

Benefits of a Directed Award to Hartwood 

>Simplifies procurement process for Contracting Officers and Procurement Officials. 

> Allows Contracting Officers to work directly with Hartwood without having to solicit bids. 

> Cuts through the red tape, saving time and money, facilitating awards in as little as 5 business days.

• No delays in obtaining approval for the sole-source selection. 
• No need to advertise an opportunity on Beta SAM or a contract vehicle. 
• No need to develop pre-award documentation. 
• No need to develop rigorous evaluation criteria for bidders. 
• Eliminate common delays in project start dates due to protests.

>Enables quick access to specialized technical skills and expertise.

> Has the added benefit of helping agencies achieve multiple small business goals in addition to 8(a) and                Small Disadvantaged Business (SDB) because Hartwood is also a certified SDVOSB/ VOSB.

How to engage with Hartwood via the 8(a) Process 

1. Government Agency/Customer (Program Office/Agency) selects contractor.  Customer determines that Hartwood meets the contract requirements and provides the best value to the Government and recommends Hartwood to the Small Business (SB) Specialist & Contracting Officer (CO) for coordination. 
2. Contracting Officer (CO) completes the Offer Letter. Contracting Officer (CO) completes an Offer Letter to be sent to the Small Business Administration (SBA) containing details regarding the procurement in accordance with (13 CFR 124.502(c) and FAR 19.804-2). 
3. CO submits Offer Letter (via email) to SBA representative. Agency CO submits (via email) the Offer Letter or Proposed Project for 8(a) to the Richmond District Office at: RDOfferletters@sba.gov and references Case No. C006SD/Hartwood Consulting Group. NOTE: The Richmond District Office has a central email address for offer letters. Agencies should send offer letters to RDOfferletters@sba.gov. 
4. SBA review of company’s standing in the 8(a) Program. The assigned SBA Business Opportunity Specialist reviews the 8(a) firm’s status to determine its eligibility to receive the award as well as the firm’s capability to perform the project. SBA has 5 working days to review and approve the request and send it back to the agency CO. 
5. Acceptance Letter. SBA issues a formal notification to the CO that it accepts the requirement as an 8(a) set-aside with concurrence for a Sole Source direct award. 
6. Negotiate Requirement. Once SBA accepts the offer, the Agency CO is authorized to negotiate directly with the firm and award the opportunity. 
7. Issue contract to Hartwood with 8(a) clauses. Add the SBA District Office to distribution list. 8(a) Clauses: DFARS 252.219-7009, and 252.219-7011 and FAR 52.219-17, 52.219-14, 52.219-8. NOTE: The SBA Area Director may accept buys over $4M for sole source if no other 8(a) participants can provide the service/item at a fair price. (See 13 CFR 124.506(d))