FAR 19.1304—Exclusions.
Plain-English Summary
FAR 19.1304 explains when the small business program rules in this subpart do not apply. It excludes several categories of requirements from the subpart’s coverage: purchases that can be satisfied by Federal Prison Industries (FPI) or AbilityOne nonprofit agencies, orders placed under indefinite-delivery contracts, orders placed against Federal Supply Schedules, requirements that are already being performed under the SBA 8(a) program or have been accepted for 8(a) performance unless SBA releases them, and commissary or exchange resale items. In practice, this section tells contracting officers when they should not apply the subpart’s procedures to a requirement, even if the requirement might otherwise look eligible. It also points readers to related authorities where discretionary set-asides may still be possible for some order types. The practical significance is that it prevents improper application of the subpart, avoids conflicts with mandatory or preexisting acquisition programs, and helps contracting personnel route requirements through the correct acquisition vehicle or socioeconomic program.
Key Rules
FPI and AbilityOne first
If a requirement can be satisfied through award to Federal Prison Industries or an AbilityOne participating nonprofit agency, this subpart does not apply. These sources are treated as excluded because other statutory and regulatory priorities govern them.
Orders under IDIQ contracts excluded
Orders placed under indefinite-delivery contracts are outside this subpart’s coverage. However, the regulation notes that discretionary set-asides may still be available for certain orders under FAR 16.505(b)(2)(i)(F).
Federal Supply Schedule orders excluded
Orders against Federal Supply Schedules are also excluded from this subpart. Even so, contracting personnel should check FAR 8.405-5 because discretionary set-asides may be permitted for some schedule orders.
8(a) requirements remain excluded
Requirements currently being performed by an 8(a) participant, or requirements SBA has already accepted for 8(a) performance, are excluded unless SBA consents to release them from the 8(a) program. This protects the integrity of the 8(a) program and prevents conflicting procurement actions.
Commissary and exchange resale items excluded
Requirements for commissary or exchange resale items are not covered by this subpart. These items are handled under separate authorities and purchasing structures.
Responsibilities
Contracting Officer
Determine whether a requirement falls into one of the listed exclusions before applying this subpart. The contracting officer must route the requirement to the proper mandatory source, contract vehicle, or socioeconomic program and must consider the cited exceptions for discretionary set-asides where applicable.
Agency
Maintain acquisition procedures that recognize mandatory sources and excluded requirement types. Agencies must ensure their acquisition planning and procurement reviews do not improperly apply this subpart to excluded actions.
SBA
Control release of requirements from the 8(a) program when a requirement has been accepted for 8(a) performance or is currently being performed by an 8(a) participant. SBA must consent before such requirements can be removed from 8(a) coverage.
Federal Prison Industries / AbilityOne nonprofit agencies
Provide the mandatory-source capability contemplated by their governing subparts for eligible requirements. Their role is to satisfy requirements that fall within their authorized scope, which removes those requirements from this subpart.
Contractor / 8(a) participant
Continue performance of accepted or ongoing 8(a) requirements unless and until SBA releases the requirement. The contractor should understand that these requirements are protected from diversion to other acquisition approaches absent SBA action.
Practical Implications
Contracting officers should check exclusions early in acquisition planning, because the wrong program choice can delay the procurement or create a compliance issue.
A common pitfall is assuming a requirement is eligible for this subpart when it is actually a mandatory-source purchase, an IDIQ order, a schedule order, or an 8(a) requirement already accepted by SBA.
The note about discretionary set-asides matters: even though IDIQ and schedule orders are excluded from this subpart, other FAR provisions may still allow set-aside decisions at the order level.
For 8(a) work, the key question is whether SBA has accepted the requirement or the work is already being performed by an 8(a) participant; if so, the requirement generally stays in 8(a) unless SBA releases it.
Commissary and exchange resale items should be screened out from this subpart because they are handled under separate resale and exchange authorities, not the small business procedures addressed here.
Official Regulatory Text
This subpart does not apply to- (a) Requirements that can be satisfied through award to- (1) Federal Prison Industries, Inc. (see subpart 8.6 ); or (2) AbilityOne participating non-profit agencies for the blind or severely disabled (see subpart 8.7 ); (b) Orders under indefinite-delivery contracts (see subpart 16.5 ). (But see 16.505 (b)(2)(i)(F) for discretionary set-asides of orders); (c) Orders against Federal Supply Schedules (see subpart 8.4 ). (But see 8.405-5 for discretionary set-asides of orders); (d) Requirements currently being performed by an 8(a) participant or requirements SBA has accepted for performance under the authority of the 8(a) program, unless SBA has consented to release the requirements from the 8(a) program; or (e) Requirements for commissary or exchange resale items.