FAR 19.401—General.
Plain-English Summary
FAR 19.401 is a short but important coordination provision in the small business program rules. It identifies the legal basis for SBA-agency cooperation under the Small Business Act and explains who serves as the agency’s official point of contact for small business matters. Specifically, it covers the relationship between the Small Business Administration (SBA) and federal agencies in developing policies that protect small business interests, and it names the Office of Small and Disadvantaged Business Utilization (OSDBU) Director as the agency focal point for interfacing with SBA, with a separate rule for the Department of Defense (DoD), where the Office of Small Business Programs serves that role. In practice, this section matters because it centralizes communication, helps ensure consistent small business policy implementation, and reduces confusion about who speaks for the agency on small business issues. It is not a set-aside or evaluation rule itself, but it supports the administration of the small business program by defining the coordination structure agencies must use.
Key Rules
Small Business Act Authority
The Small Business Act is the statutory authority for SBA and agencies to consult and cooperate on policies that protect small business interests. This means small business policy is not developed in isolation; it is meant to be coordinated across the government framework established by law.
Agency-SBA Coordination
Agencies are expected to work with SBA in formulating policies affecting small business participation. The purpose is to ensure small business interests are recognized and protected when agencies develop or implement acquisition-related policies.
OSDBU as Focal Point
For most agencies, the Director of the Office of Small and Disadvantaged Business Utilization is the designated focal point for interfacing with SBA. This creates a single, identifiable office responsible for coordinating small business communications and policy matters with SBA.
DoD Focal Point
Within the Department of Defense, the Director of the Office of Small Business Programs serves as the agency focal point instead of the OSDBU Director. This recognizes DoD’s separate organizational structure for small business program coordination.
Responsibilities
SBA
Consult and cooperate with agencies in developing policies that recognize and protect small business interests under the Small Business Act.
Federal Agencies
Work with SBA on small business policy matters and route agency-level coordination through the designated focal point office.
Director of the Office of Small and Disadvantaged Business Utilization (OSDBU)
Serve as the agency’s primary point of contact for interfacing with SBA on small business matters, coordinating communication and policy coordination.
Department of Defense Director of the Office of Small Business Programs
Act as DoD’s designated focal point for interfacing with SBA on small business matters in place of the OSDBU Director.
Practical Implications
This section tells contractors and agency personnel where small business policy questions should be directed, which helps avoid misrouting issues to offices that do not have the authority to coordinate with SBA.
Contracting officers and program staff should understand that small business policy coordination is centralized; they should not assume every office can independently speak for the agency on SBA-related matters.
A common pitfall is confusing the policy coordination role with procurement authority: the focal point office coordinates with SBA, but it does not replace the contracting officer’s authority over individual acquisitions.
For DoD, users should be careful not to apply the OSDBU rule automatically; DoD uses the Office of Small Business Programs as the focal point.
Because this provision is organizational rather than procedural, its practical value is in ensuring proper communication channels and consistent small business policy implementation across the agency.
Official Regulatory Text
(a) The Small Business Act is the authority under which the Small Business Administration (SBA) and agencies consult and cooperate with each other in formulating policies to ensure that small business interests will be recognized and protected. (b) The Director of the Office of Small and Disadvantaged Business Utilization serves as the agency focal point for interfacing with SBA. The Director of the Office of Small Business Programs is the agency focal point for the Department of Defense.