FAR 19.601—General.
Plain-English Summary
FAR 19.601 explains the Certificate of Competency (COC) program administered by the Small Business Administration (SBA) and how it affects federal responsibility determinations for small business offerors. It defines what a COC is, describes the SBA’s authority to certify a small business as responsible for a specific contract, and clarifies that the program covers all elements of responsibility such as capability, competency, capacity, credit, integrity, perseverance, tenacity, and limitations on subcontracting. The section also states the program’s limits, including that it does not resolve compliance questions enforced by other federal agencies and that it does not apply to 8(a) sole-source awards. It requires contracting officers to refer an apparently successful small business offeror to SBA when the offeror is found nonresponsible, even if the next acceptable offeror is also a small business. The section further explains how limitations on subcontracting and nonmanufacturer issues are handled, including when a matter goes through the COC process versus subpart 19.3, and it confirms that overseas contracting officers must follow these rules for U.S. small business concerns. Finally, it addresses a special rule for unrestricted acquisitions, allowing a small business nonmanufacturer seeking a COC to furnish any end item produced or manufactured in the United States or its outlying areas.
Key Rules
COC defines responsibility
A COC is SBA’s formal determination that a small business is responsible for a specific contract. It covers all responsibility factors, including capability, competency, capacity, credit, integrity, perseverance, tenacity, and compliance with limitations on subcontracting.
SBA certifies responsibility
The COC program gives SBA authority to certify to contracting officers that a small business is responsible for award. In practice, SBA can override a contracting officer’s nonresponsibility finding for a small business if SBA issues a COC.
No coverage for other agencies
The COC program does not decide questions about regulatory requirements enforced by other federal agencies. If another agency has its own compliance regime, that issue is outside the COC process.
Applies to most acquisitions
The COC program applies to all Government acquisitions except 8(a) sole-source awards. If an apparently successful small business offeror is found nonresponsible, the contracting officer must refer the matter to SBA for possible COC consideration, even if the next acceptable offeror is also a small business.
Limitations on subcontracting
If a solicitation requires compliance with the limitations on subcontracting, a finding that the small business cannot comply is treated as a responsibility issue and goes through the COC process. This means SBA may review and potentially certify the offeror despite the contracting officer’s concern.
Nonmanufacturer rule handled separately
If the issue is whether a small business meets the definition of a nonmanufacturer, the contracting officer’s determination is not handled through the COC process. Instead, it must be processed under subpart 19.3.
Overseas officers must comply
Contracting officers located overseas must follow this subpart for U.S. small business concerns. Geographic location does not remove the duty to use the COC procedures when applicable.
Special rule for nonmanufacturers
For an unrestricted acquisition, a small business nonmanufacturer seeking a COC may furnish any end item produced or manufactured in the United States or its outlying areas. This gives the nonmanufacturer flexibility in meeting the requirement for COC purposes.
Responsibilities
Contracting Officer
Determine whether an apparently successful small business offeror is nonresponsible and, if so, refer the matter to SBA for possible COC action. The contracting officer must also distinguish between issues that belong in the COC process and issues that must be handled under subpart 19.3, and must apply these rules even when stationed overseas.
Small Business Offeror
If referred for a COC, cooperate with SBA’s review of responsibility factors and provide information showing it can perform the contract. A small business nonmanufacturer seeking a COC on an unrestricted acquisition may offer any end item produced or manufactured in the United States or its outlying areas.
Small Business Administration (SBA)
Review referrals from contracting officers and determine whether the small business is responsible for the specific contract. SBA issues the COC when it concludes the offeror meets the responsibility standards, including relevant subcontracting limitations where applicable.
Other Federal Agencies
Continue to enforce their own regulatory requirements independently, because the COC program does not resolve compliance questions under other agencies’ rules.
Agency Acquisition Workforce
Apply the COC procedures consistently across acquisitions, recognize the exception for 8(a) sole-source awards, and ensure responsibility determinations are routed correctly to SBA or to subpart 19.3 as required.
Practical Implications
A nonresponsibility finding for a small business is not the end of the road; the contracting officer usually must send the matter to SBA for possible COC review before moving on.
Contracting officers need to separate responsibility issues from eligibility or compliance issues, because not every small-business problem belongs in the COC process.
The limitations on subcontracting can trigger COC review, but nonmanufacturer status questions do not; misclassifying the issue can lead to a procedural error and delay award.
Overseas contracting officers cannot skip COC procedures for U.S. small business concerns, so location-based assumptions are a common pitfall.
For unrestricted acquisitions, a small business nonmanufacturer has flexibility to propose U.S.-made or outlying-area-made end items when seeking a COC, which can affect sourcing and proposal strategy.
Official Regulatory Text
(a) A Certificate of Competency (COC) is the certificate issued by the Small Business Administration (SBA) stating that the holder is responsible (with respect to all elements of responsibility, including, but not limited to, capability, competency, capacity, credit, integrity, perseverance, tenacity, and limitations on subcontracting) for the purpose of receiving and performing a specific Government contract. (b) The COC program empowers the SBA to certify to Government contracting officers as to all elements of responsibility of any small business concern to receive and perform a specific Government contract. The COC program does not extend to questions concerning regulatory requirements imposed and enforced by other Federal agencies. (c) The COC program is applicable to all Government acquisitions except for 8(a) sole-source awards. A contracting officer shall, upon determining an apparent successful small business offeror to be nonresponsible, refer that small business to the SBA for a possible COC, even if the next acceptable offer is from a small business. (d) When a solicitation requires a small business to adhere to the limitations on subcontracting, a contracting officer’s finding that a small business cannot comply with the limitation shall be treated as an element of responsibility and shall be subject to the COC process. When a solicitation requires a small business to adhere to the definition of a nonmanufacturer, a contracting officer’s determination that the small business does not comply shall be processed in accordance with subpart 19.3 . (e) Contracting officers, including those located overseas, are required to comply with this subpart for U.S. small business concerns. (f) For the purpose of receiving a COC on an unrestricted acquisition, a small business nonmanufacturer may furnish any end item produced or manufactured in the United States or its outlying areas.