FAR 19.602-1—Referral.
Plain-English Summary
FAR 19.602-1 explains what a contracting officer must do when an apparent successful small business offeror is found nonresponsible. It covers the required referral to the SBA Government Contracting Area Office, the duty to withhold award, the limited exceptions when referral is not required, special handling for partial set-asides, what documentation must accompany the referral, the rule limiting the contracting officer to one referral at a time for a single acquisition, and the award delay period after SBA receives a complete referral. In practice, this section is the core of the SBA Certificate of Competency referral process and protects small businesses from being denied award solely on a nonresponsibility finding without SBA review. It also creates a clear procedural checkpoint for contracting officers so that responsibility determinations are documented, routed correctly, and not used to bypass small business protections. For contractors, it means that a nonresponsibility finding does not necessarily end the competition if SBA review is available. For agencies, it means award timing, documentation quality, and coordination with SBA are critical to avoid improper awards or avoidable delays.
Key Rules
Refer nonresponsible small businesses
If the apparent successful small business offeror lacks any element of responsibility, the contracting officer must withhold award and refer the matter to the cognizant SBA Government Contracting Area Office serving the area where the offeror’s headquarters is located. The referral is required even when the deficiency involves broad responsibility factors such as capability, competency, capacity, credit, integrity, perseverance, tenacity, or limitations on subcontracting.
Limited exceptions to referral
Referral is not required only in the specific cases listed in the rule: when the concern is found unqualified and ineligible under FAR 9.104-1(g) and the determination is approved by the chief of the contracting office, or when the concern is suspended or debarred under Executive Order 11246 or FAR subpart 9.4. These are narrow exceptions and should not be expanded by analogy.
Partial set-aside referral scope
If the procurement involves a partial set-aside, the contracting officer must refer to SBA the entire quantity to which the concern may be entitled if it were found responsible. This prevents the agency from carving up the referral and ensures SBA can consider the full entitlement issue.
Referral package content
The referral must state that the small business concern was found nonresponsible and identify the specific responsibility elements found lacking. When applicable, the package must also include the solicitation, the concern’s final offer, the abstract of bids or price negotiation memorandum, any preaward survey, the technical data package, and any other justification or documentation used to support the determination.
One referral at a time
For any single acquisition, the contracting officer may make only one referral at a time regarding a nonresponsibility determination. This prevents multiple overlapping referrals on the same acquisition and keeps the SBA review process orderly.
Award stay after complete referral
The contracting officer must withhold award for 15 business days after the appropriate SBA Area Office receives a referral that includes all required documentation, unless SBA and the contracting officer agree to a longer period. The clock starts only when the referral is complete.
Responsibilities
Contracting Officer
Determine and document whether the apparent successful small business offeror lacks responsibility elements; withhold award when a nonresponsibility finding is made; refer the matter to the cognizant SBA Area Office; include the required notice and supporting documents; limit the acquisition to one referral at a time; and hold award for the required 15 business days after SBA receives a complete referral, or longer if agreed.
SBA Government Contracting Area Office
Receive and review referrals from contracting officers for apparent successful small business offerors found nonresponsible; evaluate the referral under SBA procedures, including any Certificate of Competency-related review process; and coordinate with the contracting officer regarding the review timeline and any agreed extension of the award hold period.
Chief of the Contracting Office
Approve determinations that a small business concern is unqualified and ineligible under FAR 9.104-1(g) when the contracting officer relies on that exception to avoid referral.
Small Business Concern / Offeror
Respond to the procurement and, if referred, participate in the SBA review process by providing information or clarification as needed to address the responsibility concerns identified by the contracting officer.
Agency
Follow internal procedures for routing referrals to the correct SBA Area Office and ensure contracting personnel apply the referral, documentation, and award-hold requirements consistently.
Practical Implications
A nonresponsibility finding does not automatically end the award opportunity for a small business; the SBA referral process may still allow the concern to receive the award if SBA resolves the responsibility issue favorably.
The quality of the referral package matters. Missing documents or vague explanations can delay SBA review and extend the award hold period because the 15 business days runs only after SBA receives a complete referral.
Contracting officers should be careful not to confuse responsibility issues with eligibility or debarment/suspension issues. The referral requirement applies broadly, but the exceptions are narrow and must be supported by the correct authority and approvals.
For partial set-asides, the contracting officer must think in terms of the full quantity the concern could receive if responsible, not just the portion immediately in question.
A common pitfall is awarding too early. If the referral is complete, award must be withheld for the full 15 business days unless SBA and the contracting officer agree otherwise; premature award can create a procurement protest or compliance problem.
Official Regulatory Text
(a) Upon determining and documenting that an apparent successful small business offeror lacks certain elements of responsibility (including, but not limited to, capability, competency, capacity, credit, integrity, perseverance, tenacity, and limitations on subcontracting, but for sureties see 28.101-3 (f) and 28.203-1 (e)), the contracting officer shall- (1) Withhold contract award (see 19.602-3 ); and (2) Refer the matter to the cognizant SBA Government Contracting Area Office (Area Office) serving the area in which the headquarters of the offeror is located, in accordance with agency procedures, except that referral is not necessary if the small business concern- (i) Is determined to be unqualified and ineligible because it does not meet the standard in 9.104-1 (g), provided, that the determination is approved by the chief of the contracting office; or (ii) Is suspended or debarred under Executive Order 11246 or subpart 9.4 . (b) If a partial set-aside is involved, the contracting officer shall refer to the SBA the entire quantity to which the concern may be entitled, if responsible. (c) The referral shall include- (1) A notice that a small business concern has been determined to be nonresponsible, specifying the elements of responsibility the contracting officer found lacking; and (2) If applicable, a copy of the following: (i) Solicitation. (ii) Final offer submitted by the concern whose responsibility is at issue for the procurement. (iii) Abstract of bids or the contracting officer’s price negotiation memorandum. (iv) Preaward survey. (v) Technical data package (including drawings, specifications and statement of work). (vi) Any other justification and documentation used to arrive at the nonresponsibility determination. (d) For any single acquisition, the contracting officer shall make only one referral at a time regarding a determination of nonresponsibility. (e) Contract award shall be withheld by the contracting officer for a period of 15 business days (or longer if agreed to by the SBA and the contracting officer) following receipt by the appropriate SBA Area Office of a referral that includes all required documentation.