FAR 19.602-2—Issuing or denying a Certificate of Competency (COC).
Plain-English Summary
FAR 19.602-2 explains what the SBA Area Office must do after it receives a contracting officer’s notice that a small business concern lacks one or more elements of responsibility and may therefore be referred for a Certificate of Competency (COC) review. It covers the 15-business-day action window, the SBA’s duty to notify the concern and invite a COC application, the SBA’s option to visit the applicant’s facility and review responsibility, and the fact that the COC review is not limited to the contracting officer’s cited deficiencies. It also addresses SBA’s authority to consider additional nonresponsibility issues, the process when the Area Director decides a COC is warranted for contracts valued at $25 million or less, the contracting officer’s options to accept the decision or request a suspension for further review, the special rule that there is no contracting officer appeal when the proposed COC is for $100,000 or less, the final notice to the parties when the COC is issued or denied, and the referral of COC recommendations for contracts over $25 million to SBA Headquarters. In practice, this section is the procedural bridge between a small business responsibility determination and SBA’s statutory COC authority, so it matters both for protecting small business access to awards and for ensuring contracting officers and SBA follow the correct review and notification steps.
Key Rules
15-business-day action window
After receiving the contracting officer’s notice, the SBA Area Office must act within 15 business days unless SBA and the agency agree to a longer period. This deadline drives the pace of the COC process and prevents indefinite delay.
Notify and invite application
The Area Office must inform the small business of the contracting officer’s nonresponsibility determination and offer the firm the chance to apply for a COC. The concern must apply through the SBA Area Office serving the area where the offeror’s headquarters is located.
Facility review is discretionary
If the application is timely and complete, SBA may choose to visit the applicant’s facility to assess responsibility. The regulation gives SBA discretion to conduct an on-site review, but does not require it in every case.
Review is not limited to cited issues
The COC review process is broader than the specific deficiencies identified by the contracting officer. SBA may independently evaluate all elements of responsibility and may presume responsibility on issues not cited as deficient.
SBA may consider new grounds
SBA may deny a COC for reasons of nonresponsibility that the contracting officer did not originally cite. This means the COC process can uncover additional responsibility concerns during SBA’s review.
Decision process for contracts at or below $25 million
When the Area Director determines a COC is warranted for a contract valued at $25 million or less, the contracting officer is notified and given options: accept the COC decision and award to the concern, or request a suspension for specified review or resolution steps.
Suspension options and appeal handling
If the contracting officer requests suspension, the Area Director may provide a detailed rationale, allow a meeting to review the case file, accept additional information from the contracting officer, or permit resolution of an agency appeal to SBA Headquarters under 19.602-3. However, there is no contracting officer appeal when the Area Office proposes to issue a COC valued at $100,000 or less.
Final notice and higher-value referrals
At the end of the process, SBA must notify both the concern and the contracting officer whether the COC is denied or issued. Recommendations to issue a COC on contracts over $25 million must be referred to SBA Headquarters.
Responsibilities
SBA Area Office
Act within 15 business days, unless extended by agreement, after receiving the contracting officer’s notice. Inform the small business concern of the nonresponsibility determination, offer the opportunity to apply for a COC, review timely complete applications, decide whether to visit the applicant’s facility, evaluate responsibility issues, consider additional nonresponsibility grounds, issue final notice of denial or issuance, and refer recommendations for contracts over $25 million to SBA Headquarters.
Small Business Concern
If it wants COC consideration, promptly notify the SBA Area Office serving the geographic area where the offeror’s headquarters is located and submit a timely, complete, and acceptable COC application.
Contracting Officer
Provide the notice that triggers SBA’s COC review process, respond to SBA’s notification of a warranted COC by either accepting the decision or requesting a suspension for further review, submit additional information the contracting officer believes SBA did not consider, and participate in any meeting or appeal-related process allowed under the regulation.
SBA Headquarters
Review and resolve appeals by the contracting agency under 19.602-3 when applicable, and handle referrals for recommended COC issuance on contracts over $25 million.
Contracting Agency
Coordinate with SBA on any agreed extension of the 15-business-day period and, where applicable, pursue agency appeal rights through SBA Headquarters under the procedures referenced in 19.602-3.
Practical Implications
This section is time-sensitive: missing the 15-business-day window or failing to agree on an extension can create process problems and delay award decisions.
Contracting officers should remember that SBA’s review is not confined to the exact deficiencies they cited; additional responsibility issues can surface during the COC review.
A COC recommendation for a contract over $25 million does not stay at the Area Office level; it must go to SBA Headquarters, so higher-value procurements may take longer and involve more layers of review.
For contracts at or below $25 million, the contracting officer has a limited set of responses once SBA decides a COC is warranted, and for proposed COCs of $100,000 or less there is no contracting officer appeal.
Small businesses should act quickly and submit a complete application to preserve COC consideration; incomplete or untimely submissions can end the process before SBA reaches the merits.
Official Regulatory Text
Within 15 business days (or a longer period agreed to by the SBA and the contracting agency) after receiving a notice that a small business concern lacks certain elements of responsibility, the SBA Area Office will take the following actions: (a) Inform the small business concern of the contracting officer’s determination and offer it an opportunity to apply to the SBA for a COC. (A concern wishing to apply for a COC should notify the SBA Area Office serving the geographical area in which the headquarters of the offeror is located.) (b) Upon timely receipt of a complete and acceptable application, elect to visit the applicant’s facility to review its responsibility. (1) The COC review process is not limited to the areas of nonresponsibility cited by the contracting officer. (2) The SBA may, at its discretion, independently evaluate the COC applicant for all elements of responsibility, but may presume responsibility exists as to elements other than those cited as deficient. (c) Consider denying a COC for reasons of nonresponsibility not originally cited by the contracting officer. (d) When the Area Director determines that a COC is warranted (for contracts valued at $25,000,000 or less), notify the contracting officer and provide the following options: (1) Accept the Area Director’s decision to issue a COC and award the contract to the concern. The COC issuance letter will then be sent, including as an attachment a detailed rationale for the decision; or (2) Ask the Area Director to suspend the case for one or more of the following purposes: (i) To permit the SBA to forward a detailed rationale for the decision to the contracting officer for review within a specified period of time. (ii) To afford the contracting officer the opportunity to meet with the Area Office to review all documentation contained in the case file and to attempt to resolve any issues. (iii) To submit any information to the SBA Area Office that the contracting officer believes the SBA did not consider (at which time, the SBA Area Office will establish a new suspense date mutually agreeable to the contracting officer and the SBA). (iv) To permit resolution of an appeal by the contracting agency to SBA Headquarters under 19.602-3 . However, there is no contracting officer’s appeal when the Area Office proposes to issue a COC valued at $100,000 or less. (e) At the completion of the process, notify the concern and the contracting officer that the COC is denied or is being issued. (f) Refer recommendations for issuing a COC on contracts greater than $25,000,000 to SBA Headquarters.