FAR 19.602-3—Resolving differences between the agency and the Small Business Administration.
Plain-English Summary
FAR 19.602-3 explains how disagreements are resolved when the Small Business Administration (SBA) and the contracting agency do not agree on a Certificate of Competency (COC) case. It covers COCs valued between $100,000 and $25,000,000, including the requirement for the contracting officer and SBA to exchange information and try to resolve differences before final SBA action, the process for referral to SBA Headquarters, notice to agency small business officials, agency appeal rights and deadlines, and the SBA Associate Administrator for Government Contracting’s final written decision. It also addresses COCs valued over $25,000,000, where SBA Headquarters must first offer the agency an opportunity to suspend processing and meet or submit additional information before SBA makes its decision. Finally, it covers SBA’s authority to reconsider an issued COC before award if false or omitted adverse information is discovered or if the COC is more than 60 days old, and it clarifies that denial of a COC does not bar the contracting officer from awarding to the concern or from considering the concern on other procurements. In practice, this section is about interagency dispute resolution, timing, and decision authority in the COC process, and it matters because it can affect whether award is delayed, whether the agency appeals, and whether SBA’s final determination stands.
Key Rules
COC disputes require full exchange
For COCs valued between $100,000 and $25,000,000, the contracting officer and SBA must make every effort to resolve disagreements about the concern’s ability to perform before SBA takes final action. The process must use a complete exchange of information and follow agency procedures.
Referral to SBA Headquarters
If the contracting officer and SBA Area Office cannot agree, the contracting officer may ask the Area Office to suspend action and refer the matter to SBA Headquarters for review. The Area Office must honor that request only if the contracting officer agrees to withhold award until the review is finished; otherwise, SBA will issue the COC under SBA rules.
Agency notice and appeal window
After SBA Headquarters receives the case file, it must notify the procuring agency’s OSDBU Director, or the DoD Small Business Programs Director, or another designated official, with a copy to the contracting officer. If the agency wants to appeal, it must notify SBA Headquarters through that official within 10 business days, unless SBA and the agency agree to a different period.
Appeal filing deadline
Once SBA Headquarters receives the agency’s notice of intent to appeal, the procuring agency’s designated small business official must file the appeal and supporting documentation within 10 business days, unless the agencies agree to another time period. This keeps the appeal process moving quickly and places responsibility on the agency’s small business office, not the contracting officer alone.
Final decision by SBA leadership
The SBA Associate Administrator for Government Contracting makes the final written decision to issue or deny the COC after the appeal process is completed. This is the controlling SBA decision for the case.
Large-dollar COCs get direct SBA review
For COCs valued over $25,000,000, SBA Headquarters must first contact the contracting agency and offer two options: request that SBA suspend processing so the agency can meet with SBA Headquarters and review the file, or submit additional information the agency believes was not considered. SBA then decides whether to issue or deny the COC after reviewing all available information.
SBA may reconsider an issued COC
Before award, SBA may reconsider a COC if the applicant submitted false information, omitted materially adverse information, or if the COC has been issued for more than 60 days. In the last case, SBA may investigate the firm’s current circumstances.
Reconsideration changes the normal process
If SBA reconsiders and reaffirms the COC, the procedures in 19.602-2 do not apply. This means the reconsideration path is separate from the normal referral and review process.
COC denial does not bar award
If SBA denies a COC, the contracting officer is still allowed to award the contract to the referred concern, and the concern may still compete on other procurements. A denial is not an automatic prohibition on award.
Responsibilities
Contracting Officer
Work with SBA to resolve COC disagreements through full information exchange; request suspension and referral to SBA Headquarters when agreement cannot be reached; agree to withhold award if necessary for Headquarters review; notify the agency’s designated small business official if an appeal is contemplated; and understand that a COC denial does not automatically prevent award to the concern.
SBA Area Office
Participate in efforts to resolve performance disagreements with the contracting officer; suspend action and refer the matter to SBA Headquarters when properly requested and when the contracting officer agrees to withhold award; and otherwise issue the COC under applicable SBA regulations if no award hold agreement exists.
SBA Headquarters
Receive the case file, notify the procuring agency’s designated small business official and the contracting officer, offer the agency the opportunity to appeal in cases within the stated dollar range, and in large-dollar cases offer the agency the chance to suspend processing or submit additional information before final action.
Procuring Agency Director, OSDBU / DoD Director of Small Business Programs / Other Designated Official
Serve as the channel for SBA Headquarters notices and agency appeals; decide whether the agency will appeal a COC issuance; file the appeal and supporting documentation within the required deadline or agreed alternative period.
SBA Associate Administrator for Government Contracting
Make the final written determination to issue or deny the COC after the appeal process or Headquarters review is complete.
COC Applicant / Concern
Provide accurate information during the COC process and remain aware that SBA may reconsider an issued COC before award if false information or omitted adverse information is discovered, or if the COC becomes stale after 60 days.
Practical Implications
This section is heavily deadline-driven: missing the 10-business-day notice or filing window can forfeit an agency appeal opportunity.
Contracting officers should coordinate early with SBA and their agency small business office, because the appeal path runs through designated officials rather than informal back-and-forth.
Award timing matters: if the contracting officer does not agree to withhold award, SBA Area Office may proceed to issue the COC instead of suspending the case for Headquarters review.
A COC is not permanent; if award is delayed or new adverse information appears, SBA can revisit the issuance before award.
A COC denial is not the same as a debarment or exclusion, so contracting officers should not treat it as a blanket prohibition on future awards or offers.
Official Regulatory Text
(a) COCs valued between $100,000 and $25,000,000. (1) When disagreements arise about a concern’s ability to perform, the contracting officer and the SBA shall make every effort to reach a resolution before the SBA takes final action on a COC. This shall be done through the complete exchange of information and in accordance with agency procedures. If agreement cannot be reached between the contracting officer and the SBA Area Office, the contracting officer shall request that the Area Office suspend action and refer the matter to SBA Headquarters for review. The SBA Area Office shall honor the request for a review if the contracting officer agrees to withhold award until the review process is concluded. Without an agreement to withhold award, the SBA Area Office will issue the COC in accordance with applicable SBA regulations. (2) SBA Headquarters will furnish written notice to the procuring agency’s Director of the, Office of Small and Disadvantaged Business Utilization (OSDBU) or, for the Department of Defense, the Director of the Office of Small Business Programs, or other designated official (with a copy to the contracting officer) that the case file has been received and that an appeal decision may be requested by an authorized official. (3) If the contracting agency decides to file an appeal, it must notify SBA Headquarters through its procuring agency’s Director, OSDBU, or other designated official, within 10 business days (or a time period agreed upon by both agencies) that it intends to appeal the issuance of the COC. (4) The appeal and any supporting documentation shall be filed by the procuring agency’s Director, OSDBU, or other designated official, within 10 business days (or a period agreed upon by both agencies) after SBA Headquarters receives the agency’s notification in accordance with paragraph (a)(3) of this subsection. (5) The SBA Associate Administrator for Government Contracting will make a final determination, in writing, to issue or to deny the COC. (b) SBA Headquarters’ decisions on COCs valued over $25,000,000. (1) Prior to taking final action, SBA Headquarters will contact the contracting agency and offer it the following options: (i) To request that the SBA suspend case processing to allow the agency to meet with SBA Headquarters personnel and review all documentation contained in the case file; or (ii) To submit to SBA Headquarters for evaluation any information that the contracting agency believes has not been considered. (2) After reviewing all available information, the SBA will make a final decision to either issue or deny the COC. (c) Reconsideration of a COC after issuance. (1) The SBA reserves the right to reconsider its issuance of a COC, prior to contract award, if- (i) The COC applicant submitted false information or omitted materially adverse information; or (ii) The COC has been issued for more than 60 days (in which case the SBA may investigate the firm’s current circumstances). (2) When the SBA reconsiders and reaffirms the COC, the procedures in subsection 19.602-2 do not apply. (3) Denial of a COC by the SBA does not preclude a contracting officer from awarding a contract to the referred concern, nor does it prevent the concern from making an offer on any other procurement.