FAR 19.602-4—Awarding the contract.
Plain-English Summary
FAR 19.602-4 explains what happens after a contracting officer refers a small business concern to the Small Business Administration (SBA) for a Certificate of Competency (COC) because the contracting officer found the firm nonresponsible. This section covers three related situations: first, the contracting officer may reverse a nonresponsibility determination if new information shows the concern is actually responsible, so long as award has not already been made to another offeror; second, if SBA issues a COC, the contracting officer must award to that concern because the COC is conclusive on all elements of responsibility for a prospective small business contractor; and third, if SBA does not issue a COC within 15 business days after referral, or within a longer period agreed to with SBA, the contracting officer may move on and award to another appropriately selected and responsible offeror. In practice, this section protects small businesses from being denied award based on a contracting officer’s responsibility finding without SBA review, while also keeping procurements moving when SBA does not act in time. It also clarifies that a COC only resolves responsibility issues, not other independent reasons an offeror may be ineligible for award.
Key Rules
Reverse nonresponsibility if facts change
If new information shows the referred concern is actually responsible, the contracting officer must reverse the nonresponsibility determination, notify SBA, withdraw the referral, and proceed with award—unless award has already been made under paragraph (c).
COC is binding on responsibility
If SBA issues a Certificate of Competency after referral, the contracting officer must award the contract to that concern. The SBA’s COC is conclusive on all responsibility elements for a prospective small business contractor.
No extra responsibility tests after COC
A small business concern that receives a COC cannot be required to satisfy any additional responsibility requirements beyond those resolved by the COC. The contracting officer may not re-litigate responsibility issues covered by SBA’s decision.
Other award bars still apply
Even when SBA issues a COC, the contracting officer may still decline award for reasons unrelated to responsibility, such as other valid evaluation or eligibility issues that independently prevent award.
Proceed if SBA misses the deadline
If SBA has not issued a COC within 15 business days after receiving the referral, or within a longer period agreed to with SBA, the contracting officer shall continue the acquisition and award to another appropriately selected and responsible offeror.
Responsibilities
Contracting Officer
Monitor the referral process, reverse a nonresponsibility determination if new information shows the concern is responsible, notify SBA and withdraw the referral, and proceed to award if appropriate. If SBA issues a COC, award to the concern unless another independent basis prevents award. If SBA does not act within the required time, continue the acquisition and award to another responsible offeror.
Small Business Administration (SBA)
Review the referred concern and decide whether to issue a Certificate of Competency. If SBA issues the COC, its decision is conclusive on the concern’s responsibility for the procurement.
Referred Small Business Concern
Provide information needed for SBA’s COC review and, if SBA issues the COC, rely on that determination to establish responsibility for the procurement. The concern remains subject to other non-responsibility-related award requirements.
Other Offerors
Remain eligible for award if the referred concern is not awarded because SBA does not issue a COC in time or because another independent award issue exists.
Practical Implications
A COC can override a contracting officer’s nonresponsibility finding, so responsibility concerns should be documented carefully before referral.
Contracting officers must track the 15-business-day SBA response period closely; missing the deadline can delay award decisions or require moving to another offeror.
New information can change the outcome even after referral, so agencies should keep evaluating responsibility facts until award is made.
A COC does not cure every problem with an offer; it only resolves responsibility, so separate eligibility, price, technical, or compliance issues still matter.
Contracting officers should coordinate closely with SBA to avoid premature award, improper withdrawal of referrals, or failure to honor a timely COC.
Official Regulatory Text
(a) If new information causes the contracting officer to determine that the concern referred to the SBA is actually responsible to perform the contract, and award has not already been made under paragraph (c) of this subsection, the contracting officer shall reverse the determination of nonresponsibility, notify the SBA of this action, withdraw the referral, and proceed to award the contract. (b) The contracting officer shall award the contract to the concern in question if the SBA issues a COC after receiving the referral. An SBA-certified concern shall not be required to meet any other requirements of responsibility. SBA COC’s are conclusive with respect to all elements of responsibility of prospective small business contractors. Where SBA issues a COC, the contracting officer may decide not to award to that offeror for reasons unrelated to responsibility. (c) The contracting officer shall proceed with the acquisition and award the contract to another appropriately selected and responsible offeror if the SBA has not issued a COC within 15 business days (or a longer period of time agreed to with the SBA) after receiving the referral.