FAR 19.602—Procedures.

Referral.

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.

Issuing or denying a Certificate of Competency (COC).

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.

Resolving differences between the agency and the Small Business Administration.

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.

Awarding the contract.

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.