FAR 19.804-1—Agency evaluation.
Plain-English Summary
FAR 19.804-1 explains how an agency should evaluate a requirement before deciding whether to offer it for the 8(a) Business Development program. It covers the agency’s review of current and future acquisition plans, estimated quantities or number of construction projects, contract length and option periods, performance and delivery requirements, monthly production rates when applicable, and the geographic location of construction work. It also requires the agency to consider the impact of any delay in delivery, whether the requirement has previously been acquired using small business set-asides and when, and any problems encountered on prior acquisitions from 8(a) participants or other contractors. Finally, the section directs the agency to consider other pertinent information about known 8(a) participants, the items, or the work, including participant products and capabilities, and to make an independent review of participant capability when needed to ensure satisfactory performance. In practice, this section is the agency’s due-diligence checklist for deciding whether a requirement is suitable for 8(a) commitment and whether the market and the participants can realistically support successful performance.
Key Rules
Review acquisition plans
The agency should look at current and future plans to buy the specific supplies, services, or construction work that 8(a) firms want to provide. This includes estimating quantities or the number of projects, contract length including options, and key performance or delivery requirements.
Consider production and location
Where applicable, the agency must consider required monthly production rates. For construction, the agency must also consider the geographic location where the work will be performed, since location can affect availability, logistics, and performance feasibility.
Assess delay impacts
The agency should evaluate the impact of any delay in delivery. This helps determine whether routing the requirement through the 8(a) program could create unacceptable schedule risk or mission disruption.
Check prior acquisition history
The agency should determine whether the items or work have previously been acquired using small business set-asides and note when that occurred. Prior acquisition history helps show whether the requirement has been successfully competed or reserved for small business before.
Review past performance problems
The agency should consider any problems encountered in previous acquisitions of the same items or work from 8(a) participants or other contractors. This includes performance, schedule, quality, or other issues that may affect the suitability of the requirement for 8(a) commitment.
Use other pertinent information
The agency should consider any other relevant information about known 8(a) participants, the items, or the work, including information about participants’ products and capabilities. If needed, the contracting agency must independently review the factors in 19.803(a) and other capability information to ensure the requirement can be performed satisfactorily.
Responsibilities
Agency
Evaluate the requirement against the factors in this section before deciding whether to offer it for the 8(a) program. Gather and assess acquisition history, delivery and performance needs, prior problems, and any other relevant information about the work and available 8(a) participants.
Contracting Agency / Contracting Officer
When necessary, conduct an independent review of participant capability, including the factors in 19.803(a), to confirm that the selected 8(a) participant can satisfactorily perform the requirement. Use this review to support a sound commitment decision.
Known 8(a) Participants
Provide information about their products, capabilities, and ability to perform the requirement so the agency can make an informed evaluation. Their capability information may be used to determine whether the requirement is suitable for 8(a) award.
Practical Implications
This section is essentially the agency’s screening tool for deciding whether a requirement belongs in the 8(a) program, so the decision should be based on facts, not assumptions.
A common pitfall is focusing only on whether a firm is in the 8(a) program and ignoring whether the requirement’s quantity, schedule, location, or production demands are realistic for that firm.
Past performance issues matter: if prior acquisitions of the same work had delivery, quality, or management problems, the agency should investigate before committing the requirement to 8(a).
Contracting officers should document the basis for their evaluation, especially when the requirement is complex, time-sensitive, or has limited capable sources.
For construction and recurring supply/service needs, the agency should pay close attention to geography, option periods, and future workload so it does not commit work that cannot be performed successfully or on time.
Official Regulatory Text
In determining the extent to which a requirement should be offered in support of the 8(a) program, the agency should evaluate- (a) Current and future plans to acquire the specific items or work that 8(a) participants are seeking to provide, identified in terms of- (1) Estimated quantities of the supplies or services required or the estimated number of construction projects planned; (2) Length of contract, including option periods (see 19.812 (d)); and (3) Performance or delivery requirements, including– (i) Required monthly production rates, when applicable; and (ii) For construction, the geographical location where work is to be performed; (b) The impact of any delay in delivery; (c) Whether the items or work have previously been acquired using small business set-asides, and the date the items or work were acquired; (d) Problems encountered in previous acquisitions of the items or work from the 8(a) participants or other contractors; and (e) Any other pertinent information about known 8(a) participants, the items, or the work. This includes any information concerning the participants' products or capabilities. When necessary, the contracting agency shall make an independent review of the factors in 19.803 (a) and other aspects of the participants' capabilities which would ensure the satisfactory performance of the requirement being considered for commitment to the 8(a) program.