FAR 19.806—Pricing the 8(a) contract.
Plain-English Summary
FAR 19.806 explains how the government prices 8(a) contracts and how that pricing process is coordinated between the contracting officer and the Small Business Administration (SBA). It covers four main topics: pricing the contract under FAR subpart 15.4, SBA’s role in obtaining certified cost or pricing data for required sole-source actions, the contracting activity’s duty to provide audit assistance when SBA requests it, the prohibition on awarding an 8(a) contract if the price would exceed a fair market price to the agency, the contracting officer’s obligation to provide fair market price estimate data to SBA within 10 working days when requested, and SBA concurrence and appeal rights when the contracting officer and SBA disagree. In practice, this section is about ensuring the 8(a) program produces prices that are both fair to the government and workable for the small business participant. It also makes clear that SBA is not just a pass-through participant; it has an active oversight role in reviewing pricing and fair market value. For contracting officers, the rule means pricing documentation and coordination with SBA must be timely, supportable, and consistent with FAR Part 15 pricing standards. For contractors, it means 8(a) pricing may involve certified cost or pricing data and scrutiny comparable to other negotiated procurements, especially in sole-source awards.
Key Rules
Price under FAR 15.4
The contracting officer must price the 8(a) contract using the negotiated pricing rules in FAR subpart 15.4. This means the price must be developed and documented using the same general fair and reasonable price analysis framework used for other negotiated acquisitions.
Certified data may be required
If FAR 15.4 requires certified cost or pricing data, SBA—not the contracting officer—shall obtain that data from the 8(a) contractor. This places the formal data-collection responsibility with SBA for those situations where certified data is required.
Audit help for sole source
When SBA asks for audit assistance to evaluate whether a sole-source 8(a) price is fair and reasonable, the contracting activity must provide that assistance to the extent it is available. The duty is limited by availability, but the agency must cooperate.
No award above fair market price
A sole-source or competitive 8(a) contract may not be awarded if the resulting cost to the contracting agency exceeds a fair market price. This is a hard stop intended to protect the government from paying more than market value.
Provide fair market data promptly
If SBA requests the data used to estimate fair market price, the contracting officer must provide it within 10 working days. The rule imposes a specific response deadline to keep the 8(a) pricing process moving.
SBA concurrence required
The negotiated contract price and the estimated fair market price are subject to SBA concurrence. If the contracting officer and SBA disagree, SBA may appeal under FAR 19.810, which preserves SBA’s formal dispute path.
Responsibilities
Contracting Officer
Price the 8(a) contract under FAR subpart 15.4, maintain the supporting fair market price estimate, provide that estimate data to SBA within 10 working days if requested, and work with SBA on concurrence and any disagreement over price.
SBA
Obtain certified cost or pricing data from the 8(a) contractor when required, review and concur in the negotiated price and fair market price estimate, request audit assistance when needed, and appeal under FAR 19.810 if it disagrees with the contracting officer.
Contracting Activity
Provide audit assistance to SBA for sole-source pricing reviews to the extent the assistance is available, and support the contracting officer with pricing documentation and analysis.
8(a) Contractor
Provide certified cost or pricing data to SBA when required by FAR 15.4 and support the pricing review process with accurate, timely proposal information.
Practical Implications
The contracting officer cannot treat 8(a) pricing as a purely administrative step; the price analysis must be documented and defensible under FAR 15.4.
Fair market price is a real gatekeeper. Even if the contractor is eligible and the acquisition otherwise fits the 8(a) program, the award cannot proceed if the agency would pay more than fair market value.
Timing matters. If SBA asks for the fair market price support, the 10-working-day deadline means the contracting office should keep pricing files organized and ready to transmit quickly.
Coordination failures can delay award. Missing audit support, incomplete pricing data, or slow responses to SBA requests can stall sole-source or competitive 8(a) actions.
Disagreements are expected sometimes, but they are not informal dead ends. The rule gives SBA a formal appeal path, so contracting officers should anticipate review and ensure their fair market price estimate is well supported.
Official Regulatory Text
(a) The contracting officer shall price the 8(a) contract in accordance with subpart 15.4 . If required by subpart 15.4 , the SBA shall obtain certified cost or pricing data from the 8(a) contractor. If the SBA requests audit assistance to determine the proposed price to be fair and reasonable in a sole source acquisition, the contracting activity shall furnish it to the extent it is available. (b) An 8(a) contract, sole source or competitive, may not be awarded if the price of the contract results in a cost to the contracting agency which exceeds a fair market price. (c) If requested by the SBA, the contracting officer shall make available the data used to estimate the fair market price within 10 working days. (d) The negotiated contract price and the estimated fair market price are subject to the concurrence of the SBA. In the event of a disagreement between the contracting officer and the SBA, the SBA may appeal in accordance with 19.810 .