FAR 19.808-1—Sole source.
Plain-English Summary
FAR 19.808-1 explains how sole-source awards under the SBA’s 8(a) Business Development program are handled. It covers when the SBA may not accept a sole-source 8(a) requirement for negotiation without a written justification over the $30 million threshold, how and when the SBA must begin negotiations with the procuring agency, what happens if SBA does not start negotiations on time, the SBA’s role in negotiating contract terms and approving the final contract, the requirement that the 8(a) participant certify it is small under the applicable NAICS size standard, the requirement that the firm be a current 8(a) participant at the time of award, and a special restriction on certain follow-on sole-source awards to entities owned by Alaska Native Corporations, Indian Tribes, Native Hawaiian Organizations, or Community Development Corporations. In practice, this section is about timing, eligibility, and approval controls for sole-source 8(a) acquisitions. It ensures the agency has a lawful basis for a large sole-source award, the SBA remains involved in the negotiation and approval process, and the selected firm is eligible both as an 8(a) participant and as a small business under the assigned NAICS code. For contracting officers, it is a process-control rule that can affect acquisition strategy, schedule, and source selection. For contractors, it is a reminder that 8(a) eligibility must be current and properly represented at the time of award, and that certain follow-on opportunities may be barred by ownership-based restrictions.
Key Rules
Large sole-source justification
The SBA may not accept a sole-source 8(a) contract over $30 million for negotiation unless the requesting agency has completed a justification under FAR 6.303. This ties large 8(a) sole-source awards to the same justification discipline used for other sole-source acquisitions.
SBA starts negotiations
The SBA must initiate negotiations with the agency within the time the agency sets. If SBA does not begin negotiations on time and the agency cannot grant more time, the agency may notify SBA and proceed to obtain the requirement from other sources.
SBA approval before award
The SBA should participate in negotiating contract terms whenever practicable, and may authorize the contracting officer to negotiate directly with the 8(a) participant if both sides agree. Even when direct negotiations occur, SBA must approve the resulting contract before award.
Small business representation required
The 8(a) participant must represent that it is a small business under the size standard associated with the NAICS code assigned to the contract. This is a separate eligibility representation tied to the specific procurement.
Must be current 8(a) participant
A concern must be an active participant in the 8(a) program at the time of the sole-source award. Past participation is not enough; eligibility must exist when the award is made.
Follow-on restriction for certain owners
An 8(a) participant owned by an ANC, Indian Tribe, NHO, or CDC cannot receive a sole-source 8(a) follow-on award if the predecessor contract was performed by another 8(a) participant or former 8(a) participant owned by the same entity. This restriction is implemented with reference to 13 CFR 124.109 through 124.111.
Responsibilities
Requesting Agency
Prepare the required justification for sole-source 8(a) awards over $30 million under FAR 6.303 before SBA can accept the requirement for negotiation. Set the time for SBA to initiate negotiations, decide whether additional time can be allowed, and if SBA misses the deadline and no extension is possible, notify SBA and proceed to other sources if appropriate.
Small Business Administration (SBA)
Accept sole-source 8(a) requirements for negotiation only when the required justification exists for awards over $30 million. Initiate negotiations with the agency within the agreed time, participate in negotiating terms whenever practicable, approve the final contract before award, and coordinate any authorization for direct negotiations between the contracting officer and the 8(a) participant.
Contracting Officer
Work with SBA and the agency to conduct negotiations, including direct negotiations if SBA authorizes them. Ensure the contract is not awarded until SBA approval is obtained, verify the selected firm’s current 8(a) status and small-business representation, and confirm that any applicable follow-on restriction does not bar the award.
8(a) Participant
Represent that it is a small business under the NAICS size standard assigned to the contract. Maintain current participation in the 8(a) program through the time of award and ensure it is eligible for the specific sole-source award, including any ownership-based follow-on limitations.
Agency Acquisition Officials
Support the acquisition strategy and timing needed for SBA negotiation, maintain documentation for the justification and negotiation process, and ensure the requirement is routed appropriately if SBA cannot begin negotiations within the required time.
Practical Implications
For large sole-source 8(a) buys, the justification requirement can be a schedule driver; if the agency has not completed the FAR 6.303 justification, SBA cannot accept the action for negotiation.
The negotiation timeline matters. Agencies should set realistic deadlines and track SBA responsiveness, because failure to start negotiations on time can force the agency to look outside the 8(a) program.
SBA approval is still required even when the contracting officer negotiates directly with the participant, so direct talks do not eliminate SBA oversight or the need for final approval.
Eligibility must be checked at award, not just at market research or offer submission. A firm that is no longer a current 8(a) participant, or that cannot properly represent itself as small under the assigned NAICS code, should not receive the award.
The ANC/Tribe/NHO/CDC follow-on restriction can block what otherwise looks like a valid sole-source 8(a) opportunity, so contracting officers should trace the predecessor contract’s ownership and performer history before proceeding.
Official Regulatory Text
(a) The SBA may not accept for negotiation a sole-source 8(a) contract that exceeds $30 million unless the requesting agency has completed a justification in accordance with the requirements of 6.303 . (b) The SBA is responsible for initiating negotiations with the agency within the time established by the agency. If the SBA does not initiate negotiations within the agreed time and the agency cannot allow additional time, the agency may, after notifying the SBA, proceed with the acquisition from other sources. (c) The SBA should participate, whenever practicable, in negotiating the contracting terms. When mutually agreeable, the SBA may authorize the contracting officer to negotiate directly with the 8(a) participant. Whether or not direct negotiations take place, the SBA is responsible for approving the resulting contract before award. (d) An 8(a) participant must represent that it is a small business in accordance with the size standard corresponding to the NAICS code assigned to the contract. (e) A concern must be a current participant in the 8(a) program at the time of an 8(a) sole-source award. (f) An 8(a) participant owned by an Alaska Native Corporation, Indian Tribe, Native Hawaiian Organization, or Community Development Corporation may not receive an 8(a) sole-source award that is a follow-on contract to an 8(a) contract, if the predecessor contract was performed by another 8(a) participant (or former 8(a) participant) owned by the same Alaska Native Corporation, Indian Tribe, Native Hawaiian Organization, or Community Development Corporation (See 13 CFR 124.109 through 124.111).