1. Training on the NEW Partnership Agreements
Delegation of SBA’s Contract Execution Authority to other Federal Government Agencies
Conducted by:
The Office of Business Development
Fiscal Year 2015

2. Purpose
The purpose of the PA is to streamline the contract execution process between SBA, the participating Agency and the 8(a) firm. Federal Agencies without an executed PA must continue to process 8(a) contract awards using 13 CFR and FAR 19.8.
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3. History
The U.S. Small Business Administration (SBA) entered into an Memoranda of Understanding (MOU) with the U.S. Department of Transportation (DOT) on May 13, 1997.
On May 6, 1998, SBA signed MOUs with 25 Federal agencies to delegate its 8(a) contract authority.
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4. Overview
The Partnership Agreement (PA) represents the delegation of SBA’s contract execution authority to other federal agencies.
Currently, there are 50 executed Partnership Agreements in place which can be located at
The current PA has no expiration date; however the PA will be amended as regulations are updated.
Federal Agencies are required to maintain compliance of the PA or risk losing their “no expiration” PA date.
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5. How The Process Works
The SBA and the partnering Federal agency share the responsibility of ensuring compliance with contracting functions as outlined in the Federal Acquisition Regulation (FAR), 13 Code of Federal Regulations (CFR) 124 and any applicable agency regulations.
Although SBA delegates the authority to sign contracts on its behalf, it remains the prime contractor on all 8(a) contract awards and should be cited as such on all resulting awards.
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6. Scope
The PA provides for the award of contract awards, modifications, task orders, options and purchase orders under the provisions of Section 8(a) of the Act as implemented by the FAR 19.8 and Title 13 CFR,
The PA encompasses all competitive and non-competitive acquisitions offered and accepted* for the 8(a) BD program.
*Offer and acceptance is not required in the case of procurement requirements valued at or below the Simplified Acquisition Threshold.
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7. Establishment of the 8(a) Business Development Program
Sections 7(j) and 8(a) of the Small Business Act (the Act) (15U.S.C. § 636(j) and 637(a) authorize the U.S. Small Business Administration (SBA) to establish a business development program, which is known as the 8(a) Business Development (BD) Program.
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8. 8(a) BD Program Objective
To provide various forms of assistance to foster the business development and growth of small business concerns owned and controlled by socially and economically disadvantaged individuals to enable such concerns to compete in the mainstream of the American economy.
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9. What is the 8(a) BD Program?
It is a business assistance program for small disadvantaged businesses. The 8(a) Program offers a broad scope of assistance to firms that are owned and controlled at least 51% by socially and economically disadvantaged individuals*.
* Presumed groups- Black Americans, Hispanic Americans, Native Americans, Asian Pacific Americans, Subcontinent Asian American
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10. Benefits of Using the 8(a) BD Program
Participants can receive sole-source contracts, up to a ceiling of $4 million for goods and services and $7 million for manufacturing. While we help 8(a) firms build their competitive and institutional know-how, we also encourage you to participate in competitive acquisitions.
8(a) firms are also able to form joint ventures and teams to bid on contracts. This enhances the ability of 8(a) firms to perform larger prime contracts and overcome the effects of contract bundling, the combining of two or more contracts together into one large contract.
No Fees
Assist in the growth of socially and economically disadvantaged concerns to compete in the mainstream economy.
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11. SBA’s Responsibilities
SBA shall review offering letters, issue acceptance or rejection letters, and make 8(a) eligibility determinations for contract award.
SBA shall review all proposed joint venture agreements involving 8(a) Participants before 8(a) contract award.
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12. Requirements 12/31/2018 www.sba.gov
Acquisitions valued at or below Simplified Acquisition Threshold (SAT)
Sole Source Procurements
Competitive Acquisitions
$3.5K-$150K
$4 M/$7M (mfg)
>$4.0M/$7M (mfg)
No offering and acceptance Required
Offering and acceptance is required.
Allow 5 working days at District office level. On 6th day acceptance may be assumed with the exception for provision of FAR for 8(a) sole-source procurements that exceed $22 million.*
Allow 5 working days at District office level. If necessary 5 working days at AA/BD Level; on 11th day acceptance may be assumed.
Must obtain an eligibility determination.
Offer and acceptance serves as an eligibility determination.
Must obtain an eligibility determination prior to award.
*The SBA may not accept for negotiation a Sole Source 8(a) contract that exceeds $ 22 million unless the requesting agency has completed a justification accordance with the requirements of
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13. SBSBA’s Responsibilities (cont’d.)A’s
Sole-Source Procurements over $22 million:
For procurements over $22 million, where an acceptance or rejection letter has not been received by the 5th working day, the agency must seek acceptance through SBA’s (POC) Sharon Gurley at for the approval of the Associate Administrator, Office of Business Development (AA/BD).
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14. SBASBA’s Responsibilities (cont.)
Effective date April 18, 2012, an agency must complete a Justification and Approval (J&A) for all Sole Source procurements over $22 Million (FAR ).
During the offering of the procurement, an agency must certify to SBA that it has executed a (J&A) in accordance with the provisions of FAR
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15. Procuring Agency Responsibilities
Requirements
The contracting office shall not award a sole-source contract under the 8(a) authority (15.U.S.C. 637(a) for an amount exceeding $22 million unless-
The contracting office justifies the use of a sole-source contract in writing in accordance with ;
The justification is approved by the appropriate official designated at 6.304; and
The justification and related information are made public after award in accordance with
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16. Procuring Agency’s Responsibilities (cont’d)
Content of a J & A
As a minimum, each justification for a sole-source 8(a) contract over $22 million shall include the following information:
A description of the needs of the agency concerned for the matters covered by the contract.
A specification of the statutory provision providing the exception from the requirement to use competitive procedures in entering into the contract (see FAR ).
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17. Procuring Agency’s Responsibilities (cont’d.)
A determination that the use of a sole-source contract is in the best interest of the agency concerned.
A determination that the anticipated cost of the contract will be fair and reasonable.
Such other matters as the head of the agency concerned shall specify for purposes of this section.
Contracting Officer must certify that the required J&A has been completed. **NOTE: The J&A must be executed prior to contract negotiations.
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18. Procuring Agency’s Responsibilities (cont’d)
The procuring agencies must inform all contracting officers and other warranted officials who award 8(a) contracts of their responsibilities concerning the Partnership Agreement.
The partner Federal agency is required to adhere to all provisions of contractual assistance identified in CFR through ; as well as the applicable provisions of the FAR 19.8.
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19. Procuring Agency’s Responsibilities (cont’d.)
A procuring agency should determine which requirements are suitable for offering to the 8(a) BD program in accordance with FAR Part and work with the appropriate SBA district office to identify 8(a) Participants capable of performing these requirements, i.e., Washington District Office , Baltimore District Office , Richmond District Office
Shall request an eligibility determination from SBA’s district office responsible for servicing the selected 8(a) Participant when an 8(a) Participant has been identified on all acquisitions valued at or below the simplified acquisition threshold prior to issuance of the award.
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20. Procuring Agency’s Responsibilities (cont’d.)
Shall monitor the 8(a) firm for compliance with the Limitations on Subcontracting requirements of FAR by including provisions on all contract awards, modifications, task orders, options and purchase orders awarded under the 8(a) BD Program. (13CFR & 125.6)
Subcontracting Limitations
51% services
15% constructions
25% specials
40% of JV’s work must be performed by the protégé
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21. Procuring Agency’s Responsibilities (cont’d.)
For competitive 8(a) requirements, the contracting officer, or other warranted official shall submit the offering letter to the SBA district office that services the geographical area where the partner Federal agency’s contracting activity is located.
The offering letters for construction work will be sent to the SBA district office located in the geographical area where the work will be performed, or, in the case of construction contracts to be performed overseas, the offering letter shall be submitted to SBA’s Headquarters.
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22. Procuring Agency’s Responsibilities (cont’d.)
Each agency shall:
require SBA’s approval of novation agreements submitted by the 8(a) Participant; when applicable CFR and
2) shall provide a copy of any signed contract, as defined in FAR and CFR (b) including modifications, options and purchase orders to the SBA servicing district office within 15 working days from the date of award.
3) require advance notice to SBA (as the prime contractor) prior to issuance of a final notice terminating the contract in whole or in part. CFR
4) shall ensure that the SBA has approved a joint venture agreement prior to the award of an 8(a) contract on behalf of the joint venture. CFR (2)(B)(e)
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23. Contract Execution
The agency’s contracting officer may make direct award of a contract to the 8(a) Participant, but only after the requirement has been offered to and accepted by SBA, with the exception of acquisitions valued at or below the simplified acquisition threshold where no offer and acceptance is required.
Contract execution shall be on the appropriate form specified in FAR Part 19.
If you are experiencing problems with System for Award Management (SAM), please reference Dynamic Small Business Search (DSBS)
Indian Tribes, ANCs and NHOs may be awarded a sole source 8(a) contract where the anticipated value of the procurement exceeds the applicable sole source threshold if SBA has not accepted the requirement into the 8(a) BD program as a competitive procurement.
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24. Competition below Thresholds – Sole Source above Thresholds
Competition below thresholds – SBA’s POC Stanley Jones will receive request for the AA/BD, who on a nondelegable basis may approve a request from a procuring activity to compete a requirement that is below the applicable competitive threshold amount among eligible Participants.
Sole source above thresholds – Where a contract opportunity exceeds the applicable threshold amount and there is not a reasonable expectation that at least two eligible 8(a) Participants will submit offers at a fair price, to SBA’s (POC) Stanley Jones for the AA/BD who may accept the requirement for a sole source 8(a) award if it is determined that an eligible Participant in the 8(a) portfolio is capable of performing the requirement at a fair price.
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25. Repetitive Acquisitions
A procuring activity contracting office must submit a new offering letter to SBA where he or she intends to award a follow-on or repetitive contract as an 8(a) award. (13 CFR )
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26. Basic Ordering Agreements (BOA)
A Basic Ordering Agreement (BOA) is not a contract under the FAR. See 48 CFR (a). Each order to be issued under the BOA is an individual ordering agreement. As such, the procuring activity must offer, and SBA must accept, each task order under a BOA in addition to offering and accepting the BOA itself.
SBA will not accept for award on a sole-source basis any order that would cause the total dollar amount of orders issued under a specific BOA to exceed the competitive threshold amount in FAR
Once an 8(a) concern’s program term expires, the concern otherwise exits the 8(a) Program., or becomes other than small for the NAICS code assigned under the BOA, SBA will not accept new orders for the concern. (13 CFR (4)(g) and FAR )
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27. Release of Contracts from the 8(a) BD Program
Except as set forth in CFR (d)(4), where a procurement is awarded as an 8(a) contract, its follow-on or renewable acquisition must remain in the 8(a) BD program unless SBA agrees to release it for non-8(a) competition. If a procuring agency would like to fulfill a follow-on or renewable acquisition outside of the 8(a) BD program, it must make a written request to SBA’s (POC) Stanley Jones and receive the concurrence of the AA/BD to do so.
Please refer to CFR (3)(d) for determination of whether to release a requirement from the 8(a) BD program.
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28. Conditions of the Partnership Agreement
Contracts awarded to 8(a) firms outside the 8(a) authority will continue to be counted toward Small Disadvantaged Business (SDB) negotiated goals.
SBA reserves the right to suspend or rescind its authority to an Agency for failure of any 8(a) contract compliance to include offerings, acceptance, copies of resultant awards and any other violation of the PA.
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29. Resources
Helpful Tips for applying to the 8(a) Business Development Program
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30. SAMPLE OFFERING LETTER
__________District Office
U.S. Small Business Administration
Attn: Business Opportunity Specialist (Name)
Address for District Office
Address
Dear BOS:
Pursuant to the Federal Acquisition Regulation (FAR) , the Agency Name hereby offers to issue a firm, _________contract to sole source (8(a) firm name and address)/competitive. This contract will be for the required need.
The following information is applicable to the proposed acquisition.
Work to be performed:
Estimated Performance Period: Base Including Options
NAICS Codes:
Estimated Dollar Value: Base Including Options
Place of Performance: Any special restrictions or geographical limitations on the requirement (for construction, include the location of the work to be performed).
Special Capabilities Needed: (If applicable)
Contract Type:
Acquisition History: The acquisition history, if any, of the requirement, including the names and addresses of any small business contractors that have performed this requirement during the previous 24 months..
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31. SAMPLE OFFERING LETTER (cont’d)
Communication Statement: A statement that prior to the offering no solicitation for the specific acquisition has been issued as a small business, HUBZone, service-disabled veteran-owned small business set-aside, or a set-aside under the Women-Owned Small Business (WOSB) Program, and that no other public communication (such as a notice through the Governmentwide point of entry (GPE)) has been made showing the contracting agency’s clear intention to set-aside the acquisition for small business, HUBZone small business, service-disabled veteran-owned small business concerns, or a set-aside under the WOSB Program.
Identification of an 8(a) Concern Designated for Consideration:
Bonding Requirements: (If applicable)
Identification of SBA field Offices that have showed an interest in this acquisition:
Recommendation:
A request, if appropriate, that a requirement with an estimated contract value under the applicable competitive threshold be awarded as an 8(a) competitive contract (see (d)).
A request, if appropriate, that a requirement with a contract value over the applicable competitive threshold be awarded as a sole source contract (see (b))
Any other pertinent and reasonably available data.
 An agency offering a construction requirement for which no specific offeror is nominated should submit it to the SBA District Office for the geographical area where the work is to be performed.
An agency offering a construction requirement on behalf of a specific offeror should submit it to the SBA District Office servicing that concern.
Sole source requirements, other than construction, should be forwarded directly to the district office that services the nominated firm. If the contracting officer is not nominating a specific firm, the offering letter should be forwarded to the district office servicing the geographical area in which the contracting office is located.
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32. SAMPLE OFFERING LETTER (cont’d)
All requirements for 8(a) competition, other than construction, should be forwarded to the district office servicing the geographical area in which the contracting office is located. All requirements for 8(a) construction competition should be forwarded to the district office servicing the geographical area in which all or the major portion of the construction is to be performed. All requirements, including construction, must be synopsized through the GPE. For construction, the synopsis must include the geographical area of the competition set forth in the SBA’s acceptance letter.
Other: For procurements over $22 million the contracting office shall not award a sole-source contract under the 8(a) authority (14.U.S.C. 637(a) unless –
The contracting office justifies the use of a sole-source contract in writing in accordance with ;
The justification is approved by the appropriate official designated at 6.304; and
The justification and related information are made public after award in accordance with
Contracting officer must certify in this offering letter that the required J&A has been completed.
Agency name intends to award this contract in accordance with the Memorandum of Understanding (MOU) dated 10/2012 as amended, between the Small Business Administration (SBA) and your agency name.
Agency name hereby requests that SBA determine whether to accept the requirement for the 8(a) program and transmit its decision in writing as soon as possible but not later than 5 working days of receipt of this offer. Request the acceptance letter to be sent to POC. If you have any questions or need additional information, please call POC.
Sincerely,
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33. SBA’s Point of Contact 12/31/2018 www.sba.gov Sharon Gurley
Director, Office of Program Review
Office of Business Development
U.S. Small Business Administration
409 3rd Street, SW
Washington, DC
(202)
Melinda Edwards
Program Analyst, Office of Program Review
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