SBA 8(a) Certification
Facts
 Exercise of 8(a) options and
modifications.
(a) Unpriced options. The
exercise of an unpriced option is considered to be a new contracting action.
(1) If a concern has graduated or been terminated from the 8(a) BD program or is no longer
small under the size standard corresponding to the SIC code for the requirement,
negotiations to price the option cannot be entered into and the option cannot be
exercised.
(2) If the concern is still a
Participant and otherwise eligible for the requirement on a sole source basis, the
procuring activity contracting officer may negotiate price and exercise the option
provided the option, considered a new contracting action, meets all regulatory
requirements, including the procuring activity's offering and SBA's acceptance of the
requirement for the 8(a) BD program.
(3) If the estimated fair market price of the option exceeds the applicable threshold
amount, the requirement must be competed as a new contract among eligible Participants.
(b) Priced options. The procuring activity contracting officer may exercise a priced
option to an 8(a) contract whether the concern that received the award has graduated or
been terminated from the 8(a) BD program or is no longer eligible if to do so is in the
best interests of the Government.
(c) Modifications beyond the
scope. A modification beyond the scope of the initial 8(a) contract award is considered to
be a new contracting action. It will be treated the same as an unpriced option as
described in paragraph (a) of this section.
(d) Modifications within the scope. The procuring activity contracting officer may
exercise a modification within the scope of the initial 8(a) contract whether the concern
that received the award has graduated or been terminated from the 8(a) BD program or is no
longer eligible if to do so is in the best interests of the Government.
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