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8(a) Firm Graduation and New Work
By Anonymous on Thursday, April 04, 2002 - 06:02 pm:

Situation - I have an 8(a) Contrator that will graduate the program on the 20th of this month but will remain a Small Disadvantage Business. I know that under the current contract anything put in place prior to the 8(a) expiration will not be affected. That is any modifications for new priced work will be okay. But, any modificaitons for new un-priced work will be considered a new contract. How will modifications for priced work that requires additional funding be affected? Thanks in advance for your help on this.

By Les on Friday, April 05, 2002 - 09:22 am:


Being in an 8(a)firm myself, I have a couple of questions.

Is the priced work being funded incrementally and/or is the priced work carried through an option or two?

By Dave Barnett on Friday, April 05, 2002 - 10:23 am:

New work after graduation cannot fall under the auspices of the 8(a) program, see the SBA rules regarding the program. I think you'll find that under 13 CFR yadda yadda (don't have the exact cite offhand but I ran into a similar situation many years ago) work within the scope e.g. changes are permitted under the contract, entirely new work can't be added to an 8(a)graduate as 8(a) effort.

By les on Friday, April 05, 2002 - 12:03 pm:

Right Dave:

CFR Title 13, part 124, section 124.514. Still needs a little interpretation.

Anonymous, I believe that if the current work is priced, and if it is within the scope than funding increases for whatever reason continues under the 8(a) auspices. This would hold true for priced options. At least that's how we've been administrated-Good luck

By joel hoffman on Friday, April 05, 2002 - 12:39 pm:

If the "new work" is within the scope of the changes clause of the contract, it shouldn't matter whether or not it is issued as an unpriced modification. Were you referring to this type work or out-of scope additional work (an "unpriced contract action")? happy sails! joel hoffman

By les on Friday, April 05, 2002 - 02:36 pm:


Unpriced actions do make the difference.

By Anonymous on Friday, April 05, 2002 - 02:41 pm:

An in-scope change isn't "new work"...

By joel hoffman on Friday, April 05, 2002 - 02:59 pm:

les, I read the above cited CFR section 124.514.
Unpriced options and out-of-scope mods are distinguished from in-scope changes, PERIOD. An 8(a)graduate may be issued an in-scope mod on an exisitng 8(a) contract.

An un-priced in-scope change (that is, a mod issued pursuant to the Changes clause)is not an "unpriced contract action" or a "new contract" or a "new action" any more than a priced change is, for the above situation. happy sails! joel

By les on Friday, April 05, 2002 - 03:49 pm:

Joel, I can agree with what you said, I was referring to unpriced  options.