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LOE Increase SBA involvement

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Our company has completed or currently ongoing 41 prime contracts with the Federal Gov't. We're an 8(a) company and some of these have been sole sourced. On a sole source contract something interested happened today and I wanted the expertise of this group to see if this is something that happens on every contract...

A sole source was awarded last year to us and we've known about the LOE that was coming our way. In the past the LOE was sent from the CO to us with the modifications/additional workload outlined in the PWS and we respond accordingly. Our SBA rep calls and says she has this LOE and wanted to ask some questions before she "approved" it. So I answered her questions (subcontractor percentages). There's one FTE out of 27 that's on subcontract with another firm because it's specialized expertise.


Does the SBA approve all LOEs on sole sourced contracts and just this one time decided to pick up the phone and call?

Does the SBA montior subcontractor percentages? I, and the COTR, thought that was the contracting shop's responsibility. She was a little pissed that the SBA was asking.

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I am traveling so cannot provide specific reference other than 13 CFR 124 will provide support to my comments.

SBA may review LOE, remember they are the prime of sorts so have responsibility to do so prior to an offering or even post offering during performance.

Yes SBA can review your subcontractor effort it is a matter of your continuing eligibilty for the program.

Sounds like SBA in your case is redeeming their responsibility. They should and too bad they donot do it more often.

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