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8a Graduates

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8a is awarded an IDIQ for a base and 4 option years. In year 2 the firm graduates from the 8a program. Can optional years 2,3 and 4 be awarded if the firm is no longer in the program?

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8a is awarded an IDIQ for a base and 4 option years. In year 2 the firm graduates from the 8a program. Can optional years 2,3 and 4 be awarded if the firm is no longer in the program?

Based upon the following extract from the CFR, I believe you can exercise the option. Check your agency regs to see if there is a discussion of what constitutes "best interests of the Government". Also, check your agency regs to see how you report the transaction in FPDS. You may not be able to code the action as one with an 8(a) firm.

This is from 13CFR124.514, effective 1 January 2009. Paragraph b appears to apply to you.

Quote

TITLE 13--BUSINESS CREDIT AND ASSISTANCE

CHAPTER I--SMALL BUSINESS ADMINISTRATION

PART 124_8(a) BUSINESS DEVELOPMENT/SMALL DISADVANTAGED BUSINESS STATUS

DETERMINATIONS--Table of Contents

Subpart A_8(a) Business Development

Sec. 124.514 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 set forth in Sec. 124.506, 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.

© 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.

Unquote

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