SBA Partnership Agreement

The SBA partnership agreement represents the delegation of the SBA’s 8(a) contract execution authority to other federal agencies. The purpose of the SBA partnership agreement is to streamline the contract execution process between the SBA, the participating federal agency and the 8(a) participant. Federal agencies without an executed partnership agreement must continue to process 8(a) contracts using the procedures of CFR § 124.508 and FAR § 19.8.

Currently, SBA has 50 executed partnership agreements. The other agreements related to the SBA partnership agreement for the following agencies:

• Agency for International Development
• Broadcasting Board of Governors-International Broadcasting Bureau
• Commission on Civil Rights
• Commodity Futures Trading Commission
• Consumer Product Safety Commission
• Court Services and Offender Supervision Agency
• Defense Nuclear Facilities Safety Board
• Department of Agriculture
• Department of Commerce
• Department of Defense
• Department of Education
• Department of Energy
• Department of Health and Human Services
• Department of Homeland Security
• Department of Housing and Urban Development
• Department of the Interior
• Department of Justice
• Department of Labor
• Department of State
• Department of Transportation
• Department of Treasury
• Department of Veterans Affairs
• Environmental Protection Agency
• Equal Employment Opportunity Commission
• Executive Office of the President, Office of Administration
• Federal Communications Commission
• Federal Deposit Insurance Corporation
• Federal Housing Finance Agency
• Federal Trade Commission
• General Services Administration
• Government Accountability Office
• Institute of Museum and Library Services
• International Boundary and Water Commission
• International Trade Commission
• Millenium Challenge Corporation
• National Aeronautics and Space Administration
• National Archives and Records Administration
• National Labor Relations Board
• National Science Foundation
• National Transportation Safety Board
• Nuclear Regulatory Commission
• Office of Personnel Management
• Overseas Private Investment Corporation
• Peace Corps
• Pension Benefit Guaranty Corporation
• Securities and Exchange Commission
• Smithsonian Institution
• Social Security Administration
• Trade and Development Agency
• United States Capitol Police

Statutory basis of the SBA partnership agreement

Sections 7 (j) and 8 (a) of the Small Business Act authorize the U.S. Small Business Administration (SBA) to establish a business development program. This is known as the 8 (a) Business Development (BD) Program. The 8 (a) BD Program enhances the development of small business concerns owned and controlled by socially and economically disadvantaged persons. Hence such concerns could compete in the mainstream of the American economy. Small business developments are accomplished through the provision of various management forms, financial, procurement, and technical assistance. Moreover, pursuant to Section 8 (a) of the Act, the SBA partnership agreement is allowed. Hence SBA is authorized to enter into all types of contracts with other Federal agencies. It is also permitted to subcontract the performance of the contracts to be qualifies participants in the 8 (a) BD Program.

Purpose of the SBA partnership agreement

The purpose of the SBA partnership agreement is delegating the SBA’s contract execution functions to the U.S. Department of Defense. This is as per the requirements of 13 Code of Federal Regulations. Further, the SBA partnership agreement sets forth the delegation of authority and establishes basic procedures. Such aid in expediting the award of 8 (a) contract requirements. Moreover, the SBA partnership agreement replaces all the conditions and terms of any previously executed Memorandum of Understanding (MOU) or SBA partnership agreement.

Failing to sign the SBA partnership agreement requires the American Department of Defense to utilize the prescribes processes. Such is in contracting with the SBA state in the Federal Acquisition Regulation (FAR0 subpart 19.8.

Objectives of the SBA partnership agreement

1. Delineating responsibilities in relation the monitoring, oversight, and complying with procurement regulations and laws that govern 8 (a) contracts. This is between the SBA and American Department of Defense.
2. The agreement also aims at establishing the procedures for offer and acceptance between the SBA and the American Department of Defense.
3. The agreement has the goal of responding to offering letters within 5 working days. Such applies when the contract is values at more than the simplified acquisition threshold. Within two days of receipt, the contract is values either at or below the simplified acquisition threshold.
4. The SBA partnership agreement also emphasizes that though SBA delegates the authority to sign contracts on its behalf, it remains the prime contractor. This is in relation to the contract awards, options, modifications and purchase orders.
5. The SBA partnership agreement establishes uniform policies and procedures regarding the application of contracts and purchase orders to the 8 (a) contracting process.
6. The SBA partnership agreement aids in monitoring the American Department of Defense of all conditions stated in the PA quarterly.
7. The SBA partnership agreement also rescinds or suspends the delegation of the PA if the American department of defense has violated any terms and conditions of the SBA partnership agreement.

Scope of the SBA partnership agreement

The SBA partnership agreement provides for the award of contracts, options, modifications and purchase orders under the provisions of Section 8 9a) of the Act. The agreement entails competitive and non-competitive acquisitions of the requirements offered by the American Department of Defense. The SBA partnership agreement applies to all the SBA offices and all th US Department of Defense contracting offices. This is as defined FAR S 2.101 and deemed appropriate by the head agency.

Responsibilities contained in the SBA partnership agreement

The SBA partnership agreement vests several responsibilities in the SBA. Such include:

1. Delegating to the US Department of Defense for re-delegation to all the warranted US Department of Defense’s contracting officers. Its authority is stated in section 8 (a) (1) (A) of the Act to enter into 8 (a) prime contracts. Further, section 8 (a) (1) (B) of the Act to arrange for the performance of such procurement contracts by eligible 8 (a) participants.
2. Implementation of the responsibilities under the SBA partnership agreement through uniform procedures and use of SBA offices.
3. Training the U.S. Department of Defense contracting officers and small businesses specialists, on the SBA’s 8 9a) BD Program and various aspects of the SBA partnership agreement.
4. Reviewing the U.S. Department of Defense’s offering letters, issue acceptance or rejection letters, and making eligibility determination for the award.
5. Reviewing and approving all proposed joint venture agreements that involve 8 (a) participants before 8 (a) contract award.
6. Retaining appeal authority.
7. Retaining the right to perform on-site agency reviews to ensure compliance with contracts.
8. Identifying a requirement for an 8 (a) participant for a possible award.
9. Retaining the responsibility for ensuring that 8 (a) participants comply with all applicable provisions relating to the continuing eligibility for 8 (a) BD Program participation.

Responsibilities of the U.S. Departments of Defense

1. Receiving and retaining the SBA delegation of contract execution and reviewing functions by reporting all contract awards, modifications, purchase orders and options.
2. Adhering to all provisions of contractual assistance identified in the relevant statute.
3. Determining the requirements are suitable for offering to the 8 (a) BD program.
4. Retaining responsibility for compliance with the limitations on subcontracting requirement and all applicable provisions of the FAR.
5. Providing a copy of the signed contract including modifications, options and purchase orders executed.
6. Informing the contracting officers and other warranted officials and their equivalents that are awarding contracts of the responsibilities concerning the agreement.
7. Requesting determination of eligibility from the SBA district office responsible for servicing the selected 8 (a0 participants when an 8 (a) participant is identified.

Execution of the contract

The American Department of Defense contracting officer may take direct award of a contract to the 8 (a) participant. However, this only happens when the requirement has been offered to and accepted by the SBA. Further, acquisitions valued at or below the simplified acquisition threshold defined in FAR require no offer or acceptance letter.

Term and termination

The SBA partnership agreement is effective on the date of the SBA’s signature. The agreement does not have an expiration date. However, it could be suspended based on violation of the agreement’s terms and conditions. Either the American Department of Defense or SBA could terminate the agreement. This is as long as a 30-day calendar notice is served to the other party and should be in writing.

Amendment of the agreement

The agreement may be amended in writing any time through a mutual agreement by the parties.

Conditions

1. Contracts awarded to 8 (a) firms outside the authority stipulated will continue to be considered in the SDB goals.
2. SBA reserves the right to suspend or rescind the authority of the agreement with the U.S. Department of Defense for failing to submit copies of the SBA contract awards, modification, purchase orders, and options.
3. SBA reserves the right to rescind or suspend the authority of the agreements with the U.S. Department of Defense for failing to update the Federal Procurement Data System.
4. SBA has the right t conduct periodic compliance on-site agency reviews of the files of all contracts awarded pursuant to Section 8 (a) authority and this Agreement.
5. Where a procurement is awarded as a contract and its follow-on or renewable acquisition must remain in the BD program.

References

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