{"id":897850,"date":"2020-08-19T11:04:51","date_gmt":"2020-08-19T17:04:51","guid":{"rendered":"https:\/\/www.myconstructionexpert.com\/blog\/?p=897850"},"modified":"2020-08-19T11:04:56","modified_gmt":"2020-08-19T17:04:56","slug":"sole-source-threshold-implications","status":"publish","type":"post","link":"https:\/\/www.myconstructionexpert.com\/blog\/sole-source-threshold-implications\/","title":{"rendered":"Practical Implications of DoD $100 Million 8(a) Sole-Source Threshold Increase"},"content":{"rendered":"\n<p>Aron C. Beezley and Nathaniel J. Greeson | <a rel=\"noreferrer noopener\" href=\"https:\/\/www.buildsmartbradley.com\/2020\/08\/practical-implications-of-dod-100-million-8a-sole-source-threshold-increase\/?utm_source=Bradley+Arant+Boult+Cummings+LLP+-+BuildSmart&amp;utm_campaign=49ab6e905e-RSS_EMAIL_CAMPAIGN&amp;utm_medium=email&amp;utm_term=0_b504caf31b-49ab6e905e-78863422\" target=\"_blank\">Buildsmart<\/a><\/p>\n\n\n\n<p>We recently\u00a0<a rel=\"noreferrer noopener\" href=\"https:\/\/www.buildsmartbradley.com\/2020\/07\/dod-formally-increases-8a-sole-source-threshold-to-100-million\/\" target=\"_blank\">wrote about\u00a0<\/a>the Department of Defense (DoD) amendment to the Defense Federal Acquisition Regulation Supplement (DFARS) to increase the threshold for requiring defense contracting agencies to issue sole-source justifications to companies participating in the Small Business Administration\u2019s (SBA) 8(a) program. The amendment \u2013\u00a0DFARS 206.303-1\u00a0\u2013 increased the DoD threshold from $22 million to $100 million.<\/p>\n\n\n\n<p>We have received questions about what this means for different small business concerns, so we wanted to follow-up on the previous&nbsp;<a href=\"https:\/\/www.buildsmartbradley.com\/2020\/07\/dod-formally-increases-8a-sole-source-threshold-to-100-million\/\" target=\"_blank\" rel=\"noreferrer noopener\">blog post<\/a>&nbsp;to discuss the practical implications for small businesses interested in receiving larger sole-source contracts.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Which Agencies Does This Impact?<\/strong><\/h2>\n\n\n\n<p>As an initial matter, this amendment only impacts\u00a0<em>defense<\/em>\u00a0agencies subject to the DFARS. The applicable threshold for\u00a0<em>civilian<\/em>\u00a0agencies and contracting officers, however, has not changed and remains $22 million (13 C.F.R. \u00a7 124.506(b)(5), and (d)). \u00a0The Federal Acquisition Regulation (FAR) Council often follows the lead of DFARS developments, so the civilian threshold may increase to match the new DFARS threshold, but for now it remains unchanged at $22 million.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>How Can My Company Receive a $100 Million Sole-Source Contract?<\/strong><\/h2>\n\n\n\n<p>Notably, this threshold increase does not impact SBA\u2019s competition requirements or the tribal and Alaska Native Corporation (ANC) exceptions of\u00a013 C.F.R. \u00a7 124.506. That is, for requirements under $4 million ($7 million for manufacturing requirements), contracting officers may still issue sole-source awards. For requirements over these $4 million and $7 million thresholds, contracting officers must still complete 8(a) contracts if \u201c[t]here is a reasonable expectation that at least two eligible Participants will submit offers at a fair market price.\u201d An exception to this general rule of competition is that contracting officers may award a sole-source contract to a tribally owned or ANC-owned concern.<\/p>\n\n\n\n<p>Accordingly, the threshold increase allows DoD contracting officers to award sole-source contracts without going through the J&amp;A process \u2013 up to $100 million \u2013 (1) if the requirement has not already been awarded to a tribally owned or ANC-owned concern and (2) if there is not a reasonable expectation for 8(a) competition. The threshold increase makes it even easier to award larger sole-source contracts to tribally and ANC-owned concerns, but also allows for other 8(a) concerns to receive these larger sole-source opportunities when there is not a reasonable expectation for another 8(a) competitor. It is important for all 8(a) concerns to know their DoD customers\u2019 needs, and just as important for DoD customers to know the expertise and capacity of 8(a) companies, so that both parties can be ready when a sole-source opportunity manifests.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Aron C. Beezley and Nathaniel J. Greeson | Buildsmart We recently\u00a0wrote about\u00a0the Department of Defense (DoD) amendment to the Defense Federal Acquisition Regulation Supplement (DFARS) to increase the threshold for requiring defense contracting agencies to issue sole-source justifications to companies participating in the Small Business Administration\u2019s (SBA) 8(a) program. The amendment \u2013\u00a0DFARS 206.303-1\u00a0\u2013 increased the&hellip; <a class=\"more-link\" href=\"https:\/\/www.myconstructionexpert.com\/blog\/sole-source-threshold-implications\/\">Continue reading <span class=\"screen-reader-text\">Practical Implications of DoD $100 Million 8(a) Sole-Source Threshold Increase<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false},"version":2}},"categories":[14],"tags":[9895,11268,11269],"class_list":["post-897850","post","type-post","status-publish","format-standard","hentry","category-construction-2","tag-advise-consult","tag-department-of-defense","tag-sole-source-threshold","entry"],"jetpack_publicize_connections":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.0 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Practical Implications of DoD $100 Million 8(a) Sole-Source Threshold Increase - Advise &amp; 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