SBA has statutory authority (15 U.S.C. 637(b) (7)) to certify the competency (responsibility) of any small business concern as to capacity and credit. "Capacity" means the overall ability of a prospective small business contractor to meet quality, quantity, and time requirements of a proposed contract and includes ability to perform, organization, experience, technical knowledge, skills, know-how, technical equipment and facilities.

§ 3-1.708-2 Applicability and procedure.

(a) If a bid or proposal of a small business concern is to be rejected solely because the contracting officer has determined the concern to be non-responsible as to capacity or credit, the matter shall be referred to the appropriate SBA field office having authority to process the referral in the geographical area where the small business concern is located. If required, guidance as to the location of the appropriate SBA field office may be obtained from the SBA representative assigned to the procurement office or the nearest SBA field office. Under no circumstances will a referral be made to the SBA prior to a determination by the contracting officer that a bid or proposal of the small business concern is responsive. Concurrent referrals of two or more bids or proposals, rejected because of lack of capacity or credit for a proposed award, shall not be made to SBA by the contracting officer. Final processing of a case, including possible issuance of a certificate of competency, must be completed by SBA on each referral before the contracting officer may proceed with an additional referral to SBA on the proposed award. The award shall be withheld pending either SBA

issuance of a certificate of competency or the expiration of 15 working days after SBA is so notified, whichever is earlier, subject to the following:

(1) This procedure is not mandatory if the contracting officer certifies in writing that award must be made without delay and such certificate is approved by the principal procurement officer of the procuring activity (see § 3-1.704-4).

(2) A pre-award survey shall be made prior to a determination by a contracting officer that a small business concern is not responsible because of a lack of capacity or credit on a proposed award of more than $10,000.

(3) A determination by the contracting officer that a small business concern is not responsible for reasons other than deficiencies in capacity or credit shall be approved by the principal procurement officer of the procuring activity (see § 3-1.704-4).

(i) Prior to submission of the contracting officer's determination of nonresponsibility to the principal procurement officer of the procuring activity for approval, the contracting officer shall transmit a copy of the documentation supporting the determination through the small business specialist to the SBA representative, or the nearest SBA regional office, as appropriate.

(ii) The SBA office receiving the documentation will within 5 working days after receipt of the documentation notify the contracting officer in writing whether SBA desires to submit contrary views concerning the determination.

(iii) If the contracting officer is not so notified, he may conclude that SBA has no objection to the determination and he may then submit it to the principal procurement officer of the procuring activity for approval.

(iv) If the contracting officer does not agree with the SBA position, he shall then forward the determination to the principal procurement officer of the procuring activity for resolution with an explicit indication of his views and the contrary SBA position. The decision of the principal procurement officer shall be final.

(v) The provisions of §§ 1-1.708-2(a) (1) and 3-1.708-2(a) (1) apply if the award must be made without delay. In such instances the determination of nonresponsibility for reasons other than deficiencies in capacity or credit shall be submitted immediately to the principal procurement officer of the procuring ac

(vi) The Director of Business Affairs, OGPM, shall be informed promptly in writing of all cases where (a) a small business concern elects not to file an application for a certificate of competency, or (b) the SBA declines to issue a certificate of competency, or (c) the procurement officer reverses the pre-award survey negative finding.

In procurement where the highest competency obtainable or the best scientific approach is needed, as in certain negotiated procurements of research and development, highly complex equipment, or professional services, the certificate of competency procedure is not applicable to the selection of the source offering the highest competency obtainable or best scientific approach and, prior to award, the contracting officer determines that the concern is not responsible because of lack of capacity or credit, the certificate of competency procedure is applicable.

(b) (1) SBA field offices will notify the contracting officer of each case where they (1) plan to issue a certificate of competency, or (ii) are submitting the case to the SBA Central Office, Washington, D.C., for approval prior to issuance of a certificate of competency; and provide the contracting officer or his designated representative with a brief written statement citing the reasons for SBA's proposed affirmative action. Prior to final SBA field office action, the contracting officer will be afforded an opportunity to meet or communicate with SBA field office representatives and furnish to them new or additional information on the case. Copies of significant data developed by SBA that are pertinent to the case will be made available, upon request, to the contracting officer, or his representative, at such meeting or through correspondence. SBA case files may be examined at the meeting and pertinent notes taken by the contracting officer or his representative, but such files will not be released outside SBA.

(2) One of the following courses of action shall be taken subsequent to discussions of a meeting between representatives of the contracting officer and SBA field offices:

(1) If new and additional facts presented by the SBA field office representa

tives so warrant, the negative determination as to capacity or credit of the apparent low bidder or offeror shall be reversed, the referral to SBA shall be withdrawn, and the contract award shall be made without the necessity for issuance of a certificate of competency.

(ii) If agreement cannot be reached between the SBA field office and the contracting officer and substantial doubt still exists as to the ability (capacity or credit) of the contractor to perform, the contracting officer shall request the SBA field office to suspend action to permit referral of the case to the SBA Central Office, Washington, D.C. for review. Simultaneously, the contracting officer shall forward to the Director of Business Affairs, OGPM, through administrative channels on an expedited basis, a complete case file with a request that the case be considered for appeal to SBA, Washington, D.C. This file shall include the data specified in § 1-1.708-2(b), SBA's rationale for proposing affirmative COC action, and the contracting officer's comments thereon. If OGPM agrees with the recommended appeal action of the contracting officer, it will request in writing that the SBA Associate Administrator for Procurement and Management Assistance, Washington, D.C., review the proposed affirmative COC action of the SBA field office. If SBA, Washington, D.C. does not concur with the proposed affirmative COC action of its field office, it shall so inform the Director of Business Affairs, OGPM. If SBA, Washington, D.C. concurs with the affirmative COC action proposed by the SBA field office, it shall so inform the Director of Business Affairs, OGPM, giving reasons for its position. Thereafter and within 10 working days after receipt of written notification of SBA's proposed affirmative action, OGPM shall notify the SBA Central Office, Washington, D.C. whether a formal appeal will be made at the Cer.tral Office of SBA. The appeal shall then be presented within 10 working days after the SBA Central Office is notified that an appeal will be made or at such later date as may be agreed upon by SBA and the Director of Business Affairs, OGPM. Following the appeal, the SBA Associate Administrator shall make a determination relative to the COC action and his determination will be considered final.

(iii) If agreement cannot be reached between the contracting officer and the SBA field office, the contracting officer

As provided in the Small Business Act (15 U.S.C. 637(b) (7)), procurement agencies are required to accept SBA certificates of competency as conclusive of a prospective contractor's responsibility as to capacity and credit. The SBA will make the following distribution of such certificates of competency:

(a) Original to the cognizant HEW procurement office;

(b) Carbon copy to the operating agency's headquarters procurement office.

§ 3-1.713 Contracts with the Small Business Administration.

[37 FR 15153, July 28, 1972] § 3-1.713-1 Authority.

The SBA will make the following distribution of such certificates of competency:

(a) Original to the cognizant HEW procurement office;

(b) Carbon copy to the operating agency's headquarters procurement office; and

(c) Carbon copy to the Office of Minority Business Assistance (OMBA), OASAM.

[37 FR 15153, July 28, 1972]

§ 3-1.713-2

Policy.

(a) Every possible effort shall be made by both procurement and program personnel to seek out, counsel, and advise minority business enterprises. One of the methods to be used will be the review of the "National Roster of Minority Professional Consulting Services" to associate requirements with the capabilities of the concerns listed (see section 2.d, Exhibit X8-15-2 of the HEW General Administration Manual). The procuring activity shall then notify the SBA 8(a) office of those concerns which appear to be acceptable.

(b) Minority concerns interested in doing business with the Department should be apprised of the section 8(a) program and OMBA. In addition, they should be advised of SBA's role in the implementation of the program and directed to the Office of Business Development, Small Business Administration, 1441 L Street NW., Washington, DC 20416, or the most convenient field office thereof as listed in Exhibit X3-1.713-2-1. [37 FR 15153, July 28, 1972]

§ 3-1.713-3 Procurement of supplies, services, and research and develop

ment.

(a) Notification. Within 10 working days after receipt of the procurement package, SBA will contact the procuring activity to establish a mutually agreeable schedule for subsequent negotiation of the 8(a) contract. If SBA has not contacted the procuring activity within this period, the procuring activity will notify SBA of its intent to proceed with the procurement without further regard to the section 8(a) procedures unless additional time is requested by SBA and such additional time can be granted, considering the urgency of the requirements.

(b) Provisions of contracts with SBA. (1) Forms HEW-554, -555, and -556, shall be prepared for contracts which pertain exclusively or primarily to the procurement of nonpersonal or professional services, and appropriate HEW general provisions shall be incorporated in such contracts.

(2) The execution and distribution of procurement documents within the Department shall be in accordance with HEWPR 3-50.4.

[37 FR 15153, July 28, 1972]

§ 3-1.713-50 Reporting requirements.

(a) Headquarters procurement activities shall report all procurement transactions under section 8(a) to the Office of Minority Business Assistance, OASAM, in duplicate form. Each report shall cover the period of 1 calendar month and shall be submitted so as to arrive in OMBA not later than 10 working days after the close of each reporting period.

(b) Reports shall include: (1) The date each requirement was offered to the 8(a) office; (2) a brief description of each requirement; (3) the estimated dollar amount of each requirement; (4) current status of each requirement including such explanatory information as may be required (e.g., "withdrawn due to 23

tractor; and (7) date and dollar amount of award, as applicable. Negative reports, if any, are required.

[37 FR 15153, July 28, 1972]

John F. Kennedy Federal Bldg., Room 2113 (617) 223-6660 326 Appleton St. (413) 781-2268.

Federal Bldg., 40 Western Ave., Room 512 (207) 622-6225. 55 Pleasant St., Room 213 (603) 224-7724.

Federal Bldg., 450 Maine St., Room 710 (203) 244-2511.
Federal Bldg., 87 State St., Room 210 (802) 223-8422.

57 Eddy St., Room 710 (401) 528-4580.

26 Federal Plaza, Room 3930 (212) 264-1450.

225 Ponce do Leon Ave. (809) 765-0404.

970 Broad St., Room 1636 (201) 645-3580.

Hunter Plaza, Fayette and Salina Sts., Room 308 (315) 473-3460.

Federal Bldg., 121 Ellicott St., Room 9 (716) 842-3462. 11 North Pearl St., Home Savings Bank Bldg., Room 911 (518) 472-4411.

Chamber of Commerce Bldg., 55 St. Paul St. (716) 546-4900. 1 Decker Square, East Lobby, Suite 400 (215) 597-3201.

901 Market St., Room 818, Market Tower Bldg. (302) 658-6518.

Federal Bldg., Hopkins Plaza, Room 1113 (301) 962-2150. 109 North 3d St., Room 301, Lowndes Bldg. (304) 624-1365. Courthouse and Federal Bldg., 500 Quarrier St., Room 3410 (304) 343-1227.

Federal Bldg., 1000 Liberty Ave., Room 1401 (412) 644-2784. Federal Bldg., 400 North 8th St., Room 3015 (703) 783-2741. 1310 L St. NW., Room 720 (202) 382-3541.

1401 Peachtree St., NE., Room 441 (404) 526-5679. 908 South 20th St., Room 202 (205) 325-3981.

222 South Church St., Room 500, Addison Bldg. (704)

372-7448.

1801 Assembly St., Room 117 (803) 253-3373.

Post Office and Courthouse Bldg., 245 East Capital St., Room 314 (601) 948-2333.

2500 14th St., Room 406, Security S&L Bldg. (601) 863-6171. Federal Bldg., 400 West Bay St., Room 261 (904) 791-2181. Federal Bldg., 600 Federal Pl., Room 188 (502) 582-5978. Federal Bldg., 51 Southwest 1st Ave., Room 912 (305) 350-5533.

Federal Bldg., 500 Zack St., Room 513 (813) 228-7711. 500 Union St., Room 301 (615) 749-5880.

502 South Gay St., Room 307, Fidelity Bankers Bldg. (615) 524-4534.

Federal Bldg., 167 North Main St., Room 101 (901) 534-3588. Federal Bldg., 219 South Dearborn St., Room 437 (312) 353-4490.

502 East Monroe St., Ridgely Bldg., Room 816 (217) 525-4232. 1240 East 9th St., Room 5524 (216) 522-4182.

50 West Gay St. (614) 469-7310.

Federal Bldg., 550 Main St. (513) 684-2814.

1249 Washington Blvd., Room 1200, Book Bldg. (313) 226-7240.

201 McClellan St. (906) 225-1108.

36 South Pennsylvania St., Room 108, Century Bldg: (317) 633-7124.

25 West Main St., Room 303, Reimann Bldg. (608) 256-4761. 735 West Wisconsin Ave., Room 905, Strauss Bldg. (414) 244-3941.

500 South Barstow St., Room 16, Federal Office Bldg. and U.S. Courthouse (715) 834-9012.

12 South 6th St., Plymouth Bldg. (612) 725-2341. 1100 Commerce St., Room 300 (214) 749-1263.

Fe deral Bldg. and Courthouse, 500 Gold Ave. SW. (505) 843-2871.

1015 El Paso Rd., First National Bank Tower, Room 223 (505) 843-0311**.

808 Travis St., Room 1210, Niels Esperson Bldg. (713) 226– 4341.

Post Office and Courthouse Bldg. West Capital Ave., Room 377 (501) 372-5871.

1205 Texas Ave. (806) 747-3462.

109 North Oregon St., Suite 417, El Paso National Bldg. (915) 533-5494.