A small disadvantaged business means a small business that is at least 51% unconditionally owned by one or more individuals who are both socially and economically disadvantaged, or a publicly owned company that has 51% of its stock owned by such individuals and that has its management and daily business controlled by one or more socially and economically disadvantaged individuals. Individual groups falling into this category are:
- Black Americans.
- Hispanic Americans.
- Native Americans.
- Asian-Pacific Americans.
- Subcontinent-Asian Americans.
Section 8(a) of the Small Business Act (15 U.S.C. 637 (a)) established a program that authorizes the Small Business Administration to enter into contracts with other agencies and subcontract the work to eligible firms — known as 8(a) contractors.
SBA has delegated this authority to some Federal agencies through the execution of a partnership agreement. The Department of Defense has a partnership agreement in place.
The partnership agreement eliminated the tri-part contract. However, the offering and acceptance is still required. Offering letters are written and processed by OSBP. Provide the small business office with the applicable information needed to prepare the offering letter. Requirements with an anticipated price including options, not exceeding $6.5M for manufacturing or $4M for all others, may be awarded sole source. Awards above these thresholds must be completed and they must be made at a fair and reasonable price.
Note: Requirements that have been accepted in the 8(a) program shall remain in the program unless SBA agrees to release the requirement from the program.