Since 1988, according to Government Accountability Office (GAO) figures, ANCs have consistently increased their involvement in the 8(a) Program, as measured by the number of ANCs owning subsidiaries that participate in the 8(a) Program. Power up your legal research with modern workflow tools, AI conceptual search and premium content sets that leverage Lexology's archive of 900,000+ articles contributed by the world's leading law firms. Copyright © 2020 Koprince Law LLC • Website by Flint Hills Design • Log in. The choice of a lawyer is an important decision and should not be based solely on advertisements. These include: These authorities address the award of contracts, as well as related issues. If you have questions about this new DFARS rule, the SBA 8(a) program, or other government contracts matters contact the author, a member of Stinson’s Government Contracts & Investigations practice group, or your Stinson counsel. Instead, sole‐source contracts may be awarded to ANC’s and Alaskan Tribal entities up to $22M without justification. Under the new DFARS final rule, DFARS 206.303-1, no formal justification and approval (J&A) will be required for a sole source award of $100 million or less to such an 8(a) small business. Increasing the threshold from $22 million to $100 million will make it easier for contracting officers to award much larger contracts as 8(a) sole sources without competition to 8(a) concerns owned by a tribe, ANC, or NHO. Email us or give us a call at 785-200-8919. As an initial matter, this amendment only impacts defense agencies subject to the DFARS. The final rule provides that DoD J&A approval must be done by a member of the armed forces serving in a rank above brigadier general or rear admiral (lower half), or a civilian in a position of a comparable grade. Although the SBA is authorized to consider these affiliations when not doing so results, or is likely to result, in an ANC-owned firm obtaining a “substantial unfair competitive advantage within an industry category,” the SBA and agencies exercising delegated authority on its behalf reportedly seldom exercise this authority. This deviation means that DOD contracting officers must use a threshold of $100 million in lieu of the $22 million threshold currently in a number of rules in the Federal Acquisition Regulation. THRESHOLDS FOR 8(a) SOLE SOURCE AWARDS As of this writing, the dollar threshold for possible sole source award under the 8(a) BD Program is $6.5 million or less for procurements assigned manufacturingNAICS codes, and $4 million or less for procurements assigned all otherNAICS codes. § 124.506. (Note: ANCs have additional privileges where sole source awards can be made up to $20,000,000 without any special justification and over $20,000,000. Ranked nationally in Government Contracts Law by Chambers in 2019-2020, named one of the “Top Attorneys Under 40” nationwide in Government Contracts Law by Law360 in 2016-2017, and listed in Washington, D.C. Super Lawyers as a “Rising Star” in Government Contracts Law in 2014-2020, Aron’s vast experience includes representation of government contractors in a variety of industries and in all aspects of the government-contracting process, including negotiation, award, performance and termination. Accordingly, the threshold increase allows DoD contracting officers to award sole-source contracts without going through the J&A process – up to $100 million – (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. ANCs may receive a sole source contract up to $20 million, and with proper justification, unlimited dollar amounts. Thirty-two sole source contracts were awarded to companies with incomplete documentation in the system. with appropriate justification). Effective March 17, DOD contracting officers won’t have to issue a justification or obtain approval for award of a sole-source contract under the Small Business Administration’s 8(a) program for awards up to $100 million, up from the prior $22 million limit. § 124.506. 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. Authorities pertaining to Native Americans. This Department of Defense class deviation implements the higher dollar amount that Congress set in the 2020 National Defense Authorization Act.

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