Can a Participant change its ownership or control and continue to perform an 8(a) contract, and can it transfer performance to another firm?

CFR · 2024-01-01 · US · Title 13

(a) An 8(a) contract (or 8(a) order where the underlying contract is not an 8(a) contract) must be performed by the Participant that initially received it unless a waiver is granted under paragraph (b) of this section. (1) An 8(a) contract or order, whether in the base or an option year, must be terminated for the convenience of the Government if one or more of the individuals upon whom eligibility for the 8(a) BD program was based relinquishes or enters into any agreement to relinquish ownership or control of the Participant such that the Participant would no longer be controlled or at least 51% owned by disadvantaged individuals. (2) The procuring activity may not assess repurchase costs or other damages against the Participant due solely to the provisions of this section. (b) The SBA Administrator may waive the requirements of paragraph (a)(1) of this section if requested to do so by the 8(a) contractor when: (1) It is necessary for the owners of the concern to surrender partial control of such concern on a temporary basis in order to obtain equity financing; (2) Ownership and control of the concern that is performing the 8(a) contract will pass to another Participant, but only if the acquiring firm would otherwise be eligible to receive the award directly as an 8(a) contract; (3) Any individual upon whom eligibility was based is no longer able to exercise control of the concern due to physical or mental incapacity or death; (4) The head of the procuring agency, or an offi

official document · source cfr-2024 · id 13:§ 124.515