The Department of Defense (DoD) updated its regulations to reflect current practice in regards to SBA’s Section 8(a) Direct Awards. The new regulation applies to acquisitions below the simplified acquisition threshold, acquisitions of commercial items, including commercially available items. The regulation deletes the obsolete requirement for an 8(a) contractor obtain written approval from SBA and the contracting officer prior to subcontractor performance of contract requirements in the above listed situations. Here is a link to the new rule with the deleted provisions and explanation. DOD Update of Clause of 8(a) Direct Award
The new regulations also reminds contractors that before 8(a) contracts change ownership (or the firm owning the contract), SBA requires prior approval/waiver process to be completed or the SBA will terminate the contract for convenience. The waiver/approval process regarding ownership and control applies to all, not just the ones listed above, 8(a) contracts as re-iterated in this regulation with the cross-reference to the applicable SBA regulation, 13 CFR 124.515.