Would this be a violation of SB regulations? provide regulation reference. i can't find any discussion.
The first thing I recommend is contacting your SBA. FAR 19.810 -- SBA Appeals. (a) The SBA Administrator may submit the following matters for determination to the agency head if the SBA and the contracting officer fail to agree on them: (1) The decision not to make a particular acquisition available for award under the 8(a) Program.
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Yes you can de-scope the follow-on upon expiration of the base contract period.
Once a product or service has been successfully purchased as a small business set-aside, all future purchases must also be on a set-aside basis unless the contracting officer determines that this practice will probably not result in offers from at least two responsible small business concerns offering products of different small business concerns at reasonable prices. [F-19.501, F-19.502-2, F-13.105, D-219.502-2]
Additionally, look at DFARS 219.803 Selecting acquisitions for the 8(a) Program. When selecting acquisitions for the 8(a) Program, follow the procedures at PGI 219.803.