Will I be able to execute the Option year even though the certification for the vendor in question will expire prior to the completion of the Option Year. or do I need to approach another vendor for the service in question in order to be able to exercise the Option Year.
My logic is since their certification will be valid at time of exercising the Option Year then there performance is valid through whole option year and we will get credit for 8a award because mod to exercis eoption will be issued prior to certification expiring.
When an 8(a) firm graduates from the 8(a) Program during a contract period of performance, it is still considered an 8(a) firm (e.g. exercising options). 13 CFR 121.404 (g) states the following:
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A concern that qualified as a small business at the time it receives a contract is considered a small business throughout the life of that contract.
Where a concern grows to be other than small, the procuring agency may exercise options and still count the award as an award to a small business.
If you expect a contract duration of more than five years, after year 5 of the contract duration the award will no longer count toward your agency goals in accordance with the exception listed at 13 CFR 121.404 (g)(3), which states the following:
“(3) For the purposes of contracts with durations of more than five years (including options), including Multiple Award Schedule (MAS) Contracts, Multiple Agency Contracts (MACs) and Government-wide Acquisition Contracts (GWACs), a contracting officer must request that a business concern re-certify its small business size status no more than 120 days prior to the end of the fifth year of the contract, and no more than 120 days prior to exercising any option thereafter. If the contractor certifies that it is other than small, the agency can no longer count the options or orders issued pursuant to the contract towards its small business prime contracting goals. The agency and the contractor must immediately revise all applicable Federal contract databases to reflect the new size status.”