How to Contract with a Service Disabled Veteran Owned Small Business

 

Sole Source

All Government agencies can award sole source solicitations to qualified Service-Disabled Veteran-Owned Small Businesses (SDVOSBs).  The basis is the Veterans Benefits Act (VBA) of 2003 (Public Law 108-183) Section 308 establishing a sole source and set-aside procurement program for SDVOSB concerns. Contracting officers may award a sole source contracts to SDVOSBs, if certain conditions are met (see FAR19.1406):

• Such concern is determined to be a responsible contractor with respect to performance of such contract opportunity and the contract officer does not have a reasonable expectation that 2 or more small business concerns owned and controlled by service-disabled veterans will submit offers for the contracting opportunity;

• The anticipated award price of the contract (including options) will not exceed – 

  • $6 million for a requirement within the NAICS codes for manufacturing; or $3.5 million for a requirement within any other NAICS code;

  • In the estimation of the contracting officer, the contract award can be made at a fair and reasonable price.

 

SDVOSB Set Aside

On May 5, 2004 the Small Business Administration published implementation guidance providing the key linkage to transform the vision of Public Law 108-183 into Procurement reality. Section 15(g) of the Small Business Act (15 U.S.C. 644(g)), which provides that the President must establish a goal of not less than 3 percent for participation by service-disabled veteran businesses in Federal contracting, and section 36 of that Act (15 U.S.C. 657f), which gives agency contracting officers the authority to reserve certain procurements for service-disabled veteran businesses.

Contracting officers may set-aside solicitations to allow only SDVOSB concerns to compete (see FAR19.1405).

No separate justification or determination and findings are required to set aside a contract action for SDVOSB concerns when the following requirements can be satisfied:

• Offers will be received from two or more SDVOSB concerns; and Award will be made at a fair market price. 

If the contracting officer receives only one acceptable offer from a SDVOSB in response to a set-aside, the contracting officer should make an award to that SDVOSB

Additional information from SBA:  http://www.sba.gov/sdvosb