What SDVOSB competition rules matter most for veteran-owned contractors?
Current FAR rules limit SDVOSB competition to eligible firms, require market research support, and exclude some contract types from the program.
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What SDVOSB rules shape competition for veteran-owned contractors?
According to FAR Subpart 19.14, the SDVOSB program exists to provide Federal contracting assistance to service-disabled veteran-owned small business concerns. The contracting officer may restrict competition to eligible SDVOSBs only when market research creates a reasonable expectation that two or more eligible SDVOSBs will submit offers and that award will be made at a fair market price. The same subpart says the officer shall consider SDVOSB set-asides before SDVOSB sole-source awards or small-business set-asides. It also limits award eligibility to firms designated in SAM as SBA-certified SDVOSBs, or to firms that represented SDVOSB status in SAM and submitted a certification application on or before December 31, 2023. Offers from firms that do not meet that test are removed from consideration. The program does not apply to several categories, including certain orders under indefinite-delivery contracts, Federal Supply Schedules, AbilityOne, Federal Prison Industries, and some 8(a)-performed work. The FAR clause also confirms that SDVOSB set-aside and sole-source solicitations are limited to eligible SDVOSB concerns, including qualifying joint ventures.
- SDVOSB competition is limited to firms that meet the FAR eligibility test in SAM or fall within the stated grandfathered application path.
- A contracting officer may restrict competition to SDVOSB concerns only when market research supports at least two eligible offers and a fair market price.
- The SDVOSB subpart excludes several requirement types, including some orders under IDIQs and Federal Supply Schedules, AbilityOne, Federal Prison Industries, and some 8(a)-performed work.
- The FAR clause confirms that SDVOSB set-aside and sole-source awards go only to eligible SDVOSB concerns, including qualifying joint ventures.
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