Set-Asides and Sole Source Awards – Service-Disabled Veteran-Owned Small Businesses

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Set-Asides for Service-Disabled Veteran-Owned Small Businesses (SDVOSB)

A procurement may be set-aside for a SDVOSB business when:

  • The Contracting Officer can reasonably expect to receive offers from at least two SDVOSB businesses, and
  • The award can be made at a fair market price

 

The Contracting Officer will research the market in advance – for example, by posting Sources Sought notices to FedBizOpps, searching in SAM, and the SBA’s Small Dynamic Small Business Search (DSBS) website.

If only only one acceptable offer is received from a SDVOSB business, the award can be made to that business. If there are no acceptable offers the set-aside will be withdrawn, and may be re-posted at a later date as a Small Business set-aside.

 

Sole Source Awards for Service-Disabled Veteran-Owned Small Businesses (SDVOSB)

A procurement may be awarded on a Sole Source basis if:

  • The Contracting Officer does  NOT expect to receive offers from at least two SDVOSB businesses
  • The anticipated award price of the contract will not exceed $4 million ($6.5 million for manufacturing NAICS codes)
  • The requirement is not currently being performed by an 8(a) participant
  • The SDVOSB business has been determined to be a responsible contractor with respect to performance, and
  • The award can be made at a fair and reasonable price.

 

The SBA has the right to appeal the Contracting Officer’s decision not to make a service-disabled veteran-owned small business sole source award

( FAR 19.14- Service-Disabled Veteran-Owned Small Business Procurement Program)

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