The SDVOSB Program

The Service Disabled Veteran-Owned Small Business Concern Procurement Program provides procuring agencies with the authority to set acquisitions aside for exclusive competition among service-disabled veteran-owned small business concerns, as well as the authority to make sole source awards to service-disabled veteran-owned small business concerns if certain conditions are met.

On December 16, 2003, the Veterans Benefits Act of 2003 (Public Law 108-183Download Adobe Reader to read this link content) was passed by Congress. Section 308 of the Act (Public Law 108-183) established a procurement program for Service-Disabled Veteran-Owned Small Business Concerns (SDVOSBC). This procurement program provides federal contracting officers may restrict competition to SDVOSBCs and award a sole source or set-aside contract where certain criteria are met.

Set Aside Requirements
A Contracting Officer (CO) may set-aside requirements due to:

  1. Requirement is not exempted from SDVO contracting, the CO considers setting aside the requirement for 8(a), HUBZone, or SDVO SBC participation before considering setting aside the requirement as a small business set-aside.

  2. Reasonable expectation that at least two responsible SDVO SBC will submit offers; and

  3. Award is made at a fair market price.

Sole Source Contracts
A CO may award a sole source contract as a result:

  1. Requirement is not exempted from SDVO contracting and cannot be set-aside.

  2. CO does not have a reasonable expectation that at least two responsible SDVO SBCs will submit offers.

  3. Anticipated award price of the contract, including options, will not exceed:

    $6.5M for manufacturing requirements

    $4.0M for all other requirements

  4. Award can be made at a fair market price.