The Veterans Benefits Act of 2003 (Public Law 108-83) established a procurement program for SDVOSB Concerns (SDVOSBC). For set aside contracts, the guidelines enabling contracting officers to restrict competition to service-disabled veteran-owned companies require that:
- A minimum of two small business concerns owned and controlled by service-disabled veterans will submit bids.
- The award can be made at a fair and reasonable price.
There is no preference for 8(a) Service-Disabled Veterans. This law also permits Federal contracting officers to award sole-source contracts to any small business concern owned and controlled by service-disabled veterans if the following all apply:
- The contracting officer does not expect that two or more service-disabled veteran small business owners will submit offers for the contract.
- The expected award price of the contract (including options) will not exceed $3 million for non- manufacturing SIC code contracts.
- In the estimation of the contracting officer, the contract can be made at a fair and reasonable price.
The President of the United States issued Executive Order 13360 on October 20, 2004, which strengthened opportunities in Federal contracting for Service-Disabled Veteran-Owned Small Business Concerns.
Joint venture and Mentor-Protégé agreements are permitted within the SDVOSBC program. The objective of this procurement program is to assist agencies in achieving the statutorily mandated 3% government-wide goal for procurement from Service-Disabled Veteran-Owned Small Business Concerns. The SBA and the Office of Federal Procurement Policy have expeditiously and transparently implemented this program. All SDVOSB Concerns are required to register in the Government’s Central Contractor Registration (CCR).
In order to qualify as a SDVOSB Concern, a commercial organization must be a small business pursuant to the North American Industrial Classification System (NAICS) code assigned by the Contracting Officer to the procurement. A concern must be 51% unconditionally and directly owned by one or more Service-Disabled Veterans or in the case of any publicly owned business, not less than 51% of the stock of the company is owned by one or more Service-Disabled Veterans. The management and daily business operations of the SDVOSBC must be controlled by one or more Service-Disabled Veterans.
To access answers to frequently asked questions regarding the SDVOSB Program, click this link: acq.osd.mil/faq.html