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The Service Disabled Veteran-Owned Small Business (SDVOSB) Advantage

The SDVOSB Advantage

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What is a SDVOSB?

 

SDVOSB stands for "Service Disabled Veteran Owned Small Business" and is a business that is at least 51% Veteran Owned by a veteran who has an illness, injury or medical issue that is connected directly to their military service.

 

 

Service Disabled Veteran Owned Small Business Advantage  The SDVOSB Advantage

  (Short Summary of Advantage)

 

The U.S. Federal government created provisions for Service Disabled Veteran Owned Small Business (SDVOSB) to help the wounded and disabled veterans of the United States compete against companies that have been entrenched in the Federal marketplace for years. While the intent has been to give back to those who have defended our nation, the practical matter is that doing business with an SDVOSB results in an actual advantage for the contracting Federal Agency.

 

 

 

 

 

SDVOSB Advantage

 

 

Congress has shaped a legislative framework providing veterans with a competitive advantage in federal contracting. These advantages include:

·Federal buyers are able to write contracts sole sourced with no competition.

·Contracts can be up to $5.5 million for manufacturing and $3.5 million for goods and services.

·Reduced administrative time results in faster awards and shorter contracting award times.

·SDVOSB set aside contracts are preferred by many contracting offices.

·SDVOSB sole source awards significantly reduce contract protests.

·When prerequisites for a SDVOSB set-aside are not met, contracting officers are advised to follow current law and sole-source the award to a SDVOSB (DA PAM 27-50-422; The Army Lawyer, July 2008).

P.L. 109-461, Veterans Benefits, Healthcare & Information Technology Act of 2006; Effective June 20, 2007
Executive Order 13,360, the SDVOSB Executive Order (October 20, 2004)
P.L. 108-183, Veterans Benefits Act of 2003
P.L. 106-50, Veterans Entrepreneurship & Small Business Development Act of 1999

 

SDVOSB - Sell to the Federal Government

 

 

Service Disabled Veteran Owned Small Business

 

VeteransDirectory.com itself is a SDVOSB “Service-Disabled Veteran-Owned Small Business”. The Veterans Benefits Act of 2003 (PL 108-183) was enacted for companies such as VeteransDirectory and all other listing in our directory.

Section 308 is of particular interest and a summary is provided below:

(PL 108-183)

Furnish federal agencies discretionary authority to create "sole-source" contracts for disabled veteran-owned small business – up to $5 million for manufacturing contract awards and up to $3 million for non-manufacturing contract awards.

SEC. 308. PROCUREMENT PROGRAM FOR SMALL BUSINESS CONCERNS OWNED AND CONTROLLED BY SERVICE-DISABLED VETERANS. The Small Business Act (15 U.S.C. 631 et seq.) is amended by re-designating section 36 as section 37 and by inserting after section 35 the following new section:

SEC. 36. PROCUREMENT PROGRAM FOR SMALL BUSINESS CONCERNS OWNED AND CONTROLLED BY SERVICE-DISABLED VETERANS.

(a) SOLE SOURCE CONTRACTS.—In accordance with this section, a contracting officer may award a sole source contract to any small business concern owned and controlled by service-disabled veterans if—

(1) such concern is determined to be a responsible contractor with respect to performance of such contract opportunity and the contracting 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;

(2) the anticipated award price of the contract (including options) will not exceed—(A) $5,000,000, in the case of a contract opportunity assigned a standard industrial classification code for manufacturing; or(B) $3,000,000, in the case of any other contract opportunity; and

(3) in the estimation of the contracting officer, the contract award can be made at a fair and reasonable price.

(a) RESTRICTED COMPETITION.—In accordance with this section, a contracting officer may award contracts on the basis of competition restricted to small business concerns owned and controlled by service-disabled veterans if the contracting officer has a reasonable expectation that not less than 2 small business concerns owned and controlled by service-disabled veterans will submit offers and that the award can be made at a fair market price.

(b) RELATIONSHIP TO OTHER CONTRACTING PREFERENCES.—A procurement may not be made from a source on the basis of a preference provided under subsection (a) or (b) if the procurement would otherwise be made from a different source under section 4124 or 4125 of title 18, United States Code, or the Javits-Wagner-O’Day Act (41 U.S.C. 46 et seq.).

(c) ENFORCEMENT; PENALTIES.—Rules similar to the rules of paragraphs (5) and (6) of section 8(m) shall apply for purposes of this section.

(d) CONTRACTING OFFICER.—For purposes of this section, the term ‘contracting officer’ has the meaning given such term in section 27(f)(5) of the Office of Federal Procurement Policy Act (41 U.S.C. 423(f)(5)).’’

 

In Addition....

 

Parity Among 8(a), HUBZone, or SDVOSB Programs

 

The FAR Council issued an interim rule implementing Section 1347 of the Small Business Jobs Act of 2010 (Pub. L. 111-240) and clarifying that there is parity when a contracting officer selects among small businesses participating in the 8(a), HUBZone and SDVOSB programs. Under the interim rule, contracting officers will have the discretion to determine whether an acquisition will be restricted to one of these three programs.The full text of the rule is available here: Socioeconomic Program Parity 03.16.2011.

       

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