SDVOSB Set Asides and Sole Source:

The Veterans Benefits Act of 2003 (Public Law 108-83) established a procurement program for Service-Disabled Veteran-Owned Small Business Concerns (SDVOSB) which allows for sole source to SDVOSB certified firms.

 

FAR 19.1406 allows sole source awards to SDVOSB concern IAW the following:

 

1. A contracting officer shall consider a contract award to a SDVOSB concern on a sole source basis, before considering small business set-asides provided none of the exclusions of 19.1404 apply and -

   1. The contracting officer does not have a reasonable expectation that offers would be received from two or more service-disabled veteran-owned small business concerns;

   2. The anticipated award price of the contract, including options, will not exceed -

      1. $6.5 million for a requirement within the NAICS codes for manufacturing; or

      2. $4 million for a requirement within any other NAICS code;

   3. The requirement is not currently being performed by an 8(a) participant under the provisions of subpart 19.8 or has been accepted as a requirement by SBA under subpart 19.8;

   4. The service-disabled veteran-owned small business concern has been determined to be a responsible contractor with respect to performance; and

   5. Award can be made at a fair and reasonable price.

2. 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.

 

VAAR 819.7007 allows sole source awards to service-disabled Veteran-owned small business concerns.

 

1. A contracting officer may award contracts to SDVOSB concerns on a sole source basis provided:

   1. The anticipated award price of the contract (including options) will not exceed $5 million;

   2. The requirement is synopsized in accordance with FAR part 5;

   3. The SDVOSB concern has been determined to be a responsible contractor with respect to performance; and

   4. Award can be made at a fair and reasonable price.

2. The contracting officer’s determination whether to make a sole source award is a business decision wholly within the discretion of the contracting officer. A determination that only one SDVOSB concern is available to meet the requirement is not required.

3. When conducting a SDVOSB sole source acquisition, the contracting officer shall ensure businesses are registered and verified as eligible in the VIP database prior to making an award.

 

FAR clause 8.405-6 provides some additional guidance specific to FSS and MAS follow-on efforts.

 

Orders placed under Federal Supply Schedules are exempt from the requirements of FAR Part 6, Competition Requirements and may be direct awarded without competition in the following circumstances:

 

• An urgent and compelling need exists, and following the procedures would result in unacceptable delays;

• Only one source is capable of providing the supplies or services required at the level of quality required because the supplies or services are unique or highly specialized; or

• the interest of economy and efficiency, the new work is a logical follow-on to an original Federal Supply Schedule order provided that the original order was placed in accordance with the applicable Federal Supply Schedule ordering procedures. The original order or BPA must not have been previously issued under sole-source or limited-sources procedures.

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