Shoulder 2 Shoulder is a Service-Disabled Veteran-Owned Small Business (SDVOSB)

Public Law 106-50 established a contracting goal for Federal agencies to award 3% of prime contracts to service-disabled veteran-owned small businesses (SDVOSBs). In addition, large Prime Contractors have SDVOSB subcontracting goals.

Presidential Executive Order 13360 calls for a significant increase in federal contracting and subcontracting opportunities for service-disabled veteran-owned businesses. The central feature of the Executive Order calls for all Federal agencies to develop a strategic plan to significantly increase its contracting and subcontracting with small businesses owned and controlled by service-disabled veterans. EO13360 establishes a goal of not less than 3 percent for participation by service-disabled veteran businesses in Federal contracting.

The Veterans Benefit Act of 2003 and FAR Subpart 19.14 established the Service-Disabled Veteran-Owned Small Business Procurement Program. Contracting Officers can set aside procurements for Service-Disabled Veteran-Owned Small Businesses and under certain conditions can award sole source contracts up to $3 million.

Set Asides and Sole Source Awards

A solicitation can be set aside for SDVOSBs if the Contracting Officer has a reasonable expectation that at least two qualified SDVOSBs will submit offers, and that the contract will be awarded at a fair market price. There is no dollar limit on an SDVOSB set aside. If only one offer is received, the Contracting Officer may make an award, if the award can be made at a fair market price. If the Contracting Officer receives no acceptable offers from service-disabled veteran-owned small business concerns, the service-disabled veteran-owned set-aside shall be withdrawn and the requirement, if still valid, set aside for small business concerns. Sole-source SDVOSB contracts can be awarded if the Contracting Officer determines that only one qualified SDVOSB is available to perform the contract, and the anticipated award price of the proposed contract, including options, will not exceed:

  • $5,500,000 for a requirement within the North American Industry Classification System (NAICS) code for manufacturing; or
  • $3,000,000 for a requirement within all other NAICS codes.

DOWNLOAD: SDVOSB Contracting Mechanisms

Who is Eligible: All Federal Agencies that are required to comply with Executive Order 13360, in which they must direct at least 3 percent of all contracting dollars to small businesses owned by service-disabled veterans.

Contract POC:

Chris Zuffa