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Know the Basics of the Service Disabled Veteran Owned Small Business Program

The Veterans Entrepreneurship and Small Business Development Act of 1999 allot 3% of federal contract and subcontracts to SDVOSB. A procurement program was then created by the Veterans Benefits Act of 2003 to help achieve this. Here are 10 facts that you should know about the program.

1.    The purpose of the SDVOSB program

The program gives authority to agencies to set aside acquisitions exclusively for a small business owned by veterans. However, certain conditions should still be met.

2.    Qualifications needed to be considered as a service disabled veteran owned small business

To be considered eligible for the program, certain criteria must be met. Some of the criteria are:

  • The small business must be small according to the NAICS code assigned to the procurement.
  • The veterans must have the highest position in the SDVOSB.

3.    Help is available for veterans who want to engage in government contracting

An organization called Procurement Technical Assistance Center (PTAC) is funded by the Defense Logistics Agency to help veterans understand the Federal procurement rules. This includes the rules that govern size standards.

4.    Applicability of the SDVOSB Program

The SDVOSB program is applicable to all federal agencies that hire one or more government contracting officers.

5.    Exclusions of the SDVOSB Program

The following contracts can’t be granted to a service disabled veteran owned small business:

  • Those that are performed by Federal Prison Industries, Inc.
  • Those that are performed AbilityOne participating non-profit agencies for the blind or severely disabled
  • Orders under indefinite-delivery contracts
  • Orders against Federal Supply Schedules
  • Requirements being fulfilled by an 8(a) participant

6.    Set-aside procedures

The government contracting officer should comply first with 19.203 before setting aside an acquisition in the SDVOSB program. Set-aside can be done if two or more service disabled veteran owned small business can give an offer.

7.    Soul source awards

A contract award on a soul source basis can only be done only if there are not enough SDVOSBs to make an offer. The price of the contract should also not exceed a certain price depending on which NAICS code it falls under.

8.    Registration requirements

Veterans who want to venture into government contracting must register the NAICS code of the products and services they offer to the Vendor Information Pages database.

9.     Eligibility requirements are strictly followed

A company can’t be verified as an SDVOSB if it doesn’t qualify as a small business under the NAICS.

10.  Clauses required to be included in contracts

The government contracting officer should insert clause 52.219-27 for acquisitions that were reserved for a service-disabled veteran-owned small business.

Know the Ins and Outs of Running an SDVOSB with ARCHER JORDAN

Veterans who own a small business should also take note of the other regulations that govern SDVOSB. This includes the Davis Bacon Act, which regulates the compensation given to workers involved in a project. For more information, contact our team at ARCHER JORDAN today.