(a) The Veterans Benefit Act of 2003 (15 U.S.C. 657f) created the procurement program for small business concerns owned and controlled by service-disabled veterans (commonly referred to as the “Service-Disabled Veteran-owned Small Business (SDVOSB) Procurement Program”).
(b) The purpose of the Service-Disabled Veteran-Owned Small Business Program is to provide Federal contracting assistance to service-disabled veteran-owned small business concerns.
The procedures in this subpart apply to all Federal agencies that employ one or more contracting officers.
19.1403 STATUS AS A SERVICE-DISABLED VETERAN-OWNED SMALL BUSINESS CONCERN.
(a) Status as a service-disabled veteran-owned small business concern is determined in accordance with 13 CFR Parts 125.8 through 125.13; also see 19.307.
(b) At the time that a service-disabled veteran-owned small business concern submits its offer, it must represent to the contracting officer that it is a—
(1) Service-disabled veteran-owned small business concern; and
(2) Small business concern under the North American Industry Classification System (NAICS) code assigned to the procurement.
(c) A joint venture may be considered a service-disabled veteran owned small business concern if—
(1) At least one member of the joint venture is a service-disabled veteran-owned small business concern, and makes the representations in paragraph (b) of this section;
(2) Each other concern is small under the size standard corresponding to the NAICS code assigned to the procurement;
(3) The joint venture meets the requirements of paragraph 7 of the explanation of Affiliates in 19.101; and
(4) The joint venture meets the requirements of 13 CFR 125.15(b).
(d) Any service-disabled veteran-owned small business concern (nonmanufacturer) must meet the requirements in 19.102(f) to receive a benefit under this program.
This subpart does not apply to—
(a) Requirements that can be satisfied through award to—
(1) Federal Prison Industries, Inc. (see Subpart 8.6);
(2) Javits-Wagner-O’ Day Act participating non-profit agencies for the blind or severely disabled (see Subpart 8.7);
(b) Orders under indefinite delivery contracts (see Subpart 16.5);
(c) Orders against Federal Supply Schedules (see Subpart 8.4); or
(d) Requirements currently being performed by an 8(a) participant or requirements SBA has accepted for performance under the authority of the 8(a) Program, unless SBA has consented to release the requirements from the 8(a) Program.
19.1406 SOLE SOURCE AWARDS TO SERVICE-DISABLED VETERAN-OWNED SMALL BUSINESS CONCERNS.
(a) A contracting officer may award contracts to service-disabled veteran-owned small business concerns on a sole source basis (see 19.501(d) and 6.302-5), provided—
(1) Only one service-disabled veteran-owned small business concern can satisfy the requirement;
(2) The anticipated award price of the contract (including options) will not exceed—
(i) $5.5 million for a requirement within the NAICS codes for manufacturing; or
(ii) $3 million for a requirement within any other NAICS code;
(3) The service-disabled veteran-owned small business 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.
(b) 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.
19.1407 CONTRACT CLAUSES.
The contracting officer shall insert the clause 52.219-27, Notice of Total Service-Disabled Veteran-Owned Small Business Set-Aside, in solicitations and contracts for acquisitions under 19.1405 and 19.1406.