Public Law 106-50 established a contracting goal for Federal agencies to award 3% of prime contracts to 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 SDVOSBs. 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% for participation by SDVOSBs in Federal contracting.
The Veterans Benefit Act of 2003 and FAR Subpart 19.14 established the SDVOSB Procurement Program. Contracting Officers can set aside procurements for SDVOSBs and, under certain conditions, can award sole source contracts up to $3 million.
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 If the Contracting Officer receives no acceptable offers from SDVOSB concerns, the SDVOSB set aside shall be withdrawn and the requirement, if still valid, set aside for small business concerns.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: