SDVOSBs are given important preferential treatment in government purchasing. The most significant of these preferences is found at the Department of Veterans Affairs. Under the VETERANS FIRST program, the VA is required set aside contract opportunities for SDVOSBs. Provisions found in the Simplified Acquisition Procedures authorize contracting officers governmentwide to issue SDVOSBs sole-source contracts up yo $250,000**. In 2019, the government aimed to award 3% of prime contracts to SDVOSBs. The government surpassed that goal in Fiscal Year 2019 and awarded 4.39% of all contracts to SDVOSB organizations. These contracts were worth more than $22 billion. Other benefits include:
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** FAR 6.206 Set-asides for service-disabled veteran-owned small business concerns.
(a) To fulfill the statutory requirements relating to the Veterans Benefits Act of2003 (15 U.S.C.657f), contracting officers may set-aside solicitations to allow only service-disabled veteran-owned small business concerns to compete (see 19.1405).
(b) No separate justification or determination and findings are required under this part to set aside a contract action for service-disabled veteran-owned small business concerns.
** FAR 13.003 Policy.
(a) Agencies shall use simplified acquisition procedures to the maximum extent practicable for all purchases of supplies or services not exceeding the simplified acquisition threshold (including purchases at or below the micro-purchase threshold). This policy does not apply if an agency can meet its requirement using-
(1) Required sources of supply under part 8 (e.g., Federal Prison Industries, Committee for Purchase from People Who are Blind or Severely Disabled, and Federal Supply Schedule contracts);
(2) Existing indefinite delivery/indefinite quantity contracts; or
(3) Other established contracts.
(b) (1) Acquisitions of supplies or services that have an anticipated dollar value above the micro-purchase threshold, but at or below the simplified acquisition threshold, shall be set aside for small business concerns (see 19.000, 19.203, and subpart 19.5).
(2) The contracting officer may make an award to a small business concern under the-
(i) 8(a) Program (see subpart 19.8);
(ii) Historically Underutilized Business Zone (HUBZone) Program (but see 19.1305 and 19.1306(a)(4));
(iii) Service-Disabled Veteran-Owned Small Business (SDVOSB) Program (see subpart 19.14); or
(iv) Women-Owned Small Business (WOSB) Program (see subpart 19.15).
(3) The following contracting officer’s decisions for acquisitions at or below the simplified acquisition threshold are not subject to review under subpart 19.4:
(i) A decision not to make an award under the 8(a) Program.
(ii) A decision not to set aside an acquisition for HUBZone small business concerns, service-disabled veteran-owned small business concerns, or EDWOSB concerns and WOSB concerns eligible under the WOSB Program.
(4) Each written solicitation under a set-aside shall contain the appropriate provisions prescribed by part 19. If the solicitation is oral, however, information substantially identical to that in the provision shall be given to potential quoters.
(c) (1) The contracting officer shall not use simplified acquisition procedures to acquire supplies and services if the anticipated award will exceed-
(i) The simplified acquisition threshold; or
(ii) $7.5 million ($15 million for acquisitions as described in 13.500(c)), including options, for acquisitions of commercial items using subpart 13.5.
** FAR 19.1406 Sole source awards to service-disabled veteran-owned small business concerns.
(a) A contracting officer shall consider a contract award to a SDVOSB concern on a sole source basis (see 6.302-5(b)(6)), before considering small business set-asides (see 19.203 and subpart 19.5) 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-
(i) $7 million for a requirement within the NAICS codes for manufacturing; or
(ii) $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.
(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.
