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As we approach the end of the fiscal year, I have been asked “What is the best way to expeditiously contract to an SDVOSB”? Here are my Three Easy Steps.

Background:  Public Law 106-50 and Executive Order 13360 state that, at a minimum, 3% of federal contracts should be allocated to a SDVOSB concern. See this link if you are not sure if your organization meets that policy.

#1 – Issue an SDVOSB set aside Request for Information (RFI)

Contracting officers (CO) may set-aside acquisitions exceeding the micro-purchase threshold for competition ($3,000) restricted to SDVOSB concerns when the CO has a reasonable expectation that:

  • offers will be received from two or more SDVOSB concerns; and
  • award will be made at a fair market price.
  • Also, SDVOSB set asides shall be considered before SDVOSB sole source awards.

#2 – Determine from RFI how many qualified responses were received

#3 – Award contract

If the (CO) receives only one acceptable offer from a SDVOSB concern in response to a set-aside, the contracting officer should make an award to that concern provided:

  • Only one SDVOSB concern can satisfy the requirement;
  • Award price of the contract (including option will not exceed
    • $5.5M with a manufacturing NAICS code; or
    • $3M with any other NAICS code
    • SDVOSB concern is determined to be a responsible contractor

#3A – Other things to know

  • Is the concern a VA verified SDVOSB? Recent media attention is being given to SDVOSB’s.
  • SBA can appeal the CO’s decision of not using an SDVOSB.
  • See FAR 19.1401 through 19.1407 for clarification.
  • Subcontracting limitations exist for SDVOSB contracts.

By using SDVOSBs, agencies help establish a strong community bond with highly patriotic companies. SDVOSBs have a record of high performance, integrity, stability, and exceptional skill working with the Federal government. SDVOSB set asides can be awarded faster, have greatly reduced contract protests, and positive light is shed on an organization that meets its SDVOSB requirements. It’s not hard!