Sole Sourcing to Service-Disabled Veteran Owned Small Business

service disabled veteran owned small business

Federal Agencies can establish streamlined sole source awards to Service-Disabled Veteran Owned Small Businesses (SDVOSB) through one of the following provisions:

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 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.

VA 819.7007 Sole source awards to a verified service-disabled Veteran-owned small business

a) A contracting officer may award a contract to an eligible SDVOSB concern using procedures other than competitive procedures provided-

  1. The anticipated award price of the contract (including options) will not exceed $5 million;
  2. The justification prepared pursuant to FAR 6.302-5(c)(2)(ii) is posted in accordance with FAR subpart 5.301(d);
  3. The SDVOSB concern has been determined to be a responsible source with respect to performance; and
  4. In the estimation of the contracting officer, contract award can be made at a fair and reasonable price that offers best value to the Government.

b)  The contracting officer’s determination to make a sole source award is a business decision wholly within the discretion of the contracting officer. To ensure that opportunities are available to the broadest number of verified SDVOSBs, this authority is to be used judiciously and only when in the best interest of the Government.

c) A determination that only one SDVOSB can meet the requirement is not required. However, in accordance with FAR 6.302-5(c)(2)(ii), contracts awarded using this authority shall be supported by a written justification and approval described.

d) When conducting a SDVOSB sole source acquisition, the contracting officer shall ensure the business meets eligibility requirements 819.7003.

e) A procurement requirement estimated to exceed the legislative threshold of $5 million shall not be split or subdivided to permit the use of this SDVOSB sole source authority.

For additional information related to Red Trident’s verified SDVOSB status and eligibility for sole source contracts, please contact us.


Contact the Red Trident Team