19.1403 Status
Source: FAR 19.1403 on acquisition.gov
Only SBA-certified SDVOSBs listed in SAM are eligible for set-aside or sole-source contracts after January 1, 2024, and status must be promptly updated following SBA decisions.
Overview
FAR 19.1403 outlines the requirements for determining and verifying the status of Service-Disabled Veteran-Owned Small Business (SDVOSB) concerns for federal contracting purposes. The section specifies that the Small Business Administration (SBA) is responsible for certifying SDVOSB status, referencing 13 CFR part 128. As of January 1, 2024, only SDVOSBs certified by SBA and listed in the System for Award Management (SAM) are eligible for SDVOSB set-aside or sole-source contracts, with a limited exception for firms that applied for certification before December 31, 2023. The regulation also details the process for updating SDVOSB status in SAM if SBA denies or revokes certification, and sets requirements for joint ventures seeking SDVOSB eligibility, including certification of the managing partner and compliance with SBA regulations.
Key Rules
- SBA Certification Requirement
- SDVOSB status is determined by SBA under 13 CFR part 128, and only SBA-certified SDVOSBs are eligible for set-aside or sole-source contracts after January 1, 2024.
- SAM Verification
- Contracting officers must verify SDVOSB status in SAM, ensuring the concern is either certified or has a pending application submitted before December 31, 2023.
- Status Updates After SBA Decisions
- If SBA denies or revokes certification, the concern must update its status in SAM within 2 days; otherwise, SBA will update it.
- Joint Venture Eligibility
- Joint ventures may qualify if the managing partner is an SBA-certified SDVOSB (or has a pending application submitted before the cutoff) and the joint venture meets size and regulatory requirements.
Responsibilities
- Contracting Officers: Must verify SDVOSB status in SAM before award and ensure compliance with certification requirements.
- Contractors: Must maintain accurate SDVOSB status in SAM, promptly update status after SBA decisions, and ensure joint ventures meet all eligibility criteria.
- Agencies: Oversee compliance and ensure only eligible SDVOSBs receive set-aside or sole-source awards.
Practical Implications
- This section ensures only properly certified SDVOSBs can compete for set-aside or sole-source contracts, reducing fraud and increasing program integrity. Contractors must be vigilant about certification status and timely updates in SAM, especially after adverse SBA decisions. Joint ventures must pay close attention to both size and certification requirements to maintain eligibility.
(a) Status as an SDVOSB concern is determined by SBA in accordance with 13 CFR part 128; also see 19.307.
(b) For an SDVOSB concern that seeks an SDVOSB set-aside or sole-source contract, the contracting officer shall verify that the offeror—
(1) Effective January 1, 2024, is designated in the System for Award Management (SAM) as an SDVOSB concern certified by SBA; or
(2) Has represented that it is an SDVOSB concern in SAM and submitted an application for certification to SBA on or before December 31, 2023. Pending applications for certification are in the SBA Veteran Small Business Certification Program database at https://veterans.certify.sba.gov.
(c) If there is a decision issued by SBA as a result of a current eligibility examination finding that the concern did not qualify as an SDVOSB concern eligible under the SDVOSB Program or SBA denies a concern’s application for SDVOSB certification, the concern must update its SDVOSB status in SAM within 2 days of SBA’s final decision to reflect that the concern is not an eligible SDVOSB. SBA will update the concern’s SDVOSB status in SAM within 2 days of the concern’s failure to make the update.
(d) Effective January 1, 2024, a joint venture may be considered an SDVOSB concern eligible under the SDVOSB Program if—
(1) The joint venture qualifies as small under 19.301-1(a)(2)(i);
(2) The managing SDVOSB joint venture partner—
(i) Is designated in SAM as an SDVOSB concern certified by SBA; or
(ii) Has represented that it is an SDVOSB concern in SAM and submitted an application for certification to SBA on or before December 31, 2023. Pending applications for certification are in the SBA Veteran Small Business Certification database at https://veterans.certify.sba.gov" target="_blank">https://veterans.certify.sba.gov; and
(3) The joint venture complies with the requirements of 13 CFR 128.402.