Protesting a firm’s status as a service-disabled veteran-owned small business concern
FAR 19.307 establishes strict procedures and timelines for protesting a firm's SDVOSB status, requiring specific evidence and prompt action to ensure only eligible firms receive SDVOSB awards.
Overview
FAR 19.307 outlines the procedures for protesting a firm’s status as a service-disabled veteran-owned small business concern (SDVOSB). It defines who may file a protest, the grounds and timing for protests, the process for submitting and forwarding protests, and the actions required by contracting officers and the SBA’s Office of Hearings and Appeals (OHA). The section ensures that only eligible firms receive SDVOSB set-asides or sole source awards, and provides a clear process for challenging a firm’s eligibility.
Key Rules
- Who May Protest
- For sole source acquisitions, only the contracting officer, VA, or SBA may protest. For all other acquisitions, any interested party may protest.
- Grounds for Protest
- Protests must be specific, in writing, and supported by evidence (e.g., lack of qualifying veteran status, improper ownership/control, ostensible subcontractor issues, or joint venture noncompliance).
- Timing of Protests
- Protests must generally be received by the contracting officer within five business days of bid opening or notification of the apparent awardee, with exceptions for VA/SBA/CO protests.
- Protest Submission and Forwarding
- Protests are submitted to the contracting officer, who must forward them to SBA OHA with a detailed referral letter.
- OHA Review and Decision
- OHA reviews the protest, notifies parties, and issues a final, immediate decision. Contracting officers must withhold award pending OHA’s decision unless urgent award is justified.
- Post-Decision Actions
- If a protest is sustained, the contract may be terminated, and the concern must update its SDVOSB status in SAM and refrain from future SDVOSB offers until recertified.
Responsibilities
- Contracting Officers: Receive, forward, and act on protests; withhold or terminate awards as required; update FPDS; ensure compliance with OHA decisions.
- Contractors: Respond to protests, maintain accurate SDVOSB status, and comply with OHA decisions regarding eligibility.
- Agencies (SBA/OHA/VA): Review, adjudicate, and enforce SDVOSB status protests and maintain certification databases.
Practical Implications
- This section protects the integrity of SDVOSB set-aside and sole source awards by providing a formal protest mechanism. Contractors must ensure their eligibility and documentation are in order, as protests can result in contract loss and loss of SDVOSB status. Timeliness and specificity are critical for both filing and responding to protests. Common pitfalls include missing deadlines, insufficient protest grounds, or failing to update status in SAM after an adverse decision.