52.219-27
Notice of Set-Aside for, or Sole-Source Award to, Service-Disabled Veteran-Owned Small Business (SDVOSB) Concerns Eligible Under the SDVOSB Program
Only SDVOSBs certified by SBA (or with a pending application as of December 31, 2023) and properly listed in SAM are eligible for set-aside or sole-source awards under this clause.
Overview
FAR 52.219-27 establishes the requirements for set-aside or sole-source awards to Service-Disabled Veteran-Owned Small Business (SDVOSB) concerns eligible under the SDVOSB Program. The clause defines what constitutes an eligible SDVOSB, outlines certification requirements, and specifies the applicability of the clause to certain contracts and orders. It also details requirements for joint ventures involving SDVOSBs, including performance thresholds and management criteria. The regulation ensures that only properly certified or pending-certified SDVOSBs can compete for or receive these set-aside or sole-source awards, supporting federal goals for veteran-owned small business participation.
Key Rules
- Eligibility and Certification
- Only SDVOSBs certified by the SBA (or with a pending application submitted by December 31, 2023) and designated as such in SAM are eligible for set-aside or sole-source awards after January 1, 2024.
- Applicability
- The clause applies to contracts, parts of multiple-award contracts, and orders set aside for or awarded to eligible SDVOSBs.
- Offer Consideration
- Offers from firms not meeting the certification or pending application criteria will not be considered.
- Joint Ventures
- Joint ventures may qualify if the managing partner is an eligible SDVOSB and the SDVOSB partner(s) perform at least 40% of the work, beyond administrative functions.
Responsibilities
- Contracting Officers: Must verify SDVOSB eligibility and certification status in SAM and ensure compliance with joint venture requirements.
- Contractors: Must maintain proper SDVOSB certification or pending status in SAM, and joint ventures must meet performance and management requirements.
- Agencies: Oversee compliance and ensure awards are made only to eligible SDVOSBs.
Practical Implications
- This clause ensures only verified SDVOSBs benefit from set-aside or sole-source opportunities, supporting veteran entrepreneurship.
- Contractors must be proactive in maintaining certification and understanding joint venture obligations.
- Common pitfalls include failing to update SAM status or misunderstanding joint venture performance requirements.