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
Source: FAR 52.219-27 on acquisition.gov
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.
As prescribed in 19.1408 , insert the following clause:
Notice of Set-Aside for, or Sole-Source Award to, Service-Disabled Veteran-Owned Small Business (SDVOSB) Concerns Eligible Under the SDVOSB Program. (Feb 2024)
(a) Definition.
Service-disabled veteran-owned small business (SDVOSB) concern means a small business concern—
(1)
(i) Not less than 51 percent of which is owned and controlled by one or more service-disabled veterans or, in the case of any publicly owned business, not less than 51 percent of the stock of which is owned by one or more service-disabled veterans; and
(ii) The management and daily business operations of which are controlled by one or more service-disabled veterans or, in the case of a service-disabled veteran with permanent and severe disability, the spouse or permanent caregiver of such veteran; or
(2) A small business concern eligible under the SDVOSB Program in accordance with 13 CFR part 128 (see subpart 19.14).
(3) Service-disabled veteran, as used in this definition, means a veteran as defined in http://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title38-section101(2)&num=0&edition=prelim" target="_blank">38 U.S.C. 101(2), with a disability that is service-connected, as defined in http://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title38-section101(16)&num=0&edition=prelim" target="_blank">38 U.S.C. 101(16) and who is registered in the Beneficiary Identification and Records Locator Subsystem, or successor system that is maintained by the Department of Veterans Affairs’ Veterans Benefits Administration, as a service-disabled veteran.
Service-disabled veteran-owned small business (SDVOSB) concern eligible under the SDVOSB Program means an SDVOSB concern that—
(1) Effective January 1, 2024, is designated in the System for Award Management (SAM) as certified by the Small Business Administration (SBA) in accordance with 13 CFR 128.300; or
(2) Has represented that it is an SDVOSB concern in SAM and submitted a complete application for certification to SBA on or before December 31, 2023.
Service-disabled veteran-owned small business (SDVOSB) Program means a program that authorizes contracting officers to limit competition, including award on a sole-source basis, to SDVOSB concerns eligible under the SDVOSB Program.
(b) Applicability. This clause applies only to—
(1) Contracts that have been set aside for, or awarded on a sole-source basis to, SDVOSB concerns eligible under the SDVOSB Program;
(2) Part or parts of a multiple-award contract that have been set aside for SDVOSB concerns eligible under the SDVOSB Program;
(3) Orders set aside for SDVOSB concerns eligible under the SDVOSB Program, under multiple-award contracts as described in 8.405-5 and 16.505(b)(2)(i)(F); and
(4) Orders issued directly to SDVOSB concerns eligible under the SDVOSB Program, under multiple-award contracts as described in 19.504(c)(1)(ii).
(c) General.
(1) Effective January 1, 2024, for SDVOSB set-aside or sole-source procurements, offers are solicited only from, and awards resulting from this solicitation will be made only to, concerns—
(i) Designated in SAM as an SDVOSB concern certified by SBA; or
(ii) That have represented their status as an SDVOSB in SAM and submitted a complete application for certification to SBA on or before December 31, 2023.
(2) Offers received from concerns that do not meet the criteria of paragraph (c)(1)(i) or (ii) of this clause, shall not be considered.
(d) A joint venture may be considered an SDVOSB concern if the managing partner of the joint venture complies with the criteria defined in paragraph (a) of this clause and 13 CFR 128.402.
(e) In a joint venture that complies with paragraph (d) of this clause, the SDVOSB party or parties to the joint venture shall perform at least 40 percent of the work performed by the joint venture. Work performed by the SDVOSB party or parties to the joint venture must be more than administrative functions.
(End of clause)