Service-Disabled Veteran Owned Small Business (SDVOSB)
In December of 2003, the federal government established
a procurement program for Service-Disabled Veteran Owned
Small Businesses (SDVOSB).
Federal law provides that contracting officers may award
sole source or set-aside contracts to SDVOSBs. A contracting
officer may award a sole source contract to any small business
concern owned and controlled by service-disabled
veterans if:
- The business is a responsible contractor and the contracting
officer does not expect that two or more SDVOSBs will
submit offers.
- The anticipated award price of the contract (including
options) will not exceed:
- $5.0M in the case of a contract opportunity with
a manufacturing NAICS code or;
- $3.0M in the case of any other contract opportunity.
- In the estimation of the contracting officer, the contract
award can be made at a fair and reasonable price.
Additionally, a contracting officer may award contracts
on the basis of a SDVOSB set-aside if two or more businesses
that meet the criteria are expected to submit offers.
Eligibility Requirements
- The SDVOSB must be a small business;
- 51 percent of the SDVOSB must be unconditionally and
directly owned by one of more service-disabled veterans.
A service-disabled veteran is a person
who served in the active military and who was discharged
or released under conditions other than dishonorable,
and whose disability was incurred or aggravated in line
of active military duty; and
- The management and daily business operations of the
SDVOSB must be controlled by one or more service-disabled
veterans.
Currently, there is a three percent SDVOSB goal for the
total value of federal contracting.
