The Choice of a Service Disabled Veteran Owned Small Business (SDVOSB) -
Veterans have a high degree of customer intimacy and understanding of customer requirements - veterans have walked in the shoes of many customers and have a point of view aligned with customer success and mission assurance.
Executive Order 13360, October 20, 2004, "Providing Opportunities for Service-Disabled Veteran Businesses to Increase Their Federal Contracting and Subcontracting" states a federal policy that "America honors the extraordinary service rendered to the United States by veterans with disabilities incurred or aggravated in the line of duty during active service with the armed forces. Heads of agencies shall provide the opportunity for service-disabled veteran businesses to significantly increase the Federal contracting and subcontracting of such businesses".
The Small Business Act (15 U.S.C. 632(q)) and Title 13 CFR part 125.8 define a qualifying SDVOSB as being a small business concern with 51% ownership and which has daily business operations management controlled by one or more service disabled veteran(s).
15 U.S.C. Section 308 and FAR Subpart 19.1406 define the procedures for contracting officers to award sole-source contracts. FAR Subpart 19.1405 establishes the procedures for SDVOSB set-asides where contracting officer has a reasonable expectation that not less than two small business concerns owned and controlled by service-disabled veterans will submit offers and that the award can be made at a fair market price.
Finally, the new wording in FAR 6.2 is particularly important in that it indicates that there is no justification required for setting aside and acquisition for SDVOSBs. This means that the previously difficult process of justifying a set-aside no longer applies for SDVOSB set-asides. In fact, immediately following a 15-day Notice of Contract Action for Intent to Award synopsis that includes note 22 (see FAR 5.203(a) & 6.302-1), a SDVOSB sole-source award can be made if no other SDVOSB claimed an interest and ability to meet the requirement.
