Federal Contract Clauses Explained for SDVOSBs
A set-aside solicitation incorporates a stack of FAR Part 52 clauses by reference — the clause that creates the set-aside, the one that caps how much you can subcontract, the commercial terms, the change and termination rules, how and when you get paid, and the labor and cybersecurity obligations. These plain-English pages take one clause at a time — what it is, when it applies, the key provisions, and the SDVOSB-specific angle — each tied to the controlling FAR provision and cross-linked to the glossary, forms, contract types, regulation explainers, calculators, and how-to guides.
Last updated Update cadence: Quarterly, plus on FAR amendment
Compiled from: Federal Acquisition Regulation (Title 48 CFR, Part 52 — Solicitation Provisions and Contract Clauses) · FAR Subpart 19.14 and 13 CFR § 125.6 (SDVOSB set-asides and limitations on subcontracting) · Prompt Payment Act, Service Contract Labor Standards, and FAR cybersecurity safeguarding rules
Change log (1)
- LaunchedPublished the federal contract clauses reference covering the standard FAR Part 52 clauses an SDVOSB encounters in a set-aside contract — the SDVOSB set-aside clause (52.219-27), limitations on subcontracting (52.219-14), utilization of small business concerns (52.219-8), the reps-and-certs provisions (52.204-8 / 52.212-3), the commercial terms clauses (52.212-4 / 52.212-5), Changes (52.243-1), Termination for Convenience and Default (52.249-2 / 52.249-8), Prompt Payment and EFT payment (52.232-25 / 52.232-33), Service Contract Labor Standards (52.222-41), and basic cybersecurity safeguarding (52.204-21) — each with a key-provisions table, common pitfalls, an SDVOSB-specific angle, FAQPage, Legislation, Dataset, and BreadcrumbList structured data, primary-source FAR citations, and cross-links into the glossary, forms reference, contract types, regulation explainers, how-to guides, FAQ, and the limitations-on-subcontracting and price-to-win calculators.
Set-Aside & Small Business
FAR 52.219-27 — Notice of Set-Aside for, or Sole-Source Award to, Service-Disabled Veteran-Owned Small Business (SDVOSB) ConcernsThe clause that makes an acquisition an SDVOSB set-aside (or sole source) — it limits award to certified SDVOSBs and binds the awardee to the limitations on subcontracting and the nonmanufacturer rule.
FAR 52.219-14 — Limitations on SubcontractingThe self-performance clause on every small-business set-aside — it caps how much of the award the prime can pay to firms that are not similarly situated, implementing 13 CFR 125.6.
FAR 52.219-8 — Utilization of Small Business ConcernsThe policy clause obliging contractors to give small businesses — including SDVOSBs — the maximum practicable opportunity to participate, and to flow the obligation down to subcontracts.
Representations & Certifications
FAR 52.204-8 — Annual Representations and CertificationsThe clause that states the NAICS code and size standard for the buy and incorporates the offeror's annual SAM.gov representations and certifications by reference.
FAR 52.212-3 — Offeror Representations and Certifications—Commercial Products and Commercial ServicesThe commercial-item provision carrying the offeror's representations — including small business and SDVOSB/veteran-owned status — for acquisitions of commercial products and services.
Commercial Contract Terms
FAR 52.212-4 — Contract Terms and Conditions—Commercial Products and Commercial ServicesThe master terms-and-conditions clause for commercial buys — inspection, changes by mutual agreement, termination, payment, disputes, and the other core contract terms in one place.
FAR 52.212-5 — Contract Terms and Conditions Required to Implement Statutes or Executive Orders—Commercial Products and Commercial ServicesThe checklist clause that incorporates the statute- and executive-order-based clauses — including the SDVOSB set-aside and limitations on subcontracting — into a commercial contract.
Changes & Termination
FAR 52.243-1 — Changes—Fixed-PriceThe clause that lets the contracting officer make unilateral changes within the general scope of a fixed-price contract, with the contractor entitled to an equitable adjustment.
FAR 52.249-2 — Termination for Convenience of the Government (Fixed-Price)The clause letting the government end a fixed-price contract — in whole or in part — when it is in the government's interest, with the contractor paid for work done plus settlement costs.
FAR 52.249-8 — Default (Fixed-Price Supply and Service)The clause letting the government terminate a fixed-price contract for the contractor's failure to perform — with reprocurement costs charged to the contractor and a cure-notice safeguard.
Payment
FAR 52.232-25 — Prompt PaymentThe clause implementing the Prompt Payment Act — it sets the government's payment due dates, invoice content requirements, and the interest penalty for late payment.
FAR 52.232-33 — Payment by Electronic Funds Transfer—System for Award ManagementThe clause requiring the government to pay by electronic funds transfer using the banking information in the contractor's SAM registration — making accurate SAM data a precondition to getting paid.
Labor & Cybersecurity
FAR 52.222-41 — Service Contract Labor StandardsThe clause applying the Service Contract Labor Standards (the former Service Contract Act) — it requires paying service workers the locally prevailing wages and fringe benefits set by a Department of Labor wage determination.
FAR 52.204-21 — Basic Safeguarding of Covered Contractor Information SystemsThe clause imposing 15 basic cybersecurity safeguarding requirements on any contractor information system that processes, stores, or transmits federal contract information.
Know the clauses, then run the numbers
The set-aside and limitations-on-subcontracting clauses decide your self-performance math. The calculator turns them into a number — and the weekly Brief turns certification into a stream of set-aside opportunities.