Question 1

Must an SDVOSB recertify when a contract option is exercised?

Accepted Answer

Generally, no — option exercise does not trigger automatic recertification. However, if a merger or acquisition has occurred, recertification is required. For contracts with a base period plus options that together exceed five years, recertification is required at the five-year mark regardless of options. Contracting officers may also request recertification as a condition of option exercise if they have reason to believe eligibility has changed.

Question 2

How often must an SDVOSB recertify its status?

Accepted Answer

Under SBA's VetCert program, SDVOSB certifications are valid for three years. Firms must recertify before their certification expires to maintain eligibility. Additionally, firms must notify SBA within 30 days of any change that affects their eligibility — such as a change in ownership, size, or veteran status. Certain contract events (such as mergers) also trigger immediate recertification requirements.

Question 3

When must a contractor recertify its size?

Accepted Answer

Recertification is required: (1) when a long-term contract (more than five years) reaches its five-year anniversary, (2) when an IDIQ contract is modified to extend the ordering period, (3) when a merger or acquisition occurs, and (4) when the contractor initiates a merger or acquisition. For individual task orders, recertification requirements depend on the ordering contract's terms. Recertify using the current solicitation's NAICS code.

Question 4

What happens to SDVOSB set-aside contracts after a merger?

Accepted Answer

After a merger or acquisition, the surviving entity must recertify its SDVOSB status. If the surviving entity does not qualify as an SDVOSB, it cannot be awarded new SDVOSB set-aside contracts but can generally complete existing ones. For IDIQ and multiple-award contracts, the contracting officer must be notified within 30 days and recertification is required at each order. Loss of SDVOSB status may affect future task order eligibility.

Must an SDVOSB recertify when a contract option is exercised?

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