Question 1

Is there a minimum dollar amount for SDVOSB set-asides?

Accepted Answer

Set-asides are generally required when the acquisition exceeds the micro-purchase threshold (currently $10,000) and the contracting officer anticipates receiving offers from two or more SDVOSBs. Acquisitions below the micro-purchase threshold do not require set-asides but SDVOSBs can still compete. Simplified acquisitions (between $10,000 and $250,000) are required to be set aside if the rule of two is met.

Question 2

What is the 'rule of two' for SDVOSB set-asides?

Accepted Answer

The rule of two requires a contracting officer to set aside a contract for SDVOSBs when there is a reasonable expectation of receiving offers from at least two eligible SDVOSB concerns that can perform at a fair market price. If this expectation exists, the contracting officer must use the set-aside instead of full-and-open competition. The rule of two is a mandatory gate — it's not discretionary when conditions are met.

Question 3

Can SDVOSBs pursue micro-purchase contracts?

Accepted Answer

Yes. Micro-purchase contracts (currently under $10,000) do not require set-asides, but contracting officers are encouraged to use SDVOSBs for these purchases. There is no formal competition requirement for micro-purchases, though agencies must distribute them equitably. SDVOSBs can be added to agency purchase card vendor lists and preferred vendor registries to capture micro-purchase spending.

Question 4

How do simplified acquisition procedures benefit SDVOSBs?

Accepted Answer

Simplified Acquisition Procedures (SAP) apply to contracts between $10,000 and $250,000. Under SAP, agencies must set aside acquisitions for small businesses if the rule of two is met — and within that, SDVOSB set-asides take priority. SAP contracts have less documentation burden and faster award timelines than large contracts. SDVOSBs should actively monitor SAM.gov for SAP solicitations in their NAICS codes.

Is there a minimum dollar amount for SDVOSB set-asides?

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