Question 1

What market research must VA conduct before using non-SDVOSB procurement methods?

Accepted Answer

Before using any procurement method other than an SDVOSB set-aside, VA contracting officers must conduct market research to determine whether SDVOSBs can meet the requirement at a fair market price. This typically involves searching the VetCert database, issuing a Sources Sought notice, reviewing prior contract history, and documenting why fewer than two SDVOSBs responded or could perform. Inadequate market research documentation is a common basis for GAO protests.

Question 2

What is the VA Veterans First Contracting Program?

Accepted Answer

The VA Veterans First Contracting Program (VFCP) is established under 38 U.S.C. 8127-8128 and requires VA to prioritize SDVOSBs and VOSBs in procurement. VA contracting officers must conduct market research to find SDVOSBs and VOSBs before using other procurement methods. The program requires SBA VetCert certification for both SDVOSB and VOSB status. VA has its own sole-source thresholds and set-aside rules under this program.

Question 3

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.

What market research must VA conduct before using non-SDVOSB procurement methods?

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