Question 1

What is an SDVOSB set-aside contract?

Accepted Answer

An SDVOSB set-aside is a federal contract reserved exclusively for competition among Service-Disabled Veteran-Owned Small Businesses. Contracting officers use set-asides when they reasonably expect to receive offers from at least two eligible SDVOSBs at a fair market price (the 'rule of two'). Set-asides help ensure SDVOSBs get a fair share of federal contract dollars as mandated by Congress.

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

What is an SDVOSB sole-source contract?

Accepted Answer

An SDVOSB sole-source contract is awarded to a single SDVOSB without competition. Contracting officers may award sole-source contracts when only one SDVOSB can satisfy the requirement, or when the acquisition is urgently needed. For civilian agencies, the sole-source threshold is generally $4.5 million for services and $7.5 million for manufacturing. VA has separate sole-source thresholds under Veterans First.

Question 4

How do competitive SDVOSB set-asides work?

Accepted Answer

In a competitive SDVOSB set-aside, the contracting officer issues a solicitation restricted to certified SDVOSBs. All eligible SDVOSBs may submit proposals. The award is made to the SDVOSB offering the best value (or lowest price for LPTA acquisitions). All offerors must be VetCert-certified at the time of offer and at the time of award. The competition is closed to non-SDVOSBs.

What is an SDVOSB set-aside contract?

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