FAR 52.219-27
Notice of Set-Aside for, or Sole-Source Award to, Service-Disabled Veteran-Owned Small Business Concerns
In Plain English
FAR 52.219-27 is the clause a contracting officer inserts into a solicitation to formally restrict it to SDVOSBs. When you see this clause, the competition is an SDVOSB set-aside (or the basis for a sole-source SDVOSB award): only certified SDVOSBs may be awarded, the apparent successful offeror must represent its status, and the limitations on subcontracting apply to performance. It is the contract-level expression of the authority in FAR Subpart 19.14.
Who It Applies To
- Offerors responding to a solicitation that contains the clause — only certified SDVOSBs are eligible for award.
- Contracting officers restricting a competition to SDVOSBs under FAR 19.14.
- Prime contractors whose performance is bound by the clause's limitations-on-subcontracting requirement.
Key Provisions
| Provision | What It Means |
|---|---|
| Restriction to SDVOSBs | Offers are solicited only from SDVOSBs, and award will be made only to a concern that qualifies as a certified SDVOSB at the time required by the clause. |
| Status representation | By submitting an offer, the offeror represents that it is a certified SDVOSB and small under the NAICS code assigned to the procurement. |
| Limitations on subcontracting | The clause incorporates the limitations on subcontracting (13 CFR § 125.6 / FAR 52.219-14), requiring the prime and its similarly situated subs to perform the required minimum share of the work. |
| Agreement to the terms | An offeror that is not an eligible, certified SDVOSB is not eligible for award, and a misrepresentation can expose the firm to protest, termination, and penalties. |
Common Pitfalls
- Bidding without holding a current SBA VetCert certification — self-identification is not enough where this clause applies.
- Ignoring the embedded limitations-on-subcontracting obligation when planning the teaming structure.
- Confusing 52.219-27 (the notice/restriction clause) with 52.219-14 (the limitations-on-subcontracting performance clause); a set-aside typically carries both.
- Assuming eligibility is judged at performance — it is judged at the time the clause specifies (generally the offer/representation point).
Frequently Asked
What does FAR 52.219-27 do?
It is the solicitation clause that restricts a competition to SDVOSBs. When a solicitation contains FAR 52.219-27, only certified SDVOSBs are eligible for award, and the offeror represents its SDVOSB and small-business status by bidding.
Can I bid on a 52.219-27 set-aside without being certified?
No. Where this clause applies, award can only go to a firm that is a certified SDVOSB at the time the clause specifies. Self-identifying as veteran-owned without SBA VetCert certification will make the offer ineligible for award.
What is the difference between FAR 52.219-27 and 52.219-14?
FAR 52.219-27 is the notice that the work is set aside for SDVOSBs; FAR 52.219-14 is the limitations-on-subcontracting performance clause. An SDVOSB set-aside typically carries both — one restricts who can win, the other governs how the work must be performed.
Primary Sources
Plain-English explainer, not legal advice. SDVOSB rules are still settling after the 2023 transfer of certification to the SBA, and federal acquisition dollar thresholds are periodically adjusted for inflation — verify current figures and procedures against the cited authority and your contracting officer before acting.
Change log (1)
- LaunchedPublished plain-English regulation explainers for 13 CFR Part 128 (VetCert), FAR Subpart 19.14, 13 CFR § 125.6 (limitations on subcontracting), 38 U.S.C. § 8127 (Veterans First), FAR 52.219-27, and 13 CFR Part 134 Subpart J (status protests) — each with a key-provisions table, common pitfalls, FAQPage and Legislation structured data, primary-source citations, and cross-links into the glossary, how-to guides, FAQ, and comparisons.