Set-Aside Procurement · Federal Acquisition Regulation

FAR Subpart 19.14

Service-Disabled Veteran-Owned Small Business Procurement Program

In Plain English

FAR Subpart 19.14 is the part of the Federal Acquisition Regulation that authorizes and governs SDVOSB set-asides and sole-source awards at civilian and defense agencies (the VA runs its own program under separate authority). Where 13 CFR Part 128 decides who is an SDVOSB, FAR 19.14 tells the contracting officer when and how to restrict a competition to certified SDVOSBs, when a sole-source award is allowed, and which solicitation clauses to insert. It operationalizes the 'Rule of Two' for SDVOSBs.

Who It Applies To

  • Contracting officers at civilian and DoD agencies deciding whether to set a requirement aside for SDVOSBs.
  • Certified SDVOSBs competing for set-aside or sole-source awards outside the VA.
  • Acquisition planners applying the SDVOSB Rule of Two during market research.

Key Provisions

ProvisionWhat It Means
SDVOSB set-aside authorityA contracting officer may set an acquisition aside for SDVOSBs when there is a reasonable expectation that two or more certified SDVOSBs will submit offers and award can be made at a fair market price (the SDVOSB Rule of Two).
Sole-source authorityAn SDVOSB sole-source award is permitted when only one SDVOSB can meet the requirement, the anticipated value is within the FAR sole-source threshold, and award can be made at a fair and reasonable price.
Eligibility at the time of offerA firm must be a certified SDVOSB (and small under the procurement's NAICS code) to be eligible for award under a 19.14 set-aside or sole-source action.
Solicitation clausesThe contracting officer inserts the SDVOSB set-aside provisions and clauses (including FAR 52.219-27) so offerors are on notice of the restriction and the limitations on subcontracting that apply.

Common Pitfalls

  • Confusing FAR 19.14 with the VA's Veterans First program — the VA awards SDVOSB/VOSB work under 38 U.S.C. § 8127, not FAR 19.14.
  • Forgetting that the Rule of Two is a market-research judgment about *capable certified* SDVOSBs, not just any veteran-owned firm.
  • Assuming a sole-source award can exceed the FAR threshold — above it, the requirement generally must be competed.
  • Overlooking that set-aside eligibility hinges on certification status and size as of the offer date.
Read FAR Subpart 19.14 at the source →

Frequently Asked

What is FAR Subpart 19.14?

It is the part of the Federal Acquisition Regulation that authorizes SDVOSB set-asides and sole-source awards at civilian and defense agencies, and tells contracting officers how and when to use them. It is the acquisition-side companion to SBA's eligibility rules in 13 CFR Part 128.

Does FAR 19.14 apply at the VA?

No. The Department of Veterans Affairs runs its own Veterans First program under 38 U.S.C. § 8127. FAR Subpart 19.14 governs SDVOSB set-asides at other civilian agencies and the DoD.

What is the SDVOSB Rule of Two in FAR 19.14?

A contracting officer should set a requirement aside for SDVOSBs when there is a reasonable expectation that two or more certified SDVOSBs will submit offers and award can be made at a fair market price.

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.

Last updated Update cadence: Quarterly, plus on regulatory changes
Change log (1)
  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.

Related Regulations

Put It Into Practice

How to Find and Bid SDVOSB Set-Aside Contracts
How to Get SDVOSB Certified Through SBA VetCert

Related Comparisons

SDVOSB vs Small Business Set-Aside

Terms Used on This Page

Set-AsideSole-Source AwardRule of TwoFARSize Standard

In the FAQ Knowledge Base

What is an SDVOSB set-aside contract?
What is an SDVOSB sole-source contract?
What is the 'rule of two' for SDVOSB set-asides?
How do competitive SDVOSB set-asides work?
How does DoD use SDVOSB set-asides?
← All Regulations Explained