FAR Update: SDVOSB Set-Aside Simplified Acquisition Threshold Clarification
FAR Council clarified that SDVOSB set-asides apply to acquisitions above the micro-purchase threshold ($10,000) and below the simplified acquisition threshold ($250,000) when the Rule of Two is met — reinforcing the requirement to consider set-asides for all competitive procurements.
Change log (3)
- Data refreshRe-checked rule statuses and comment deadlines against the latest Federal Register postings.
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- LaunchedPublished the tracker covering major 2023–2025 SBA/VA/DoD/FAR rule changes affecting SDVOSBs.
| Agency | Federal Acquisition Regulatory Council |
| Rule Type | Final Rule |
| Status | Effective |
| Published | 2024-05-30 |
| Effective Date | 2024-07-01 |
| FR Citation | 89 FR 46782 |
| Rule / Docket | FAC 2024-05 |
| Affected Areas | Set-AsidesCompliance |
Rule Details
The Federal Acquisition Regulatory Council issued a final rule (Federal Acquisition Circular 2024-05) amending FAR Part 19 to clarify the applicability of SDVOSB set-asides across the full acquisition threshold spectrum. The rule was prompted by inconsistent agency practices regarding small-dollar procurements where contracting officers were bypassing set-aside procedures.
Key clarification: For acquisitions between the micro-purchase threshold ($10,000) and the simplified acquisition threshold ($250,000), contracting officers must consider SDVOSB set-asides whenever the Rule of Two conditions are met (reasonable expectation of two or more competitive offers from certified SDVOSBs at fair market price). This applies to purchase card transactions, blanket purchase agreements, and orders against indefinite-delivery contracts.
The rule also updates the definition of 'SDVOSB concern' in FAR 2.101 to reference SBA's VetCert certification database as the authoritative verification source, superseding older cross-references to the VA CVE database. Contracting officers are directed to verify SDVOSB status at awards.gov or through the SAM.gov entity search prior to award.
Practical impact for SDVOSBs: Firms bidding on simplified acquisition procurements should ensure their SAM.gov profile reflects current VetCert certification status. Contracting officers who receive protests challenging set-aside applicability below $250,000 will now have clearer regulatory authority to defend set-aside determinations.
Frequently Asked Questions
What does FAR Update: SDVOSB Set-Aside Simplified Acquisition Threshold Clarification mean for SDVOSBs?
FAR Council clarified that SDVOSB set-asides apply to acquisitions above the micro-purchase threshold ($10,000) and below the simplified acquisition threshold ($250,000) when the Rule of Two is met — reinforcing the requirement to consider set-asides for all competitive procurements.
When does this rule take effect?
This rule has an effective date of 2024-07-01. SDVOSBs should update their compliance procedures and SAM.gov representations accordingly.
Where can I read the full text of 89 FR 46782?
The full text of this rule is published in the Federal Register under citation 89 FR 46782. You can search for it at federalregister.gov using the citation or docket number FAC 2024-05.