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Government Contracting : Classifications :
Service-Disabled Veteran Owned Small Business (SDVOSB) Classification
The Veterans Benefit Act of 2003 created the procurement program for small business concerns owned and controlled by service-disabled veterans (SDVOSB). The purpose of the Service-Disabled Veteran-Owned Small Business Program is to provide Federal contracting assistance to service-disabled veteran-owned small business concerns.
- Q. What are the benefits to being certified as a SDVOSB?
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There is a goal of 3 percent of prime and subcontracts designated for service-disabled veteran-owned small businesses. The contracting officer may set-aside acquisitions exceeding the micro-purchase threshold for competition restricted to service-disabled veteran-owned small business concerns when the contracting officer has a reasonable expectation that:
- Offers will be received from two or more service-disabled veteran-owned small business concerns; and
- Award will be made at a fair market price.
- Q. What are the basic requirements an SDVOSB applicant firm must meet?
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To be considered a SDVOSB, a firm must be:
- Not less than 51 percent of which is owned by one or more service-disabled veterans or, in the case of any publicly owned business, not less than 51 percent of the stock of which is owned by one or more service-disabled veterans; and
- The management and daily business operations of which are controlled by one or more service-disabled veterans or, in the case of a service-disabled veteran with permanent and severe disability, the spouse or permanent caregiver of such veteran.
"Service-disabled veteran" means a veteran, as defined in 38 U.S.C. 101(2), with a disability that is service-connected, as defined in 38 U.S.C. 101(16).
A service-disabled veteran-owned small business concern agrees that in the performance of the contract, in the case of a contract for:
- Services (except construction), at least 50 percent of the cost of personnel for contract performance will be spent for employees of the concern or employees of other service-disabled veteran-owned small business concerns;
- Supplies (other than acquisition from a nonmanufacturer of the supplies), at least 50 percent of the cost of manufacturing, excluding the cost of materials, will be performed by the concern or other service-disabled veteran-owned small business concerns;
- General construction, at least 15 percent of the cost of the contract performance incurred for personnel will be spent on the concern's employees or the employees of other service-disabled veteran-owned small business concerns; or
- Construction by special trade contractors, at least 25 percent of the cost of the contract performance incurred for personnel will be spent on the concern's employees or the employees of other service-disabled veteran-owned small business concerns.
A joint venture may be considered a service-disabled veteran owned small business concern if:
- At least one member of the joint venture is a service-disabled veteran-owned small business concern, and makes the following representations: That it is a service-disabled veteran-owned small business concern, and that it is a small business concern under the North American Industry Classification Systems (NAICS) code assigned to the procurement;
- Each other concern is small under the size standard corresponding to the NAICS code assigned to the procurement; and
- The joint venture meets the requirements of paragraph 7 of the explanation of Affiliates in 19.101 of the Federal Acquisition Regulation.
- The joint venture meets the requirements of 13 CFR 125.15(b)
Any service-disabled veteran-owned small business concern (nonmanufacturer) must meet the requirements in 19.102(f) of the Federal Acquisition Regulation to receive a benefit under this program.
- Q. How do I certify/classify as a SDVOSB?
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There is no certification process for veterans. A veteran or a service-disabled veteran self certifies his/her veteran status when he/she registers on PRO-Net and when responding to a government solicitation. Proof of being a service-disabled veteran can be evidenced by a DD Form 214 and a Veteran's Administration certified letter as to disability.
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