top of page
Abstract Background

SDVOSB Sole Source Process Overview

SDVOSB Sole Source Process

The purpose of the Service-Disabled Veteran-Owned Small Business Concern Procurement Program is to provide procuring agencies with the authority to set acquisitions aside for exclusive competition among service-disabled veteran-owned small business concerns, as well as the authority to make sole source awards to service-disabled veteran-owned small business concerns if certain conditions are met. (See Code of Federal Regulations (CFR) 13 C.F.R. § 125.8-125.10).

Sole Source Contracts

A CO may award a sole source contract if:

  1. If the requirement is not exempted from SDVO contracting and cannot be set-aside.

  2. The CO does not have a reasonable expectation that at least two responsible SDVO SBCs will submit offers.

  3. The anticipated award price of the contract, including options, will not exceed:

    • $6.5M for manufacturing requirements

    • $4.0M for all other requirements

  4. Award can be made at a fair market price.

Simplified Acquisition Threshold

If the requirement is at or below the simplified acquisition threshold, the CO may set-aside the requirement for consideration among SDVOSBCs using simplified acquisition procedures or may award a sole source contract to a SDVOSBC. A sole source award is only permissible where there is only one SDVO SBC that performs the contract in accordance with Federal Acquisition Regulations § 19.406 (a)(3).

Set Aside Requirements and Exemptions

A Contracting Officer (CO) may set-aside requirements if:

1. The requirement is not exempted from SDVO contracting, the CO considers setting aside the requirement for 8(a), HUBZone, or SDVO SBC participation before considering setting aside the requirement as a small business set-aside.

2. There is a reasonable expectation that at least two responsible SDVO SBC will submit offers; and

3. The award can be made at a fair market price.

A contracting activity may not make a requirement available for a SDVO contract if and be exempted if:

1. The requirement would be fulfilled through the award of Federal Prison Industries, Inc. or Javits-Wagner-O’Day Act participating non-profit agencies for the blind and severely disabled.

The requirement is currently being performed by an 8(a) participant or SBA has accepted that requirement for performance under the authority of the Section 8(a) Program.

Contract POC:


Phone Number:

bottom of page