Sole-Sourcing via SDVOSB
SDVOSB Contracting Goal
Public Law 106-50 established a contracting goal for Federal
agencies to award 3% of prime contracts to service- disabled
veteran-owned small businesses (SDVOSBs). In addition, large
Prime Contractors have SDVOSB subcontracting goals.
SDVOSB Set Aside Solicitations
A solicitation can be set aside for SDVOSBs if the Contracting
Officer has a reasonable expectation that at least two qualified
SDVOSBs will submit offers, and that the contract will be
awarded at a fair market price. There is no dollar limit on an
SDVOSB set aside. If only one offer is received, the Contracting
Officer may make an award, if the award can be made at a fair
market price. If the Contracting Officer receives no acceptable
offers from service-disabled veteran-owned small business
concerns, the service-disabled veteran-owned set- aside shall be
withdrawn and the requirement, if still valid, set aside for
small business concerns.
SDVOSB Sole Source Awards
Sole-source SDVOSB contracts can be awarded if the Contracting
Officer determines that only one qualified SDVOSB is available
to perform the contract, and the anticipated award price of the
proposed contract, including options, will not exceed:
-$5,000,000 for a requirement within the North American
Industry Classification System (NAICS) code for manufacturing,
or
- $3,000,000 for a requirement within all other NAICS codes.








