The Federal Acquisition Regulation (FAR) has provisions for both SDVOSB set-aside competitions and SDVOSB sole-source awards.

13 C.F.R. 125.19 – SDVOSB set-aside competition: The contracting officer may make the procurement a SDVOSB set-aside competition if there is a “reasonable expectation that at least two responsible SDVOSBs will submit offers.” In addition, if there is a reasonable expectation that at least two responsible SDVOSBs will submit offers, the contracting officer should consider setting aside the requirement as a SDVOSB competition before considering setting aside the requirement as a general small business set-aside.

13 C.F.R. 125.20 – SDVOSB sole source: The contracting officer may make a sole source award up to $3M if a SDVOSB is able to perform the work and only one SDVOSB can be reasonably expected to submit an offer.

13 CFR Part 124 SBA 8(a) ProgramThe U.S. Small Business Administration (SBA) administers two particular business assistance programs for small disadvantaged businesses (SDBs). These programs are the 8(a) Business Development Program. While the 8(a) Program offers a broad scope of assistance to socially and economically disadvantaged firms, SDB certification strictly pertains to benefits in Federal procurement. Companies which are 8(a) firms automatically qualify for SDB certification.

Benefits of the Program

• Participants can receive sole-source contracts, up to a ceiling of $3.5 million for goods and services and $5 million for manufacturing. While SBA helps 8(a) firms build their competitive and institutional know-how, the agency also encourages them to participate in competitive acquisitions.
• Federal acquisition policies encourage Federal agencies to award a certain percentage of their contracts to SDBs. To speed up the award process, the SBA has signed Memorandums of Understanding (MOUs) with 25 Federal agencies allowing them to contract directly with certified 8(a) firms
• Recent changes permit 8(a) firms to form joint ventures and teams to bid on contracts. This enhances the ability of 8(a) firms to perform larger prime contracts and overcome the effects of contract bundling, the combining of two or more contracts together into one large contract.