Overview
This section outlines the eligibility and verification requirements for Service-Disabled Veteran-Owned Small Business (SDVOSB) concerns, transitioning the program from self-certification to formal SBA certification. It defines the criteria for both individual concerns and joint ventures to qualify for set-aside or sole-source contracts.
Key Rules
- Certification Requirement: Effective January 1, 2024, concerns must be certified by the SBA and designated as such in the System for Award Management (SAM) to be eligible for SDVOSB contracts.
- Grace Period for Pending Applications: Concerns that represented themselves as SDVOSBs in SAM and submitted a certification application by December 31, 2023, remain eligible while their application is pending.
- Mandatory Status Updates: If the SBA denies certification or finds a firm ineligible, the concern must update its status in SAM within two days; if they fail to do so, the SBA will update the status for them.
- Joint Venture (JV) Eligibility: A JV qualifies if it is small, complies with 13 CFR 128.402, and the managing partner is either SBA-certified or has a qualifying pending application submitted by the 2023 deadline.
- Authority: SBA determines SDVOSB status in accordance with 13 CFR part 128.
Practical Implications
- Contracting Officers can no longer rely on simple self-representation for SDVOSB set-asides and must verify formal SBA certification status within SAM or the SBA database.
- The strict two-day window for updating SAM following an ineligible finding necessitates that firms have an immediate administrative response plan to avoid potential compliance or integrity issues.