Overview
FAR 19.1404 identifies specific scenarios and procurement vehicles where the Service-Disabled Veteran-Owned Small Business (SDVOSB) Program requirements do not mandatorily apply. It establishes the "order of precedence" for federal socioeconomic programs and defines the limits of the SDVOSB set-aside authority.
Key Rules
- Priority of Mandatory Sources: SDVOSB set-asides cannot be used if the requirement can be satisfied by Federal Prison Industries, Inc. (UNICOR) or AbilityOne participating non-profit agencies.
- Task and Delivery Orders: The subpart does not mandate SDVOSB set-asides for orders placed under Indefinite-Delivery Contracts (FAR 16.5) or Federal Supply Schedules (FAR 8.4), though Contracting Officers retain the discretionary authority to set aside these orders.
- 8(a) Program Protection: Requirements currently in the 8(a) Business Development Program, or those already accepted by the SBA for the 8(a) program, are excluded from SDVOSB set-asides unless the SBA formally releases the requirement.
Practical Implications
- Procurement Planning: Contracting Officers must conduct a "Rule of Two" analysis only after determining the requirement is not spoken for by a mandatory source or locked into the 8(a) portfolio.
- Program Stability: The exclusion regarding the 8(a) program prevents agencies from moving a contract from an 8(a) participant to an SDVOSB simply to meet different agency goals, ensuring stability for firms currently performing under the 8(a) authority.