Overview
FAR 19.1408 prescribes the specific contract clauses required for solicitations and contracts involving set-asides or sole-source awards to Service-Disabled Veteran-Owned Small Business (SDVOSB) concerns. It ensures that the legal requirements of the SDVOSB program, including subcontracting limits and manufacturing rules, are contractually binding.
Key Rules
- Mandatory Clause 52.219-27: Contracting officers must include the "Notice of Set-Aside for, or Sole-Source Award to, Service-Disabled Veteran-Owned Small Business (SDVOSB) Concerns Eligible Under the SDVOSB Program" in all SDVOSB-restricted acquisitions.
- Broad Applicability: The requirement applies to standard contracts, sole-source awards, multiple-award contracts, and individual orders placed against Federal Supply Schedules or task/delivery order contracts.
- Limitations on Subcontracting: Directs the use of FAR 52.219-14 (as prescribed in 19.507(e)) to ensure the SDVOSB performs the required percentage of work.
- Nonmanufacturer Rule: Directs the use of FAR 52.219-33 (as prescribed in 19.507(h)) for acquisitions involving the supply of products not manufactured by the SDVOSB.
Practical Implications
- Compliance Enforcement: These clauses provide the government with the legal mechanism to ensure that SDVOSB firms are not merely acting as "pass-throughs" for large businesses or non-veteran-owned firms.
- Solicitation Review: Contractors should verify these clauses are present in SDVOSB set-asides, as they dictate critical operational requirements like work-share minimums and eligibility certifications that must be maintained throughout the life of the contract.