Overview
FAR 19.307 prescribes the procedures for challenging a business concern’s status as a Service-Disabled Veteran-Owned Small Business (SDVOSB). It defines who has the standing to protest, the strict timelines for submission, and the process by which the SBA’s Office of Hearings and Appeals (OHA) adjudicates these challenges.
Key Rules
- Standing to Protest: For sole-source awards, only the Contracting Officer (CO), the VA, or the SBA may protest; for all other acquisitions, any "interested party" may file a protest.
- Separation of Protests: Challenges to SDVOSB status are handled separately from size status protests; an entity wishing to challenge both must file two distinct protests.
- Specific Grounds Required: Protests must be in writing and provide specific evidence regarding ownership and control, lack of proper VA documentation, or violations of the "ostensible subcontractor" rule (undue reliance on a non-similarly situated subcontractor).
- Strict Timelines: Interested parties must submit protests within five business days after bid opening (sealed bidding) or notification of the apparent successful offeror (negotiated acquisitions).
- Agency Exceptions: The SBA and VA may file a status protest at any time; the CO may file any time after bid opening or identification of the apparent awardee.
- Award Restrictions: The CO generally must withhold contract award until OHA issues a decision, unless a written determination is made that an urgent award is necessary to protect the public interest.
- Post-Decision Requirements: If a protest is sustained, the firm must remove its SDVOSB designation in SAM within two days and cannot bid on future SDVOSB set-asides until recertified by the SBA.
Practical Implications
- Speed is Critical: The five-day window for competitors to protest is extremely narrow, requiring firms to have a monitoring and response strategy ready immediately upon notification of an apparent winner.
- Contractual Risk: If a firm loses an SDVOSB protest after a contract has been awarded under a "public interest" exception, the CO is generally required to terminate the contract and is strictly prohibited from exercising any remaining options.