Congress determined that the Federal Government must do more to assist veterans of the U.S. Armed Forces, particularly service-disabled veterans, who often faced great risks to preserve the American dream of freedom and prosperity.
In 1999, Congress amended the Small Business Act to facilitate the entrée of veteran owned businesses into the government and commercial marketplace through education, training, business assistance, infrastructure support, knowledge management, and acquisition support. The amendment established federal procurement goals for service-disabled veteran business.
What is a Service-Disabled Veteran-Owned Small Business (SDVOSB)?
SDVOSB are small business concerns with not less than 51 percent of which is owned by one or more service-disabled veterans or, in the case of any publicly owned business, not less than 51 percent of the stock of which is owned by one or more service-disabled veterans; and the management and daily business operations of which are controlled by one or more service-disabled veterans or, in the case of a veteran with permanent and severe disability, the spouse or permanent caregiver of such veteran.
Public Law 106-50: "The Veterans Entrepreneurship and Small Business Development Act of 1999"
This Act expanded existing and established new assistance programs for veterans who own or operate small businesses. The Act set a goal for the federal government in contracting with service-connected disabled veteran-owned companies.
Public Law 108-183: "Veterans Benefits Act of 2003"
The purpose of this procurement program is to assist agencies in achieving the statutorily mandated 3% government-wide goal for procurement from service-disabled veteran-owned small business concerns.
Executive Order 13360, Providing Opportunities for Service-Disabled Veteran Businesses to Increase Their Federal Contracting and Subcontracting
States that, "agencies shall more effectively implement section 15(g) of the Small Business Act (15 U.S.C. 644(g)), which provides that the President must establish a goal of not less than 3 percent for participation by service-disabled veteran businesses in Federal contracting, and section 36 of that Act (15 U.S.C. 657f), which gives agency contracting officers the authority to reserve certain procurements for service-disabled veteran businesses."
What is a SDVOSB Set-Aside?
Procurements may be set-aside for SDVOSB. A "set-aside" is the reserving of an acquisition exclusively for participation by SDVOSB concerns. For a procurement to be totally set-aside, a contracting officer must have reasonable expectations that offers will be obtained from at least two responsible SDVOSB and awards will be made at fair market price. For more information on SDVOSB set-asides, go to FAR Subpart 19.1405.
The contracting officer must also consider service-disabled veteran-owned small business set-asides before considering service-disabled veteran-owned small business sole source awards (see FAR Subpart 19.1406).
A number of web sites serve as useful sources of information for SDVOSBs. Some of those sites are:
SBA Office of Veterans Business Development
http://www.sba.gov/aboutsba/sbaprograms/ovbd/index.html
Department of Veterans Affairs’ Center For Veterans Enterprise
http://www.vetbiz.gov/
Veterans Corporation
www.veteranscorp.org