The Veterans Benefit Act recognizes the service and sacrifice made by veterans suffering from a service-connected disability by providing assistance with federal contracting opportunities. Public Law (P. L.) 108-183 was created as a program in part to address concerns and criticism directed at P. L. 106-50, The Veterans Entrepreneurship and Small Business Development Act of 1999. Some thought that the lack of a specific procurement mechanism under P.L. 106-50 to encourage government activities to award contracts to Service-Disabled Veteran-Owned Small Businesses (SDVOSBs) limited their ability to do so. P. L. 108-183, the Veterans Benefit Act of 2003, provided the solution. The four main objectives of the Veterans Benefit Act are to:

1. Achieve a goal of at least 3% of federal contract dollars awarded to SDVOSBs
2. Provide the needed program mechanisms
3. Provide guidance to contracting officers
4. Establish federal accountability and enforcement

The Department of Veteran Affairs certifies Veteran and Service Disabled Veteran Owned Small Businesses, however, such certification is not required for contracting with the Department of Defense. SDVOSB owners must be prepared to support their SDVOSB status with documentation from the Department of Defense and/or the Department of Veteran Affairs.

While this program is a significant opportunity for veterans, it is not "easy money" nor a guarantee of success for SDVOSBs.

Sole Source Contracts:

The Contracting Officer may award a sole source contract to a SDVOSB if

• The SDVOSB is determined to be responsible and capable and there is no reasonable expectation that 2 or more SDVOSB will submit offers.
• The award price of the contract (including options) will not exceed
  • $6.5M for for manufacturing
  • $4M for any other industrial classification
• In the estimation of the Contracting Officer, the contract award can be made at a fair and reasonable price.

Restricted Competition/Set-Asides:

The Contracting Officer MAY set-aside contracts for SDVOSB if

• There is a reasonable expectation that 2 or more SDVOSB will submit offers, and
• In the estimation of the Contracting Officer, the contract award can be made at a fair and reasonable price.

The Contracting Officer MAY NOT set-aside contracts if

• The award would otherwise be granted in accordance with the Javits-Wagner-O'Day Act
• An 8(a) participant is currently performing the work or the SBA has accepted the contract requirement under the authority of the 8(a) program.

For additional information:

• Small Business Administration's SDVOSB Guide
• 13 CFR 125
• FAR 19.14