CONTRACT
VEHICLES
Summary of Public Law 108-183, section 308

SERVICE DISABLED VETERANS BUSINESS PROGRAM

Public Law 108-183, Section 308 Veterans Benefit Act of 2003 establishes a procurement program for service disabled veterans. This program provides that contracting officers may award a sole source contract or set-aside contracts to service disabled veteran owned firms (SDVOs).

Competitive Set-Aside - Contracting Officer as a reasonable expectation of receiving offers from 2 or more SDVO firms and that the award can be made at a fair market price.

Sole source awards - A Contracting Officer may award a sole source contract to a SDVO firm if they do not have reasonable expectation that 2 or more SDVO firms will submit offers for the contracting opportunity, and the anticipated award price (including options) will not exceed $5 Million for manufacturing, and $3 Million for any other contract (services).
  • SDVO firms may joint venture with other small businesses as long as when combined with all affiliates, the joint venture meets the Size Standard requirement. In addition, the joint venture must have a written agreement that specifically names the SDVO as the managing venturer, and states that not less than 51% of the net profits will be distributed to the SDVO.
  • SDVO non-manufacturers must comply with the requirements of the non-manufacturer rule. It must supply the end items of a small business manufacturer or processor made in the U.S. Contracting Officers may request a waiver to the non-manufacturing rule.
  • SDVO contracts may not be made if the requirement can be satisfied through the use of the UNICOR or JWOD Program.
  • Simplified acquisitions MAY be considered for SDVO set-asides. Large buys SHALL be considered.