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Procurement
Preferences for Small Business Concerns Owned and Controlled by Service
Disabled Veterans
On October 21, 2004, President George W. Bush signs an Executive Order
supporting Service Disabled Veteran Owned Businesses: "...America
honors the extraordinary service rendered to the United States by
veterans with disabilities incurred or aggravated in the line of duty
during active service with the armed forces. Heads of agencies shall
provide the opportunity for service-disabled veteran businesses to
significantly increase the Federal contracting and subcontracting of
such businesses..."
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On December 16, 2003, the Veterans Benefit Act of 2003
(Public Law 108-183) was enacted amending the Small Business Act (15
U.S.C. 631 et seq.) to establish a procurement program for Small
Business Concerns owned and controlled by service disabled veterans
(see: Public Law 106-50).
Section 108 of that law provides that contracting officers may award a
sole source set- aside contract to Service-Disabled Veteran Owned Small
Business Concerns (SDVOSBC), if certain conditions are met.
Specifically, a contracting officer may award a sole source contract to
any small business concern owned and controlled by Service Disabled
Veterans if:
- Such concern is determined to be a responsible contractor with
respect to performance of such contract opportunity and the
contracting officer does not have a reasonable expectation that 2 or
more small business concerns owned and controlled by Service
Disabled Veterans will submit offers for the contracting
opportunity;
- The anticipated award price of the contract (including options)
will not exceed $5.0M in the case of a contract opportunity assigned
a North American Industry Classification System code for
manufacturing; or $3.0M in the case of any other contract
opportunity;
- In the estimation of the contracting officer, the contract award
can be made at a fair and reasonable price.
Additionally, a contracting officer may award contracts on the basis of
competition restricted to small business concerns owned and controlled
by Service Disabled Veterans if the contracting officer has a reasonable
expectation that not less than 2 small business concerns, controlled by
service-disabled veterans, will submit offers, and that the award can be
made at a fair market price.
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