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Service-Disabled Veteran-Owned Small Business Concerns (SDVOSBC)

Service-Disabled Veteran-Owned Small Business Concerns (SDVOSBC)

QUESTION: Is it fair to ever award a government contract on a 'sole source' bid to a qualified Service-Disabled Veteran-Owned Small Business Concerns (SDVOSB) candidate?

The Issue: In accordance with 13 C.F.R. 125.19 and 125.20, contracting officers may award a sole source or set-aside contract to SDVOSBCs, if certain conditions are met.

Set-Aside programs have been a hot button piece of the Affirmative Action/Discrimination debate. Typically the issue centered on race or gender based set asides. The Federal Government or individual States have different programs to set aside funds solely for companies run by minorities or women. Let's take the issue in a slightly different direction.

The Federal Government has a set-aside program for contracting related to disabled veterans.

The Small Business Administration says that more than 13.8 Billion was spent in 2008 with Veteran Owned businesses and 6.4 Billion of that going to service-disabled small firms. While this statistic is a bit out of date it is worth checking out this site I took the numbers from as it shows some concern about accountability.

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Service-Disabled Veteran-Owned Small Business Concerns

A business that is termed as a Service- Disabled Veteran -owned Business has to meet the following criteria for it to be eligible for the title: The service-Disable veteran must have a service- connected disability that has been determined by the Department of veteran Affairs or the Department of Defense. The SDVOSBC must be small under the North American Industry Classification System (NAICS) code assigned to the procurement. To add on this, at least 51% of the business must be owned by an individual that is considered by the government to be a service- Disabled Veteran (VA Sets Rules, 2010). This means that a person who incurred injury or contracted a disease while serving in the line of duty in an active military, naval, or air service and hence became disabled.

Their injury should have occurred while they were in active duty or having a work related assignment. Any injuries that are incurred outside the work environment or caused by the abuse of drug are not considered as 'Service -Disabled'. The SDV must be one controlling the operation of the business on a daily basis and outsourcing of the services will be considered as a violation of the state requirements.

The SDV (Service - Disabled-Veteran), must be the individual holding the highest officer positioning in the organization (VA Sets Rules, 2010). The USA Government has set aside contract benefits for those organizations that are considered to be SDVOSBC. The most notable one of these contracts is the VETS-GWAC contract that was designed to strengthen the relationship between the ...

Solution Summary

Service-disabled veteran-owned small business concerns are examined.