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Service-Disabled Veteran-Owned Small Business Concern Program U.S. Small Business Administration Office of Federal Contract Assistance for Veteran Business.

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Presentation on theme: "Service-Disabled Veteran-Owned Small Business Concern Program U.S. Small Business Administration Office of Federal Contract Assistance for Veteran Business."— Presentation transcript:

1 Service-Disabled Veteran-Owned Small Business Concern Program U.S. Small Business Administration Office of Federal Contract Assistance for Veteran Business Owners

2 2 PROGRAM HISTORY The VETERANS ENTREPRENEURSHIP and SMALL BUSINESS DEVELOPMENT ACT of 1999 (PL106-50) established an annual Government-wide goal of not less than 3 percent of the total value of all prime contract and subcontract awards for participation by small business concerns owned and controlled by service-disabled veterans. The VETERANS BENEFITS ACT (VBA) of 2003 (PL ) added, in addition to other provisions, a contracting mechanism to enable agencies to reach the 3% prime contracting goal established in1999.

3 PROGRAM HISTORY Public Law Public Law Interim Final Rule Executive Order Interim Final Rule – OHA Final Rule

4 4 PROGRAM HISTORY On May 5, 2004, the SBA issued the Interim Final Rule to implement Section 308 of the VBA of 2003 established a sole source and set-aside procurement program for service-disabled veteran-owned small business concerns (SDVO SBC). Federal Register Vol 69, No. 87, p On October 20, 2004, President Bush issued Executive Order to strengthen opportunities in Federal contracting for Service-Disabled Veteran-Owned Small Business Concerns. Federal Register Vol 69, No. 206, p

5 5 PROGRAM HISTORY On February 24, 2005, SBA issued the Interim Final Rule to clarify the Office of Hearings and Appeals (OHA) procedures for protest determination appeals for SDVO SBC status challenges. Federal Register Vol 70, No. 36, p On March 23, 2005, SBA issued the Final Rule to amend the Interim Final Rule and clarify several procedures. Federal Register Vol 70, No. 55, p

6 PROGRAM ELIGIBILITY REQUIREMENTS Adjudication Size Ownership & Control Highest Position Held

7 7 ELIGIBILITY REQUIREMENTS The SDV must have a service-connected disability that has been determined by the Dept of Veterans Affairs or DOD The SDVO SBC must be small under the NAICS code assigned to the procurement The SDV must unconditionally own 51% of the SDVO SBC The SDV must control the management and daily operations of the SDVO SBC The SDV must hold the highest officer position in the SDVO SBC 13 CFR § § – /FAR Part (a) - (b)

8 TYPES OF CONTRACTS SET-ASIDE EXEMPTIONS SET-ASIDES SOLE SOURCE SIMPLIFIED ACQUISITIONS

9 9 SET-ASIDE EXEMPTIONS A contracting activity may not make a requirement available for a SDVO contract if: 1. The requirement would be fulfilled through award to Federal Prison Industries, Inc. or to Javits-Wagner-ODay Act participating non- profit agencies for the blind and severely disabled. 2. The requirement is currently being performed by an 8(a) participant or SBA has accepted that requirement for performance under the authority of the Section 8(a) Program. 13 CFR § /FAR Part

10 10 SET-ASIDE REQUIREMENTS A Contracting Officer (CO) may set-aside requirements if: 1. The requirement is not exempted from SDVO contracting. 2. The contracting officer considers setting aside the requirement for 8(a), HUBZone, or SDVO SBC participation before considering setting aside the requirement as a small business set- aside. 4. There is a reasonable expectation that at least two responsible SDVO SBCs will submit offers; and 5. The award can be made at a fair market price. 13 CFR § /FAR Part (a) – (b)

11 11 SOLE SOURCE CONTRACTS A CO may award a sole source contract if: 1. The requirement is not exempted from SDVO contracting and cannot be set-aside. 2. The CO does not have a reasonable expectation that at least two responsible SDVO SBCs will submit offers. 3. The anticipated award price of the contract, including options, will not exceed: – $5.0M for manufacturing requirements – $3.0M for all other requirements 4. Award can be made at a fair market price. 13 CFR § /FAR Part

12 12 SIMPLIFIED ACQUISITION THRESHOLD If the requirement is at or below the simplified acquisition threshold, the CO may set-aside the requirement for consideration among SDVO SBCs using simplified acquisition procedures or may award a sole source contract to an SDVO SBC. 13 CFR §

13 ADDITIONAL CONTRACT REQUIREMENTS LIMITATIONS ON SUBCONTRACTING JOINT VENTURES NON-MANUFACTURERS

14 14 ADDITIONAL CONTRACT REQUIREMENTS LIMITATIONS ON SUBCONTRACTING – SDVO SBC Prime or Sub-contractor can subcontract for: SERVICES CONTRACTS (EXCEPT CONSTRUCTION): – 50% of the contract performance incurred for SDVO SBC personnel SUPPLY CONTRACTS: – 50% of the cost of manufacturing the supplies GENERAL CONSTRUCTION: – 15% of the contract performance incurred for SDVO SBC personnel CONSTRUCTION BY SPECIAL TRADE: – 25% of the contract performance incurred for SDVO SBC personnel 13 CFR §125.6(b)

15 15 ADDITIONAL CONTRACT REQUIREMENTS Joint Ventures 1 or more other small business concern (SBC) Each SBC is small under the contracts North American Industry Classification System code SDVO SBC must manage the venture JV must perform applicable percentage of work 13 CFR § (b)/FAR Part (c)

16 16 ADDITIONAL CONTRACT REQUIREMENTS Non-manufacturers – The SDVO SBC does not exceed 500 employees – Is primarily engaged in the wholesale or retail trade – Sells to the general public and – Supplies the end item of a small business (unless requirement is waived by the SBA Administrator) 13 CFR § (c)/FAR Part (d)

17 PROTEST PROCEDURES WHAT? WHO? WHEN? WHERE? HOW?

18 18 PROTEST PROCEDURES WHAT IS A PROTEST? A challenge to either: – SIZE STATUS, in accordance with 13 CFR § 121 – ELIGIBILITY STATUS, in accordance with 13 CFR § 125 Proof of Adjudication Ownership Control 13 CFR §125.26

19 19 PROTEST PROCEDURES WHO MAY SUBMIT A PROTEST? Sole Source Procurements: Small Business Administration Contracting Officer Competitive Set-Asides: Any interested party 13 CFR §

20 20 PROTEST PROCEDURES WHEN ARE PROTESTS SUBMITTED? – Negotiated Procurements: By Close of Business on the 5 th Business Day after Notification of the Apparent Successful Offeror, no later than 5 p.m. est Sealed Bid Acquisitions: By Close of Business on the 5 th Business Day after Bid Opening, no later than 5 p.m. est Any Protest Submitted After the Time Limits is untimely, unless submitted by the CO or SBA. Any Protest Submitted Prior to Bid Opening or Notification is Premature. 13 CFR § (d)

21 21 PROTEST PROCEDURES WHERE ARE PROTESTS SUBMITTED? – CO or SBA submits protest to SBA Associate Administrator for Government Contracting – Any Concern that submits an offer submits protest to the Contracting Officer 13 CFR § (d)

22 22 PROTEST PROCEDURES HOW ARE PROTEST SUBMITTED? – FORMAT: In writing Be specific Include information to determine timeliness and standing State contract type, e.g., set-aside or sole source Whether the protested concern was the apparent successful offeror Date protested concern submitted its offer State whether sealed bid or negotiated procurement Due date of offers Date protest was submitted to the CO Notice of intent to award date Date of contract award, if applicable Any additional information SBA may need to assist in making determination 13 CFR §§125.25(b) and (e)

23 23 PROTEST PROCEDURES HOW ARE PROTEST SUBMITTED? – FILING: BY FAX: – (202) EXPRESS DELIVERY SERVICE or U.S. MAIL (POSTMARKED WITHIN THE APPLICABLE TIME PERIOD) – The Associate Administrator for Government Contracting U.S. Small Business Administration 409 Third Street, SW Washington DC Attn: Service-Disabled Veteran Status Protest 13 CFR § (e)

24 PROTEST DETERMINATION APPEAL PROCEDURES WHO? WHERE? WHEN? HOW? WHO? WHEN?

25 25 APPEAL PROCEDURES WHO MAY SUBMIT AN APPEAL? – The Protested Concern – The Protester – The Respective Contracting Officer 13 CFR § WHERE IS AN APPEAL FILED? – SBA Office of Hearings and Appeals Docketing Clerk Office of Hearings and Appeals U.S. Small Business Administration 409 Third Street, SW Suite 5900 Washington DC Phone: (202) FAX: (202) CFR §

26 26 APPEAL PROCEDURES WHEN MAY AN APPEAL BE FILED? – Within 10 business days after protest determination is received HOW IS AN APPEAL FORMATTED? – No Set Format – Must include: Solicitation or contract number Contracting Officers contact information Statement explaining why protest determination is alleged to be based on a clear error of fact or law, with supporting argument Appellants contact information 13 CFR §

27 27 APPEAL PROCEDURES WHO MUST AN APPELLANT SERVE? – SBA, AA/GOVERNMENT CONTRACTING – THE RESPECTIVE CONTRACTING OFFICER – THE PROTESTED CONCERN OR THE PROTESTER – SBA, OFFICE OF GENERAL COUNSEL – 13 CFR § (b)

28 28 APPEAL PROCEDURES WHEN WILL THE JUDGE ISSUE THE DECISION ? – Within 15 – 22 days after the appeal is filed Individuals served with an appeal petition has 7 days to respond 13 CFR §

29 ADDITIONAL TRAINING

30 30 ADDITIONAL TRAINING The Defense Acquisition University (DAU) has developed a similar course, CLC 009, that is available on- line to the general public at the DAU Virtual Campus (http://www.dau.mil/). It is worth one continuous learning point for contracting personnel.

31 31 ASSISTANT ADMINISTRATOR Office of Government Contracting 409 Third Street, SW Suite 8100, Mail Code: 6520 Washington DC Phone: (202)


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