Serving Those Who Served

The New Contracting Priority for Service-Disabled & Veteran-

Owned Small Businesses

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Developing Veterans Entrepreneurship

• Veterans Entrepreneurship and Small Business Development Act of 1999 (Public Law 106-50)

• Veterans Benefits Act of 2003 (Public Law 108-183)

• Executive Order 13360 (October 20, 2004)

• Veterans Benefits, Healthcare, and Information Technology Act of 2006 (Public Law 109-461)

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VA Hierarchy of Programs

1. Service-disabled veteran-owned firms

2. Veteran-owned firms3. HUBZone firms and 8(a) participants

(tied)4. All others (including general small

business)

[Public Law 109-461, § 502]

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DefinitionsService-Disabled Veteran-Owned

Small Business

One or more service-disabled veterans—

• Own 51% or more of the firm• Manage and control the daily

operations of the firm

Firm must be small under relevant industry (NAICS) code

Firm must register and be verified in VetBiz Vendor Information Pages

[FAR 2.101, VAAR 802.101]

Veteran-Owned Small Business

One or more veterans—• Own 51% or more of the firm• Manage and control the daily

operations of the firm

Firm must be small under relevant industry (NAICS) code

Firm must register and be verified in VetBiz Vendor Information Pages

[FAR 2.101, VAAR 802.101]

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Acquisition Planning

Market Research• “Shall” consider service-disabled and

veteran-owned firms first• “Shall” document that research for file

– “Shall” keep records of VIP queries done to determine acquisition strategy

• “Shall” document consideration of IDIQ orders from veteran contract holders only– “Shall” obtain HCA and OSDBU review and approval before

soliciting from all contract holders

[VAAR 807.103, 807.105, 810.002]

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Required Sources of Supplies Agency inventories and excess

Service-disabled veteran-owned small firmsVeteran-owned small firms

Federal Prison IndustriesJWODWholesale supply sources

National committed use contract awarded by VA National Acquisition Center

Mandatory Federal Supply Schedules including VA Schedules in Groups 65 and 66

Optional Federal Supply SchedulesIndefinite Delivery / Indefinite Quantity (IDIQ) contracts

Commercial sources and open market purchases

Existing FAR 8.002(a)(1)New VAAR 808.002(a)

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Required Sources of Services Service-disabled veteran-owned small firmsVeteran-owned small firms

JWODMandatory Federal Supply Schedules Optional Federal Supply SchedulesFederal Prison Industries or commercial sources

Existing FAR 8.002(a)(2)New VAAR 808.002(b)

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Federal Supply Schedules

• “May” set-aside task or delivery orders, or BPAs, for service-disabled or other veteran-owned small firms– Previously, could “consider” socioeconomic

factors

• “Shall” include evaluation factors in Requests for Quotations (RFQs)– Give maximum consideration for service-

disabled and veteran-owned firms[VAAR 808.405-5]

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Sole Source Authority

“May” sole-source to service-disabled veteran firm if—– Price not more than $5 million– Firm determined responsible– Award at fair and reasonable price

“May” sole-source to veteran small business if—– No responsible service-disabled veteran firm identified

Note:• Noncompetitive actions exempt from synopsizing in FedBizOpps

[VAAR 805.202, 819.7007, 819.7008]

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Set-Aside Authority

“May” set-aside for service-disabled veteran firms if contracting officer has reasonable expectation of—– Receiving two or more offers– Making award at fair market price

“May” set-aside for veteran small businesses if—– Contracting officer first considered service-disabled veteran set-aside

Note:• Micro-purchases eligible for set-aside• Interested party may protest decision not to set-aside, if over simplified

acquisition threshold [FAR 19.1405, VAAR 813.202, 819.407, 819.7005, 819.7006]

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Subcontracting Plans

Contracting officer “shall” ensure offerors have goals “at least commensurate with” prime contracting goals

OSDBU “shall” review achievement reports to ensure subcontracts awarded to eligible firms

[VAAR 819.704]

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Reporting Requirements

Federal Procurement Data System Revised• New fields to collect information on use of new

authorities

VA Contracting Accomplishments Reported• Mandates annual report to Congress by December 31• Heightens importance of FPDS entries by October 31

[VAAR 804.6, 804.604]

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Protests and Debarment

• Eligibility of firms may be protested

• Misrepresentation of service-disabled or veteran-owned status is cause for debarment at VA

– Firm “shall” be debarred for 5 years– Information will be shared with other agencies for

making responsibility determinations

[VAAR 809.406-2, 819.307]

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VA Mentor-Protégé Program

Goals• Encourage large businesses to provide mutually

beneficial developmental assistance– E.g., Mentor receives evaluation points toward award of negotiated contracts,

credit toward subcontracting plan achievements, and awards/recognition– E.g., Protégé may receive management guidance, technical assistance,

temporary assignment of personnel for training– Note: Protégé must be service-disabled or other veteran-owned small

business

• Improve prime contractor and subcontractor performance

• Foster long-term business relationships• Strengthen and improve prime contracting and

subcontracting opportunities at VA[VAAR 819.7101, 819.7105, 819.7106, 819.7111]

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Questions?

Office of Small & Disadvantaged Business Utilization (OSDBU)

U.S. Department of Veterans Affairs810 Vermont Avenue, N.W. (00SB)

Washington DC 20420

202.461.4300 www.va.gov/osdbu