FAC Number: 2022-08
Effective Date: 10/28/2022

19.1406 Sole source awards to service-disabled veteran-owned small business concerns.

      (a) A contracting officer shall consider a contract award to a SDVOSB concern on a sole source basis (see 6.302-5(b)(6)), before considering small business set-asides (see 19.203 and subpart 19.5) provided none of the exclusions of 19.1404 apply and—

           (1) The contracting officer does not have a reasonable expectation that offers would be received from two or more service-disabled veteran-owned small business concerns;

           (2) The anticipated award price of the contract, including options, will not exceed-

                (i) $7 million for a requirement within the NAICS codes for manufacturing; or

                (ii) $4 million for a requirement within any other NAICS code;

           (3) The requirement is not currently being performed by an 8(a) participant under the provisions of subpart  19.8 or has been accepted as a requirement by SBA under subpart  19.8;

           (4) The service-disabled veteran-owned small business concern has been determined to be a responsible contractor with respect to performance; and

           (5) Award can be made at a fair and reasonable price.

      (b) The SBA has the right to appeal the contracting officer’s decision not to make a service-disabled veteran-owned small business sole source award.

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