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

52.219-27 Notice of Service-Disabled Veteran-Owned Small Business Set-Aside.

As prescribed in 19.1408 , insert the following clause:

Notice of Service-Disabled Veteran-Owned Small Business Set-Aside (Oct 2022)

      (a) Definition. "Service-disabled veteran-owned small business concern"—

           (1) Means a small business concern–

                (i) Not less than 51 percent of which is owned by one or more service-disabled veterans or, in the case of any publicly owned business, not less than 51 percent of the stock of which is owned by one or more service-disabled veterans; and

                (ii) The management and daily business operations of which are controlled by one or more service-disabled veterans or, in the case of a service-disabled veteran with permanent and severe disability, the spouse or permanent caregiver of such veteran.

           (2) "Service-disabled veteran" means a veteran, as defined in 38 U.S.C.101(2), with a disability that is service-connected, as defined in 38 U.S.C.101(16).

      (b) Applicability. This clause applies only to—

           (1) Contracts that have been set aside for service-disabled veteran-owned small business concerns;

           (2) Part or parts of a multiple-award contract that have been set aside for service-disabled veteran-owned small business concerns;  

           (3) Orders set aside for service-disabled veteran-owned small business concerns under multiple-award contracts as described in 8.405-5 and 16.505(b)(2)(i)(F); and

           (4) Orders issued directly to service-disabled veteran-owned small business concerns under multiple-award contracts as described in 19.504(c)(1)(ii).

      (c) General.

(1) Offers are solicited only from service-disabled veteran-owned small business concerns. Offers received from concerns that are not service-disabled veteran-owned small business concerns shall not be considered.

           (2) Any award resulting from this solicitation will be made to a service-disabled veteran-owned small business concern.

      (d) A joint venture may be considered a service-disabled veteran owned small business concern if—

           (1) At least one party to the joint venture complies with the criteria defined in paragraph (a) of this clause and 13 CFR 125.18(b)(2); and

           (2) Each party to the joint venture is small under the size standard corresponding to the NAICS code assigned to the procurement, or the protégé is small under the size standard corresponding to the NAICS code assigned to the procurement in a joint venture comprised of a mentor and protégé with an approved mentor-protégé agreement under an SBA mentor-protégé program.

      (e) In a joint venture that complies with paragraph (f) of this clause, the service-disabled veteran-owned small business party or parties to the joint venture shall perform at least 40 percent of the work performed by the joint venture. Work performed by the service-disabled veteran-owned small business party or parties to the joint venture must be more than administrative functions.

(End of clause)

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