# DLAD PGI PART 19 – SMALL BUSINESS PROGRAMS

- DLAD PGI PART 19 – SMALL BUSINESS PROGRAMS

- PGI 19.1405-90 Service-disabled veteran-owned small business (SDVOSB) set-aside procedures.

DLAD PGI PART 19 – SMALL BUSINESS PROGRAMS

(Revised April 18, 2012 through PROCLTR 2012-32)

PGI 19.1405-90 Service-disabled veteran-owned small business (SDVOSB) set-aside procedures.

(a) Proper reporting of the use of SDVOSB set-asides in either a manual or an automated environment shall be accomplished through the DLA contract action reporting system (DCARS). See pertinent line-by-line reporting instructions at 53.204-70(c) and (d).

(b) See 19.508 and 19.590 for further guidance on use of the SDVOSB set-aside in the EBS environment and in legacy systems having the capability to apply “cascading logic.”

(c) When market research indicates that only one SDVOSB exists for a given acquisition, the primary criterion for an SDVOSB set-aside (i.e., reasonable expectation of receipt of offers from two or more eligible firms) cannot be fulfilled. In this situation, application of cascading logic could actually prevent award to the SDVOSB, because award will likely be made under the successive set-asides. If diligently performed market research fails to identify two or more SDVOSBs for an item or class of items, it may be appropriate for the contracting officer to remove those buys from automated processing (at the solicitation, as well as the evaluation phase), thus permitting application of SDVOSB sole-source authority.

(d) FAR 19.1405(c) requires that an SDVOSB set-aside shall be withdrawn if no acceptable offers are received from SDVOSB concerns and that, if the requirement remains valid, the procurement will be set aside for small business concerns as appropriate. Approval for the determination that no offers are acceptable, that the requirement remains valid, and whether the requirement will be set aside for small business concerns shall be obtained at one level above the contracting officer, and include written concurrence from the contracting activity’s or office’s small business office on the DD 2579 form.