# 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 (Mar 2020)

1. (a) Definition. “Service-disabled veteran-owned small business concern”—

   1. (1) Means a small business concern–

      1. (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

      2. (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. (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).

2. (b) Applicability. This clause applies only to—

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

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

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

3. (c) General.

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

4. (d) Limitations on subcontracting. A service-disabled veteran-owned small business concern agrees that in the performance of the contract, in the case of a contract for—

   1. (1) Services (except construction), at least 50 percent of the cost of personnel for contract performance will be spent for employees of the concern or employees of other service-disabled veteran-owned small business concerns;

   2. (2) Supplies (other than acquisition from a nonmanufacturer of the supplies), at least 50 percent of the cost of manufacturing, excluding the cost of materials, will be performed by the concern or other service-disabled veteran-owned small business concerns;

   3. (3) General construction, at least 15 percent of the cost of the contract performance incurred for personnel will be spent on the concern’s employees or the employees of other service-disabled veteran-owned small business concerns; or

   4. (4) Construction by special trade contractors, at least 25 percent of the cost of the contract performance incurred for personnel will be spent on the concern’s employees or the employees of other service-disabled veteran-owned small business concerns.

5. (e) A service-disabled veteran-owned small business concern shall comply with the limitations on subcontracting as follows:

   1. (1) For contracts, in accordance with paragraphs (b)(1) and (2) of this clause—

      [Contracting Officer check as appropriate.]

      _ By the end of the base term of the contract and then by the end of each subsequent option period; or

      _ By the end of the performance period for each order issued under the contract.

   2. (2) For orders, in accordance with paragraphs (b)(3) and (4) of this clause, by the end of the performance period for the order.

6. (f) A joint venture may be considered a service-disabled veteran owned small business concern if-

   1. (1) At least one member of the joint venture is a service-disabled veteran-owned small business concern, and makes the following representations: That it is a service-disabled veteran-owned small business concern, and that it is a small business concern under the North American Industry Classification Systems (NAICS) code assigned to the procurement;

   2. (2) Each other concern is small under the size standard corresponding to the NAICS code assigned to the procurement; and

   3. (3) The joint venture meets the requirements of 13 CFR 121.103(h)

   4. (4) The joint venture meets the requirements of 13 CFR125.15(b)

(End of clause)