819.7005 VA service-disabled veteran-owned small business set-aside procedures.


The contracting officer shall consider SDVOSB set-asides, before considering VOSB set-asides. Except as authorized by 813.106, 819.7007 and 819.7008, the contracting officer shall set-aside an acquisition for competition restricted to verified SDVOSB concerns upon a reasonable expectation based on market research that:


  • Offers/quotes will be received from two or more eligible SDVOSB; and
  • Award can be made at a fair and reasonable price that offers the best value to the government.


When conducting SDVOSB set-asides, the contracting officer shall ensure that:


  • Businesses are registered and verified as eligible in the VIP database at the time of submission of offers/quotes, and prior to making an award; and
  • Offerors affirmatively represent their small business status based on the size standard corresponding to the North American Industrial Classification System (NAICS) code assigned to the solicitation/contract, as set forth in 819.7003(b) and/or (c).


If the contracting officer receives only one acceptable offer at a fair and reasonable price from a verified SDVOSB in response to an SDVOSB set-aside, the contracting officer should make an award to that SDVOSB. If the contracting officer receives no acceptable offers/quotes from verified SDVOSBs, the set-aside shall be withdrawn and the requirement, if still valid, set aside for VOSB competition, or otherwise procured using the most appropriate strategy based on the results of market research.


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