The Service-Disabled Veteran-Owned Small Business (SDVOSB) sole source vehicle enables agencies to engage in direct buy contracts with SDVOSB contractors.

In 1999, the Veterans Entrepreneurial Act and Small Development Act (Public Law 106-50) established a contracting goal for federal agencies to award 3% of prime contracts to SDVOSBs. The Veterans Benefit Act of 2003 (Public Law 108-183) created the procurement program for small business concerns owned and controlled by Service Disabled Veterans. The purpose of the SDVOSB program is to provide Federal contracting assistance to Service Disabled Veteran Owned Small Business concerns. In 2004 President G.W. Bush signed Executive Order 13360 which called for an increase in federal contracting and subcontracting opportunities for SDVOSBs.

FAR Part 19.1406 states that Contracting Officers may award a sole source contract to a SDVOSB. Additionally, in 2006, President G.W. Bush signed into law the Veterans Benefits, Health Care and Information Technology Act of 2006 (Public Law 109-461). This law provides the Department of Veterans Affairs (VA) with unique authority to conduct set-aside and sole source procurements with small businesses owned and operated by veterans.

The SDVOSB sole source vehicle provides agencies a simplified and shortened acquisition procedure to:

  • Reduce the decision cycle and time required to award a SDVOSB sole source contract.
  • Reduce the administrative costs of the procurement process.
  • Agency can negotiate with SDVOSB to obtain the Best Value for services.
  • Agency receives credit for contracting with SDVOSBs.