SDVOSB and VOSB Sole Source
Contracting officers may award directly to a single SDVOSB when only one responsible firm is expected to be capable and price is fair and reasonable. At the VA the veteran-first statutory preference makes this route far more common than at other agencies.
- Who can bid
- SBA-certified service-disabled veteran-owned and, at VA, verified veteran-owned firms
- Authority
- FAR 19.14 and 38 U.S.C. 8127 (VA Rule of Two)
- Typical thresholds
- Up to $4.5M for services and $7M for manufacturing
- Where to search
- SAM.gov set-aside filter
Key takeaways
- Set-asides shrink the field — your real competition is often three to eight firms, not fifty.
- Limitations on subcontracting apply: you must perform the required share of the work yourself.
- Eligibility is determined as of your initial offer including price, so certifications must be current at submission.
- Ineligible bids are protestable, and size or status protests are common in tight competitions.
How the set-aside works
The requirement must be within thresholds, the firm must hold SBA SDVOSB certification (VetCert), and the CO must document that no reasonable expectation of two or more capable SDVOSBs exists. At VA, the Kingdomware decision means the agency must consider veteran-owned firms first even for orders against the GSA Schedule.
Finding these opportunities
Track VA and DoD forecasts, register in VetCert and keep it current, and monitor FPDS for prior SDVOSB sole source actions by the offices you target. Sources-sought responses matter here in reverse: a crowded response pool tells the CO to compete instead of awarding sole source.
Competing and winning
Lead with clearance, credential, and past performance specifics that make a one-source justification defensible. Provide a price that maps to GSA or comparable market rates so the CO can document reasonableness quickly, and keep your VetCert status, SAM registration, and NAICS codes aligned before you ask.
FAQ
Is VA verification still separate?
No. SBA's VetCert now handles certification government-wide, replacing the old VA CVE verification process.
Does the VA Rule of Two apply to Schedule orders?
Yes. Kingdomware held that VA must apply the veteran preference even when ordering against the Federal Supply Schedule.
Can a VOSB get sole source outside VA?
Generally no; the government-wide sole source authority is for SDVOSBs, while VOSB preference is a VA-specific statutory program.
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