1. Serving Those Who Served
The New Contracting Priority for Service-Disabled & Veteran-Owned Small Businesses

2. Developing Veterans Entrepreneurship
Veterans Entrepreneurship and Small Business Development Act of 1999 (Public Law )
Veterans Benefits Act of 2003 (Public Law )
Executive Order (October 20, 2004)
Veterans Benefits, Healthcare, and Information Technology Act of 2006 (Public Law )

3. VA Hierarchy of Programs
Service-disabled veteran-owned firms
Veteran-owned firms
HUBZone firms and 8(a) participants (tied)
All others (including general small business)
[Public Law , § 502]

4. Definitions Service-Disabled Veteran-Owned Small Business
One or more service-disabled veterans—
Own 51% or more of the firm
Manage and control the daily operations of the firm
Firm must be small under relevant industry (NAICS) code
Firm must register and be verified in VetBiz Vendor Information Pages
[FAR 2.101, VAAR ]
Veteran-Owned Small Business
One or more veterans—
Own 51% or more of the firm
Manage and control the daily operations of the firm
Firm must be small under relevant industry (NAICS) code
Firm must register and be verified in VetBiz Vendor Information Pages
[FAR 2.101, VAAR ]

5. Acquisition Planning Market Research
“Shall” consider service-disabled and veteran-owned firms first
“Shall” document that research for file
“Shall” keep records of VIP queries done to determine acquisition strategy
“Shall” document consideration of IDIQ orders from veteran contract holders only
“Shall” obtain HCA and OSDBU review and approval before soliciting from all contract holders
[VAAR , , ]

6. Required Sources of Supplies
Agency inventories and excess
Service-disabled veteran-owned small firms
Veteran-owned small firms
Federal Prison Industries
JWOD
Wholesale supply sources
National committed use contract awarded by VA National Acquisition Center
Mandatory Federal Supply Schedules including VA Schedules in Groups 65 and 66
Optional Federal Supply Schedules
Indefinite Delivery / Indefinite Quantity (IDIQ) contracts
Commercial sources and open market purchases
Existing FAR 8.002(a)(1)
New VAAR (a)

7. Required Sources of Services
Service-disabled veteran-owned small firms
Veteran-owned small firms
JWOD
Mandatory Federal Supply Schedules
Optional Federal Supply Schedules
Federal Prison Industries or commercial sources
Existing FAR 8.002(a)(2)
New VAAR (b)

8. Federal Supply Schedules
“May” set-aside task or delivery orders, or BPAs, for service-disabled or other veteran-owned small firms
Previously, could “consider” socioeconomic factors
“Shall” include evaluation factors in Requests for Quotations (RFQs)
Give maximum consideration for service-disabled and veteran-owned firms
[VAAR ]

9. Sole Source Authority
“May” sole-source to service-disabled veteran firm if—
Price not more than $5 million
Firm determined responsible
Award at fair and reasonable price
“May” sole-source to veteran small business if—
No responsible service-disabled veteran firm identified
Note:
Noncompetitive actions exempt from synopsizing in FedBizOpps
[VAAR , , ]

10. Set-Aside Authority
“May” set-aside for service-disabled veteran firms if contracting officer has reasonable expectation of—
Receiving two or more offers
Making award at fair market price
“May” set-aside for veteran small businesses if—
Contracting officer first considered service-disabled veteran set-aside
Note:
Micro-purchases eligible for set-aside
Interested party may protest decision not to set-aside, if over simplified acquisition threshold [FAR , VAAR , , , ]

11. Subcontracting Plans
Contracting officer “shall” ensure offerors have goals “at least commensurate with” prime contracting goals
OSDBU “shall” review achievement reports to ensure subcontracts awarded to eligible firms
[VAAR ]

12. Reporting Requirements
Federal Procurement Data System Revised
New fields to collect information on use of new authorities
VA Contracting Accomplishments Reported
Mandates annual report to Congress by December 31
Heightens importance of FPDS entries by October 31
[VAAR 804.6, ]

13. Protests and Debarment
Eligibility of firms may be protested
Misrepresentation of service-disabled or veteran-owned status is cause for debarment at VA
Firm “shall” be debarred for 5 years
Information will be shared with other agencies for making responsibility determinations
[VAAR , ]

14. VA Mentor-Protégé Program
Goals
Encourage large businesses to provide mutually beneficial developmental assistance
E.g., Mentor receives evaluation points toward award of negotiated contracts, credit toward subcontracting plan achievements, and awards/recognition
E.g., Protégé may receive management guidance, technical assistance, temporary assignment of personnel for training
Note: Protégé must be service-disabled or other veteran-owned small business
Improve prime contractor and subcontractor performance
Foster long-term business relationships
Strengthen and improve prime contracting and subcontracting opportunities at VA
[VAAR , , , ]

15. Questions?
Office of Small & Disadvantaged Business Utilization (OSDBU)
U.S. Department of Veterans Affairs
810 Vermont Avenue, N.W. (00SB)
Washington DC 20420