An acquisition can be established as a Set-Aside award for an SDVOSB by the Department of Veterans Affairs and other Agencies through the below process.
810.001-70 Market research policy.
When performing market research, contracting officers shall review the Vendor Information Pages (VIP) database at https://www.vip.vetbiz.gov as required by subpart 819.70. The contracting officer will search the VIP database by applicable North American Industry Classification System (NAICS) codes to determine if two or more verified service-disabled veteran-owned small businesses (SDVOSBs) and veteran- owned small businesses (VOSBs), in the appropriate NAICS code, are listed as verified in the VIP database. The contracting officer will determine if identified SDVOSBs or VOSBs are capable of performing the work and likely to submit an offer/quote at a fair and reasonable price that offers best value to the Government. If so, the contracting officer shall set-aside the requirement in the contracting order of priority (see 819.7005 and 819.7006).
819.7005 VA service-disabled veteran-owned small business set-aside procedures.
a) 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.
b) 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).
c) If the contracting officer receives only one acceptable offer at a fair and reasonable price from a verified SDVOSB in response to a 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 If the contracting officer receives no acceptable offers/quotes from verified SDVOSBs, the set-aside shall be withdrawn and the requirement, if still valid, set aside for VOSB competition, or otherwise procured using the most appropriate strategy based on the results of market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.
* Department of Veterans Affairs Memorandum, July 25, 2016: Class Deviation—Implementation of the Veterans First Contracting Program as a Result of the U.S. Supreme Court Decision (Class Deviation—Veterans First Contracting Program (VFCP 2016).