An acquisition can be established as a sole source award for an SDVOSB by the Department of Veterans Affairs and other Agencies through the below process*. 819.7007 Sole source awards to a verified service-disabled Veteran-owned small business.
a) A contracting officer may award a contract to an eligible SDVOSB concern using procedures other than competitive procedures provided.
The anticipated award price of the contract (including options) will not exceed $5 million;
The justification prepared pursuant to FAR 6.302-5(c)(2)(ii) is posted in accordance with FAR subpart 5.301(d);
The SDVOSB concern has been determined to be a responsible source with respect to performance; and
In the estimation of the contracting officer, contract award can be made at a fair and reasonable price that offers best value to the Government.
b) The contracting officer’s determination to make a sole source award is a business decision wholly within the discretion of the contracting officer. To ensure that opportunities are available to the broadest number of verified SDVOSBs, this authority is to be used judiciously and only when in the best interest of the Government.
c) A determination that only one SDVOSB can meet the requirement is not required. However, in accordance with FAR 6.302-5(c)(2)(ii), contracts awarded using this authority shall be supported by a written justification and approval described.
d) When conducting a SDVOSB sole source acquisition, the contracting officer shall ensure the business meets eligibility requirements 819.7003.
e) A procurement requirement estimated to exceed the legislative threshold of $5 million shall not be split or subdivided to permit the use of this SDVOSB sole source authority.
*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).