The Veterans Benefits Act of 2003 (Public Law 108-83) established a procurement program for Service-Disabled Veteran-Owned Small Business Concerns (SDVOSB).
Sole source awards may be made to ACT per the Federal Acquisition Regulation (FAR) guidance below:
FAR Subpart 19.14—Service-Disabled Veteran-Owned Small Business Procurement Program
19.1406 Sole source awards to service-disabled veteran-owned small business concerns.
(a) A contracting officer shall consider a contract award to a SDVOSB concern on a sole source basis (see 6.302-5(b)(6)), before considering small business set-asides (see 19.203 and subpart 19.5) provided none of the exclusions of 19.1404 apply and—
(1) The contracting officer does not have a reasonable expectation that offers would be received from two or more service-disabled veteran-owned small business concerns;
(2) The anticipated award price of the contract, including options, will not exceed—
(i) $6.5 million for a requirement within the NAICS codes for manufacturing; or
(ii) $4 million for a requirement within any other NAICS code;
(3) The requirement is not currently being performed by an 8(a) participant under the provisions of Subpart 19.8 or has been accepted as a requirement by SBA under Subpart 19.8;
(4) The service-disabled veteran-owned small business concern has been determined to be a responsible contractor with respect to performance; and
(5) Award can be made at a fair and reasonable price.
(b) The SBA has the right to appeal the contracting officer’s decision not to make a service-disabled veteran-owned small business sole source award.
FAR Subpart 819.70—Service-Disabled Veteran-Owned and Veteran-Owned Small Business Acquisition Program
819.7007 Sole source awards to service-disabled veteran-owned small business concerns.
(a) A contracting officer may award contracts to SDVOSB concerns on a sole source basis provided:
(1) The anticipated award price of the contract (including options) will not exceed $5 million;
(2) The requirement is synopsized in accordance with FAR part 5;
(3) The SDVOSB concern has been determined to be a responsible contractor with respect to performance; and
(4) Award can be made at a fair and reasonable price.
(b) The contracting officer's determination whether to make a sole source award is a business decision wholly within the discretion of the contracting officer. A determination that only one SDVOSB concern is available to meet the requirement is not required.
(c) When conducting a SDVOSB sole source acquisition, the contracting officer shall ensure businesses are registered and verified as eligible in the VIP database prior to making an award.