Better Direct’s Certifications:
All certifications are verified in CCR (Central Contract Registration) https://www.bpn.gov/CCRSearch/Search.aspx
Veteran Owned Small Business
Service-Disabled-Veteran-Owned Small Business
Self Certified Small Disadvantaged Business
Veteran Owned Small Business
Service Disabled Veteran Owned Small Businesses, Veteran Owned Small Businesses, Small Disadvantaged Businesses, HUBZone Businesses, and Woman Owned Small Businesses add value to the work of VA.
In order to take advantage of procurement preferences provided to Veteran owned and controlled small businesses, the business must be verified as an eligible firm and be registered in our Vendor Information Pages (VIP).
Service-Disabled Veteran-Owned Small Business Concerns (SDVOSBC)
Official certification to arrive in May. VA Rating letter established and VIP (Vendor Information Pages) to renew to show chanbe from VOSB to SDVOSB. https://www.vip.vetbiz.gov/Public/Search/ViewSearchResults.aspx?SCID=440256
The Veterans Entrepreneurship and Small Business Development Act of 1999 established an annual government-wide goal of not less than 3% of the total value of all prime contract and subcontract awards for participation by small business concerns owned and controlled by service-disabled veterans.
On December 16, 2003, the Veterans Benefits Act of 2003 was passed by Congress. Section 308 of the Act (Public Law 108-183) established a procurement program for Service-Disabled Veteran-Owned Small Business Concerns (SDVOSBC). This procurement program provides that federal contracting officers may restrict competition to SDVOSBCs and award a sole source or set-aside contract where certain criteria are met.
The Small Business Administration has issued an interim final rule, establishing a Service-Disabled Veteran-Owned Small Business Concern Program. This program establishes the criteria to be used in federal contracting to determine service-disabled veteran status; business ownership and control requirements; guidelines for establishing sole source and set-aside procurement opportunities; and protest and appeal procedures for SDVOSBC procurements.
Purpose of the SDVOSBC Program
The purpose of the Service-Disabled Veteran-Owned Small Business Concern Procurement Program is to provide procuring agencies with the authority to set acquisitions aside for exclusive competition among service-disabled veteran-owned small business concerns, as well as the authority to make sole source awards to service-disabled veteran-owned small business concerns if certain conditions are met. (See Code of Federal Regulations (CFR) 13 C.F.R. § 125.8-125.10).
In order to be eligible for the SDVOSBC, Better Direct must meet the following criteria:
- The Service Disabled Veteran (SDV) must have a service-connected disability that has been determined by the Department of Veterans Affairs or Department of Defense
- The SDVOSBC must be small under the North American Industry Classification System (NAICS) code assigned to the procurement
- The SDV must unconditionally own 51% of the SDVOSBC
- The SDVO must control the management and daily operations of the SDVOSBC
- The SDV must hold the highest officer position in the SDVOSBC
SDVO Business Control
To be an eligible SDVOSBC the following must be met:
- The management and daily business operations of the concern must be controlled by one or more service-disabled veterans.
- Control by one or more service-disabled veterans means that both the long-term decision making and the day-to-day management and administration of the business operations must be conducted by one or more service-disabled veterans
- The management and daily business operations of which are controlled by one or more service-disabled veterans or, in the case of a service-disabled veterans or, in the case of a service-disabled veteran with permanent and severe disability, the spouse of permanent caregiver of such veteran
- Service-disabled veteran means a veteran with a disability that is service-connected.
- Ownership must be direct. Ownership by one or more service disabled veterans must be direct ownership.
- A concern owned principally by another business entity that is in turn owned and controlled by one or more service-disabled veterans does not meet this requirement.
Set Aside Requirements and Exemptions
This section serves as information for both a SDVOSBC as well as a contracting officer representing a SDVOSBC in bidding for a government contract.
A Contracting Officer (CO) may set-aside requirements if:
- The requirement is not exempted from SDVO contracting, the CO considers setting aside the requirement for 8(a), HUBZone, or SDVO SBC participation before considering setting aside the requirement as a small business set-aside.
- There is a reasonable expectation that at least two responsible SDVO SBC will submit offers; and
- The award can be made at a fair market price.
A contracting activity may not make a requirement available for a SDVO contract if and be exempted if:
- The requirement would be fulfilled through the award of Federal Prison Industries, Inc. or Javits-Wagner-O’Day Act participating non-profit agencies for the blind and severely disabled.
- The requirement is currently being performed by an 8(a) participant or SBA has accepted that requirement for performance under the authority of the Section 8(a) Program.
Sole Source Contracts
A CO may award a sole source contract if:
- If the requirement is not exempted from SDVO contracting and cannot be set-aside.
- The CO does not have a reasonable expectation that at least two responsible SDVO SBCs will submit offers.
- The anticipated award price of the contract, including options, will not exceed:
- $5.0M for manufacturing requirements
- $3.0M for all other requirements
- Award can be made at a fair market price.
Simplified Acquisition Threshold
If the requirement is at or below the simplified acquisition threshold, the CO may set-aside the requirement for consideration among SDVOSBCs using simplified acquisition procedures or may award a sole source contract to a SDVOSBC. A sole source award is only permissible where there is only one SDVO SBC that perform the contract in accordance with Federal Acquisition Regulations § 19.406 (a)(3).
Additional Contract Requirements
There are some limitations on subcontracting that a SDVO SBC Prime or Sub-contractor can subcontract for:
- Services Contracts (Except Construction):
- 50% of the contract performance incurred for SDVO SBC personnel
- Supply Contract:
- 50% of the cost of manufacturing the supplies
- General Construction:
- 15% of the contract performance incurred for SDVO SBC personnel
- Construction by Special Trade:
- 25% of the contract performance incurred for SDVO SBC personnel
Executive Order 13360
Executive order signed in October 2004, requires each agency to:
- Develop a strategy to significantly increase its contracting and subcontracting with small businesses owned and controlled by service-disabled veterans;
- Designate a senior-level official to be responsible for developing and implementing the agency’s strategy; and
- Report its progress annually to the SBA.
The Historically Underutilized Business Zones (HUBZone) program helps small businesses in urban and rural communities gain preferential access to federal procurement opportunities. These preferences go to small businesses that obtain HUBZone certification in part by employing staff who live in a HUBZone. The company must also maintain a “principal office” in one of these specially designated areas.
The HUBZone MapsIn order to qualify for the HUBZone program, your business must be located in an area designated as a Historically Underutilized Business (HUB) Zones. You may determine if an address or a particular area is designated as a HUBZone.Check the map http://map.sba.gov/hubzone/maps/
- The Historically Underutilized Business Zones (HUBZone) Empowerment Contracting program was enacted into law in 1997. The program falls under the auspices of the U.S. Small Business Administration. The program encourages economic development in historically underutilized business zones – “HUBZones” – through the establishment of preferences.SBA’s HUBZone program is in line with the efforts of both the Administration and Congress to promote economic development and employment growth in distressed areas by providing access to more federal contracting opportunities.
How the HUBZone Program Works
The SBA regulates and implements the HUBZone program. SBA does the following:
- Determines which businesses are eligible to receive HUBZone contracts
- Maintains a listing of qualified HUBZone small businesses that federal agencies can use to locate vendors
- Adjudicates protests of eligibility to receive HUBZone contracts
- Reports to the Congress on the program’s impact on employment and investment in HUBZone areas.
Benefits of the HUBZone Program
The program’s benefits for HUBZone-certified companies include:
- Competitive and sole source contracting
- 10% price evaluation preference in full and open contract competitions, as well as subcontracting opportunities.
The federal government has a goal of awarding 3% of all dollars for federal prime contracts to HUBZone-certified small business concerns.
Eligibility for the HUBZone
To qualify for the program, a business (except tribally-owned concerns) must meet the following criteria:
- It must be a small business by SBA standards
- It must be owned and controlled at least 51% by U.S. citizens, or a Community Development Corporation, an agricultural cooperative, or an Indian tribe
- Its principal office must be located within a “Historically Underutilized Business Zone,” which includes lands considered “Indian Country” and military facilities closed by theBase Realignment and Closure Act
- At least 35% of its employees must reside in a HUBZone.
Self Certified Small Disadvantaged BusinessPer the CCR (Central Contract Registry) Better Direct is able to self certify for Small Disadvantaged Business and has.
Before you can begin business with the government your business must obtain the proper certifications. Small business certifications are like professional certifications; they document a special capability or status that will help you compete in the marketplace. Unlike permits and licenses, you do not need to obtain certifications to legally operate. However, in order to take advantage of business opportunities, such as government contracts, you may need to obtain some certifications.
Federal, state and local governments offer businesses opportunities to sell billions of dollars worth of products and services. Many government agencies require that some percentage of the procurements be set aside for small businesses. Certifying your business can definitely help you successfully compete for government contracts.
How to Certify as a Small Business
The Federal government sets aside certain contract bid opportunities exclusively for small businesses. In order to compete for these contracts, you must first register as a vendor with the government.
As part of the registration process, you will be required to enter information about your company in the Central Contractor Registration (CCR) database. In the CCR, you may self-certify yourself as a small business, but you must meet the Federal government’s definition of a small business.
The US Small Business Administration defines a “small business” in terms of the number of employees over the past year, or average annual receipts over the past three years. Size standards vary by industry. Visit Am I a Small Business? to find out if you can be classified as a small business.
Footnote: 1. SBA.Gov 2. Wikipedia