Salem Law Group, P.A.

Important Information on Service-Disabled Veteran-Owned Small Businesses (SDVOSB)

The United States Government sets aside contract benefits for companies considered as Service-Disabled Veteran-Owned Small Businesses (SDVOSB's). On December 16, 2003 the Veterans Benefits Act of 2003 was enacted, amending the Small Business Act. This established a procurement program for small business concerns owned and controlled by service-disabled veterans.

The Salem Law Group, P.A. understands and appreciates the intricacies of the SDVOSB requirements and regulations, and can assist businesses with compliance issues both in Florida and the Federal government. Our expertise can help service-disabled veterans expand their business opportunities from the organization and start-up phase of developing a new business, the proper establishment of joint ventures and subcontracting relationships, and through to any needed assistance with any protests that may arise.

What is the purpose of the service-disabled veteran-owned small business program?

The purpose of the service-disabled veteran-owned small business program is to provide procuring agencies with the authority to set acquisitions aside for exclusive competition among service-disabled veteran-owned small businesses, as well as the authority to make sole source awards to service-disabled veteran-owned small businesses if certain conditions are met.

How do I get certified as an SDVOSB?

The Federal government uses a self-certification process, whereas in Florida, a business must apply for SDVOSB certification through the Office of Supplier Diversity What is the definition of an SDVOSB?

The Small Business Administration defines a valid SDVOSB as one that is at least 51% unconditionally owned by a service-disabled veteran (SDV) with a service-connected disability that has been determined by the Department of Veterans Affairs or DOD, that the SDV controls the management and daily operations of the business, holds the highest officer position and that the business is small under the NAICS code assigned to the procurement.

There is no minimum disability rating to be considered, i.e. a veteran with a 0 to 100% disability rating is eligible to self-represent as a Service-Disabled Veteran for Federal contracting purposes.

What are the types of potential Protests I need to be aware of?

There are two general issues you need to be aware of in the organization and operation of your SDVOSB in order to avoid a potential Protest - 1) Size, and 2) Status.

A SIZE protest is a challenge to an offeror's representation that it does not exceed the size standard assigned to a particular solicitation. Issues of an SDVOSB's affiliation with other business entities are common in this protest area.

A protest challenging the STATUS of a service-disabled veteran owned small business generally involves an allegation that an offeror does not qualify as an SDVOSB, usually because of a lack of unconditional ownership or control over the management of the business.

How does a joint venture qualify as an SDVOSB?

A joint venture's ability to qualify as an SDVOSB primarily centers on control of the joint venture. The SDVOSB must be the managing venturer, an employee of the SDVOSB must be the project manager, 51% of the net profits of the joint venture must go to the SDVOSB, and the SDVOSB must retain the joint venture's original records. A joint venture of at least one SDVOSB and one or more other business concerns may submit an offer as a small business for a competitive SDVOSB procurement so long as each concern is small under the size standard corresponding to the NAICS code assigned to the contract.

To contact the Salem Law Group:

Heather M. Lang, Esq.
Bank of America Plaza
101 East Kennedy Blvd., Suite 3220
Tampa, FL 33602

Phone: (813) 222-3216

Email: heather.lang@salemlawgroup.com

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