Benefits of SDB Certification

-Under the government’s reformed affirmative action rules, small disadvantaged business are eligible for price evaluation adjustments of up to 10 percent when bidding on federal contracts in certain industries.

-The program also provides evaluation credits for prime contractors who achieve SDB subcontracting targets. The program is intended to help federal agencies achieve the government-wide goal of 5 percent SDB participation in prime contracting.

The VETERANS ENTREPRENEURSHIP and SMALL BUSINESS DEVELOPMENT ACT of 1999 (Public Law 106-50) established an annual Government-wide goal of not less than 3 percent of the total value of all prime contract and subcontract awards for participation by small business concerns owned and controlled by service-disabled veterans.

The VETERANS BENEFITS ACT (VBA) of 2003 (Public Law 108-183) added, in addition to other provisions, a contracting mechanism to enable agencies to reach the 3% prime contracting goal established in 1999.

In accordance with 13 C.F.R. 125.15(b), SDVO SBCs may enter into a joint venture
agreement with one or more other SBCs for the purpose of performing an SDVO contract. A joint venture of at least one SDVO SBC and one or more other business concerns may submit an offer as a small business for a competitive SDVO SBC procurement so long as each concern is small under the size standard corresponding to the NAICS code assigned to the contract.