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FAR and DFARS › FAR Part 19: Small Business Programs › Subpart 19.14

FAR 19.1406 Sole-source awards.

The codified text (eCFR, as of 2026-10-02). Under the Revolutionary FAR Overhaul ↗, agencies follow class deviations with new text for many parts while the formal rules go through the Federal Register: check the solicitation and your contract's clauses, which rule.

In plain English

This section tells contracting officers to consider awarding a contract directly to a service-disabled veteran-owned small business (SDVOSB) without competition before using small business set-asides, if certain conditions are met. It also requires that, starting January 1, 2024, the SDVOSB must be certified by the SBA or have a pending certification application. The section matters because it gives SDVOSBs a chance at sole-source awards and sets specific limits and requirements.

Applies to: Contracting officers considering sole-source awards to SDVOSB concerns

What it requires

  • Consider a sole-source award to an SDVOSB before considering small business set-asides, if no exclusions apply and the conditions are met.
  • Ensure the anticipated award price does not exceed $8.5 million for manufacturing NAICS codes or $5 million for other NAICS codes.
  • Confirm the requirement is not currently performed by an 8(a) participant or accepted by SBA under subpart 19.8.
  • Determine the SDVOSB is a responsible contractor and that award can be made at a fair and reasonable price.

Key terms: SDVOSB · sole source · small business set-aside · NAICS code · SAM

Written by AI from this section's text. A guide, not legal advice: the text below rules.

The text

(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) $8.5 million for a requirement within the NAICS codes for manufacturing; or

(ii) $5 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) Effective January 1, 2024, a contracting officer shall only award a sole-source contract to a concern that—

(1) Is designated in SAM as an SDVOSB concern certified by SBA; or

(2) Has represented that it is an SDVOSB concern in SAM and submitted an application for certification to SBA on or before December 31, 2023. Pending applications for certification are in the SBA Veteran Small Business Certification Program database at https://veterans.certify.sba.gov.

(c) The SBA has the right to appeal the contracting officer's decision not to make an SDVOSB sole-source award.

Sections it refers to

  • 6.302-5 Authorized or required by statute.
  • 19.203 Relationship among small business programs.
  • 19.1404 Exclusions.

Sections that refer to it

  • 18.116 Service-disabled Veteran-owned Small Business (SDVOSB) sole source awards.
  • 19.1405 Set-aside procedures.
  • 19.1408 Contract clauses.

← 19.1405 Set-aside procedures. · 19.1407 [Reserved] →

Rule changes for FAR Part 19

Source: eCFR, 48 CFR chapters 1 and 2 (GPO GovInfo bulk data) ↗. Plain words for the terms: glossary.

FAR 19.1406 Sole-source awards · SpendQuery