As SmallGovCon readers may recall, SBA has already eliminated the ability to self-certify as a Service-Disabled Veteran-Owned Small Business (SDVOSB) for all prime contracting opportunities set aside for SDVOSBs. This change occurred January 1, 2024 and meant that self-certified SDVOSBs will no longer be eligible for set-aside and sole source contracts. We wrote about the change here. However, the rule change left in place the self-certification ability for self-certified SDVOSBS, but only for subcontracting purposes and government goaling purposes. This will be changing in December 2024.
In this direct final rule, SBA is implementing a portion of the National Defense Authorization Act for Fiscal Year 2024 (NDAA 2024) to eliminate SDVOSB self-certification for subcontracts and agency SDVOSB goals. Currently, under SBA rules firms “that meet the VetCert Program eligibility requirements may self-certify their SDVOSB status, receive prime contract or subcontract awards that are not SDVOSB set-aside or sole source contracts, and be counted toward an agency’s SDVOSB small business goals or a prime contractor’s subcontracting goal for SDVOSB awards.”
In other words, federal agencies still get credit for awards to self-certified SDVOSBs, even though SBA has not reviewed that the companies in question are proper SDVOSBs. There would be no incentive for anyone to really check on whether the claimed SDVOSB status is proper, because there is no protest process and the agency didn’t rely on the company’s SDVOSB status in making the award.
This new rule will eliminate any remaining ability to self-certify as an SDVOSB….
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