What Is SDVOSB Sole-Source Authority?

Under the Veterans Benefits, Health Care, and Information Technology Act and implementing regulations at FAR 19.14, federal agencies may award contracts directly to SDVOSBs without competition — provided certain conditions are met. This is the sole-source authority, and it is one of the most underutilized acquisition tools available to contracting officers who want to move quickly, reduce administrative burden, and meet socioeconomic goals simultaneously. The contracting officer must have a reasonable expectation that one or more SDVOSBs can perform the work at a fair and reasonable price, and must be able to document that conclusion. When those conditions exist, the agency does not need to conduct a full and open competition. It can negotiate directly with an SDVOSB and award a contract.

SDVOSB Set-Asides vs. Sole Source: What's the Difference?

SDVOSB set-asides and SDVOSB sole-source authority are related but distinct tools: An SDVOSB set-aside means the contracting officer restricts competition to SDVOSBs. At least two SDVOSBs must be expected to submit offers. This is a competitive acquisition — it just limits the competitive pool to SDVOSBs. An SDVOSB sole-source means the contracting officer awards directly to a single SDVOSB without competition. Only one SDVOSB needs to be identified, and the award is made without a competitive solicitation. The threshold limits and justification requirements described above apply. For agencies that want to move quickly and have a known, capable SDVOSB in mind, sole-source authority offers significant acquisition cycle time advantages over even a streamlined set-aside competition.

SDVOSB Sole Source Contracting

SDVOSB Sole Source

thrive@gothamgovernment.com

Streamline Your Federal Procurement Process with Sole Source Awards to Gotham Government

Federal agencies can streamline their procurement process by granting sole source awards to Service-Disabled Veteran-Owned Small Businesses (SDVOSB) through Gotham Government. These awards can be established under the following provisions:

FAR 19.1406 Sole Source Awards

(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) $7 million for a requirement within the NAICS codes for manufacturing; or

(ii) $4 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.

VA 819.7007 Sole Source Awards

819.7007 VA veteran-owned small business set-aside procedures. (DEVIATION)

(a) The contracting officer shall consider SDVOSB set-asides before considering VOSB set-asides. Except as authorized by 808.002, 813.106, 819.7007, and 819.7008, the contracting officer shall set aside a contract action exceeding the micro-purchase threshold for competition restricted to certified VOSBs listed in the SBA certification database upon a reasonable expectation based on market research that—

(1) Offers/quotations will be received from two or more eligible certified VOSBs; and

(2) Award can be made at a fair and reasonable price that offers the best value to the Government.

(b) When conducting VOSB set-asides, the contracting officer shall ensure that—

(1) Offerors are certified and listed in the SBA certification database at the time of submission of offers and at time of award; and

(2) Offerors affirmatively represent their SDVOSB/VOSB and small business status based on the size standard corresponding to the NAICS code assigned to the solicitation/contract (see 819.7003(b) and (c)).

(c) If the contracting officer receives only one acceptable offer at a fair and reasonable price from an eligible certified VOSB listed in the SBA certification database in response to a VOSB set-aside, the contracting officer may make an award to that concern. If the contracting officer decides not to make an award to the single acceptable offer received, or if the contracting officer receives no acceptable offers from eligible VOSBs, the set-aside shall be withdrawn and the requirement, if still valid, set aside for other small business programs in accordance with 819.7005 or otherwise procured using the most appropriate strategy based on the results of market research.

Points of Contact

Elizabeth Bauernshub
thrive@gothamgovernment.com
Tel: 202.843.5447

What SDVOSB Status Means for Federal Agencies

The Service-Disabled Veteran-Owned Small Business (SDVOSB) set-aside and sole-source program exists to honor the service of veterans who have sacrificed in defense of the country — and to ensure those veterans have meaningful access to federal contracting opportunities. Gotham Government Services is a certified SDVOSB. This page explains what that means for federal contracting officers and program managers looking to procure training, consulting, and organizational development services from a verified veteran-owned firm.

Procuring from a certified SDVOSB is not just a preference — federal law mandates that contracting officers consider SDVOSB set-asides and sole-source awards before other small business mechanisms. FAR Part 19.14 and the VA Acquisition Regulation (VAAR) 819.70 both establish priority for SDVOSB contracting. When GGS is a viable contractor for your requirement, the law supports awarding to us directly.

GGS SDVOSB Certifications and Contract Vehicles

Gotham Government Services holds SBA certification as a Service-Disabled Veteran-Owned Small Business under the Veteran Small Business Certification (VetCert) program. Our certification is maintained in SAM.gov and verifiable through the SBA VetCert database at veterans.certify.sba.gov.

In addition to SDVOSB status, GGS holds two contract vehicles that support streamlined federal procurement:

HCaTS Small Business — Contract #GS02Q17DCR0007: Human Capital and Training Solutions IDIQ, available to all federal agencies. Supports SDVOSB sole-source awards under FAR 19.1406 when applicable.
GSA Multiple Award Schedule — Contract #47QRAA26D003R: Effective February 2026 through February 2031. Covers training, consulting, and program management services under SINs 541611/RC, 611430/RC, and OLM/RC/STLOC.

Why Agencies Award Sole Source Contracts to GGS

Contracting officers choose GGS for sole-source SDVOSB awards when they need mission-qualified capability with reduced procurement timelines. Key reasons agencies award sole source to GGS include:

Verified SDVOSB status — SBA-certified, SAM.gov current, verifiable in VetCert database
Domain expertise — 20+ years of federal training, instructional design, and organizational development experience
Past performance — Documented track record with DoD, VA, and civilian agencies including the U.S. Army Futures Command and Veterans Benefits Administration
Section 508 compliance — All eLearning and digital content developed to WCAG 2.1 AA standards and VPAT-documented
Small business goals — Awarding to GGS supports your agency's SDVOSB spend goals under the Small Business Act

GGS SDVOSB Service Areas

Under sole-source or set-aside awards, GGS delivers the following categories of service to federal agencies:

Custom training development — instructor-led, virtual, and eLearning formats
Training needs assessment and competency modeling aligned to OPM frameworks
Organizational culture assessment and culture change consulting
Leadership development programs and executive coaching
Change management planning and implementation support
Strategic planning facilitation and workshop design
Training program management — logistics, LMS administration, and reporting

Frequently Asked Questions — SDVOSB Sole Source Awards

What is the dollar threshold for an SDVOSB sole-source award?

Under FAR 19.1406, a contracting officer may award a sole-source SDVOSB contract up to $4 million for services (or $7 million for manufacturing NAICS codes). Awards above these thresholds require a justification and approval, but can still be made where market research supports a sole-source determination.

Does GGS need to be in SAM.gov for a sole-source award?

Yes. Effective January 1, 2024, sole-source SDVOSB awards require the contractor to be SBA-certified (not just self-represented) and active in SAM.gov. GGS meets both requirements. Contracting officers can verify our SBA VetCert certification and SAM.gov registration before award.

Can VA agencies use SDVOSB sole source under different rules?

Yes. The Department of Veterans Affairs follows VAAR 819.70 procedures, which establish a Veteran First contracting program with its own priority structure — SDVOSB first, then VOSB, then other small business. VA contracting officers must use the VAAR procedures rather than FAR Part 19.14 when procuring services from veteran-owned firms for VA requirements.

How do we initiate a sole-source award to GGS?

Contact GGS at thrive@gothamgovernment.com or 202.843.5447 with your requirement. We will provide a capability statement, NAICS verification, and pricing support to help your contracting officer complete the J&A (Justification and Approval) documentation. For requirements that fit cleanly within our HCaTS or GSA MAS vehicles, the sole-source determination may be simplified by using those contract vehicles' existing sole-source authority.