FAR 18.116—Service-disabled Veteran-owned Small Business (SDVOSB) sole source awards.
Plain-English Summary
FAR 18.116 is a short cross-reference provision that confirms agencies may make sole source awards to Service-disabled Veteran-owned Small Business (SDVOSB) concerns when those firms are eligible under the SDVOSB Program. Its purpose is to identify SDVOSB sole source contracting as an authorized acquisition approach and to point the reader to the detailed program rules in FAR 19.1406. In practice, this section matters because it signals that an agency does not have to compete every SDVOSB requirement if the conditions for a sole source award are met. It also tells contracting officers and contractors that the real eligibility, justification, and procedural requirements are found elsewhere, so this section should be read together with the SDVOSB program rules rather than used alone. The section is limited in scope: it does not define eligibility, set dollar thresholds, or describe documentation requirements; it simply authorizes the concept of sole source awards to qualifying SDVOSB concerns and directs users to the governing implementation provision.
Key Rules
Sole source authority exists
Agencies may award contracts to eligible SDVOSB concerns on a sole source basis. This means competition is not required when the SDVOSB program conditions for sole source contracting are satisfied.
Eligibility is required
The award must go to an SDVOSB concern that is eligible under the SDVOSB Program. A firm cannot receive a sole source award under this section unless it meets the program’s eligibility requirements.
Read with FAR 19.1406
This section is only a brief authorization and expressly points to FAR 19.1406 for the controlling details. Users must consult that section for the specific rules, limitations, and procedures governing SDVOSB sole source awards.
No standalone procedures here
FAR 18.116 does not itself establish thresholds, approval steps, market research requirements, or documentation standards. Those requirements, if applicable, come from the SDVOSB program rules and other acquisition regulations.
Responsibilities
Contracting Officer
Determine whether the requirement may be satisfied through an SDVOSB sole source award and verify that the intended awardee is eligible under the SDVOSB Program. The contracting officer must also apply the detailed requirements in FAR 19.1406 and any related acquisition rules before making the award.
SDVOSB Concern
Maintain eligibility under the SDVOSB Program and be prepared to demonstrate that status when seeking a sole source award. The firm must understand that eligibility is a prerequisite and that the award is subject to the program’s governing rules.
Agency
Use the SDVOSB sole source authority only when permitted by the program rules and ensure internal acquisition actions align with FAR 19.1406. The agency must support the contracting officer with any required reviews, approvals, or acquisition planning processes.
Practical Implications
This section is an authorization, not a complete procedure, so users must not stop here; the real decision rules are in FAR 19.1406.
A common mistake is assuming any SDVOSB can receive a sole source award. Eligibility under the program must be confirmed before award.
Contracting officers should treat this as a reminder to document the basis for using the SDVOSB sole source path and to check all related thresholds and conditions in the implementing rules.
For contractors, the practical takeaway is that SDVOSB status can create a direct-award opportunity, but only if the firm remains eligible and the agency has authority to use the sole source method.
Because this provision is brief and cross-referential, it is easy to overlook other applicable requirements such as market research, competition exceptions, and agency-specific approval processes.
Official Regulatory Text
Contracts may be awarded to Service-disabled Veteran-owned Small Business (SDVOSB) concerns eligible under the SDVOSB Program on a sole source basis. (See 19.1406 .)