FAR 19.1403—Status.
Plain-English Summary
FAR 19.1403 explains how a concern’s status as a Service-Disabled Veteran-Owned Small Business (SDVOSB) is established and verified for SDVOSB set-aside and sole-source awards, and how that status is handled after SBA makes an adverse eligibility decision. It also addresses the special treatment of joint ventures seeking SDVOSB program eligibility. The section ties together SBA’s authority to determine SDVOSB status under 13 CFR part 128, the contracting officer’s duty to verify status in SAM, the transition rules for firms that had pending certification applications as of December 31, 2023, and the requirement to update SAM promptly if SBA denies certification or finds the firm ineligible. For joint ventures, it explains when a JV may qualify as an SDVOSB concern and points to the additional SBA joint venture requirements in 13 CFR 128.402. In practice, this section is about making sure only properly certified or grandfathered firms receive SDVOSB program awards, and that both offerors and contracting officers use current SAM and SBA certification information before award.
Key Rules
SBA decides SDVOSB status
A concern’s SDVOSB status is determined by SBA under 13 CFR part 128, not by the contracting officer. FAR also cross-references 19.307 for related procedures and eligibility considerations.
Verify status before award
For an SDVOSB set-aside or sole-source award, the contracting officer must verify that the offeror meets the current status requirement. This means checking SAM for SBA certification status or the limited transition rule for firms with timely certification applications submitted by December 31, 2023.
Current certification in SAM
Effective January 1, 2024, an offeror must be designated in SAM as an SDVOSB concern certified by SBA to qualify for SDVOSB set-aside or sole-source awards, unless it falls within the transition rule for pending applications submitted on or before December 31, 2023.
Transition rule for pending applications
A firm that represented itself in SAM as an SDVOSB and submitted an SBA certification application on or before December 31, 2023 may still satisfy the verification requirement while the application is pending. The pending application status is tracked in SBA’s Veteran Small Business Certification Program database.
Update SAM after adverse SBA decision
If SBA issues a final decision finding the concern ineligible, or denies the certification application, the concern must update its SDVOSB status in SAM within 2 days to show it is not an eligible SDVOSB. If the concern does not do so, SBA will update SAM within 2 days of that failure.
Joint ventures may qualify
Effective January 1, 2024, a joint venture may be considered an SDVOSB concern only if it is small under 19.301-1(a)(2)(i), the managing SDVOSB partner meets the same SAM certification or transition rule, and the JV complies with 13 CFR 128.402.
Responsibilities
SBA
Determine whether a concern qualifies as an SDVOSB under 13 CFR part 128, issue eligibility decisions, deny certification applications when appropriate, and update SAM if a concern fails to correct its status after an adverse decision.
Contracting Officer
Before making an SDVOSB set-aside or sole-source award, verify the offeror’s SDVOSB status in SAM and confirm that the offeror meets the current certification or transition requirements. For joint ventures, confirm the JV is small and that the managing SDVOSB partner and the JV structure satisfy the applicable rules.
Offeror / Concern
Maintain accurate SDVOSB status in SAM, ensure it is properly designated as SBA-certified or covered by the transition rule, submit and pursue SBA certification when required, and update SAM within 2 days after an SBA final adverse decision or denial.
Joint Venture
Ensure the JV qualifies as small, the managing SDVOSB partner meets the SAM certification or transition requirement, and the JV complies with all requirements in 13 CFR 128.402 before seeking SDVOSB program eligibility.
SBA Veteran Small Business Certification Program database
Serve as the source for tracking pending certification applications submitted on or before December 31, 2023.
Practical Implications
Contracting officers should not rely on self-certification alone for SDVOSB set-asides or sole-source awards; they must check SAM and confirm the firm is SBA-certified or covered by the transition rule.
A common pitfall is assuming a pending certification application automatically preserves eligibility for all firms; the transition rule only applies to firms that represented themselves in SAM and submitted the application on or before December 31, 2023.
Offerors must keep SAM current after an adverse SBA decision. Failing to update status within 2 days can create compliance problems and may trigger SBA to make the update itself.
Joint ventures need extra scrutiny: even if the managing partner is an SDVOSB, the JV must also be small and meet the detailed SBA joint venture requirements before it can be treated as an SDVOSB concern.
Because SBA, not the contracting officer, makes the underlying status determination, disputes about eligibility generally turn on SBA’s certification and examination process rather than the agency’s independent judgment.
Official Regulatory Text
(a) Status as an SDVOSB concern is determined by SBA in accordance with 13 CFR part 128; also see 19.307 . (b) For an SDVOSB concern that seeks an SDVOSB set-aside or sole-source contract, the contracting officer shall verify that the offeror— (1) Effective January 1, 2024, is designated in the System for Award Management (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) If there is a decision issued by SBA as a result of a current eligibility examination finding that the concern did not qualify as an SDVOSB concern eligible under the SDVOSB Program or SBA denies a concern’s application for SDVOSB certification, the concern must update its SDVOSB status in SAM within 2 days of SBA’s final decision to reflect that the concern is not an eligible SDVOSB. SBA will update the concern’s SDVOSB status in SAM within 2 days of the concern’s failure to make the update. (d) Effective January 1, 2024, a joint venture may be considered an SDVOSB concern eligible under the SDVOSB Program if— (1) The joint venture qualifies as small under 19.301-1 (a)(2)(i); (2) The managing SDVOSB joint venture partner— (i) Is designated in SAM as an SDVOSB concern certified by SBA; or (ii) 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 database at https://veterans.certify.sba.gov ; and (3) The joint venture complies with the requirements of 13 CFR 128.402.