FAR 19.1404—Exclusions.
Plain-English Summary
FAR 19.1404 explains when the service-disabled veteran-owned small business (SDVOSB) program’s rules do not apply. It identifies four major exclusion categories: requirements that can be met through Federal Prison Industries or AbilityOne nonprofit agencies, orders placed under indefinite-delivery contracts, orders placed against Federal Supply Schedules, and requirements already being performed by an 8(a) participant or accepted by SBA under the 8(a) program unless SBA releases them. In practice, this section tells contracting officers when they must look outside the SDVOSB set-aside framework because another mandatory or specialized acquisition program controls the requirement. It also preserves limited discretion for set-asides of certain orders under the order-placement rules in FAR 16.505 and FAR 8.405-5. For contractors, the section matters because it can remove a procurement from SDVOSB competition even when the requirement otherwise appears eligible, and it can also affect whether a small business opportunity is available at all.
Key Rules
Mandatory sources come first
If the requirement can be satisfied by Federal Prison Industries or AbilityOne participating nonprofit agencies, this subpart does not apply. Those programs are treated as excluded sources, so the SDVOSB program cannot be used to override them.
Indefinite-delivery orders are excluded
Orders placed under indefinite-delivery contracts are outside this subpart. However, the contracting officer may still consider discretionary set-asides for orders when permitted by FAR 16.505(b)(2)(i)(F).
Federal Supply Schedule orders are excluded
Orders against Federal Supply Schedules are not covered by this subpart. Even so, FAR 8.405-5 allows discretionary set-asides of schedule orders when the ordering activity determines a set-aside is appropriate.
8(a) requirements remain protected
This subpart does not apply to requirements currently being performed by an 8(a) participant or accepted by SBA for 8(a) performance. The only exception is when SBA consents to release the requirement from the 8(a) program.
Program hierarchy controls
The section reinforces that SDVOSB authorities do not displace other acquisition programs with their own rules and priorities. Contracting officers must check whether another program or ordering vehicle governs before considering SDVOSB action.
Responsibilities
Contracting Officer
Determine whether the requirement falls into one of the listed exclusions before using the SDVOSB program. Verify mandatory sources, check whether the action is an order under an IDIQ or Federal Supply Schedule, and confirm whether the requirement is currently in the 8(a) program or has been released by SBA.
Agency
Follow the required source and ordering rules that may take precedence over SDVOSB procedures. Ensure acquisition planning and market research identify whether the requirement is reserved, already assigned to another program, or eligible for discretionary set-aside action.
SBA
Control release of requirements from the 8(a) program when applicable. SBA’s consent is required before a requirement accepted for 8(a) performance can be removed from that program and considered under another acquisition approach.
Contractors
Understand that SDVOSB competition may not be available when a requirement is covered by a mandatory source, an order under an existing vehicle, or an 8(a) commitment. Monitor solicitations and ordering notices for the applicable program rules rather than assuming SDVOSB eligibility.
Practical Implications
This section is a gatekeeper: before setting aside a requirement for SDVOSB participation, the contracting officer must confirm that no exclusion applies.
A common mistake is treating every small business opportunity as eligible for SDVOSB action without checking mandatory sources, schedule orders, IDIQ orders, or 8(a) status.
Even when the subpart does not apply, discretionary set-aside authority may still exist for certain orders under FAR 16.505 or FAR 8.405-5, so the exclusion is not always the end of the analysis.
For 8(a) requirements, the key issue is whether SBA has accepted the requirement or the work is already being performed by an 8(a) participant; if so, the requirement generally stays in 8(a) unless SBA releases it.
Contractors should not assume a procurement will be competed under SDVOSB rules simply because it is a small business-sized requirement; the acquisition vehicle and prior program commitments can control the outcome.
Official Regulatory Text
This subpart does not apply to- (a) Requirements that can be satisfied through award to- (1) Federal Prison Industries, Inc. (see subpart 8.6 ); (2) AbilityOne participating non-profit agencies for the blind or severely disabled (see subpart 8.7 ); (b) Orders under indefinite-delivery contracts (see subpart 16.5 ). (But see 16.505 (b)(2)(i)(F) for discretionary set-asides of orders); (c) Orders against Federal Supply Schedules (see subpart 8.4 ). (But see 8.405-5 for discretionary set-asides of orders); or (d) Requirements currently being performed by an 8(a) participant or requirements SBA has accepted for performance under the authority of the 8(a) program, unless SBA has consented to release the requirements from the 8(a) program.