FAR 19.1408—Contract clauses.
Plain-English Summary
FAR 19.1408 tells contracting officers which clauses must be included when using the Service-Disabled Veteran-Owned Small Business (SDVOSB) program and where to look for the prescriptions for related clauses. Its main subject is the mandatory use of the SDVOSB set-aside/sole-source notice clause at 52.219-27 in solicitations and contracts that are set aside for, or awarded on a sole-source basis to, eligible SDVOSB concerns under FAR 19.1405 and 19.1406. The section also extends that clause requirement to certain multiple-award contract situations, including when orders may be set aside for SDVOSBs under FAR 8.405-5 and 16.505(b)(2)(i)(F), or when orders may be issued directly to one SDVOSB contractor under FAR 19.504(c)(1)(ii). In addition, it does not itself prescribe the limitations on subcontracting clause or the nonmanufacturer rule clause, but instead points the reader to the separate prescription provisions at FAR 19.507(e) and 19.507(h). In practice, this section is a clause-placement roadmap: it ensures the solicitation and contract documents accurately reflect SDVOSB program requirements and directs users to the correct FAR locations for related performance and supply-chain restrictions.
Key Rules
Insert SDVOSB notice clause
The contracting officer must include clause 52.219-27 in solicitations and contracts that are set aside for, or awarded sole-source to, eligible SDVOSB concerns under FAR 19.1405 and 19.1406. This clause is the required notice that the acquisition is being conducted under the SDVOSB program.
Applies to certain multiple-award contracts
The same clause requirement applies to multiple-award contracts when orders may be set aside for SDVOSBs under FAR 8.405-5 and 16.505(b)(2)(i)(F), or when orders may be issued directly to one SDVOSB contractor under FAR 19.504(c)(1)(ii). This ensures the underlying contract vehicle reflects the possibility of SDVOSB-directed ordering.
Limitations on subcontracting clause is separate
FAR 19.1408 does not itself tell the contracting officer when to use clause 52.219-14. Instead, it directs the reader to the prescription at FAR 19.507(e), which controls when the limitations on subcontracting clause must be inserted.
Nonmanufacturer rule clause is separate
FAR 19.1408 also does not itself prescribe clause 52.219-33. The contracting officer must consult FAR 19.507(h) to determine when the nonmanufacturer rule clause applies.
Follow the cited prescriptions
This section is a cross-reference provision, so compliance depends on using the correct clause prescriptions in the referenced FAR sections. Contracting officers should not rely on this section alone when deciding whether to include the subcontracting or nonmanufacturer clauses.
Responsibilities
Contracting Officer
Insert clause 52.219-27 in all solicitations and contracts covered by SDVOSB set-aside or sole-source awards, including the specified multiple-award contract situations. Also consult FAR 19.507(e) and 19.507(h) to determine whether clauses 52.219-14 and 52.219-33 are required.
Agency
Ensure acquisition planning and solicitation templates support proper SDVOSB clause use and that contracting personnel apply the correct FAR prescriptions for related clauses. Agencies must also maintain consistency between the acquisition strategy, set-aside/sole-source decision, and the clauses included in the solicitation and award.
SDVOSB Contractor
Review the solicitation and contract to confirm the required SDVOSB notice clause is included and understand any additional performance or supply requirements that may apply under the limitations on subcontracting or nonmanufacturer rule clauses when those clauses are prescribed.
Small Business Specialist / Acquisition Support Staff
Assist the contracting officer in identifying when SDVOSB program clauses apply and in verifying that the correct clause set is used for the acquisition type and ordering structure.
Practical Implications
The biggest day-to-day task is clause accuracy: if the acquisition is an SDVOSB set-aside or sole-source, 52.219-27 belongs in the solicitation and contract, and missing it can create compliance problems.
This section is easy to misread because it does not itself prescribe the limitations on subcontracting or nonmanufacturer rule clauses; those requirements must be checked in the separate FAR prescriptions before award.
Multiple-award contracts need special attention because SDVOSB-related ordering opportunities can trigger the notice clause even when the base contract is not a simple one-time set-aside.
Contracting officers should verify that the acquisition strategy, ordering procedures, and clause package all match the intended SDVOSB program use, especially where orders may be set aside or directly issued to one contractor.
For contractors, the practical risk is assuming only the set-aside/sole-source notice matters; in some cases, additional clauses can impose real performance and sourcing restrictions that affect how the work is performed.
Official Regulatory Text
(a) The contracting officer shall insert the clause at 52.219-27 , Notice of Set-Aside for, or Sole-Source Award to, Service-Disabled Veteran-Owned Small Business (SDVOSB) Concerns Eligible Under the SDVOSB Program, in solicitations and contracts for acquisitions that are set aside or awarded on a sole-source basis to, service-disabled veteran-owned small business concerns under 19.1405 and 19.1406 . This includes multiple-award contracts when orders may be set aside for service-disabled veteran-owned small business concerns as described in 8.405-5 and 16.505 (b)(2)(i)(F) or when orders may be issued directly to one service-disabled veteran-owned small business contractor in accordance with 19.504 (c)(1)(ii). (b) For use of clause 52.219-14 , Limitations on Subcontracting, see the prescription at 19.507 (e). (c) For use of clause 52.219-33 , Nonmanufacturer Rule, see the prescription at 19.507 (h).