FAR 6.206—Set-asides for service-disabled veteran-owned small business (SDVOSB) concerns eligible under the SDVOSB Program.
Plain-English Summary
FAR 6.206 addresses one specific competition tool in federal procurement: setting aside solicitations for service-disabled veteran-owned small business (SDVOSB) concerns that are eligible under the SDVOSB Program. It explains that contracting officers may restrict competition to SDVOSB concerns to satisfy the Veterans Benefits Act of 2003, and it cross-references the eligibility rules in FAR 19.1405. The section also makes clear that when a contracting officer uses this SDVOSB set-aside authority, no separate justification and determination and findings (J&A) is required under FAR Part 6. In practice, this means agencies can use a streamlined path to reserve work for eligible SDVOSB firms without going through the usual full-and-open competition justification process, so long as the set-aside is used consistently with the SDVOSB Program requirements. This section is important because it supports veteran-owned small business participation while reducing administrative burden for contracting officers.
Key Rules
SDVOSB set-asides allowed
Contracting officers may set aside solicitations so that only service-disabled veteran-owned small business concerns eligible under the SDVOSB Program may compete. This is an authorized competition restriction, not a general preference, and it applies only when the firms are eligible under the program rules.
Purpose is statutory compliance
The authority exists to fulfill the Veterans Benefits Act of 2003, codified at 15 U.S.C. 657f. In other words, the set-aside is a statutory tool intended to implement Congress’s veteran-owned small business policy.
Eligibility must be verified under Part 19
The phrase 'eligible under the SDVOSB Program' ties the set-aside decision to the program eligibility requirements in FAR 19.1405. A contracting officer must ensure the offerors are within the class of firms the program permits to compete.
No separate J&A required
When a contract action is set aside for eligible SDVOSB concerns under this authority, FAR Part 6 does not require a separate justification and determination and findings. This removes a procedural step that would otherwise be associated with limiting competition.
Applies to the solicitation level
The rule speaks in terms of setting aside solicitations, meaning the restriction is applied at the acquisition planning and solicitation stage. The practical effect is to limit competition before offers are received, rather than excluding firms after evaluation.
Responsibilities
Contracting Officer
Determine whether an acquisition may be set aside for eligible SDVOSB concerns, ensure the solicitation is restricted accordingly, and confirm that the firms allowed to compete meet the SDVOSB Program eligibility requirements. The contracting officer also relies on this section to proceed without preparing a separate FAR Part 6 J&A.
Agency
Support use of the SDVOSB set-aside authority as part of acquisition planning and small business participation goals. The agency must ensure its procurement personnel apply the SDVOSB Program correctly and consistently with statutory and regulatory requirements.
SDVOSB Offerors
Demonstrate that they are eligible under the SDVOSB Program and compete only if they qualify under the applicable program rules. They must be prepared to show compliance with the eligibility standards referenced by the solicitation and FAR 19.1405.
Small Business Program Officials / Advisors
Provide guidance on whether an acquisition is suitable for SDVOSB set-aside treatment and help verify that the procurement aligns with program eligibility and policy requirements. They may also assist in avoiding improper restrictions or misclassification of the acquisition.
Practical Implications
This section gives contracting officers a faster way to reserve work for eligible SDVOSB firms without preparing a separate FAR Part 6 J&A, which can save time and reduce paperwork.
The biggest pitfall is assuming any veteran-owned business qualifies; the set-aside is limited to concerns eligible under the SDVOSB Program, so eligibility must be checked carefully.
Because the authority is tied to the solicitation, acquisition planning matters: if the set-aside decision is made too late, the procurement may need to be amended or re-solicited.
Contractors should watch for solicitation language that limits competition to SDVOSB concerns and be ready to document eligibility if they intend to compete.
Contracting officers should coordinate with small business and legal resources when needed to ensure the set-aside is properly supported and consistent with the program rules.
Official Regulatory Text
(a) To fulfill the statutory requirements relating to the Veterans Benefits Act of2003 ( 15 U.S.C. 657f ), contracting officers may set-aside solicitations to allow only service-disabled veteran-owned small business concerns eligible under the SDVOSB Program to compete (see 19.1405 ). (b) No separate justification or determination and findings are required under this part to set aside a contract action for service-disabled veteran-owned small business concerns eligible under the SDVOSB Program.