DATE: May 5, 2004

SUBJECT: Federal Acquisition Circular (FAC) 2001-23 and Small Business Administration (SBA); Program for Service-Disabled Veteran-Owned Small Business Concerns

SOURCE: Federal Register, May 5, 2004, Vol. 69, No. 87, pages 25261 and 27253

AGENCIES: Department of Defense (DOD), General Services Administration (GSA), National Aeronautics and Space Administration (NASA), and Small Business Administration (SBA)

ACTION: Interim Rules

SYNOPSIS: The Federal Acquisition Secretariat and the SBA are simultaneously issuing interim rules to implement Section 308, Procurement Program for Small Business Concerns Owned and Controlled by Service-Disabled Veterans, of the Veterans Benefits Act of 2003 (Public Law 108-183), which permits set-aside and sole source procurements for service-disabled veteran-owned small business (SDVOSB) concerns.

EDITOR'S NOTE: For more on Section 308 of Public Law 108-183, see the December 18, 2003, FEDERAL CONTRACTS DISPATCH "Enactment of the Veterans Benefits Act of 2003."

DATES: The effective date of these interim rules is May 5, 2004. Comments on the interim rules must be submitted on or before July 6, 2004.

ADDRESSES: Comments on FAC 2001-23 must be submitted to General Services Administration, FAR Secretariat (MVA), 1800 F Street, NW, Room 4035, Attn: Laurie Duarte, Washington, DC 20405; or by e-mail to farcase.2004-002@gsa.gov. Cite "FAC 2001-23, FAR case 2004-002" in correspondence related to the interim rule.

Comments on SBA's interim rule must be submitted through http://www.regulations.gov; by e-mail to SDVOSBCProgram@sba.gov; or by mail to Dean Koppel, Assistant Administrator, Office of Policy and Research, 409 3rd Street, SW, Washington, DC 20416.

FOR FURTHER INFORMATION CONTACT: For FAC 2001-23, Rhonda Cundiff, 202-501-0044. For general information, contact the FAR Secretariat, Room 4035, GS Building, Washington, DC 20405, 202-501-4755.

For the SBA interim rule: Dean Koppel, Assistant Administrator, Office of Policy and Research, 202-205-7322.

SUPPLEMENTAL INFORMATION: Section 308, Procurement Program for Small Business Concerns Owned and Controlled by Service-Disabled Veterans, amends the Small Business Act to establish a SDVOSB set-aside program. The SDVOSB program is implemented in new FAR Subpart 19.14, Service-Disabled Veteran-Owned Small Business, and it is patterned after the Historically Underutilized Business Zone (HUBZone) program implemented in Federal Acquisition Regulation (FAR) Subpart 19.13.

The following are the major changes being made to the FAR and SBA's regulations:


EDITOR'S NOTE: One other difference between the HUBZone and SDVOSB programs is that there is no provision for applying a price evaluation preference for SDVOSBs in acquisitions conducted under full and open competition as there is for HUBZone concerns competing under full and open competition.


SBA's additions to its regulations in Title 13 of the Code of Federal Regulations (CFR), Part 125, Government Contracting Programs, parallel those in FAC 2001-23 for the most part. There is more emphasis on SBA's participation in the process, particularly appeals (Section 125.22, May SBA appeal a contracting officer's decision not to reserve a procurement for award as an SDVO contract?, and Section 125.23 What is the process for such as appeal?), protests (Sections 125.24 through 125.28, which constitute Subpart D, Protests Concerning SDVO SBCs [Service-Disabled Veteran-Owned Small Business Concerns]), and penalties (Section 125.29, What penalties may be imposed under this part?).

FOR FURTHER INFORMATION CONTACT: Panoptic Enterprises at 703-451-5953 or by e-mail to Panoptic@FedGovContracts.com.

Copyright 2004 by Panoptic Enterprises. All Rights Reserved.

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