DATE: March 23, 2005

SUBJECT: Federal Acquisition Circular (FAC) 2005-02, Service-Disabled Veteran-Owned Small Business Concerns Program

SOURCE: Federal Register, March 23, 2005, Vol. 70, No. 55, page 14950

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

ACTION: Final Rule

SYNOPSIS: The Federal Acquisition Secretariat is issuing FAC 2005-02 to finalize, with changes, the interim rule in FAC 2001-23 which implemented 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 the Veterans Benefits Act of 2003, see the December 13, 2003, FEDERAL CONTRACTS DISPATCHEnactment of the Veterans Benefits Act of 2003.”

For more on FAC 2001-23 and the corresponding SBA interim rule, see the May 5, 2004, FEDERAL CONTRACTS DISPATCHFederal Acquisition Circular (FAC) 2001-23 and Small Business Administration (SBA), Program for Service-Disabled Veteran-Owned Small Business Concerns.”

For more on the Small Business Administration (SBA) SDVOSB final rule that is being issued with FAC 2005-02, see today’s FEDERAL CONTRACTS DISPATCHSmall Business Administration; Service-Disabled Veteran Owned Small Business Concern Program.”

EFFECTIVE DATE: March 23, 2005.

FOR FURTHER INFORMATION CONTACT: Rhonda Cundiff, 202-501-0044.

SUPPLEMENTAL INFORMATION: Section 308 of Public Law 108-183 amended the Small Business Act to establish a SDVOSB set-aside program which permits contracting officers to (1) award contracts set aside for SDVOSBs if there is a reasonable expectation that two or more SDVOSBs will submit offers and that the award can be made at a fair market price, or (2) award contracts to a sole source SDVOSB when there is not a reasonable expectation that two or more SDVOSBs will submit offers, and the anticipated contract price (including options) will not exceed $5,000,000 for manufacturing or $3,000,000 for all else.

FAC 2001-23 consisted of an interim rule which implemented the SDVOSB program by adding FAR Subpart 19.14, Service-Disabled Veteran-Owned Small Business (SBA issued an accompanying interim rule that amended its small business regulations to implement the SDVOSB program). Thirty-five (35) comments from 17 respondents were received. Based on the comments, the interim rule is finalized with changes.

The following are the key changes being made by FAC 2005-02:

FOR FURTHER INFORMATION CONTACT: Panoptic Enterprises at 703-451-5953.

Copyright 2005 by Panoptic Enterprises. All Rights Reserved.

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