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FAR ClauseSmall Business

FAR 52.219-27Notice of Service-Disabled Veteran-Owned Small Business Set-Aside

Restricts competition to Service-Disabled Veteran-Owned Small Businesses (SDVOSBs). Includes sole-source provisions.

When This Clause Applies

Used in SDVOSB set-aside or sole-source acquisitions. Sole-source thresholds: $7M manufacturing, $4.5M other.

What This Means for Contractors

Only certified SDVOSBs may compete (certification is now mandatory at VetCert / SBA). The veteran owner must control the daily operations and long-term decision-making. Joint ventures with non-SDVOSBs are permitted under specific structural rules.

Common Pitfalls

  • 1Submitting offers before completing SBA SDVOSB certification (self-certification is no longer sufficient)
  • 2Structuring JVs improperly such that the SDVOSB partner does not control
  • 3Failing to maintain veteran-owner control during performance

Related Topics

FAR 52.219-27SDVOSB set asideservice disabled veteran ownedSDVOSB certificationVetCert SBA

Need help complying with FAR 52.219-27?

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