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Office of Acquisition and Logistics (OAL)

38 U.S.C. 8127 Implementation Frequently Asked Questions Category 8

Categories:  1.  Supreme Court of the United States (SCOTUS) Decision affecting the Veterans First Contracting Program  |  2.  VA Rule of Two  |  3.  VA Form 2268  |  4.  Market Research  |  5.  Fair & Reasonable—Reasonable Expectation that Award can be Made at a Fair & Reasonable Price that Offers Best Value to the United States  |  6.  Sole Source  |  7.  General Services Administration (GSA)/Federal Supply Schedules (FSS)  |  8.  Other
 

Other

 
 
  1. What is the requirement regarding soliciting from FPI? Is FPI a mandatory source? Should items that can be purchased via FPI now be purchased via verified and capable SDVOSBs/VOSBs?

  2. If after evaluating quotes/proposals received by SDVOSBs or VOSBs it is determined that none are able to perform at a fair and reasonable price, is it then required that a Certificate of Competency (COC) be acquired from SBA prior to proceeding to award to other than an SDVOSB/VOSB?

  3. Is AbilityOne required to be considered first prior to the application of the VA Rule of Two?

  4. For DLA contracts, such as contracts for fuel, is it required to search for SDVOSBs or VOSBs first before using that DLA contract?

  5. For the purchase of utilities in a non-regulated state, is it required to search for SDVOSBs or VOSBs prior to using the SAC Energy Center contracts?

  6. What percent disability rating is needed to be considered a SDVOSB?

1.  What is the requirement regarding soliciting from FPI? Is FPI a mandatory source? Should items that can be purchased via FPI now be purchased via verified and capable SDVOSBs/VOSBs?

As provided by VAAR, items on Federal Prison Industries, Inc. (FPI) that can be provided by a verified SDVOSB/VOSB may be awarded under the Veterans First Contracting Program.  This is not a new policy for VA and was not changed as a result of the SCOTUS decision as VAAR 808.603 FPI has been in place since the VAAR amendment of December 8, 2009. However, Contracting officers shall apply the VA Rule of Two, as implemented in VAAR subpart 819.70, prior to awarding any contract to Federal Prison Industries, Inc., if an award is not made to an SDVOSB/VOSB as provided in subpart 819.70, FPI remains a mandatory supply source in accordance with FAR 8.002 (See VAAR 808.002(a)(1)(iii) and 808.603).

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2.  If after evaluating quotes/proposals received by SDVOSBs or VOSBs it is determined that none are able to perform at a fair and reasonable price, is it then required that a Certificate of Competency (COC) be acquired from SBA prior to proceeding to award to other than an SDVOSB/VOSB?

A COC refers to responsibility versus fair and reasonable pricing, see FAR 15.404 External link to a government website for further guidance on determining price reasonableness.  However if, before award of a contract involving a small business set-aside, the contracting officer considers that award would be detrimental to the public interest (e.g., payment of more than a fair market price), the contracting officer may modify the small business set-aside determination in accordance with the OSDBU FY 2016 Small Business Procurement Review Program Policy Memorandum.

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3.  Is AbilityOne required to be considered first prior to the application of the VA Rule of Two?

  1. Contracting activities shall satisfy requirements pursuant to FAR 8.002 and VAAR 808.002. See VAAR part 808 for additional policies not specified below.
  2. Contracting officers shall apply the VA Rule of Two, as implemented in VAAR subpart 819.70, prior to awarding any contract to AbilityOne non-profit organizations or to Federal Prison Industries, Inc.
  3. For AbilityOne, if an award is not made to an eligible Vendor Information Pages (VIP)-listed and verified SDVOSB or VOSB under VAAR subpart 819.70, the priority use of AbilityOne applies and supplies and services on the Procurement List are mandatory sources.
  4. For FPI, if an award is not made to an SDVOSB/VOSB as provided in subpart 819.70, FPI remains a mandatory supply source in accordance with FAR 8.002.
  5. Consistent with FAR 8.002(b), contracting officers may use a source other than those listed in VAAR 808.002(a), when the need for supplies or services is of an unusual and compelling urgency, and when justified.

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4.  For DLA contracts, such as contracts for fuel, is it required to search for SDVOSBs or VOSBs first before using that DLA contract?

It is not required to search for SDVOSBs or VOSBs first before using DLA contract for fuel as DLA contracts for fuel are mandatory under the authority of FAR 8.002(a)(1)(v) External link to a government website, wholesale supply sources.

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5.  For the purchase of utilities in a non-regulated state, is it required to search for SDVOSBs or VOSBs prior to using the SAC Energy Center contracts?

Public utility services are mandatory sources under FAR 8.003(a) External link to a government website and FAR Part 41 External link to a government website, Acquisition of Utility Services.

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6.  What percent disability rating is needed to be considered a SDVOSB?

Based on 38 CFR 74, a service-disabled veteran is a veteran who possesses either a disability rating letter issued by the Department of Veterans Affairs, establishing a service-connected rating between 0 and 100 percent, or a disability determination from the Department of Defense.  However, note that the Office of Small and Disadvantaged Business Utilization’s (OSDBU) Center for Verification and Evaluation (CVE) verifies Service-Disabled Veteran-Owned Small Businesses (SDVOSBs) and Veteran-Owned Small Businesses (VOSBs). Contracting officers do not make eligibility determinations.  Contracting officers are required to refer to the VIP database for SDVOSB/VOSB eligible firms.

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