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Office of Small & Disadvantaged Business Utilization


Change in the Transfer Restriction Rule

May 3, 2013

In accordance with Title 38 Code of Federal Regulation (CFR) § 74.3(b) (Transfer Restrictions), companies will no longer be denied for the Veterans’ First Contracting Program based upon “Right of First Refusal” or similar provisions in applicable business documents.  This ruling is not retroactive to companies who received determination letters before March 1, 2013.  However, companies that received denial letters with 38 § 74.3(b) (Transfer Restrictions) as a single point of failure before March 1, 2013, can submit for reverification.  These companies will receive “priority” processing and should have a determination within 30 business days as long as they have previously undergone a full document review and no other changes have occurred within the company.

Companies that have received a denial based on Transfer Restriction as a single point of failure before March 1, 2013 should send an email with the following subject line:  TRANSFER RESTRICTION PRIORITY with your company name and DUNS number to

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