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Office of Small & Disadvantaged Business Utilization


Veterans First Contracting Program Adjustments to Reflect the Supreme Court Kingdomware Decision

Veterans First Contracting Program: Supreme Court Kingdomware Decision

Kingdomware Decision requires the VA to award contracts based on competition restricted to SDVOSBs or VOSBs by implementing the “VA Rule of Two.”


The Supreme Court held that the Department of Veterans Affairs’ (VA) set-aside law was mandatory and must be applied to all competitive contract awards, including orders on the Federal Supply Schedules. Awards must also be made to Veteran-Owned Small Businesses (VOSBs) verified as such by VA.

Implementation of the VA Rule of Two

On June 16, 2016, the U.S. Supreme Court ruled that consistent with Public Law 109-461 (38 U.S.C. 8127 and 8128), the VA shall award contracts based upon competition restricted to SDVOSBs or VOSBs when a contracting officer has a reasonable expectation, based on market research, that two or more firms listed as verified in Vendor Information Pages database are likely to submit offers and an award can be made at a fair and reasonable price that offers best value to the United States. This is known as the “VA Rule of Two.”

VA Office of Acquisition and Logistics manages a reading room for documents associated with the Implementation of the Veterans First Contracting Program as a result of the Kingdomware Supreme Court decision. Read more in
Veterans First Contracting Program, 38 U.S.C. 8127 & 8128 Implementation Policy and Procedures »

Additional Resources:

Small Business Procurement Review Program Policy Memorandums

These memorandums establish VA’s Small Business Program procurement review policy and process and complement the Small Business Operating Plans prepared in accordance with VAAR 819.202-70. The Office of Small and Disadvantaged Business Utilization (OSDBU), in accordance with Section 15(k) of the Small Business Act (15 U.S.C. § 644(k)), is required to review proposed acquisition strategies and to make recommendations with respect to their anticipated impact on small business participation as prime and subcontractors.

In the Department of Veterans Affairs (VA), these responsibilities are conducted within the context of VA’s hierarchy of small business program preferences, established by section 8127(i) of Title 38, United States Code (the Veterans First Contracting Program). This law requires VA to consider preferences for verified Service-Disabled Veteran-Owned Small Businesses (SDVOSBs) first, then preferences for verified Veteran-Owned Small Businesses (VOSBs). They are followed by certified HUBZone firms, 8(a) participants, and certified Woman-Owned Small Businesses (WOSB) (in no particular order of precedence); then Small Business, and finally full and open competitions (unrestricted). Small business program reviews are intended to ensure that Veteran-owned small businesses are considered in procurement strategies based on adequate market research. June 22, 2016 Procurement Review Program Policy Memorandum »

Procurement Policy Memorandum

This document provides roles and responsibilities for program offices, the contracting officer, and OSDBU in conducting market research to ensure compliance with the Rule of Two. It also provides guidance for evaluation of the acquisition strategy, to review existing contract vehicles for SDVOSB and VOSB sources. July 25, 2016 Procurement Program Policy Memorandum »

Class Deviations to the Veterans Affairs Acquisition Regulation (VAAR)

This memorandum transmits a package of deviations to the existing VAAR language to conform to the Supreme Court ruling. The deviations include mandatory use of SDVOSB and VOSB set-asides on orders against the Federal Supply Schedules when indicated by the Rule of Two, and requirements for offerors and awardees to be verified SDVOSBs or VOSBs to participate.
July 25, 2016 Class Deviation Memorandum »

Acquisition Policy Flashes

This announcement transmitted the Procurement Policy Memorandum and the Class Deviations to VA acquisition personnel and other users for immediate implementation. Acquisition Policy Flash 16-20 »

Market Research Resources

Federal Business Opportunities (FedBizOpps)
Register with Federal Business Opportunities (also known as FedBizOpps) to research the many procurement opportunities available at VA and other federal agencies. Use the Search Agent within your registered account to locate NAICS-specific procurement opportunities, and much more. Create a ‘Watchlist’ to receive email notices related to potential procurement opportunities or requests for information.

For help with registering as a vendor and logging into FedBizOpps, view the Vendor Training Session video at

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