Information On Service Disabled Veteran Owned Business
On October 20, 2004, President Bush signed Executive Order (EO) 13360. Consistent with the EO, the Department’s Strategic Plan to implement EO 13360 is provided at:
FY 2006 DOE Strategic Plan for Small Business – Service Disabled Veteran-Owned Business Program.
On June 7, 2005, the Secretary of Energy issued a statement outlining the Department’s policy on Contracting with Service-Disabled Veteran-Owned Small Businesses. Click here to view this document.
In addition, the law authorizes sole source awards to service-disabled veteran owned small business concerns under certain conditions.
For more information on the service-disabled or veteran-owned small business programs:
Contact the SBA’s Office of Federal Contract Assurance for Veteran Business Owners at (202) 205- 7330,
Visit the website at SBA’s Office of Veterans Business Development at
www.sba.gov/vets
Or visit the U.S. Department of Veteran Affair’s website at www.va.gov
The Association of Service-Disabled Veterans (ASDV) site may also be helpful when seeking sources and general information at: www.asdv.org.
Sec. 2. Duties of Agency Heads. To implement the policy set forth in section 1, heads of agencies shall: (a) develop a strategy to implement the policy set forth in section 1; (b) make the agency’s strategy publicly available and report annually to the Administrator of the Small Business Administration on implementation of the agency’s strategy; (c) designate a senior-level official who shall be responsible for developing and implementing the agency’s strategy; (d) include development and implementation of the agency’s strategy and achievements in furtherance of the strategy as significant elements in any performance plans of the agency’s designated agency senior-level official, chief acquisition officer, and director of small and disadvantaged business utilization; and (e) include in the agency’s strategy plans for: (i) reserving agency contracts exclusively for service-disabled veteran businesses; (ii) encouraging and facilitating participation by service-disabled veteran businesses in competitions for award of agency contracts; (iii) encouraging agency contractors to subcontract with service-disabled veteran businesses and actively monitoring and evaluating agency contractors’ efforts to do so; (iv) training agency personnel on applicable law and policies relating to participation of service-disabled veteran businesses in Federal contracting; and (v) disseminating information to service-disabled veteran businesses that would assist these businesses in participating in awards of agency contracts.
Sec. 3. Additional Duties of Administrator of the Small Business Administration. The Administrator of the Small Business Administration shall:
(a) designate an appropriate entity within the Small Business Administration that shall, in coordination with the Veterans Affairs’ Center for Veterans Enterprise (CVE), provide to service-disabled veteran businesses information and assistance concerning participation in Federal contracting; (b) advise and assist heads of agencies in their implementation of section 2 of this order; and (c) make available to service-disabled veteran businesses training in Federal contracting law, procedures, and practices that would assist such businesses in participating in Federal contracting.
Sec. 4. Additional Duties of Administrator of General Services. The Administrator of General Services shall:
(a) establish a Government-wide Acquisition Contract reserved for participation by service-disabled veteran businesses; and (b) assist service-disabled veteran businesses to be included in Federal Supply Schedules.
Sec. 5. Additional Duties of the Secretary of Defense. The Secretary of Defense shall direct the Defense Acquisition University (DAU) to develop training on contracting with service-disabled veteran businesses and make this training available on line through the DAU continuous learning program.
Sec. 6. Additional Duties of the Secretary of Veterans Affairs. The Secretary of Veterans Affairs shall assist agencies by making available services of the CVE and assist in verifying the accuracy of contractor registration databases with regard to service-disabled veteran businesses.
Sec. 7. Additional Duties of the Secretary of Labor and Secretary of Veterans Affairs. The Secretary of Labor and Secretary of Veterans Affairs shall, respectively, direct the Transition Assistance Program and the Disability Transition Assistance Program to educate separating service members as to the benefits available to service-disabled veteran businesses and as to potential entrepreneurial opportunities.
Sec. 8. Definitions. As used in this order:
(a) the term “agency” means an “executive agency” as that term is defined in section 105 of title 5, United States Code, excluding an executive agency that has fewer than 500 employees, the Government Accountability Office, or a Government corporation; (b) the term “service-disabled” means, with respect to disability, that the disability was incurred or aggravated in the line of duty in the active service in the United States Armed Forces; (c) the term “service-disabled veteran” means a veteran, as defined in 38 U.S.C. 101(2), with a disability that is service-connected, as defined in 38 U.S.C. 101(16); (d) the term “service-disabled veteran business” means a small business concern owned and controlled by service-disabled veterans, as defined in section 3(q) of the Small Business Act (15 U.S.C. 632(q)); and (e) the term “small business concern” has the meaning specified in section 3(a) of the Small Business Act (15 U.S.C. 632(a)) and the definitions and standards issued under that section.
Sec. 9. General Provisions. (a) Heads of agencies shall carry out duties assigned by sections 3, 4, 5, 6, and 7 of this order to the extent consistent with applicable law and subject to the availability of appropriations.
(b) To the extent permitted by law, an agency shall disclose personally identifying information on service-disabled veterans to other agencies who require such information in order to discharge their responsibilities under this order.
(c) An agency that consists of a multi-member commission shall implement this order to the extent it determines appropriate to the accomplishment of the agency’s mission.
(d) This order is not intended to, and does not, create any right or benefit, substantive or procedural, enforceable at law or in equity by any party against the United States, its departments, agencies, instrumentalities or entities, its officers, employees or agents, or any other person.
GEORGE W. BUSH
THE WHITE HOUSE,
October 20, 2004
The HUBZone Empowerment Contracting program was enacted into law as part of the Small Business Reauthorization Act of 1997. The program falls under the auspices of the U.S. Small Business Administration. The program encourages economic development in historically underutilized business zones – “HUBZones” – through the establishment of preferences.
SBA’s Hubzone program is in line with the efforts of both the Administration and Congress to promote economic development and employment growth in distressed areas by providing access to more Federal contracting opportunities.
How the HUBZone Program Works
• The U.S. Small Business Administration (SBA) regulates and implements the program,
• Determines which businesses are eligible to receive HUBZone contracts,
• Maintains a listing of qualified HUBZone small businesses Federal agencies can use to locate vendors,
• Adjudicates protests of eligibility to receive HUBZone contracts, and
• Reports to the Congress on the program’s impact on employment and investment in HUBZone areas.
Publication of Final Rule
The final rule for the HUBZone Empowerment Contracting Program was published on June 11, 1998.
Click Here To View the Publication.
The interim Federal Acquisition Regulation (FAR) FAC 97-10, FAR Case 97-307 was published on December 18, 1998 to give effect to the contracting component of the program on January 4, 1999. The comment period for the FAR expired on February 18, 1999. The final rule is expected to be published in mid to late April.
Eligibility
A small business meets all of the following criteria to qualify for the Hubzone program:
• It must be located in a “historically underutilized business zone,”
• It must be owned and controlled by one or more U.S. Citizens, and
• At least 35% of its employees must reside in a HUB Zone.
Historically Underutilized Business Zone
A “HUBZone” is an area that is located in one or more of the following:
• A qualified census tract (as defined in section 42(d)(5)(C)(i)(I) of the Internal Revenue Code of 1986);
• A qualified “non-metropolitan county” (as defined in section 143(k)(2)(B) of the Internal Revenue Code of 1986) with a median household income of less than 80 percent of the State median household income or with an unemployment rate of not less than 140 percent of the statewide average, based on U.S. Department of Labor recent data; or Lands within the boundaries of federally recognized Indian reservations.
Types of HUBZone Contracts
A competitive HUBZone contract can be awarded if the contracting officer has a reasonable expectation that at least two qualified HUBZone small businesses will submit offers and that the contract can be awarded at a fair market price.
A sole source HUBZone contract can be awarded if the contracting officer does not have a reasonable expectation that two or more qualified HUBZone small businesses will submit offers, determines that the qualified HUBZone small business is responsible, and determines that the contract can be awarded at a fair price. The government estimate cannot exceed $5 million for manufacturing requirements or $3 million for all other requirements.
A full and open competition contract can be awarded with a price evaluation preference. The offer of the HUBZone small business will be considered lower than the offer of a non-HUBZone/non-small business-providing that the offer of the HUBZone small business is not more than 10 percent higher.
Goaling
The Small Business Reauthorization Act of 1997 increases the overall government wide procurement goal for small business from 20% to 23%. The statute sets the goal for HUBZone contracts as follows: 1999 – 1%; 2000 – 1 ½ %; 2001 – 2%; 2002 – 2 ½ %; 2003; and each year thereafter – 3%.
Affected Federal Agencies
Until September 30, 2000, the HUBZone Empowerment Contracting Program applies only to the procurements of the following Federal agencies: U.S. Department of Defense (DOD), U.S. Department of Agriculture (USDA), U.S. Department of Health and Human Services (HHS), U.S. Department of Transportation (DOT), U.S. Department of Energy (DOE), U.S. Department of Housing and Urban Development (HUD), U.S. Environmental Protection Agency (EPA), U.S. National Aeronautics and Space Administration (NASA), U.S. General Services Administration (GSA), and U.S. Department of Veterans Affairs (VA).
The Historically Underutilized Business Zone (HUBZone) Empowerment Contracting Program was enacted into law as part of the Small Business Reauthorization Act of 1997 (P.L. 105-135) Click Here To Read This Publication. The final rule for the HUBZone Empowerment Contracting Program was published on June 11, 1998.
