13598 Federal Register / Vol. 87, No. 46 / Wednesday, March 9, 2022 / Proposed Rules 

DEPARTMENT OF VETERANS 

AFFAIRS 

48 CFR Parts 802, 807, 808, 810, 813, 

819, 832, 852, and 853 

RIN 2900–AR06 

VA Acquisition Regulation: Acquisition 

Planning; Required Sources of 

Supplies and Services; Market 

Research; and Small Business 

Programs 

AGENCY: Department of Veterans Affairs. 

ACTION: Proposed rule. 

SUMMARY: The Department of Veterans 

Affairs (VA) is proposing to amend and 

update its VA Acquisition Regulation 

(VAAR) in phased increments to revise 

or remove any policy superseded by 

changes in the Federal Acquisition 

Regulation (FAR), to remove procedural 

guidance internal to VA into the VA 

Acquisition Manual (VAAM), and to 

incorporate any new agency specific 

regulations or policies. This rulemaking 

revises coverage concerning Acquisition 

Planning, Required Sources of Supplies 

and Services, Market Research, and 

Small Business Programs, as well as 

affected parts to include Definitions of 

Words and Terms, Simplified 

Acquisition Procedures, Contract 

Financing, Solicitation Provisions and 

Contract Clauses, and Forms. 

DATES: Comments must be received on 

or before May 9, 2022 to be considered 

in the formulation of the final rule. 

ADDRESSES: Comments may be 

submitted through 

www.Regulations.gov. Comments 

received will be available at 

regulations.gov for public viewing, 

inspection, or copies. 

FOR FURTHER INFORMATION CONTACT: Mr. 

Rafael Taylor, Senior Procurement 

Analyst, Procurement Policy and 

Warrant Management Services, 003A2A, 

810 Vermont Avenue NW, Washington, 

DC 20420, (202) 714–8560. (This is not 

a toll-free telephone number.) 

SUPPLEMENTARY INFORMATION: 

Background 

This rulemaking is issued under the 

authority of the Office of Federal 

Procurement Policy (OFPP) Act which 

provides the authority for an agency 

head to issue agency acquisition 

regulations that implement or 

supplement the FAR. 

VA is proposing to revise the VAAR 

to add new policy or regulatory 

requirements and to remove any 

redundant guidance and guidance that 

is applicable only to VA’s internal 

operating processes or procedures. 

Codified acquisition regulations may be 

amended and revised only through 

rulemaking. All amendments, revisions, 

and removals have been reviewed and 

concurred with by VA’s Integrated 

Product Team of agency stakeholders. 

The VAAR uses the regulatory 

structure and arrangement of the FAR 

and headings and subject areas are 

consistent with FAR content. The VAAR 

is divided into subchapters, parts (each 

of which covers a separate aspect of 

acquisition), subparts, and sections. 

The Office of Federal Procurement 

Policy Act, as codified in 41 U.S.C. 

1707, provides the authority for the 

Federal Acquisition Regulation and for 

the issuance of agency acquisition 

regulations consistent with the FAR. 

When Federal agencies acquire 

supplies and services using 

appropriated funds, the purchase is 

governed by the FAR, set forth at Title 

48 Code of Federal Regulations (CFR), 

chapter 1, parts 1 through 53, and the 

agency regulations that implement and 

supplement the FAR. The VAAR is set 

forth at Title 48 CFR, chapter 8, parts 

801 to 873. 

Discussion and Analysis 

VA proposes to make the following 

changes to the VAAR in this phase of its 

revision and streamlining initiative. For 

procedural guidance cited below that is 

proposed to be deleted from the VAAR, 

each section cited for removal has been 

considered for inclusion in VA’s 

internal agency operating procedures in 

accordance with FAR 1.301(a)(2). 

Similarly, delegations of authorities that 

are removed from the VAAR will be 

included in the VA Acquisition Manual 

(VAAM) as internal agency guidance. 

These changes seek to streamline and 

align the VAAR with the FAR, remove 

outdated and duplicative requirements, 

and reduce burden on contractors. The 

VAAM incorporates portions of the 

removed VAAR as well as other internal 

agency procedural guidance. VA will 

rewrite certain parts of the VAAR and 

draft new internal VAAM parts, and as 

VAAR parts are rewritten, will publish 

them in the Federal Register. VA will 

combine related topics, as appropriate. 

The VAAM is being created in parallel 

with these revisions to the VAAR and is 

not subject to the rulemaking process as 

they are internal VA procedures and 

guidance. Therefore, the VAAM will not 

be finalized until corresponding VAAR 

parts are finalized, and the 

corresponding VAAM parts or sections 

related to this rule is not yet available 

online. 

VAAR Part 802—Definition of Words 

and Terms 

We propose to revise the authority 

citation by removing the dash in 48 CFR 

1.301–1.305 and adding the word, 

‘‘through.’’ 

In 802.101 we propose adding four 

new definitions and revising three 

existing definitions as discussed below. 

We propose adding the following 

definitions: 

Public Law (Pub. L. 109–461) means 

the Veterans Benefits, Health Care and 

Information Technology Act of 2006, as 

codified in 38 U.S.C. 8127 and 8128, 

which authorizes the Veterans First 

Contracting Program. 

SDVOSB/VOSB when used as an 

initialism means a service-disabled 

veteran-owned small business 

(SDVOSB) and/or veteran-owned small 

business (VOSB) that has been found by 

VA eligible to participate in the 

Veterans First Contracting Program 

implemented at subpart 819.70 and 

listed in the Vendor Information Pages. 

The term is synonymous with VA or VIP 

verified small business concerns owned 

and controlled by Veterans. 

VA Rule of Two means the 

determination process mandated in 38 

U.S.C. 8127(d)(1) whereby a contracting 

officer of the Department shall award 

contracts on the basis of competition 

restricted to small business concerns 

owned and controlled by Veterans if the 

contracting officer has a reasonable 

expectation that two or more small 

business concerns owned and 

controlled by Veterans will submit 

offers and that the award can be made 

at a fair and reasonable price that offers 

best value to the United States. For 

purposes of this VA specific rule, a 

service-disabled veteran-owned small 

business (SDVOSB) or a veteran-owned 

small business (VOSB), must meet the 

eligibility requirements in 38 U.S.C. 

8127(e), (f) and VAAR 819.7003 and be 

listed as verified in the Vendor 

Information Pages (VIP) database 

maintained by the VA Office of Small 

and Disadvantaged Business Utilization 

(OSDBU), Center for Verification and 

Evaluation (CVE). It is distinguished 

from the FAR part 19 ‘‘Rule of Two’’ 

contracting determination requirement 

for general small business set-asides. 

Veterans First Contracting Program 

(VFCP) means the program authorized 

by Public Law 109–461 (38 U.S.C. 8127 

and 8128), as implemented in subpart 

819.70. This program applies to all VA 

contracts (see FAR 2.101 for the 

definition of contracts) including orders 

against Blanket Purchase Agreements 

(BPAs), Basic Ordering Agreements 

(BOAs), and orders against the Federal 


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Supply Schedules (FSS), unless 

otherwise excluded by law. 

In 802.101 we propose revising the 

following three definitions that already 

exist in the VAAR: 

Service-disabled veteran-owned small 

business (SDVOSB)—the definition 

remains substantially the same as a 

service-disabled veteran-owned small 

business concern defined in FAR 2.101, 

except that for acquisitions authorized 

by 38 U.S.C. 8127 and 8128 for the 

Veterans First Contracting Program, 

these businesses must be listed as 

verified in the VIP database. In addition, 

some SDVOSBs listed in the VIP 

database may be owned and controlled 

by a surviving spouse. See definition of 

surviving spouse in 802.101. 

Vendor Information Pages (VIP) 

database—this expands the definition 

currently in the VAAR, indicating that 

the VA Office of Small and 

Disadvantaged Business Utilization 

(OSDBU) office, through its Center for 

Verification and Evaluation (CVE), is 

responsible for maintaining the 

SDVOSB/VOSB list, and provides an 

updated website address for the 

database: https://www.vetbiz.va.gov/ 

vip/. This site’s database lists businesses 

that VA CVE has verified and 

determined eligible for the Veterans 

First Contracting Program. 

Veteran-owned small business 

(VOSB)—the definition remains 

substantially the same as a veteranowned small business concern defined 

in FAR 2.101, except that for 

acquisitions authorized by 38 U.S.C. 

8127 and 8128 for the Veterans First 

Contracting Program, these businesses 

must be listed as verified in the VIP 

database. SDVOSBs, including 

businesses whose SDVOSB status derive 

from ownership and control by a 

surviving spouse, are also considered 

VOSB, as long as they are listed as 

eligible in VIP. 

VAAR Part 807—Acquisition Planning 

We propose removing the entirety of 

part 807—Acquisition Planning, 

including subpart 807.1—Acquisition 

Plans, and 807.103, Agency-head 

responsibilities. This identifies internal 

procedures of VA that do not have a 

significant effect beyond the internal 

operating procedures of the VA (see 

FAR 1.301(b)). The information in this 

section will be moved to the VAAM. 

We propose removing subpart 807.3— 

Contractor Versus Government 

Performance, and 807.300, Scope of 

subpart, and 807.304–77, Right of first 

refusal. This addresses contracting for 

commercial services under OMB A–76 

and VA’s cost comparison process. It is 

proposed for removal because the 

material is outdated. The clause was 

used in conjunction with OMB Circular 

A–76, Performance of Commercial 

Activities or with VA’s cost comparison 

process. The VA Directive that 

implemented VA’s cost comparison 

process, VA Directive 7100, Competitive 

Sourcing, has been rescinded, which 

renders the guidance in this subpart and 

the clause obsolete. VA does not 

currently have policy guidance in place 

that supplements the OMB Circular A– 

76. Current FAR coverage is sufficient 

pending any changes to the program via 

the FAR or OMB directives. 

VAAR Part 808—Required Sources of 

Supplies and Services 

We propose revising the authority 

citations pertaining to part 808 to 

standardize how it is referenced in other 

VAAR parts. The authority, which now 

reads ‘‘38 U.S.C. 8127 and 8128’’ would 

be changed to read: ‘‘38 U.S.C. 8127– 

8128.’’ 

We propose removing reference to 

paragraph (d) in the 40 U.S.C. 121 

citation because it is unnecessary; only 

paragraph (c) will be reflected. This 

comports with the FAR. 40 U.S.C. 121(c) 

provides that the Administrator of the 

General Services Administration may 

prescribe regulations to carry out 

responsibilities under the Federal 

Property and Administrative Services 

subtitle of Title 40, and, additionally, 

that the head of each executive agency 

shall issue orders and directives that the 

agency head considers necessary to 

carry out the prescribed regulations 

issued by the Administrator. The VAAR, 

which supplements and implements the 

FAR, and its internal operational 

procedures, is a part of the orders and 

directives as authorized under this 

authority. 

We propose including a reference to 

Title 41 U.S.C. 1121(c)(3), which speaks 

to the authority of an executive agency 

under another law to prescribe policies, 

regulations, procedures, and forms for 

procurement that are subject to the 

authority conferred in the cited section, 

as well as other sections of Title 41 as 

shown therein. 

And finally, we also propose revising 

the part 808 authorities to add 41 U.S.C. 

1702, which addresses overall direction 

of procurement policy, acquisition 

planning and management 

responsibilities of VA’s Chief 

Acquisition Officer. We are removing 

the dash in 48 CFR 1.301–1.304 and 

adding the word ‘‘through.’’ Any other 

proposed changes to authorities are 

shown under the individual parts as 

described in the preamble. 

We propose adding 808.000, Scope of 

part, to clarify that the part deals with 

prioritizing sources of supplies and 

services for use by the Government 

based on unique VA statutory programs, 

as well as use of the General Services 

Administration (GSA) Federal Supply 

Schedules program including the GSA 

delegated VA Federal Supply Schedule 

program. 

We propose adding 808.001, General, 

with no text as a header, and section 

808.001–70, Definitions, to provide a 

definition for the Veterans Affairs 

Federal Supply Schedule (‘‘VA FSS’’). 

The definition of VA Federal Supply 

Schedule was added because ‘‘VA FSS’’ 

is used throughout part 808. 

We propose revising 808.002 to 

implement the requirements of the 

Department of Veterans Affairs 

Contracting Preference Consistency Act 

of 2020 (the Act), Pubic Law 116–155, 

amending 38 U.S.C. 8127, which 

became effective on August 8, 2020. In 

summary, the legislation requires a 

contracting officer of the Department to 

procure covered products and services 

on the Procurement List maintained by 

the Committee for Purchase from People 

Who Are Blind or Severely Disabled 

(the Committee), from a qualified 

nonprofit agency for the blind or by a 

qualified nonprofit agency for other 

severely disabled, as required by 41 

U.S.C. chapter 85 and associated 

regulations prescribed under that 

chapter. This is referred to as the 

AbilityOne program. This requirement 

shall not apply in the case of a covered 

product or service for which a contract 

was awarded to an SDVOSB/VOSB 

under the authority of 38 U.S.C. 

8127(d)(1) using restricted competition 

after December 22, 2006 and in effect on 

the day before the enactment of the Act, 

i.e., August 7, 2020. In such case, these 

covered products and services shall 

continue under VA’s unique SDVOSB/ 

VOSB set-aside program using restricted 

competition as provided in VAAR 

819.7006 and 819.7007. When these 

SDVOSB/VOSB contracts are terminated 

or expire, the Secretary, as delegated to 

the Head of the Contracting Activity or 

designee, is required to make a 

determination that the VA Rule of Two 

cannot be met before the requirement 

can be procured under the AbilityOne 

program. The legislation provides a 

definition of covered products and 

services and an exception which the VA 

implemented through Class Deviation 

from VA Acquisition Regulation Part 

808, Required Sources of Supplies and 

Services, approved on July 20, 2021. 

We propose revising VAAR 808.002 to 

comport with changes to FAR 8.002 

based on FAC 2005–72, December 31, 

2013, effective January 30, 2014 and 

reflects VA’s implementation of FAR 


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8.002. The FAR final rule amended FAR 

part 8 to clarify that use of General 

Services Administration (GSA) Federal 

Supply Schedules (FSS) is not 

mandatory. 

With this proposed rule, the VA is 

amending VAAR section 808.002 to set 

forth conforming amendments to its 

acquisition regulation as the result of 

legislation which requires contracting 

officers to give priority in the award of 

covered products and services under the 

AbilityOne program along with 

considering the requirements of the 

Veterans First Contracting Program set 

forth in subpart 819.70 as further 

described below. VA is also 

implementing related technical 

amendments as set forth below 

including adding citation references 

back to 808.002 in VAAR part 819. 

In general, we propose amending 

section 808.002, by adding paragraph (a) 

and (b) and removing paragraph (c). 

Paragraph (a) would state that 

contracting activities shall satisfy 

requirements for supplies and services 

from or through the mandatory sources 

listed in descending order of priority 

and aligns with FAR 8.002. Under (a)(1) 

and the underlying subparagraphs, the 

priorities for Supplies are established 

as— 

• VA inventories including the VA 

supply stock program and VA excess. 

• Excess from other agencies. 

• Federal Prison Industries, Inc. 

• Supplies that are on the 

Procurement List maintained by the 

Committee for Purchase From People 

Who Are Blind or Severely Disabled, 

through the AbilityOne Program (FAR 

subpart 8.7). 

• Wholesale supply sources, such as 

stock programs of the General Services 

Administration (GSA) (see 41 CFR 101– 

26.3), the Defense Logistics Agency (see 

41 CFR 101–26.6), the Department of 

Veterans Affairs (see 41 CFR 101– 

26.704), and military inventory control 

points. 

Under paragraph (a)(2), the priority is 

established for Services that are on the 

Procurement List maintained by the 

Committee for Purchase From People 

Who Are Blind or Severely Disabled, 

through the AbilityOne Program (FAR 

subpart 8.7). 

In 808.002, Priorities for use of 

mandatory Government sources, in 

order to implement the new Act, we 

added paragraphs (a)(1)(iv) and (a)(2) to 

reflect the new legislative mandate 

concerning products and services that 

are on the Procurement List maintained 

by the Committee for Purchase From 

People Who Are Blind or Severely 

Disabled, required to be procured 

through the AbilityOne Program, to: 

• Add definitions for a ‘‘covered 

product’’ or ‘‘covered service’’ which 

means a product or service that is 

included on the Procurement List 

prescribed under FAR 8.002 and was 

included on such procurement list on or 

before December 22, 2006, or is a 

product or service that is a replacement 

for a product or service and that 

essentially meets the same requirement 

as the product or service being replaced; 

and the contracting officer determines 

such product or service meets the 

quality standards and delivery schedule 

requirements of VA. 

• Establish AbilityOne as a priority 

mandatory Government source within 

certain limitations applicable to the 

Veterans First Contracting Program and 

to require that contracting officers shall 

procure a covered product or service 

that is on the Procurement List through 

the AbilityOne Program as set forth in 

VAAR 808.002(a)(1)(iv) and (a)(2), 

respectively, with one exception. 

• Identify the exception for covered 

products or services previously awarded 

to SDVOSBs/VOSBs. Specifically, if a 

product or service contract action was 

previously awarded under 38 U.S.C. 

8127 to a VIP-listed SDVOSB or VOSB 

after December 22, 2006 and in effect on 

the day before the enactment of the Act, 

i.e., August 7, 2020, the requirement 

shall continue to be procured as a 

SDVOSB/VOSB set-aside provided the 

contracting officer made a VA Rule of 

Two determination in accordance with 

38 U.S.C. 8127(d)(1) and subpart 819.70. 

• Restore AbilityOne as a priority 

mandatory source for covered products 

and services on the Procurement List on 

certain previously awarded SDVOSB/ 

VOSB contracts if the VA Rule of Two 

is not met. Specifically, section 808.002 

would require that, in the event the 

conditions of the exception are satisfied 

at the termination or expiration of a 

contract for covered products or services 

previously awarded under 38 U.S.C. 

8127(d)(1) to SDVOSBs or VOSBs, 

AbilityOne remains a priority 

mandatory Government source. This 

requires a determination, which the 

Secretary delegates to the Head of the 

Contracting Activity or designee, that 

there is not a reasonable expectation 

that two or more SDVOSBs/VOSBs will 

submit offers and that award can be 

made at a fair and reasonable price that 

offers best value to the United States. 

We also propose removing 808.002, 

paragraph (c), Eligible beneficiaries, 

because internal procedures are more 

appropriately located in the VAAM. We 

propose adding paragraph (b), Unusual 

and compelling urgency, to comport 

with the FAR. The contracting officer 

may use a source other than those listed 

in 808.002, paragraph (a) when the need 

for supplies or services is of an unusual 

and compelling urgency. We added in a 

reference to FAR 6.302–2, 8.405–6, 

13.106–1 and VAAR part 806 for 

justification requirements. 

We propose adding 808.004, Use of 

other sources, and 808.004–70, Use of 

other priority sources. This provides 

that contracting officers shall award 

contracts, Blanket Purchase Agreements 

(BPAs), and orders against VA and GSA 

Federal Supply Schedules (FSS), 

providing priority in the awarding of 

such contracts, agreements, and orders 

to VIP-listed SDVOSBs first, then 

VOSBs. This section also sets policy for 

VA strategic sourcing priorities and 

application of the VA Rule of Two. To 

provide medical supplies in Federal 

Supply Classification (FSC) groups 65 

and 66 efficiently and effectively the 

VA, through previous reform initiatives, 

has implemented key strategic sourcing 

contract vehicles (e.g., prime-vendor, 

national contracts, VA FSS). If these 

strategic sourcing contracts were subject 

to the VA Rule of Two, they may be 

determined mandatory by the head of 

the contracting activity. Contracting 

officers shall consider these priority 

contract vehicles before using other 

existing contract vehicles. This 

comports with FAR 8.002 which 

encourages agencies to consider 

satisfying requirements from or through 

non-mandatory sources. VA balances 

this requirement carefully with the 

consideration of VA-specific strategic 

sourcing vehicles that permit VA to 

more effectively and efficiently meet its 

mission for those FSC groups delegated 

by GSA to VA—FSC Group 65 and 66 

for supplies, and FSC Group 621, for 

medical services, in addition to those 

other strategic sourcing vehicles 

supporting this core VA mission. 

In subpart 808.4, Federal Supply 

Schedules: 

We propose revising 808.402, General, 

to identify the GSA delegation to VA 

implementing FAR 8.402(a), whereby 

GSA has delegated authority to the VA 

to procure medical equipment, supplies, 

services, and pharmaceuticals under the 

VA Federal Supply Schedule (FSS) 

program. The VA FSS program includes 

medical supplies in Federal Supply 

Classification (FSC) Groups 65 and 66 

and services in FSC 621 for Professional 

and Allied Healthcare Staffing Services 

and Medical Laboratory Testing and 

Analysis Services. We propose to 

remove outdated FSC groups that are no 

longer delegated. 

We propose adding 808.404, Use of 

Federal Supply Schedules, and 

808.404–70, Use of Federal Supply 

Schedules—the Veterans First 


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Contracting Program. Contracting 

officers, when establishing a BPA or 

placing an order against the FSS, shall 

ensure that priorities for Veteran-owned 

small businesses are implemented 

within the VA hierarchy of small 

business program preferences in subpart 

819.70. Specifically, the contracting 

officer must consider preferences for 

verified SDVOSBs first, then preferences 

for verified VOSBs. These priorities are 

followed by preferences for other small 

businesses in accordance with 819.7005. 

This also supplements FAR 8.404 and 

provides that if contracting officers are 

unable to satisfy requirements for 

supplies and services from the 

mandatory sources in 808.002 and 

808.004–70, they may consider 

commercial sources in the open market 

(see FAR 8.004(b)) if an open market 

acquisition is most appropriate (see FAR 

8.004) and a VA Rule of Two 

determination is made (see subpart 

819.70). This section also requires that 

when the servicing agency will award 

contracts under an interagency 

agreement on behalf of the VA, the 

contracting officer shall ensure the 

interagency acquisition complies with 

FAR subpart 17.5 and VAAR subpart 

817.5, and includes terms requiring 

compliance with the VA Rule of Two, 

to the maximum extent feasible—see 

VAAR subpart 817.5. 

We propose removing 808.405–2, 

Ordering procedure for services 

requiring a statement of work as the 

language is outdated. 

We propose adding 808.405, Ordering 

procedures for Federal Supply 

Schedules, as a section heading with no 

text, and 808.405–70, Set-aside 

procedures for VA and GSA Federal 

Supply Schedules. This requires 

contracting officers to use the 

supplemental ordering procedures of 

this section when establishing a BPA or 

placing an order for supplies or services 

under this subpart. This includes 

posting requirements and the required 

use of evaluation preferences for 

SDVOSBs/VOSBs when a set-aside is 

not pursued in accordance with the 

market research and documentation 

requirements set forth. 

We propose adding 808.405–570, 

Small business set-asides and 

preferences—Veterans First Contracting 

Program clauses. This includes the 

prescription that requires the 

contracting officer, when setting aside 

an order pursuant to 808.405–70 (a), the 

applicable clause prescribed in 

819.7011 for SDVOSB/VOSB set-asides 

shall be used. It also prescribes in 

paragraph (b) that when an SDVOSB/ 

VOSB set-aside is not feasible, the 

ordering activity shall use the clause at 

852.208–70, Service-Disabled VeteranOwned and Veteran-Owned Small 

Business Evaluation Factors—Orders or 

BPAs, for task orders, delivery orders or 

BPAs using evaluation preferences other 

than price. And in paragraph (c), it 

requires the ordering activity to insert 

the clause at 852.208–71, ServiceDisabled Veteran-Owned and VeteranOwned Small Business Evaluation 

Factor Commitments—Orders or BPAs, 

in request for quotes and resulting 

orders that include clause 852.208–70, 

Service-Disabled Veteran-Owned and 

Veteran-Owned Small Business 

Evaluation Factors—Orders or BPAs. 

In subpart 808.6, Acquisition from 

Federal Prison Industries, Inc., we 

propose revising the title to remove 

‘‘(FPI)’’ to comport with the title in the 

FAR. 

In 808.603, Purchase priorities, we 

add language that contracting officers 

may purchase supplies and services 

produced or provided by Federal Prison 

Industries (FPI) from eligible SDVOSBs 

and VOSBs, in accordance with 

procedures set forth in subpart 819.70, 

without seeking a waiver from FPI. We 

are correcting the previous title that had 

been codified at 808.603 from 

‘‘Purchasing priorities’’ to ‘‘Purchase 

priorities’’ to align with the FAR. 

We propose to remove and reserve 

808.8, Acquisition of Printing and 

Related Supplies and the underlying 

section 808.802, Policy. This is internal 

policy that will be removed to the 

VAAM. 

VAAR Part 810—Market Research 

We propose revising the authority 

citations pertaining to part 810 to 

standardize how it is referenced in other 

VAAR parts. The authority, which now 

reads ‘‘38 U.S.C. 8127 and 8128,’’ would 

be changed to read: ‘‘38 U.S.C. 8127– 

8128.’’ 

We propose removing reference to 

paragraph (d) in the 40 U.S.C. 121 

citation because it is unnecessary; only 

paragraph (c) will be reflected. This 

comports with the FAR. 40 U.S.C. 121(c) 

provides that the Administrator of the 

General Services Administration may 

prescribe regulations to carry out 

responsibilities under the Federal 

Property and Administrative Services 

subtitle of Title 40, and, additionally, 

that the head of each executive agency 

shall issue orders and directives that the 

agency head considers necessary to 

carry out the prescribed regulations 

issued by the Administrator. The VAAR, 

which supplements and implements the 

FAR, and its internal operational 

procedures, is a part of the orders and 

directives as authorized under this 

authority. 

We propose including a reference to 

Title 41 U.S.C. 1121(c)(3), which speaks 

to the authority of an executive agency 

under another law to prescribe policies, 

regulations, procedures, and forms for 

procurement that are subject to the 

authority conferred in the cited section, 

as well as other sections of Title 41 as 

shown therein. 

And finally, we also propose revising 

part 810 authorities to add 41 U.S.C. 

1702, which addresses overall direction 

of procurement policy, acquisition 

planning and management 

responsibilities of VA’s Chief 

Acquisition Officer. We are removing 

the dash in 48 CFR 1.301–1.304 and 

adding the word ‘‘through.’’ Any other 

proposed changes to authorities are 

shown under the individual parts as 

described in the preamble. 

We propose revising part 810, Market 

Research, to add 810.000, Scope of part, 

which provides that the Veterans First 

Contracting Program in subpart 819.70 

applies to contract actions under this 

part and takes precedence over other 

small business programs referenced in 

FAR part 10 and FAR part 19. 

We propose revising, redesignating, 

and renumbering the current 810.001, 

Market research policy, and retitling it 

so it now reads: 810.001–70, Market 

research policy—use of VA Vendor 

Information Pages. This corrects the 

error during original codification in the 

VAAR when published originally as a 

proposed and final rule and which 

currently is reflected in the eCFR as 

‘‘810.001, Market research policy,’’ and 

which then should have reflected: 

810.001, Policy. This provides an 

updated Vendor Information Pages (VIP) 

website address and require contracting 

officers to review the VIP database as 

mandated by VAAR subpart 819.70, the 

Veterans First Contracting Program. It 

also requires more specifically that 

contracting officers search the VIP 

database by applicable North American 

Industry Classification System (NAICS) 

codes to determine whether two or more 

verified service-disabled veteran-owned 

small businesses (SDVOSBs) and 

veteran-owned small businesses 

(VOSBs), in the appropriate NAICS 

code, are listed as verified in the VIP 

database. The contracting officer is 

required to determine, among other 

things as the requirement dictates, 

whether VIP-listed SDVOSBs or VOSBs 

identified as a result of market research 

are capable of performing the work, are 

likely to submit an offer/quote, and 

whether award can be made at a fair and 

reasonable price that offers best value to 

the Government. The contracting officer 

must use the market research for 

acquisition planning purposes, and as 


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set forth in VAAR subpart 819.70, 

conduct a VA Rule of Two 

determination in accordance with the 

contracting order of priority (see 

819.7006 and 819.7007) 

We also propose removing 810.002, 

Market research procedures. This 

identifies internal procedures of VA that 

do not have a significant effect beyond 

the internal operating procedures of the 

VA (see FAR 1.301(b)). The information 

in this section will be moved to the 

VAAM. 

VAAR Part 813—Simplified Acquisition 

Procedures 

We propose revising the title of 

813.003–70, Policy, to ‘‘General policy’’ 

to reflect it is supplementing the FAR at 

813.003 and to comport with standard 

FAR conventions. We also propose 

adding a sentence in paragraph (a) that 

provides a pointer back to 808.002 for 

VA policy regarding mandatory 

Government sources. In the following 

paragraphs we propose updating 

references to 819 sections as a result of 

the renumbering of VAAR part 819 

sections as follows: 

In paragraph (c)(1) references to 

819.7005 and 819.7006 are revised to 

819.7006 and 819.7007, respectively, 

and a reference to 819.7009 is revised to 

819.7011. 

In paragraph (c)(2) a reference to 

815.304 is revised to 815.304–70 to 

reflect a change at that section in VAAR 

part 815. 

And in paragraph (d), a reference 

pointer to 819.7004 and 819.7011 are 

added to the end of the sentence. 

In subpart 813.1, Procedures, we add 

references to new relevant VAAR part 

806 sections to section 813.106–70, 

Soliciting competition, evaluation of 

quotations or offers, award and 

documentation—the Veterans First 

Contracting Program. In paragraph (b), 

we add a reference to 806.302–570(a) 

and (b) pertaining to justification for 

procurements under the simplified 

acquisition threshold, and in paragraph 

(c), we add a reference to 806.302– 

570(a) and (c), above the simplified 

acquisition threshold. 

VAAR Part 819—Small Business 

Programs 

We propose adding authority citations 

for 15 U.S.C. 631 et seq. to denote the 

authority for small business programs at 

Federal agencies, as well as moving 15 

U.S.C. 637(d)(4)(E) earlier in the list of 

authorities to reflect authority for an 

agency to develop incentives for 

increasing subcontracting plan 

opportunities which is under the 

auspices of the Office of Small and 

Disadvantaged Business Utilization 

(OSDBU). 

We propose revising the authority 

citations pertaining to part 819 to 

standardize how it is referenced in other 

VAAR parts. The authority, which now 

reads ‘‘38 U.S.C. 8127 and 8128,’’ would 

be changed to read: ‘‘38 U.S.C. 8127– 

8128.’’ 

We propose removing reference to 

paragraph (d) in the 40 U.S.C. 121 

citation because it is unnecessary; only 

paragraph (c) will be reflected. 

We propose revising the authority 

citations pertaining to part 819 to 

include a reference to 41 U.S.C. 

1121(c)(3), which speaks to the 

authority of an executive agency under 

another law to prescribe policies, 

regulations, procedures, and forms for 

procurement that are subject to the 

authority conferred in the cited section, 

as well as other sections of Title 41 as 

shown therein. 

We also propose revising part 819 

authorities to add 41 U.S.C 1303, which 

reflects additional authority of the VA 

as an executive agency to issue 

regulations that are essential to 

implement Governmentwide policies 

and procedures in the agency, as well as 

to issue additional policies and 

procedures required to satisfy the 

specific needs of the VA. 

We also propose adding 41 U.S.C. 

1702, which addresses overall direction 

of procurement policy, acquisition 

planning and management 

responsibilities of VA’s Chief 

Acquisition Officer. Any other proposed 

changes to authorities are shown under 

the individual parts as described in the 

preamble. We are removing the dash in 

48 CFR 1.301–1.304 and adding the 

word ‘‘through.’’ 

We propose adding 819.000, Scope of 

part, indicating that 819 supplements 

FAR 19 and implements provisions of 

title 38 U.S.C. 8127 and 8128, as well 

as Executive Order 13360 and the Small 

Business Act (15 U.S.C. 631 et seq.) as 

applied to VA. This part also covers 

goals, priorities, and preferences for 

using SDVOSBs, VOSBs, and SBs, as 

well as subcontracting compliance. 

In subpart 819.2, Policies, the text is 

revised and updated to align more 

appropriately with FAR subpart 19.2 

and to expand on VA policy regarding 

the Veterans First Contracting Program. 

New text in section 819.201 describes 

VA’s small business policy consistent 

with the VA’s legislation and its 

legislative history and is now aligned 

with the most recent FAR paragraph 

lettering/numbering. In the proposed 

revisions to 819.201, General policy, the 

realigned section contains revisions as 

follows: Paragraph (a) provides a policy 

statement regarding priority for veteran 

owned small businesses and 

establishment of goals consistent with 

VA’s legislative mandate and key points 

in the Supreme Court Kingdomware 

decision regarding goals; paragraph (c) 

assigns OSDBU concurrent 

responsibility for the Veterans First 

Contracting Program, in addition to 

those legislative mandates in FAR; and 

paragraph (d) covers the appointment of 

small business specialists by the HCA in 

coordination with OSDBU. 

We propose revising 819.202, Specific 

policies to align with the FAR coverage 

for OSDBU recommendation on setasides. It implements the FAR section 

and expands coverage to the Veterans 

First Contracting Program in subpart 

819.70. The section also covers, in very 

broad terms, the VA Form 2268, Small 

Business Program and Contract 

Bundling Review process. 

We propose deleting 819.202–1, 

Encouraging small business 

participation in acquisitions. Existing 

contract financing language here is 

removed from the VAAR as redundant 

to the FAR, and certain internal 

procedural guidance is included in 

VAAM subpart 832.4. The current 

VAAR text provides that payments of 

less than 30 days are allowed, but the 

contracting officer and the local fiscal 

officer must agree on the negotiated 

payment terms before awarding the 

contract. Note: This requirement may 

have been overtaken by the accelerated 

payments provisions recently added to 

FAR part 32. 

We propose removing coverage in 

sections 819.202–1, 819.202–5, 

819.202–70, and 819.202–71. Current 

VAAR coverage under these sections are 

no longer necessary or were moved to 

other sections. Internal procedures are 

removed and moved to the VAAM. 

In 819.202–72, Order of precedence, 

the section is removed, and the language 

moved to a new section 819.203–70, 

Priority for SDVOSB/VOSB contracting 

preferences, to supplement more 

appropriately FAR 19.203. 

We propose adding 819.203, 

Relationship among small business 

programs, as a section header with no 

text. 

We proposed adding 819.203–70, 

Priority for SDVOSB/VOSB contracting 

preferences. This proposed supplement 

to FAR 19.203 cites the legislative 

authority for VA to establish special 

acquisition methods and priorities 

which shall be considered by VA 

contracting officers before other 

priorities and preferences in FAR 

19.203. It also covers legislative 

requirements in 38 U.S.C. 8128 to 

provide SDVOSB/VOSB preference 


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under any other small business 

program. 

In subpart 819.3, Determination of 

Small Business Status for Small 

Business Programs, we propose revising 

the title to comport with the updated 

FAR title so that it reads: Determination 

of Small Business Size and Status for 

Small Business Programs. 

We propose revising existing section 

at 819.307, SDVOSB/VOSB Small 

Business Status Protests, to change the 

title to comport with the FAR so that it 

reads: ‘‘Protesting a firm’s status as a 

service-disabled veteran-owned small 

business concern.’’ There is no text 

under this section heading. The text 

previously under this section is moved 

to a new 819.307–70 as described 

below. 

We propose adding 819.307–70, 

SDVOSB/VOSB status protests, to 

reflect that it provides VA policy 

supplementing FAR 19.307. Paragraph 

(a) from the existing CFR is modified as 

a single paragraph. The other 

paragraphs in the previous text at 

819.307 are removed. The proposed 

modified section reiterates a FAR 

requirement that protests, challenging 

whether an SDVOSB/VOSB is a ‘‘small 

business’’ for the purposes of any 

Federal program, are subject to FAR 

subpart 19.3 and must be filed in 

accordance with that part. It also 

implements legislative requirements 

contained in section 1832 of the 

National Defense Authorization Act for 

FY 2017, Public Law 114–328, to place 

responsibility for all SDVOSB/VOSB 

status protests with the SBA Office of 

Hearings and Appeals, including those 

related to VIP inclusion. 

We propose revising subpart 819.5, to 

change the title from ‘‘Set-Asides for 

Small Businesses’’ to ‘‘Small Business 

Total Set-Asides, Partial Set-Asides, and 

Reserves’’ to comport with an updated 

title in the FAR. 

We propose adding 819.501, General, 

as a section header with no text. 

We propose adding 819.501–70, 

General principles for setting aside VA 

acquisitions. A new section is created as 

a supplement to FAR 19.501, General, 

providing small business set aside 

principles and priorities that apply to 

VA set asides. The FAR provides a 

preference to the socioeconomic 

programs in FAR 19.202 before small 

business set-asides but does not provide 

coverage for VOSB set-asides. Nor does 

it require verification of SDVOSBs for 

set-asides covered under FAR subpart 

19.14. Moreover, the SDVOSB program 

in FAR is discretionary and not 

mandatory as it is for VA. The new 

section covers VA priorities and 

preferences for SDVOSBs/VOSBs, both 

above and below the simplified 

acquisition threshold in accordance 

with subpart 819.70. These priorities 

also apply to all VA acquisitions under 

this subpart including orders and BPAs 

under multiple award contracts, GSA 

Federal Supply Schedule contracts and 

Multi-Agency Contracts (MACs) 

awarded by another agency. It also 

provides that when a procurement 

requirement is not set aside for 

SDVOSBs/VOSBs in accordance with 

subpart 819.70, the contracting officer 

shall consider using evaluation 

preferences, as set forth in 808.405–70 

or 815.304–70. It also adds coverage 

indicating that contracting officers may 

provide in the solicitation for the use of 

tiered evaluations. Note: Since other 

Federal agencies, including GSA, are 

not subject to Public Law 109–461, and/ 

or ownership and control verification, 

the section reiterates that the 

requirements in this section apply to all 

VA competitive acquisitions under this 

subpart, including orders and BPAs 

under multiple award contracts, GSA 

Federal Supply Schedule contracts and 

Multi-Agency Contracts (MACs) 

awarded by another agency. It also 

provides that a set-aside restricted to 

SDVOSBs/VOSBs pursuant to VAAR 

subpart 819.70 satisfies competition 

requirements in FAR part 6, as well as 

fair opportunity requirements for orders 

under multiple-award contracts (see 

FAR 16.505(b)(2)(i)(F)). 

Under section 819.502, Setting aside 

acquisitions, we propose adding an 

underlying section 819.502–1, 

Requirements for setting aside 

acquisitions. This new section is created 

to supplement FAR 19.502–1(b) with 

the VA policy for mandatory 

Government sources. The FAR section 

provides that small business set-asides 

do not apply to purchases from required 

sources under part 8 (e.g., Committee for 

Purchase From People Who are Blind or 

Severely Disabled). As a result of Public 

Law 116–155, the new VAAR section 

refers contracting officers to VAAR 

808.002 for the VA policy regarding 

priorities for use of SDVOSBs/VOSBs 

and mandatory Government sources as 

VA has different requirements with 

respect to FAR 8.002 based on Public 

Law 116–155. 

In 819.502–2, Total small business 

set-asides, we propose adding new 

coverage at 819.502–2(a) to indicate that 

VA contracting officers, rather than 

withdrawing an SDVOSB/VOSB setaside and resoliciting, may follow tiered 

evaluation procedures, as provided in 

the March 22, 2018 VA Class Deviation 

from Federal Acquisition Regulation 

19.502–2, Total small business setasides. 

We propose removing 819.502–3, 

Partial set-asides. Coverage is no longer 

required because the FAR adequately 

covers this topic. 

We propose adding 819.507, 

Solicitation provisions and contract 

clauses, as a new section header with no 

text. 

We propose adding 819.507–70, 

Additional VA solicitation provisions 

and contract clauses. This proposed 

new section refers contracting officers to 

VAAR subpart 808.4 (Federal Supply 

Schedules); VAAR subpart 815.3 

(Source Selection); and VAAR subpart 

819.70 (Veterans First Contracting 

Program) for VA specific requirements 

and clauses applicable to VA veteranowned and small business contracting 

programs. 

We propose removing subpart 819.6, 

Certificates of Competency and 

Determinations of Responsibility. The 

FAR-redundant language is removed 

and information that is internal and 

procedural in nature is moved to the 

VAAM. 

In subpart 819.7—The Small Business 

Subcontracting Program, we propose 

removing 819.704, Subcontracting plan 

requirements; the language will be 

moved to a new section, retitled and 

revised as discussed below. 

We propose adding 819.704–70, VA 

subcontracting plan requirements, as a 

supplement to the FAR. This language 

contains some previous coverage at 

819.704. This proposed new language 

directs contracting officers to ensure any 

subcontracting plans submitted by 

offerors include goals for SDVOSBs and 

VOSBs that are commensurate with the 

annual VA SDVOSB and VOSB 

subcontracting goals, rather than the 

prime contracting goals as previously 

included in this section. The proposed 

new language cautions contractors that 

only firms registered and verified 

through the VIP data base will count 

towards their SDVOSB/VOSB 

subcontracting goals; and that 

subcontracting plan achievement 

reports will be reviewed to ensure the 

subcontract was awarded to a business 

concern that is eligible to be counted 

toward meeting the goal, as provided in 

subpart 819.70. 

Section 819.704–70, paragraph (b) 

requires goals to be expressed as a 

percentage of total dollars to be 

subcontracted unless otherwise stated in 

the solicitation. Paragraph (c) provides 

that if an offeror proposes to use an 

SDVOSB/VOSB subcontractor for the 

purpose of receiving SDVOSB/VOSB 

evaluation factors credit pursuant to 

808.405–70 or 815.304–70, the 

contracting officer shall ensure that the 

offeror, if awarded the contract, uses the 


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proposed subcontractor or another 

SDVOSB/VOSB for that subcontract or 

for work of similar value, in accordance 

with clause 852.208–70 or 852.215–71, 

Evaluation Factor Commitments. 

Paragraph (d) provides that pursuant 

to 38 U.S.C. 8127(g), any business 

concern that is determined by VA to 

have willfully and intentionally 

misrepresented a company’s SDVOSB or 

VOSB status is subject to debarment 

from contracting with the Department 

for a period of not less than five years. 

This includes the debarment of all 

principals in the business. 

We propose removing 819.705, 

Appeal of contracting officer decisions. 

Relevant subcontracting-related 

language is incorporated into 819.704– 

70. Unrelated language regarding setaside decisions is removed because it is 

not applicable to subcontracting. 

We propose renumbering 819.709, 

Contract clause, as 819.708, Contract 

clauses, to align with FAR clause 

coverage on small business 

subcontracting plans. It requires the 

contracting officer to insert VAAR 

clause 852.219–9, Small Business 

Subcontracting Plan Minimum 

Requirements, in solicitations and 

contracts that include FAR clause 

52.219–9, Small Business 

Subcontracting Plan. In addition, the 

section refers readers to new subpart 

819.72 for other required provisions and 

clauses. 

In subpart 819.8, Contracting With the 

Small Business Administration (The 

8(a) Program), we propose revising the 

title to correct a minor capitalization 

error to comport with the FAR so that 

it reads: ‘‘Contracting With the Small 

Business Administration (the 8(a) 

Program). 

We propose revising 819.800, General. 

Paragraphs (a), (b), and (c) are deleted as 

obsolete. New paragraph (e) is created to 

refer to the SBA/VA Partnership 

Agreement (PA), which delegates 

contracting execution authority to VA 

contracting officers. The PA sets forth 

the delegation of authority and 

establishes the basic procedures for 

expediting the award of 8(a) contract 

requirements. The actual PA and related 

basic procedures will be addressed in 

VAAM subpart M819.8. The PA is now 

permanent (as opposed to a yearly 

agreement) but is subject to cancellation 

by SBA. The new language provides that 

contracting officers must follow the 

alternate procedures in the Partnership 

Agreement and this subpart, as 

applicable, to award an 8(a) contract 

and that in the event no Partnership 

Agreement is in effect, the procedures in 

FAR subpart 19.8 will be followed. 

We propose adding 819.811, 

Preparing the contracts, as a section 

header with no text. 

We propose adding 819.811–370, VA/ 

SBA Partnership Agreement and 

contract clauses, for direct 8(a) awards. 

The new language prescribes clauses 

852.219–18, Notification of Competition 

Limited to Eligible 8(a) Participants, and 

852.219–71, Notification of Section 8(a) 

Direct Award. 

In subpart 819.70, Service-Disabled 

Veteran-Owned and Veteran-Owned 

Small Business Acquisition Program, we 

propose revising the title of the subpart 

to reflect the well-known and public 

name of the program: The VA Veterans 

First Contracting Program, typically 

referred to as the Veterans First 

Contracting Program. 

We propose revising 819.7001, 

General, to provide background and 

legislative authority for the Veterans 

First Contracting Program consistent 

with legislative requirements in 38 

U.S.C. 8127 and 8128 and the June 16, 

2016 decision of the U.S. Supreme 

Court in Kingdomware Technologies, 

Inc. v. United States (No. 14–916) (136 

S.Ct. 1969 (2016)). In the Kingdomware 

decision dated June 16, 2016, the 

Supreme Court held that 38 U.S.C. 

8127(d) applies to all competitively 

awarded contracts, including orders 

placed against Federal Supply Schedule 

(FSS) contracts. The Court also held the 

Rule of Two contracting procedures in 

section 8127(d) are not limited to those 

contracts necessary to fulfill the 

Secretary’s goals. The ‘‘VA Rule of 

Two’’ as VA’s implementing policy 

defined in VAAR 802.101 via Class 

Deviation issued on July 25, 2016 (and 

subsequent minor amendments), after 

the Kingdomware case, refers to the 

legislative requirement in § 8127(d) that 

‘‘a contracting officer of the Department 

shall award contracts on the basis of 

competition restricted to small business 

concerns owned and controlled by 

veterans if the contracting officer has a 

reasonable expectation that two or more 

small business concerns owned and 

controlled by veterans will submit offers 

and that the award can be made at a fair 

and reasonable price that offers best 

value to the United States.’’ Paragraph 

(b) is revised to state that eligible 

SDVOSBs qualify for VOSB preferences 

under VAAR subpart 819.70. Paragraphs 

(c) and (d) provide the legislative basis 

for VA contracting officers to make 

awards to VIP-listed SDVOSBs/VOSBs 

using set-asides, other than full and 

open competition (sole source), as well 

as to provide SDVOSBs/VOSBs priority 

in the awarding of contracts and 

subcontracts through the use of 

evaluation preferences. Paragraph (d) 

provides that while contracting officers 

shall award contracts on the basis of 

competition restricted to small business 

concerns owned and controlled by 

veterans as provided in 819.7006 and 

819.7007, when appropriate, the 

contracting officer may also use other 

SDVOSB/VOSB preferences in this 

subpart, including sole source awards. 

Paragraph (e) provides that a contract 

awarded under this subpart is subject to 

the SBA limitations on subcontracting 

requirements in 13 CFR 125.6, provided 

that a firm must be VIP-listed. 

Additional information is provided as to 

who is considered similarly situated. 

Paragraph (f) states that the attainment 

of goals or the use of interagency 

vehicles or Governmentwide contract 

vehicles (i.e., Federal Supply Schedules 

(FSS)) does not relieve the contracting 

officer from using SDVOSB/VOSB setasides and other preferences as 

provided in subpart 819.70. It also 

requires that if the VA enters into a 

contract, agreement, or other 

arrangement with any Governmental 

entity to acquire goods or services, the 

entity acting on behalf of the VA 

through such an interagency acquisition 

or other agreement will comply, to the 

maximum extent feasible, with the 

provisions of the Veterans First 

Contracting Program as set forth in this 

subpart. Paragraph (g) requires 

contracting officers to ensure awards are 

made using the VA hierarchy of 

SDVOSB/VOSB preferences in this 

subpart. Specifically, the contracting 

officer will consider preferences for 

eligible SDVOSBs first, then preferences 

for other eligible VOSBs. And paragraph 

(h) would provide that when an offer of 

an SDVOSB/VOSB prime contractor 

includes a proposed team of small 

business subcontractors and specifically 

identifies the first-tier subcontractor(s) 

in the proposal, the contracting officer 

must consider the capabilities, past 

performance, and experience of each 

first tier subcontractor that is part of the 

team as the capabilities, past 

performance, and experience of the 

small business prime contractor if the 

capabilities, past performance, and 

experience of the small business prime 

does not independently demonstrate 

capabilities and past performance 

necessary for award. 

We propose revising 819.7002, 

Applicability, to reiterate that this 

subpart applies to VA contracting 

activities and to all contract actions. In 

addition, this subpart applies to VA 

contractors and to any government 

entity that has a contract, memorandum 

of understanding, agreement, or other 

arrangement with VA to acquire goods 


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and services for VA in accordance with 

817.502. It includes a reference to 

VAAR 808.002 to ensure the public and 

VA contracting officers understands to 

refer to 808.002 for applicability and VA 

policy regarding priorities for use of 

mandatory Government sources. 

We propose revising 819.7003, 

Eligibility. Most of the original structure 

and language regarding eligibility of 

SDVOSBs and VOSBs is retained but 

updated to reflect new legislative 

requirements regarding eligibility under 

the program and alignment with SBA 

regulations, including the applicability 

of limitations on subcontracting and the 

transfer of eligibility challenges to the 

SBA as a result of Public Law 114–328, 

enacted December 23, 2016 and 

subsequent legislative and regulatory 

changes. For example, new language has 

been added to clarify joint venture 

eligibility as a result of recent SBA 

regulatory changes, and a new 

paragraph is added to address the 

limitations on subcontracting 

certification requirements in Public Law 

116–183, August 19, 2020. In addition, 

a new paragraph is added consistent 

with a 2012 amendment to Public Law 

109–461, stating that willful and 

intentional misrepresentation of 

SDVOSB/VOSB status is subject to 

debarment from contracting with the 

Department for a period of not less than 

five years. 

We propose adding 819.7004, 

Limitations on subcontracting 

compliance requirements. This new 

section is created to address the 

limitations on subcontracting 

certification requirements in Public Law 

116–183, August 19, 2020. Specifically, 

contracting officers may award a 

contract under this subpart only after 

obtaining from the offeror a certification 

that the offeror will comply with the 

limitations on subcontracting 

requirements described in the 

solicitation and required under the 

resultant contract. The section also 

deals with legislative mandates that 

require OSDBU and Chief Acquisition 

Officer (CAO) to monitor and refer 

potential violations to the OIG for 

potential criminal violations. Note: As a 

result of this new section, the 

numbering in subsequent sections is 

changed to reflect the corresponding 

numerical sequence. 

We propose renumbering the existing 

819.7004, Contracting order of priority, 

to 819.7005. Most of the original 

language regarding eligibility of 

SDVOSBs and VOSBs is removed, and 

the text updated to reflect the 

contracting order of priority established 

in 38 U.S.C. 8127(h). New simpler 

language is added to track the order of 

preference set forth in 38 U.S.C. 

8127(h). As a result of this new section, 

the numbering in subsequent sections is 

changed to reflect the corresponding 

numerical sequence. 

We propose revising 819.7005, 

Service-disabled veteran-owned small 

business set-aside procedures, 

renumbering it as 819.7006, and 

retitling it as ‘‘VA service-disabled 

veteran-owned small business set-aside 

procedures.’’ Most of the existing 

language is retained with a few updates 

consistent with legislative requirements. 

The section provides that the 

contracting officer must consider 

SDVOSB set-asides before considering 

VOSB set-asides and the conditions to 

be met to make this determination. New 

language is added to reflect that the setasides are only applicable above the 

micro-purchase threshold. 

We propose revising 819.7006, 

Veteran-owned small business set-aside 

procedures, renumbering it as 819.7007 

and retitling it as ‘‘VA veteran-owned 

small business set-aside procedures.’’ 

Most of the existing language is retained 

with a few updates consistent with 

legislative requirements. The section 

provides that the contracting officer 

must consider VOSB set-asides after 

SDVOSB, and the conditions to be met 

to make the determination. New 

language is added to reflect that the setasides are only applicable above the 

micro-purchases. 

We propose revising 819.7007, Sole 

source awards to service-disabled 

veteran-owned small business concerns, 

renumbering it as 819.7008 and retitling 

it as ‘‘Sole source awards to verified 

service-disabled veteran-owned small 

businesses.’’ Existing language in 

paragraphs (a) and (d) is retained. 

Existing paragraph (b) is broken up into 

(b) and (c) and revised as follows: 

Paragraph (b) retains existing language 

recognizing the discretionary nature of 

this sole source authority; however, it 

adds that to ensure opportunities are 

available to the broadest number of 

SDVOSBs this authority is to be used 

only to the extent necessary to meet 

procurement goals and/or when in the 

best interest of the agency. Paragraph (c) 

is added providing that in accordance 

with FAR 6.302–5, contracts awarded 

using this authority shall be supported 

by the written justifications and 

approvals described in FAR 6.303 and 

6.304. And lastly, paragraph (e) is added 

indicating that a procurement estimated 

to exceed $5 million shall not be split 

or subdivided to permit the use of this 

sole source authority. 

We propose revising 819.7008, Sole 

source awards to a verified veteranowned small business concerns, 

renumbering it as 819.7009 and retitling 

it as ‘‘Sole source awards to verified 

veteran-owned small businesses.’’ We 

propose making similar changes as 

noted for the proposed language in 

819.7008, but as it applies to Veterans 

other than SDVOSBs (i.e., verified 

veteran-owned small businesses). Note: 

The existing section at 819.7009, 

Contract clauses, is moved to 819.7011 

as discussed below. 

We propose adding 819.7010, Tiered 

set-aside evaluation. This new section is 

proposed to implement FAR Class 

Deviation (VAIQ 7867323) and PPM 

2018–04 Guidance and Procedures 

regarding use of Tiered Evaluations for 

use in solicitations set-aside in 

accordance with the VA Rule of Two. 

The section introduces the concept of 

tiered set-aside evaluations. It also 

defines and establishes the basis for the 

program, as implemented by VA. This is 

necessary because currently there is no 

guidance in the FAR for such a process. 

We propose revising 819.7009, 

Contract clauses, by renumbering it to 

819.7011. The section prescribes setaside clauses for solicitations and 

contracts. The names of the clauses are 

changed slightly to further differentiate 

from those in FAR and the numbering 

scheme is changed to comply with FAR 

drafting guidelines. In addition, the 

actual content of the clauses is updated. 

Two new clauses have been created to 

address the limitations on 

subcontracting certification 

requirements in Public Law 116–183, 

August 19, 2020. The legislation 

requires that before an award is made 

under the Veterans First Contracting 

Program, offerors must submit a 

certification of compliance with the 

Limitation on Subcontracting 

requirements and the Nonmanufacturer 

rule. This is discussed further under 

Part 852. 

We propose removing and reserving 

subpart 819.71, VA Mentor-Prote ́ge ́

Program. The underlying sections 

819.7101 through 819.7115 are 

accordingly also removed. The VA 

Mentor-Prote ́ge ́ Program is inactive. It 

was replaced with the Small Business 

Administration’s Small Business Mentor 

Prote ́ge ́ Programs established pursuant 

to the Small Business Jobs Act of 2010 

and the National Defense Authorization 

Act of 2013. If VA does create a program 

specific to VA, the proposed language 

will be in a separate VAAR case for 

public comment. 

VAAR Part 832—Contract Financing 

We propose removing subpart 832.9, 

Prompt Payment, and the underlying 

section 832.904–70 Determining 

payment due dates for small businesses. 


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As a result of a FAR class deviation 

issued ahead of FAR rulemaking, the 

VAAR must remove language that VA 

had enacted timely but is now 

redundant to the FAR class deviation. 

VAAR Part 852—Solicitation Provisions 

and Contract Clauses 

We propose removing 852.207–70, 

Report of Employment Under 

Commercial Activities, which is no 

longer required. 

We propose adding 852.208–70, 

Service-Disabled Veteran-Owned and 

Veteran-Owned Small Business 

Evaluation Factors—Orders or BPAs, to 

reflect the clause prescribed by 

808.405–570. Rather than relying on a 

clause under FAR part 15, this clause is 

specific to its use under FAR subpart 8.4 

and the GSA FSS program. The clause 

provides that in an effort to increase 

contracting opportunities for veterans, 

depending on the evaluation factors 

included in the solicitation, VA will 

evaluate responses received based on 

the schedule Contractor’s VIP verified 

service-disabled veteran-owned small 

business/veteran-owned small business 

(SDVOSB/VOSB) status; and/or their 

proposed use of SDVOSB/VOSB as 

subcontractors or teaming partners. This 

new language proposes that in order to 

receive credit under this clause a 

contractor or subcontractor must be 

listed, at time of submission of offer/ 

quotes and at time of award, as an 

eligible SDVOSB/VOSB in the Vendor 

Information Pages (VIP) database at 

https://www.vetbiz.va.gov/vip/. VIP 

listed service-disabled veteran-owned 

schedule holders will receive full credit, 

and those listed in VIP as veteranowned small businesses will receive 

partial credit for the SDVOSB/VOSB 

status evaluation factor. It also requires 

the offeror proposing to use VIP listed 

SDVOSBs/VOSBs as subcontractors or 

teaming partner must provide in their 

proposals information regarding the 

proposed SDVOSBs or VOSBs such as 

names and contact information of the 

VIP-listed SDVOSBs/VOSBs, a 

description of the proposed teaming 

arrangement, the approximate dollar 

value of the proposed teaming 

arrangements or subcontract(s), and 

evidence of teaming partner/ 

subcontractor’s VIP database registration 

and verification. 

We propose adding 852.208–71, 

Service-Disabled Veteran-Owned and 

Veteran-Owned Small Business 

Evaluation Factor Commitments— 

Orders and BPAs, as prescribed in 

808.405–570. The proposed language 

provides that if a contractor is selected 

on the basis of SDVOSB or VOSB status, 

the contractor agrees to comply with the 

eligibility requirements in subpart 

819.70, including the limitation on 

subcontracting requirements at 13 CFR 

125.6. The clause also requires that if 

the contractor is selected for award on 

the basis of teaming/subcontracting in 

accordance with 852.208–70, the 

contractor agrees to use the evaluated 

firm(s) as proposed or to substitute one 

or more VIP verified SDVOSB/VOSB for 

work of the same or similar value. Such 

substitution must be for cause and 

approved by the contracting officer. It 

also includes language that pursuant to 

38 U.S.C. 8127(g), any business concern 

that is determined by VA to have 

willfully and intentionally 

misrepresented a company’s SDVOSB/ 

VOSB status is subject to debarment for 

a period of not less than five years. This 

includes the debarment of all principals 

in the business. 

In 852.219–9, VA Small Business 

Subcontracting Plan Minimum 

Requirements, we propose renumbering 

it to 852.219–70 to comport with FAR 

drafting guidelines and numbering 

conventions. We propose revising 

language to reflect updated policy with 

the implementation of 38 U.S.C. 8127– 

8128 at the VA. We propose 

emphasizing the requirement to utilize 

VA verified SDVOSBs/VOSBs in 

subcontracting plans, when previously 

this was not specifically addressed. The 

use of VA Form 0896A, Report of 

Subcontracts to Small and VeteranOwned Business, is specified. And we 

provide language that pursuant to 38 

U.S.C. 8127(g), any business concern 

that is determined by VA to have 

willfully and intentionally 

misrepresented a company’s SDVOSB/ 

VOSB status is subject to debarment for 

a period of not less than five years. This 

includes the debarment of all principals 

in the business. 

We propose removing 852.219–10, VA 

Notice of Total Service-Disabled 

Veteran-Owned Small Business SetAside and 852.219–11, VA Notice of 

Total Veteran Owned Small Business 

Set- Aside, as the names of the clauses 

will be changed and renumbered to 

852.219–73 and 852.219–74, in order to 

differentiate from those in the FAR. A 

discussion is provided where the new 

numbered clauses are mentioned in this 

preamble. 

We propose removing 852.219–71, VA 

Mentor-Prote ́ge ́ Program and 852.219– 

72, Evaluation Factor for Participation 

in the VA Mentor-Prote ́ge ́ Program 

because the VA Mentor-Prote ́ge ́ Program 

is inactive. It was replaced with the 

Small Business Administration’s Small 

Business Mentor Prote ́ge ́ Programs 

established pursuant to the Small 

Business Jobs Act of 2010 and the 

National Defense Authorization Act of 

2013. 

We propose adding 852.219–71, 

Notification of Competition Limited to 

Eligible 8(a) Participants, which would 

be used in conjunction with FAR clause 

52.219–18, Notification of Competition 

Limited to Eligible 8(a) Participants, and 

state that any award resulting from this 

solicitation will be made directly by the 

contracting officer to the successful 8(a) 

offeror. Although SBA is not identified 

as such in the award form, SBA is still 

the prime contractor. 

We propose adding 852.219–72, 

Notification of Section 8(a) Direct 

Award, which would provide further 

information about the Partnership 

Agreement between the VA and the 

Small Business Administration. 

We propose adding 852.219–73, VA 

Notice of Total Set-Aside for Verified 

Service-Disabled Veteran-Owned Small 

Businesses, and 852.219–74, VA Notice 

of Total Set-Aside for Verified VeteranOwned Small Businesses, which were 

previously numbered as 852.219–10 and 

852.219–11. The actual content of the 

clauses is updated to address new 

legislative requirements on limitations 

on subcontracting requirements. 

We propose adding 852.219–75, VA 

Notice of Limitations on 

Subcontracting—Certificate of 

Compliance for Services and 

Construction. This new clause addresses 

the limitations on subcontracting 

certification requirements in Public Law 

116–183, August 19, as it is applied to 

services and construction. The 

legislation requires that before an award 

is made under the Veterans First 

Programs, offeror must submit a 

certification of compliance with the 

Limitations in Subcontracting 

requirements, currently required by 

SBA at 13 CFR 125.6. 

We propose adding 852.219–76, VA 

Notice of Limitations on 

Subcontracting—Certificate of 

Compliance for Supplies and Products. 

This new clause addresses the 

limitations on subcontracting 

certification requirements in Public Law 

116–183, August 19, 2020 as it applies 

to supplies and products. 

VAAR Part 853—Forms 

In subpart 853.2—Prescription of 

Forms, we propose adding 853.219, 

Small business forms, and to add the 

following forms referenced in the VAAR 

dealing with Small Business Programs 

under VAAR part 819 under the 

auspices of the Office of Small and 

Disadvantaged Business Utilization: VA 

Form 2268, Small Business Program and 

Contract Bundling Review, which is 

prescribed in 819.202. Contracting 


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officers shall use VA Form 2268, Small 

Business Program and Contract 

Bundling Review, to document actions 

related to small business, market 

research and consideration of the VA 

Rule of Two. VA Form 0896A, Report of 

Subcontracts to Small and VeteranOwned Business, which is utilized by 

contractors when proposing 

subcontracting to SDVOSB/VOSBs. 

Executive Orders 12866 and 13563 

Executive Orders (E.O.s) 12866 and 

13563 direct agencies to assess the costs 

and benefits of available regulatory 

alternatives and, when regulation is 

necessary, to select regulatory 

approaches that maximize net benefits 

(including potential economic, 

environmental, public health and safety 

effects, and other advantages; 

distributive impacts; and equity). E.O. 

13563 (Improving Regulation and 

Regulatory Review) emphasizes the 

importance of quantifying both costs 

and benefits, reducing costs, 

harmonizing rules, and promoting 

flexibility. The Office of Information 

and Regulatory Affairs has determined 

that this rule is not a significant 

regulatory action under Executive Order 

12866. 

The Regulatory Impact Analysis 

associated with this rulemaking can be 

found as a supporting document at 

www.regulations.gov. 

Paperwork Reduction Act 

This proposed rule includes 

provisions constituting a revised 

collection of information under the 

Paperwork Reduction Act of 1995 (44 

U.S.C. 3501–3521) that require approval 

by the Office of Management and 

Budget (OMB). This proposed rule also 

contains collection of information under 

the provisions of the Paperwork 

Reduction Act of 1995 (44 U.S.C. 3501– 

3521) that are already approved by 

OMB. The collection of information for 

48 CFR 819.704–70, 852.219–9, and 

853.219(b) is currently approved by the 

Office of Management and Budget (OMB 

and has been assigned OMB control 

number 2900–0741. Accordingly, under 

44 U.S.C. 3507(d), VA has submitted a 

copy of this rulemaking containing the 

revised collection of information to 

OMB for review and approval. 

OMB assigns control numbers to 

collections of information it approves. 

VA may not conduct or sponsor, and a 

person is not required to respond to, a 

collection of information unless it 

displays a currently valid OMB control 

number. If OMB does not approve the 

collection(s) of information as 

requested, VA will immediately remove 

the provisions containing the 

collection(s) of information or take such 

other action as is directed by OMB. 

Comments on the revised collection(s) 

of information contained in this 

rulemaking should be submitted 

through www.regulations.gov. 

Comments should indicate that they are 

submitted in response to ‘‘RIN 2900– 

AR06; VA Acquisition Regulation: 

Acquisition Planning; Required Sources 

of Supplies and Services; Market 

Research; and Small Business 

Programs’’ and should be sent within 60 

days of publication of this rulemaking. 

The information collection(s) associated 

with this rulemaking can be reviewed 

at: www.reginfo.gov/public/do/ 

PRAMain. 

OMB is required to make a decision 

concerning the collection(s) of 

information contained in this 

rulemaking between 30 and 60 days 

after publication of this rulemaking in 

the Federal Register. Therefore, a 

comment to OMB is best assured of 

having its full effect if OMB receives it 

within 30 days of publication. This does 

not affect the deadline for the public to 

comment on the provisions of this 

rulemaking. 

The Department considers comments 

by the public on new collection(s) of 

information in— 

• Evaluating whether the new 

collection(s) of information are 

necessary for the proper performance of 

the functions of the Department, 

including whether the information will 

have practical utility; 

• Evaluating the accuracy of the 

Department’s estimate of the burden of 

the new collection(s) of information, 

including the validity of the 

methodology and assumptions used; 

• Enhancing the quality, usefulness, 

and clarity of the information to be 

collected; and 

• Minimizing the burden of the 

collection(s) of information on those 

who are to respond, including through 

the use of appropriate automated, 

electronic, mechanical, or other 

technological collection techniques or 

other forms of information technology, 

e.g., permitting electronic submission of 

responses. 

The removed collection of 

information associated with this 

rulemaking is contained in 48 CFR 

852.207–70, Report of Employment 

Under Commercial Activities, under 

OMB control # 2900–0590. This 

proposed rule would remove one of the 

existing information collection 

requirements associated with this action 

at 48 CFR 852.207–70 to reflect the 

discontinuation of 852.207–70, as well 

as the related prescriptions for the 

clause at 807.304–77 and 873.110, 

paragraph (f). The removal of VAAR 

clause 852.207–70 from this OMB 

control number will remove 15 

estimated annual burden hours and an 

annual cost savings to respondents of 

$428.85 that are currently reflected in 

the OIRA/OMB information collection 

inventory. However, due to the fact this 

OMB control number contains two 

additional VAAR clauses, as well as the 

increase of the Bureau of Labor 

Statistics (BLS) hourly rate in May 2020, 

the net decrease of public burden cost 

for this OMB control number is $268.85. 

Regulatory Flexibility Act 

The Secretary hereby certifies that 

this proposed rule is not expected to 

have a significant economic impact on 

a substantial number of small entities as 

they are defined in the Regulatory 

Flexibility Act (5 U.S.C. 601–612). 

The overall impact of the proposed 

rule would be of benefit to small 

businesses owned by Veterans or 

service-disabled Veterans as the VAAR 

is being updated to remove extraneous 

procedural information that applies 

only to VA’s internal operating 

processes or procedures. VA estimates 

no increased or decreased costs to small 

business entities. This rulemaking 

clarifies VA’s policy regarding the 

contracting order of priority for ServiceDisabled Veteran-Owned Small 

Businesses (SDVOSBs) and VeteranOwned Small Businesses (VOSBs) as a 

result of the U.S. Supreme Court’s 

decision in Kingdomware Technologies, 

Inc. vs. the United States, July 25, 2018, 

(Kingdomware) only as it pertains to the 

application of the VA Rule of Two in 

accordance with Public Law 109–461 as 

codified at 38 U.S.C. 8127–8128, and via 

the original Final Rule—VA Acquisition 

Regulation: Supporting Veteran-Owned 

and Service-Disabled Veteran-Owned 

Small Businesses, published in the 

Federal Register at 74 FR 64619, on 

December 9, 2009, and effective January 

7, 2010. 

This regulation seeks to simplify and 

streamline VA guidance regarding its 

small business program. The impact on 

small business overall is positive, as VA 

continues to implement its small 

business policies in accordance with 

legislative mandates pertaining to the 

Department of Veterans Affairs in 38 

U.S.C. 8127–8128 to ensure that that 

small business owned and controlled by 

Veterans receive a fair share of 

contracting opportunities at the 

Department. VA’s hierarchy of 

contracting preferences, established by 

law, mandates VA Vendor Information 

Pages (VIP)-listed SDVOSBs first, then 

VOSBs, prior to other small business 

preferences. While consistent with VA’s 


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legislation and mission to serve 

Veterans, this mandate necessarily 

makes achievement of other small 

business goals more challenging that fall 

in a statutorily based lower contracting 

order of priority, e.g., awards in the 

general small business category. 

Through renewed emphasis on the 

program in 2016 post the U.S. Supreme 

Court decision in Kingdomware 

Technologies, Inc., and through 

increased training and revised 

implementing policy and procedures 

issued to VA contracting officers, VA 

has successfully achieved specific 

SDVOSB, VOSB, and small business 

goals for FY 2020 as discussed below. 

This rulemaking does not change 

VA’s overall policy regarding small 

businesses, does not have an economic 

impact to individual businesses, and 

there are no increased or decreased 

costs to small business entities. 

Therefore, pursuant to 5 U.S.C. 605(b), 

the initial and final regulatory flexibility 

analysis requirements of 5 U.S.C. 603 

and 604 do not apply. 

a. A description of the reasons why 

action by VA is being considered. 

Response: This proposed rule is part 

of VA’s initiative to revise and 

streamline the VAAR in phased 

increments. It is necessary specifically 

with this case, to implement updated 

requirements the Department of 

Veterans Affairs’ (VA) policy and 

procedures pertaining to 38 U.S.C. 

8127–8128 (Pub. L. 109–461), known as 

the Veterans First Contracting Program, 

as well as additional legislative 

amendments and statutory changes to 

38 U.S.C. 8127 as a result of Public Law 

116–155, the Department of Veterans 

Affairs Contracting Preference 

Consistency Act of 2020, which had an 

effective date of August 8, 2020, and 

Public Law 116–183, Protecting 

Business Opportunities for Veterans Act 

of 2019, enacted October 30, 2020, 

which have been implemented in 

advance of this proposed rulemaking 

through separate class deviations. This 

rulemaking provides the proposed 

changes to the CFR for public comments 

on the updates to key related parts. 

b. A succinct statement of the 

objectives of, and legal basis for, the 

rule. 

Response: The objectives of this 

proposed rule are to implement 

statutory requirements and make other 

necessary updates to the VAAR to bring 

current with the Federal Acquisition 

Regulation (FAR) and with specific 

statutory amendments to 38 U.S.C. 

8127. In addition to other programmatic 

updates, VA is addressing in this rule 

Public Law 116–155, the Department of 

Veterans Affairs Contracting Preference 

Consistency Act of 2020, enacted 

August 8, 2020, and Public Law 116– 

183, Protecting Business Opportunities 

for Veterans Act of 2019, enacted 

October 30, 2020. 

c. A description of and, where 

feasible, an estimate of the number of 

small entities to which the rule would 

apply. 

Response: This rulemaking is not 

expected to have a significant economic 

impact on a substantial number of small 

entities as they are defined in the 

Regulatory Flexibility Act, 5 U.S.C. 601– 

612. 

To determine the number of potential 

affected small businesses and other 

entities, VA examined the data in the 

Federal Procurement Data System 

(FPDS) to estimate the number of small 

business entities that will be affected by 

this rule. Based on preliminary data 

from Fiscal Year 2021, there were 

80,148 SDVOSB coded contract actions, 

and 143,452 coded contract actions to 

VOSBs. In addition to specific SDVOSB/ 

VOSB contract actions, in FY 2021 there 

were a total of 219,301 small business 

contract actions in FPDS. Note: 

SDVOSBs may also be coded in addition 

to the SDVOSB category as both a small 

business and VOSB award. VA analysis 

indicates that in FY 2021 VA exceeded 

its goals for SDVOSB, VOSB and small 

businesses. In FY 2020, VA exceeded— 

(1) its SDVOSB goal of 15% with a 

23.9% achievement; (2) its VOSB goal of 

17% with a 24.4% achievement; and (3) 

its overall small business goal of 28.45% 

with a 30.3% achievement, even during 

the midst of the declared national 

emergency on COVID–19. Considering 

VA had to make critical and urgent 

emergency procurements under other 

authorities, including sole source, of 

Personal Protective Equipment (PPE) 

and other related medical supplies and 

services in support of continuity of its 

core mission to provide Veterans’ 

healthcare and as part of its overarching 

pandemic response in support of the 

declared national emergency, the VA 

acquisition workforce worked diligently 

hand-in-hand with its program/project 

offices to continue to comply with the 

requirements of 38 U.S.C. 8127–8127 in 

priority awards to SDVOSBs, then 

VOSBs. These table below provides the 

referenced data and successful small 

business program goal achievements in 

these categories. 

PRELIMINARY FISCAL YEAR 2021 SMALL BUSINESS GOALING DATA

Fiscal year 2021 

Total contract 

dollars and 

actions 

Small business SDVOSB VOSB 

Goal ......................................................................................... .............................. 28.45% 15.0% 17.0% 

Actual Performance ................................................................. .............................. 30.3% 23.9% 24.4% 

Dollars awarded by VA ............................................................ $34,351,110,891 $10,307,742,213 $8,144,793,570 $8,365,441,281 

Total Contract Awards ............................................................. 1,833,460 219,301 80,148 143,452 

Source: Federal Procurement Data System. Dataset downloaded on December 9, 2021. 

This proposed rule should help small 

businesses continue to receive a fair 

share of the VA contracting dollars. 

d. A description of the projected 

reporting, recordkeeping, and other 

compliance requirements of the rule, 

including an estimate of the classes of 

small entities which would be subject to 

the requirement and the type of 

professional skills necessary for 

preparation of the report or record. 

Response: This rule does not impose 

any new reporting, recordkeeping or 

other compliance requirements for small 

entities. 

e. An identification, to the extent 

practicable, of all relevant Federal rules 

which may duplicate, overlap or conflict 

with the rule. 

Response: This rule does not 

duplicate, overlap, or conflict with any 

other Federal rules. 

f. A description of any significant 

alternatives to the rule which 

accomplish the stated objectives of 

applicable statutes and which minimize 

any significant economic impact of the 

rule on small entities. 

Response: VA is unable to identify 

any significant alternatives that would 

accomplish the requirements of this 

proposed rule and update of the VAAR. 

In accordance with 41 U.S.C. 1707, VA 

must provide for public comment any 


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proposed revisions to the VAAR, some 

of which were implemented as class 

deviations to ensure compliance with 

legislation or in accordance with 

mandates of the Federal courts, to 

include the U.S. Supreme Court. 

Through this rule, the public will have 

an opportunity to provide public 

comment prior to publication of a final 

rule. VA considered initially issuing a 

complete revision to the VAAR in one 

case, but given ongoing litigation and 

legislative initiatives, as well as the 

complexity of the various VAAR parts, 

the phased incremental approach 

permitted the public to be able to focus 

on specific topics and parts of interest 

and allow them to timely submit public 

comments which may have been more 

onerous if the complete VAAR were 

revised at one time. By updating the 

VAAR, it will increase transparency and 

furthers the consistent implementation 

of any new or revised policy and 

ensures wide dissemination to both the 

VA acquisition workforce, the public, 

interested parties, and affected small 

entities such as SDVOSBs, VOSBs, and 

small businesses, including AbilityOne 

participating entities. Small entities 

cannot be exempted from coverage 

under this rule as the VAAR applies to 

all potential offerors, large or small. 

The rule is not expected to have a 

significant economic impact to 

SDVOSBs or VOSBs since the VA Rule 

of Two will continue to apply to VA’s 

unique Veterans First Contracting 

Program that was first implemented in 

the VAAR in 2009, and which was 

subsequently revised consistent with 

revised policy and procedures issued by 

class deviations as a result of court cases 

and new legislative amendments. 

VA invites comments from small 

business concerns and other interested 

parties on the expected impact of this 

rule on small entities. 

Unfunded Mandates 

The Unfunded Mandates Reform Act 

of 1995 requires, at 2 U.S.C. 1532, that 

agencies prepare an assessment of 

anticipated costs and benefits before 

issuing any rule that may result in the 

expenditure by State, local, and tribal 

Governments, in the aggregate, or by the 

private sector, of $100 million or more 

(adjusted annually for inflation) in any 

one year. This proposed rule would 

have no such effect on State, local, and 

tribal governments or on the private 

sector. 

List of Subjects 

48 CFR Part 802, 807, 808, 810, 813, 

832, and 853 

Government procurement. 

48 CFR Part 819 

Administrative practice and 

procedure, Government procurement, 

Reporting and recordkeeping 

requirements, Small business, Veterans. 

48 CFR Part 852 

Government procurement, Reporting 

and recordkeeping requirements. 

Signing Authority 

Denis McDonough, Secretary of 

Veterans Affairs, approved this 

document on February 15, 2022, and 

authorized the undersigned to sign and 

submit the document to the Office of the 

Federal Register for publication 

electronically as an official document of 

the Department of Veterans Affairs. 

Consuela Benjamin, 

Regulation Development Coordinator, Office 

of Regulation Policy & Management, Office 

of General Counsel, Department of Veterans 

Affairs. 

For the reasons set forth in the 

preamble, VA proposes to amend 48 

CFR, chapter 8 as follows: 

PART 802—DEFINITIONS OF WORDS 

AND TERMS 

■ 1. Revise the authority citation for part 

802 to read as follows: 

Authority: 40 U.S.C. 121(c); 41 U.S.C. 

1121(c)(3); 41 U.S.C. 1702; and 48 CFR 1.301 

through 1.304. 

■ 2. Amend section 802.101 by adding 

definitions for ‘‘Public Law (Public Law) 

109–461’’, ‘‘SDVOSB/VOSB’’, ‘‘VA Rule 

of Two’’, and ‘‘Veterans First 

Contracting Program’’, and by revising 

the definitions for ‘‘Service-disabled 

veteran-owned small business 

(SDVOSB)’’, ‘‘Vendor Information Pages 

(VIP) or VIP database’’, and ‘‘Veteranowned small business (VOSB)’’ in 

alphabetical order to read as follows: 

802.101 Definitions. 

* * * * * 

Public Law (Pub. L.) 109–461 means 

the Veterans Benefits, Health Care and 

Information Technology Act of 2006, as 

codified in 38 U.S.C. 8127 and 8128. 

* * * * * 

SDVOSB/VOSB when used as an 

initialism means a service-disabled 

veteran-owned small business 

(SDVOSB) and/or veteran-owned small 

business (VOSB) that has been found by 

VA eligible to participate in the 

Veterans First Contracting Program 

implemented at subpart 819.70 and 

listed in the Vendor Information Pages. 

The term is synonymous with VA or 

VIP-verified small business concerns 

owned and controlled by Veterans. 

* * * * * 

Service-disabled veteran-owned small 

business (SDVOSB) or small business 

concern owned and controlled by 

Veterans with service-connected 

disabilities has the same meaning as 

service-disabled veteran-owned small 

business concern defined in FAR 2.101, 

except that for acquisitions authorized 

by 38 U.S.C. 8127 and 8128 for the 

Veterans First Contracting Program, 

these businesses must be listed as 

verified in the VIP database. In addition, 

some SDVOSB listed in the VIP 

database may be owned and controlled 

by a surviving spouse. See definition of 

surviving spouse in 802.101. 

* * * * * 

VA Rule of Two means the 

determination process mandated in 38 

U.S.C. 8127(d)(1) whereby a contracting 

officer of the Department shall award 

contracts on the basis of competition 

restricted to small business concerns 

owned and controlled by veterans if the 

contracting officer has a reasonable 

expectation that two or more small 

business concerns owned and 

controlled by Veterans will submit 

offers and that the award can be made 

at a fair and reasonable price that offers 

best value to the United States. For 

purposes of this VA specific rule, a 

service-disabled veteran-owned small 

business (SDVOSB) or a veteran-owned 

small business (VOSB), must meet the 

eligibility requirements in 38 U.S.C. 

8127(e), (f) and VAAR 819.7003 and be 

listed as verified in the Vendor 

Information Pages (VIP) database. 

* * * * * 

Vendor Information Pages (VIP) or 

VIP database means the Department of 

Veterans Affairs Office of Small and 

Disadvantaged Business Utilization 

(OSDBU) Center for Verification and 

Evaluation (CVE) Vendor Information 

Pages (VIP) database at https://

www.vetbiz.va.gov/vip/. This site’s 

database lists businesses that VA CVE 

has determined eligible for the Veterans 

First Contracting Program. 

Veteran-owned small business (VOSB) 

has the same meaning as veteran-owned 

small business concern defined in FAR 

2.101, except that for acquisitions 

authorized by 38 U.S.C. 8127 and 8128 

for the Veterans First Contracting 

Program, these businesses must be listed 

as verified in the VIP database. 

SDVOSBs, including businesses whose 

SDVOSB status derive from ownership 

and control by a surviving spouse, are 

also considered VOSBs, as long as they 

are listed as eligible in VIP. 

Veterans First Contracting Program 

means the program authorized by Public 

Law 109–461 (38 U.S.C. 8127 and 8128), 

as implemented in subpart 819.70. This 


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program applies to all VA contracts (see 

FAR 2.101 for the definition of 

contracts) as well as Blanket Purchase 

Agreements (BPAs), Basic Ordering 

Agreements (BOAs), and orders against 

the Federal Supply Schedules (FSS), 

unless otherwise excluded by law. 

* * * * * 

PART 807 [Removed and Reserved] 

■ 3. Remove and reserve part 807. 

■ 4. Revise part 808 to read as follows: 

PART 808—REQUIRED SOURCES OF 

SUPPLIES AND SERVICES 

Sec. 

808.000 Scope of part. 

808.001 General. 

808.001–70 Definitions. 

808.002 Priorities for use of mandatory 

Government sources. 

808.004 Use of other sources. 

808.004–70 Use of other priority sources. 

Subpart 808.4—Federal Supply Schedules 

808.402 General. 

808.404 Use of Federal Supply Schedules. 

808.404–70 Use of Federal Supply 

Schedules—the Veterans First 

Contracting Program. 

808.405 Ordering procedures for Federal 

Supply Schedules. 

808.405–70 Set-aside procedures for VA 

and GSA Federal Supply Schedules. 

808.405–570 Small business set-asides and 

preferences—Veterans First Contracting 

Program clauses. 

Subpart 808.6—Acquisition from Federal 

Prison Industries, Inc. 

808.603 Purchase priorities. 

Subpart 808.8—[Reserved] 

Authority: 38 U.S.C. 8127–8128; 40 U.S.C. 

121(c); 41 U.S.C. 1121(c)(3); 41 U.S.C. 1702; 

and 48 CFR 1.301 through 1.304. 

808.000 Scope of part. 

This part deals with prioritizing 

sources of supplies and services for use 

by the Government based on unique VA 

statutory programs, as well as 

requirements when using the General 

Services Administration (GSA) Federal 

Supply Schedules program including 

the GSA delegated VA Federal Supply 

Schedule program. 

808.001 General. 

808.001–70 Definitions. 

As used in this part— 

Veterans Affairs (VA) Federal Supply 

Schedule (FSS) or ‘‘VA FSS’’ means FSS 

contracts awarded by the VA National 

Acquisition Center, under authority 

delegated by the General Services 

Administration (GSA) per FAR 8.402(a). 

VA FSS contracts include medical, 

dental, pharmacy and veterinary 

equipment and supplies in Federal 

Supply Classification (FSC) Group 65, 

instruments and laboratory equipment 

in FSC Group 66 and health care 

services in FSC Group 621. 

808.002 Priorities for use of mandatory 

Government sources. 

(a) Priorities. Contracting activities 

shall satisfy requirements for supplies 

and services from or through the 

mandatory sources listed below in 

descending order of priority: 

(1) Supplies. (i) VA inventories 

including the VA supply stock program 

(41 CFR 101–26.704) and VA excess. 

(ii) Excess from other agencies (see 

FAR subpart 8.1). 

(iii) Federal Prison Industries, Inc. 

(see 808.603). Prior to considering 

award of a contract to Federal Prison 

Industries, Inc, contracting officers shall 

apply the VA Rule of Two to determine 

whether a requirement should be 

awarded to veteran-owned small 

businesses under the authority of 38 

U.S.C. 8127–28, by using the 

preferences and priorities in subpart 

819.70. If an award is not made to a VIPlisted and verified service-disabled 

veteran-owned small business 

(SDVOSB)/veteran-owned small 

business (VOSB) as provided in subpart 

819.70, FPI remains a mandatory source 

in accordance with FAR 8.002. 

(iv) Supplies that are on the 

Procurement List maintained by the 

Committee for Purchase From People 

Who Are Blind or Severely Disabled, 

through the AbilityOne Program (FAR 

subpart 8.7). Supplies that are on the 

Procurement List but which do not meet 

the definition of a covered product are 

only required to be procured from a 

mandatory source in accordance with 

FAR 8.002 if an award is not made to 

a VIP-listed and verified SDVOSB/ 

VOSB after following the procedures set 

forth in subpart 819.70. 

(A) Definition. As used in this 

paragraph— 

Covered product means a product 

that— 

(1) Is included on the Procurement 

List as authorized under 41 U.S.C. 

8503(a) (see FAR 8.703) and was 

included on the Procurement List on or 

before December 22, 2006; or 

(2) Meets the following criteria— 

(i) Is a replacement for a product 

under this paragraph; 

(ii) Is essentially the same and 

meeting the same requirement as the 

product being replaced; and 

(iii) The contracting officer 

determines the product meets the 

quality standards and delivery schedule 

requirements of VA. 

(B) Policy. Except as provided in 

paragraph (a)(1)(iv)(C) and (D), 

contracting officers shall procure 

covered products that are on the 

Procurement List through the 

AbilityOne Program as set forth in FAR 

subpart 8.7. Contracting officers shall 

not procure products that are on the 

Procurement List, but which do not 

meet the definition of a covered product 

using the procedures set forth in FAR 

subpart 8.7, unless award cannot be 

made to a VIP-listed and verified 

SDVOSB/VOSB pursuant to the 

procedures set forth in subpart 819.70. 

(C) Exception for certain contracts 

awarded in accordance with the 

Veterans First Contracting Program in 

subpart 819.70. If a contract for a 

covered product awarded under the 

authority of 38 U.S.C. 8127(d)(1) to a 

VIP-listed SDVOSB or VOSB was in 

effect as of August 7, 2020, the 

requirement shall continue as an 

SDVOSB/VOSB set-aside in accordance 

with 819.7006 and 819.7007. 

(D) Termination or expiration of 

excepted contracts. When a contract 

previously awarded as set forth in 

paragraph (a)(1)(iv)(C) of this section is 

terminated or expires, contracting 

officers shall procure such covered 

product through the AbilityOne 

Program as a priority mandatory 

Government source (see (a)(1)(iv)(B) of 

this section), provided the head of the 

contracting activity or designee 

determines there is no reasonable 

expectation that— 

(1) Two or more SDVOSBs/VOSBs 

will submit offers; and 

(2) Award can be made at a fair and 

reasonable price that offers best value to 

the United States. 

(v) Wholesale supply sources, such as 

stock programs of the General Services 

Administration (GSA) (see 41 CFR 101– 

26.3), the Defense Logistics Agency (see 

41 CFR 101–26.6), the Department of 

Veterans Affairs (see 41 CFR 101– 

26.704), and military inventory control 

points. 

(2) Services that are on the 

Procurement List maintained by the 

Committee for Purchase From People 

Who Are Blind or Severely Disabled, 

through the AbilityOne Program (FAR 

subpart 8.7). Services that are on the 

Procurement List, but which do not 

meet the definition of a covered service 

are only required to be procured from a 

mandatory source in accordance with 

FAR 8.002 if an award is not made to 

a VIP-listed and verified SDVOSB/ 

VOSB after following the procedures set 

forth in subpart 819.70. 

(i) Definition. As used in this 

paragraph— 

Covered service means a service 

that— 


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(A) Is included on the Procurement 

List as authorized under 41 U.S.C. 

8503(a) (see FAR 8.703) and was 

included on the Procurement List on or 

before December 22, 2006; or 

(B) Meets the following criteria— 

(1) Is a replacement for a service 

under this paragraph; 

(2) Is essentially the same and 

meeting the same requirement as the 

service being replaced; and 

(3) The contracting officer determines 

the service meets the quality standards 

and delivery schedule requirements of 

VA. 

(ii) Policy. Except as provided in 

paragraph (a)(2)(iii) and (iv) of this 

section, contracting officers shall 

procure covered services that are on the 

Procurement List through the 

AbilityOne Program as set forth in FAR 

subpart 8.7. Contracting officers shall 

not procure services that are on the 

Procurement List, but which do not 

meet the definition of a covered service 

using the procedures set forth in FAR 

subpart 8.7, unless award cannot be 

made to a VIP-listed and verified 

SDVOSB/VOSB pursuant to the 

procedures set forth in subpart 819.70. 

(iii) Exception for certain contracts 

awarded in accordance with the 

Veterans First Contracting Program in 

subpart 819.70. If a contract for a 

covered service awarded under the 

authority of 38 U.S.C. 8127(d)(1) to a 

VIP-listed SDVOSB or VOSB was in 

effect as of August 7, 2020, the 

requirement shall continue as an 

SDVOSB/VOSB set-aside in accordance 

with 819.7006 and 819.7007. 

(iv) Termination or expiration of 

certain excepted contracts. When a 

contract previously awarded as set forth 

in paragraph (a)(2)(iii) of this section is 

terminated or expires, contracting 

officers shall procure such covered 

service through the AbilityOne Program 

as a priority mandatory Government 

source (see (a)(2)(ii) of this section), 

provided the head of the contracting 

activity or designee determines there is 

no reasonable expectation that— 

(A) Two or more SDVOSBs/VOSBs 

will submit offers; and 

(B) Award can be made at a fair and 

reasonable price that offers best value to 

the United States. 

(b) Unusual and compelling urgency. 

The contracting officer may use a source 

other than those listed in paragraph (a) 

of this section when the need for 

supplies or services is of an unusual and 

compelling urgency (see FAR 6.302–2, 

8.405–6, 13.106–1 and part 806 for 

justification requirements). 

808.004 Use of other sources. 

808.004–70 Use of other priority sources. 

(a) Veterans contracting priority. In 

order to fulfill the requirements of 38 

U.S.C. 8127–8128 (see subpart 819.70), 

contracting officers shall award 

contracts (see FAR 2.101 for the 

definition of contracts), as well as 

Blanket Purchase Agreements (BPAs), 

and orders against VA and GSA Federal 

Supply Schedules (FSS), providing 

priority in the awarding of such 

contracts to VIP-listed SDVOSBs first, 

then VOSBs. 

(b) Strategic sourcing priorities and 

application of the VA Rule of Two. To 

provide medical supplies in Federal 

Supply Classification (FSC) groups 65 

and 66 efficiently and effectively the 

VA, through previous reform initiatives, 

has implemented key strategic sourcing 

contract vehicles (e.g., prime-vendor, 

national contracts, VA FSS). If these 

strategic sourcing contracts were subject 

to the VA Rule of Two, they may be 

determined mandatory by the head of 

the contracting activity. Contracting 

officers shall consider these priority 

contract vehicles before using other 

existing contract vehicles. 

Subpart 808.4—Federal Supply 

Schedules 

808.402 General. 

(a) GSA has delegated authority to the 

VA to procure medical equipment, 

supplies, services and pharmaceuticals 

under the VA Federal Supply Schedule 

(FSS) program. The VA FSS program 

includes medical supplies in Federal 

Supply Classification (FSC) Groups 65 

and 66 and services in FSC 621 for 

Professional and Allied Healthcare 

Staffing Services and Medical 

Laboratory Testing and Analysis 

Services. 

808.404 Use of Federal Supply Schedules. 

808.404–70 Use of Federal Supply 

Schedules—the Veterans First Contracting 

Program. 

(a) The Veterans First Contracting 

Program, implemented in subpart 

819.70 pursuant to 38 U.S.C 8127–8128, 

applies to BPAs, and orders under FAR 

subpart 8.4 and has precedence over 

other small business programs. 

(b) Contracting officers, when 

establishing a BPA or placing an order 

against the FSS, shall ensure that 

priorities for veteran-owned small 

businesses are implemented within the 

VA hierarchy of small business program 

preferences in subpart 819.70. 

Specifically, the contracting officer will 

consider preferences for verified 

SDVOSBs first, then preferences for 

verified VOSBs. These priorities will be 

followed by preferences for other small 

businesses in accordance with 819.7005. 

(c) If unable to satisfy requirements 

for supplies and services from the 

mandatory sources in 808.002 and 

808.004–70, contracting officers may 

consider commercial sources in the 

open market (see FAR 8.004(b)) if an 

open market acquisition is most 

appropriate (see FAR 8.004) and a VA 

Rule of Two determination is made (see 

subpart 819.70). 

(d) When the servicing agency will 

award contracts under an interagency 

agreement on behalf of the VA, the 

contracting officer shall ensure the 

interagency acquisition complies with 

FAR subpart 17.5 and subpart 817.5 and 

includes terms requiring compliance 

with the VA Rule of Two (see 817.501). 

808.405 Ordering procedures for Federal 

Supply Schedules. 

808.405–70 Set-aside procedures for VA 

and GSA Federal Supply Schedules. 

To satisfy VA legislative 

requirements, contracting officers shall 

use the supplemental ordering 

procedures of this section when 

establishing a BPA or placing an order 

for supplies or services under this 

subpart as follows: 

(a) When market research supports 

set-asides. Pursuant to 38 U.S.C. 8127, 

contracting activities shall set-aside 

BPAs and orders for VIP-listed 

SDVOSBs or VOSBs when, based on 

research, the contracting officer has a 

reasonable expectation that two or more 

small business concerns owned and 

controlled by Veterans or owned and 

controlled by Veterans with serviceconnected disabilities will submit offers 

and that award can be made at a fair and 

reasonable price that offers best value to 

the United States. When the VA Rule of 

Two is met: 

(1) The set-aside requirements as 

provided in 819.7006 and 819.7007 are 

mandatory. 

(2) The requirements in FAR 8.405–1, 

8.405–2, and 8.405–3, apply, except 

only quotes received from verified (i.e., 

VIP-listed) and eligible SDVOSBs or 

VOSBs will be considered. 

(3) The eligibility requirements of 

819.7003, 819.7006, and 819.7007 

apply, including the requirement for 

offerors to be VIP-listed at the time they 

submit offers/quotes as well as at the 

time awards are made. 

(4) The contracting officer shall notify 

potential offerors of the unique VA 

verification requirements by including 

in the solicitation the applicable setaside clause prescribed at 819.7011. 

(b) When market research does not 

support set-asides. Pursuant to 38 


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U.S.C. 8128 and to the extent that 

market research does not support an 

SDVOSB or VOSB set-aside in either 

FSS or the open market, the contracting 

activity shall give priority in the award 

of orders placed under this part to VIPlisted SDVOSBs/VOSBs through the use 

of evaluation preferences giving priority 

to SDVOSBs first, then to a lesser extent 

VOSBs, and finally to any firm that 

proposes to use SDVOSBs/VOSBs as 

subcontractors. Contracting officers 

must use the clause prescribed in 

808.405–570(b). 

(c) SDVOSB/VOSB eligibility 

requirements. The SDVOSB and VOSB 

eligibility requirements in 819.7003 

apply, including current SDVOSB and 

VOSB VIP-listed status at the time of 

submission of offer/quote and at time of 

award. The offeror must also represent 

that it meets the small business size 

standard for the assigned NAICS as well 

as other small business requirements 

(including completing the certification 

found in 852.219–75 or 852.219–76. 

808.405–570 Small business set-asides 

and preferences—Veterans First 

Contracting Program clauses. 

(a) When setting aside an order 

pursuant to 808.405–70(a), the 

applicable clause prescribed in 

819.7011 for SDVOSB/VOSB set-asides 

shall be used. 

(b) When an SDVOSB/VOSB set-aside 

is not feasible, the ordering activity 

shall use the clause at 852.208–70, 

Service-Disabled Veteran-Owned and 

Veteran-Owned Small Business 

Evaluation Factors—Orders or BPAs, for 

task orders, delivery orders or BPAs 

using evaluation factors other than price 

alone. 

(c) The ordering activity shall insert 

the clause at 852.208–71, ServiceDisabled Veteran-Owned and VeteranOwned Small Business Evaluation 

Factor Commitments—Orders or BPAs, 

in request for quotes and resulting 

orders that include clause 852.208–70, 

Service-Disabled Veteran-Owned and 

Veteran-Owned Small Business 

Evaluation Factors—Orders or BPAs. 

Subpart 808.6—Acquisition from 

Federal Prison Industries, Inc. 

808.603 Purchase priorities. 

A waiver from Federal Prison 

Industries is not needed when 

comparable supplies and services are 

procured in accordance with subpart 

819.70. 

Subpart 808.8 [Reserved] 

■ 5. Part 810 is revised to read as 

follows: 

PART 810—MARKET RESEARCH 

Sec. 

810.000 Scope of part. 

810.001 Policy. 

810.001–70 Market research policy—use of 

VA Vendor Information Pages. 

Authority: 38 U.S.C. 8127–8128; 40 U.S.C. 

121(c); 41 U.S.C. 1121(c)(3); 41 U.S.C. 1702; 

and 48 CFR 1.301 through 1.304. 

810.000 Scope of part. 

The Veterans First Contracting 

Program in subpart 819.70 applies to 

contract actions under this part and 

takes precedence over other small 

business programs referenced in FAR 

part 10 and FAR part 19. 

810.001 Policy. 

810.001–70 Market research policy—use 

of VA Vendor Information Pages. 

When performing market research, 

contracting officers shall review the 

Vendor Information Pages (VIP) 

database at https://www.vetbiz.va.gov/ 

vip/ as required by subpart 819.70. The 

contracting officer will search the VIP 

database by applicable North American 

Industry Classification System (NAICS) 

codes to determine whether two or more 

verified service-disabled veteran-owned 

small businesses (SDVOSBs) and/or 

veteran-owned small businesses 

(VOSBs), with the appropriate NAICS 

code, are listed as verified in the VIP 

database. The contracting officer will 

determine, among other things as the 

requirement dictates, whether VIP-listed 

SDVOSBs or VOSBs identified as a 

result of market research are capable of 

performing the work, are likely to 

submit an offer/quote, and whether an 

award can be made at a fair and 

reasonable price that offers best value to 

the Government. The contracting officer 

shall use the market research for 

acquisition planning purposes, and as 

set forth in VAAR subpart 819.70, 

conduct a VA Rule of Two 

determination in accordance with the 

contracting order of priority (see 

819.7005 and 819.7006). 

PART 813—SIMPLIFIED ACQUISITION 

PROCEDURES 

■ 6.The authority citation for part 813 

continues to read as follows: 

Authority: 38 U.S.C. 8127–8128; 40 U.S.C. 

121(c); 41 U.S.C. 1702 and 48 CFR 1.301 

through 1.304. 

■ 7. Revise section 813.003–70 to read 

as follows: 

813.003–70 General policy. 

(a) The Veterans First Contracting 

Program in subpart 819.70 applies to VA 

contracts, orders and BPAs under this 

part and has precedence over other 

small business programs referenced in 

FAR parts 13 and 19. For VA policy 

regarding mandatory Government 

sources, refer to 808.002. 

(b) Notwithstanding FAR 13.003(b)(2), 

the contracting officer shall make an 

award utilizing the priorities for 

veteran-owned small businesses as 

implemented within the VA hierarchy 

of small business program preferences, 

the Veterans First Contracting Program 

in subpart 819.70. Specifically, the 

contracting officer shall consider 

preferences for verified service-disabled 

veteran-owned small businesses 

(SDVOSBs) first, then preferences for 

verified veteran-owned small businesses 

(VOSBs). These priorities will be 

followed by preferences for other small 

businesses in accordance with 819.7005. 

(c) When using competitive 

procedures, the preference for 

restricting competition to verified 

SDVOSBs/VOSBs in accordance with 

paragraph (b) of this section is 

mandatory whenever market research 

provides a reasonable expectation of 

receiving two or more offers/quotes 

from eligible, capable and verified firms, 

and that an award can be made at a fair 

and reasonable price that offers best 

value to the Government. 

(1) Pursuant to 38 U.S.C. 8127, 

contracts under this part shall be setaside for SDVOSBs/VOSBs, in 

accordance with 819.7006 or 819.7007 

when supported by market research. 

Contracting officers shall use the 

applicable set-aside clause prescribed at 

819.7011. 

(2) Pursuant to 38 U.S.C. 8128 and to 

the extent that market research does not 

support an SDVOSB or VOSB set-aside, 

the contracting officer shall include 

evaluation factors as prescribed at 

815.304–70 and the evaluation criteria 

clause prescribed at 815.304–71(a). 

(d) The SDVOSB and VOSB eligibility 

requirements in 819.7003 apply, 

including verification of the SDVOSB 

and VOSB status of an offeror, and other 

small business requirements in 13 CFR 

part 121 and 13 CFR 125.6 (e.g., small 

business representation, 

nonmanufacturer rule, and 

subcontracting limitations (see 819.7004 

and 819.7011)). 

Subpart 813.1—Procedures. 

■ 8. Revise section 813.106 to read as 

follows: 


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813.106 Soliciting competition, evaluation 

of quotations or offers, award and 

documentation. 

813.106–70 Soliciting competition, 

evaluation of quotations or offers, award 

and documentation—the Veterans First 

Contracting Program. 

(a) When using competitive 

procedures under this part, the 

contracting officer shall use the 

Veterans First Contracting Program in 

subpart 819.70 and the guidance set 

forth in 813.003–70. 

(b) Pursuant to 38 U.S.C 8127(b), 

contracting officers may use other than 

competitive procedures to enter into a 

contract with a verified SDVOSB or 

VOSB for procurements below the 

simplified acquisition threshold, as 

authorized by FAR 6.302–5 and 

806.302–570(a) and (b). 

(c) For procurements above the 

simplified acquisition threshold, 

pursuant to 38 U.S.C. 8127(c), 

contracting officers may also award a 

contract under this part to a firm 

verified under the Veterans First 

Contracting Program at subpart 819.70, 

using procedures other than competitive 

procedures, as authorized by FAR 

6.302–5 and 806.302–570(a) and (c), and 

in accordance with 819.7008 and 

819.7009. 

■ 9. Part 819 is revised to read as 

follows: 

PART 819—SMALL BUSINESS 

PROGRAMS 

Sec. 

819.000 Scope of part. 

Subpart 819.2—Policies. 

819.201 General policy. 

819.202 Specific policies. 

819.203 Relationship among small business 

programs. 

819.203–70 Priority for SDVOSB/VOSB 

contracting preferences. 

Subpart 819.3—Determination of Small 

Business Size and Status for Small 

Business Programs 

819.307 Protesting a firm’s status as a 

service-disabled veteran-owned small 

business concern. 

819.307–70 SDVOSB/VOSB status protests. 

Subpart 819.5—Small Business Total SetAsides, Partial Set-Asides, and Reserves 

819.501 General. 

819.501–70 General principles for setting 

aside VA acquisitions. 

819.502 Setting aside acquisitions. 

819.502–1 Requirements for setting aside 

acquisitions. 

819.502–2 Total small business set-asides. 

819.507 Solicitation provisions and 

contract clauses. 

819.507–70 Additional VA solicitation 

provisions and contract clauses. 

Subpart 819.6—[Reserved] 

Subpart 819.7—The Small Business 

Subcontracting Program 

819.704–70 VA subcontracting plan 

requirements. 

819.708 Contract clauses. 

Subpart 819.8—Contracting With the Small 

Business Administration (the 8(a) Program) 

819.800 General. 

819.811 Preparing the contracts. 

819.811–370 VA/SBA Partnership 

Agreement and contract clauses. 

Subpart 819.70—The VA Veterans First 

Contracting Program 

819.7001 General. 

819.7002 Applicability. 

819.7003 Eligibility. 

819.7004 Limitations on subcontracting 

compliance requirements. 

819.7005 Contracting order of priority. 

819.7006 VA service-disabled veteranowned small business set-aside 

procedures. 

819.7007 VA veteran-owned small business 

set-aside procedures. 

819.7008 Sole source awards to verified 

service-disabled veteran-owned small 

businesses. 

819.7009 Sole source awards to verified 

veteran-owned small businesses. 

819.7010 Tiered set-aside evaluation. 

819.7011 Contract clauses. 

Subpart 819.71—[Reserved] 

Authority: 15 U.S.C. 631, et seq.; 15 U.S.C. 

637(d)(4)(E); 38 U.S.C. 8127–8128; 40 U.S.C. 

121(c); 41 U.S.C. 1121(c)(3), 41 U.S.C. 1303, 

41 U.S.C. 1702; and 48 CFR 1.301 through 

1.304. 

819.000 Scope of part. 

(a) This part supplements FAR part 19 

and implements the service-disabled 

veteran-owned small business 

(SDVOSB), veteran-owned small 

business (VOSB) and small business 

provisions of title 38 U.S.C. 8127 and 

8128, Executive Order 13360 and the 

Small Business Act (15 U.S.C. 631 et. 

seq.) as applied to the Department of 

Veterans Affairs (VA). This part also 

covers— 

(1) Goals for using SDVOSBs, and 

VOSBs; 

(2) Priorities and preferences for using 

SDVOSBs/VOSBs; 

(3) SDVOSB/VOSB eligibility and 

contract compliance; 

(4) Setting aside acquisitions for 

SDVOSBs/VOSBs; 

(5) Sole-source awards to SDVOSBs 

and VOSBs; and 

(6) Evaluation preferences and 

contract clauses. 

Subpart 819.2—Policies 

819.201 General policy. 

(a) It is VA policy that small business 

concerns owned and controlled by 

veterans shall have maximum 

practicable opportunity to participate in 

VA acquisitions, consistent the 

priorities and preferences prescribed 

under the Veterans First Contracting 

Program in subpart 819.70. 

(1) To carry out this policy the 

Secretary shall establish annual 

SDVOSB and VOSB contracting goals. 

(2) In support of these goals, each 

administration and staff office shall in 

turn establish annual goals for each 

subordinate contracting activity that 

present, for that activity, the maximum 

practicable opportunity for small 

business concerns, and particularly 

SDVOSBs/VOSBs, to participate in the 

performance of the activity’s contracts 

and subcontracts. 

(3) The attainment of these goals or 

the use of interagency acquisition 

vehicles does not limit the applicability 

of the Veterans First Contracting 

Program and priorities in subpart 

819.70. 

(c) In addition to the duties and 

responsibilities in FAR 19.201(c), the 

Executive Director, Office of Small and 

Disadvantaged Business Utilization 

(OSDBU), is responsible for overseeing 

implementation of the Veterans First 

Contracting Program under subpart 

819.70. 

(d) Each organization with contracting 

authority shall designate small business 

specialists/technical advisors in 

coordination with the OSDBU Director. 

819.202 Specific policies. 

OSDBU is responsible for reviewing 

procurement strategies, establishing 

thresholds for such reviews and making 

recommendations to assist contracting 

officers in the implementation of this 

part. These responsibilities shall be 

conducted within the VA hierarchy of 

small business program preferences 

established by 38 U.S.C. 8127(h) (see 

subpart 819.70), which requires VA to 

consider preferences for VIP-listed 

SDVOSBs first, then preferences for VIPlisted VOSBs. Contracting officers shall 

use VA Form 2268, Small Business 

Program and Contract Bundling Review, 

to document actions and 

recommendations. 

819.203 Relationship among small 

business programs. 

819.203–70 Priority for SDVOSB/VOSB 

contracting preferences. 

(a) 38 U.S.C. 8127 and 8128 require 

the VA to provide priority and establish 

special acquisition methods to increase 

contracting opportunities for SDVOSBs/ 

VOSBs. These priorities and special 

acquisition methods are set forth in 

subpart 819.70 and shall be applied by 

contracting officers before other 


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priorities and preferences in FAR 

19.203. 

(b) Pursuant to 38 U.S.C. 8128, 

contracting officers shall give priority to 

SDVOSBs/VOSBs if such business 

concern(s) also meet the requirements of 

that contracting preference. This 

requirement applies even when using a 

contracting preference under FAR part 

19 (for example, a women-owned small 

business set-aside). 

Subpart 819.3—Determination of Small 

Business Size and Status for Small 

Business Programs 

819.307 Protesting a firm’s status as a 

service-disabled veteran-owned small 

business concern. 

819.307–70 SDVOSB/VOSB status 

protests. 

All protests relating to size, status 

and/or whether an SDVOSB or a VOSB 

is a ‘‘small business’’ are subject to the 

Small Business Administration (SBA) 

regulations at 13 CFR part 121 and must 

be filed in accordance with SBA 

guidelines at 13 CFR part 134 (see FAR 

subpart 19.3). Pursuant to Public Law 

114–328, SBA will hear cases related to 

size and status, including ownership 

and control challenges under the VA 

Veterans First Contracting Program (see 

38 U.S.C. 8127(f)(8)). 

Subpart 819.5—Small Business Total 

Set-Asides, Partial Set-Asides, and 

Reserves 

819.501 General. 

819.501–70 General principles for setting 

aside VA acquisitions. 

(a) The following principles apply to 

VA acquisitions under this subpart: 

(1) Before setting aside or reserving an 

acquisition for small businesses under 

FAR subpart 19.5, contracting officers 

shall refer to 808.002, 819.203–70 and 

subpart 819.70 for VA SDVOSB/VOSB 

priorities and preferences. 

(2) Set-asides under the Veterans First 

Contracting Program in subpart 819.70 

(see 819.7006 and 819.7007) have 

precedence over other small business 

set-asides authorized in FAR part 19, 

both above and below the simplified 

acquisition threshold (SAT). An 

SDVOSB/VOSB set-aside satisfies the 

legislative requirement to reserve 

actions below the SAT for small 

business. 

(3) Pursuant to 38 U.S.C. 8127(d), setasides for SDVOSBs/VOSBs are 

mandatory whenever a contracting 

officer has a reasonable expectation of 

receiving two or more offers/quotes 

from eligible, capable and verified firms, 

and that an award can be made at a fair 

and reasonable price that offers best 

value to the Government. (VA Rule of 

Two). 

(b) The set-aside principles in this 

section apply to VA acquisitions even 

when a procuring activity is meeting its 

goals or is planning the use of an 

interagency agreement, Federal Supply 

Schedule, or a multiple award contract, 

including a Governmentwide contract 

vehicle. 

(c) The requirements in this 

subsection apply to all VA acquisitions 

under this subpart, including reserves, 

orders and BPAs under multiple award 

contracts, GSA Federal Supply 

Schedule contracts and Multi-Agency 

Contracts (MACs) awarded by another 

agency. A set-aside restricted to 

SDVOSBs/VOSBs pursuant to subpart 

819.70 satisfies competition 

requirements in FAR part 6, as well as 

fair opportunity requirements for orders 

under multiple-award contracts (see 

FAR 16.505(b)(2)(i)(F)). 

819.502 Setting aside acquisitions. 

819.502–1 Requirements for setting aside 

acquisitions. 

(b) Contracting officers shall refer to 

808.002 for the VA policy regarding 

priorities for use of SDVOSBs/VOSBs 

and mandatory Government sources. 

819.502–2 Total small business set-asides. 

(a) If the contracting officer receives 

no acceptable offers from responsible 

small business concerns, the set-aside 

shall be withdrawn and the 

requirement, if still valid, shall be 

resolicited on an unrestricted basis or, if 

permitted in the solicitation, the 

contracting officer will follow the tiered 

set-aside evaluation procedures in 

819.7010, Tiered evaluation, and 

proceed to the next eligible tier in the 

evaluation process. 

819.507 Solicitation provisions and 

contract clauses. 

819.507–70 Additional VA solicitation 

provisions and contract clauses. 

For contracts, orders or BPAs to be 

issued as SDVOSB/VOSB reserve, tiered 

evaluation, set-aside or sole source, see 

819.7011. Also see subparts 808.4, 

815.3, and 819.203–70 for requirements 

and clauses applicable to VA small 

business set-asides. 

Subpart 819.6—[Reserved] 

Subpart 819.7—The Small Business 

Subcontracting Program 

819.704–70 VA subcontracting plan 

requirements. 

(a) VA’s current subcontracting goals, 

at a minimum, shall be inserted into all 

solicitations which contain FAR clause 

52.219–9. To the maximum extent 

possible, the contracting officer shall 

ensure that individual subcontracting 

plans submitted by offerors subject to 

clause 852.219–70, VA Small Business 

Subcontracting Plan Minimum 

Requirements, include SDVOSB/VOSB 

goals that are commensurate with the 

annual VA SDVOSB/VOSB 

subcontracting goals (see 819.708). 

(1) Only firms listed as verified on the 

Vendor Information Pages (VIP) 

database (see subpart 819.70) will count 

towards SDVOSB and VOSB goals. 

(2) A contractor may reasonably rely 

on a subcontractor’s status as shown in 

the VIP database as of the date of 

subcontract award, provided the 

contractor retains records of the results 

of the VIP database query. 

(3) In furtherance of 38 U.S.C. 

8127(a)(4), contractors shall submit 

subcontracting plan reports to OSDBU 

as set forth in clause 852.219–70, VA 

Small Business Subcontracting Plan 

Minimum Requirements. Unless 

otherwise directed by OSDBU, VA Form 

0896A, Report of Subcontracts to Small 

and Veteran Owned Business, shall be 

used to submit the required information. 

(b) Subcontracting goals should be 

expressed as a percentage of total 

dollars to be subcontracted unless 

otherwise stated in the solicitation. 

(c) If an offeror proposes to use an 

SDVOSB/VOSB subcontractor for the 

purpose of receiving SDVOSB/VOSB 

evaluation factors credit pursuant to 

808.405–70 or 815.304–70, the 

contracting officer shall ensure that the 

offeror, if awarded the contract, actually 

uses the proposed subcontractor or 

another SDVOSB/VOSB for that 

subcontract or for work of similar value, 

in accordance with clause 852.208–70, 

Service-Disabled Veteran-Owned and 

Veteran-Owned Small Business 

Evaluation Factors—Orders or BPAs or 

852.215–71, Evaluation Factor 

Commitments. 

(d) Pursuant to 38 U.S.C. 8127(g), any 

business concern that is determined by 

VA to have willfully and intentionally 

misrepresented a company’s SDVOSB or 

VOSB status is subject to debarment 

from contracting with the Department 

for a period of not less than five years. 

This includes the debarment of all 

principals in the business (see 809.406– 

270, Additional causes for debarment). 

819.708 Contract clauses. 

(b) The contracting officer shall insert 

clause 852.219–70, Small Business 

Subcontracting Plan Minimum 

Requirements, in solicitations and 

contracts that include FAR clause 

52.219–9, Small Business 

Subcontracting Plan. 


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Subpart 819.8—Contracting With the 

Small Business Administration (the 

8(a) Program) 

819.800 General. 

(e) The Small Business 

Administration (SBA) and the 

Department of Veterans Affairs (VA) 

have entered into a Partnership 

Agreement delegating SBA’s contract 

execution and administrative functions 

to VA. Contracting officers shall follow 

the alternate procedures in the 

Partnership Agreement and this subpart, 

as applicable, to award an 8(a) contract. 

In the event the Partnership Agreement 

ceases to be in effect, contracting 

officers shall follow the procedures in 

FAR subpart 19.8. 

819.811 Preparing the contracts. 

819.811–370 VA/SBA Partnership 

Agreement and contract clauses. 

(a) Before placing new requirements 

under the 8(a) program, the contracting 

officer must determine whether an 

SDVOSB/VOSB set-aside is mandated 

under the VA Rule of Two (see 802.101, 

Definitions). If the determination does 

not result in an SDVOSB/VOSB setaside, the contracting officer may 

consider the 8(a) program. 

(b) The Partnership Agreement 

provides that SBA can release 

procurements already in the program 

whenever an SDVOSB or VOSB setaside is feasible. 

(c) When an 8(a) acquisition is 

processed pursuant to the Partnership 

Agreement, the contracting officer shall: 

(1) For competitive solicitations and 

awards, use the clause at 852.219–71, 

VA Notification of Competition Limited 

to Eligible 8(a) Participants, substituting 

paragraph (c) of FAR 52.219–18 

Notification of Competition Limited to 

Eligible 8(a) Participants. with the 

paragraph (c) contained in 852.219–71. 

(2) For noncompetitive solicitations 

and awards insert the clause at 852.219– 

72, Notification of Section 8(a) Direct 

Awards, instead of the prescribed FAR 

clauses at 52.219–11, Special 8(a) 

Contract Conditions; 52.219–12, Special 

8(a) Subcontract Conditions; and 

52.219–17, Section 8(a) Award. 

(3) In all instances, contracting 

include the clause at FAR 52.219–14, 

Limitations on Subcontracting, or if 

applicable 52.219–33 Nonmanufacturer 

Rule. 

Subpart 819.70—The VA Veterans First 

Contracting Program 

819.7001 General. 

(a) Sections 502 and 503 of Public 

Law 109–461, the Veterans Benefits, 

Health Care, and Information 

Technology Act of 2006, as amended (38 

U.S.C. 8127–8128), authorizes a VA 

specific program to increase contracting 

opportunities for eligible small business 

concerns owned and controlled by 

Veterans with service-connected 

disabilities and small business concerns 

owned and controlled by Veterans. 

Once ownership and control by these 

veterans is verified, these businesses are 

referred to as service-disabled veteranowned small businesses (SDVOSBs) and 

veteran-owned small businesses 

(VOSBs) or collectively SDVOSB/VOSB 

for ease of reference. 

(b) The program as implemented in 

this subpart shall be known as the 

Veterans First Contracting Program. The 

purpose of the program is to increase 

contracting opportunities and provide 

for priority in the award of contracts 

and subcontracts to SDVOSBs/VOSBs so 

they can fully participate in the VA 

contracting process. Eligible SDVOSBs 

qualify for any VOSB preferences under 

this subpart. 

(c) 38 U.S.C. 8127 (b), (c), and (d) 

provide the authority for VA contracting 

officers to make awards to SDVOSBs/ 

VOSBs using restricted competition, as 

well as other than full and open 

competition (sole source), as set-forth in 

this subpart. 38 U.S.C. 8128 provides 

the authority for VA to give SDVOSBs/ 

VOSBs priority in the awarding of 

contracts and subcontracts using 

evaluation preferences. 

(d) Contracting officers shall award 

contracts by restricting competition to 

eligible SDVOSBs/VOSBs as provided 

in 819.7006 and 819.7007. The 

contracting officer may use other 

preferences in this subpart as 

appropriate and in accordance with 

procuring activity guidelines. 

(e) Pursuant to 38 U.S.C. 8128, 

contracting officers shall give priority to 

SDVOSBs/VOSBs if such business 

concern(s) also meet the requirements of 

that contracting preference. In carrying 

out this responsibility, contracting 

officers shall include the clauses 

prescribed at 808.405–570 and 815.304– 

71 in competitive solicitations and 

contracts that are not set-aside for 

SDVOSB/VOSB, including those under 

FAR part 12. This requirement applies 

even when using a contracting 

preference under FAR part 19 (for 

example, a women-owned small 

business set-aside). 

(f) The attainment of goals or the use 

of interagency vehicles or 

Governmentwide contract vehicles (i.e., 

Federal Supply Schedules (FSS)) does 

not relieve the contracting officer from 

using SDVOSB/VOSB set-asides and 

other preferences as provided in subpart 

819.70. Moreover, if the VA enters into 

a contract, agreement, or other 

arrangement with any Governmental 

entity to acquire goods or services, the 

entity acting on behalf of the VA 

through such an interagency acquisition 

or other agreement will comply, to the 

maximum extent feasible, with the 

provisions of the Veterans First 

Contracting Program as set forth in this 

subpart. 

(g) Contracting officers shall ensure 

awards are made using the VA hierarchy 

of SDVOSB/VOSB preferences in this 

subpart. Specifically, the contracting 

officer will consider preferences for 

eligible SDVOSBs first, then preferences 

for other eligible VOSBs. 

(h) When an offer of an SDVOSB/ 

VOSB prime contractor includes a 

proposed team of small business 

subcontractors and specifically 

identifies the first-tier subcontractor(s) 

in the proposal, the contracting officer 

must consider the capabilities, past 

performance, and experience of each 

first tier subcontractor that is part of the 

team as the capabilities, past 

performance, and experience of the 

small business prime contractor if the 

capabilities, past performance, and 

experience of the small business prime 

does not independently demonstrate 

capabilities and past performance 

necessary for award. 

819.7002 Applicability. 

Unless otherwise exempted by law, 

this subpart applies to VA contracting 

activities and contracts (see FAR 2.101, 

Definitions) including BPAs and orders 

under FAR subpart 8.4 and commercial 

acquisitions under FAR part 12. In 

addition, this subpart applies to VA 

contractors, their subcontractors and to 

any Government entity that has a 

contract, agreement, or other 

arrangement with the VA to acquire 

goods and services on behalf of the VA 

(see 817.502). For applicability and VA 

policy regarding priorities for use of 

mandatory Government sources, see 

808.002. 

819.7003 Eligibility. 

(a) SDVOSB/VOSB size eligibility, 

challenges and appeals are governed by 

the Small Business Administration 

(SBA) regulations at 13 CFR parts 

121,125, and 134, except where directed 

otherwise by this part or 38 CFR part 74, 

Veterans Small Business Regulations. 

(b) At the time of submission of 

offers/quotes, and at the time of award 

of any contract, the offeror must 

represent to the contracting officer that 

it is a— 

(1) SDVOSB or VOSB eligible under 

this subpart; 


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(2) Small business concern under the 

North American Industry Classification 

System (NAICS) code assigned to the 

acquisition; and 

(3) Listed as a verified SDVOSB/ 

VOSB on the VA’s Vendor Information 

Pages (VIP) at https://

www.vetbiz.va.gov/vip/. 

(c) A joint venture may be considered 

eligible if it meets the requirements in 

13 CFR part 125; and the joint venture 

is listed in the VIP database. 

(d) To receive a benefit under the 

Veterans First Contacting Program, an 

otherwise eligible SDVOSB/VOSB must 

also meet SBA requirements at 13 CFR 

part 121, Small Business Size 

Regulations and 13 CFR part 125, 

Government Contracting Programs, 

including the nonmanufacturer rule 

requirements at 13 CFR 121.406(b) and 

limitations on subcontracting at 13 CFR 

125.6. The nonmanufacturer rule (see 13 

CFR 121.406) and the limitations on 

subcontracting requirements apply to all 

SDVOSB and VOSB set-aside and sole 

source contracts above the micropurchase threshold. An offeror shall 

submit a certification of compliance to 

be considered eligible for any award 

under this part (see 819.7004). 

(e) Pursuant to 38 U.S.C. 8127(g), any 

business concern that is determined by 

VA to have willfully and intentionally 

misrepresented a company’s SDVOSB/ 

VOSB status is subject to debarment 

from contracting with the Department 

for a period of not less than five years. 

This includes the debarment of all 

principals in the business. See 809.406– 

270, Additional causes for debarment. 

819.7004 Limitations on subcontracting 

compliance requirements. 

(a) A contract awarded under this 

subpart is subject to the SBA limitations 

on subcontracting requirements in 13 

CFR 125.6, provided that— 

(1) Only VIP-listed SDVOSBs are 

considered eligible and/or ‘‘similarly 

situated’’ under an SDVOSB sole source 

or set-aside. 

(2) A VOSB is subject to the same 

limitations on subcontracting that apply 

to an SDVOSB. 

(3) Any VIP-listed SDVOSB/VOSB is 

considered eligible and/or ‘‘similarly 

situated’’ under a VOSB sole source or 

set-aside. 

(b) Pursuant to the authority of 38 

U.S.C. 8127(k)(2), a contracting officer 

may award a contract under this subpart 

only after obtaining from the offeror a 

certification that the offeror will comply 

with the limitations on subcontracting 

requirement as provided in the 

solicitation and which shall be included 

in the resultant contract (see 819.7011). 

(1) The formal certification must be 

completed, signed and returned with 

the offeror’s bid, quotation, or proposal. 

(2) The Government will not consider 

offers for award from offerors that do 

not provide the certification with their 

bid, quotation, or proposal, and all such 

responses will be deemed ineligible for 

evaluation and award. 

(c) An otherwise eligible first tier 

subcontractor must meet the NAICS size 

standard assigned by the prime 

contractor and be listed in VIP to count 

as similarly situated. Any work that a 

first tier VIP-listed subcontractor further 

subcontracts will count towards the 

percent of subcontract amount that 

cannot be exceeded. 

(d) An SDVOSB/VOSB awarded a 

contract on the basis of a set-aside, sole 

source, or an evaluation preference is 

required to comply with the limitations 

on subcontracting either by— 

(1) The end of the base term, and then 

by the end of each subsequent option 

period; or, by the end of the 

performance period for each order 

issued under the contract, at the 

contracting officer’s discretion; and 

(2) For an order set aside for 

SDVOSB/VOSB as described in 808.405 

and FAR 16.505(b)(2)(i)(F), or for an 

order issued directly to an SDVOSB/ 

VOSB in accordance with FAR 

19.504(c)(1)(ii), by the end of the 

performance period for the order. 

(e) The contracting officer may also, at 

their discretion, require the contractor 

to demonstrate its compliance with the 

limitations on subcontracting at any 

time during performance of the contract, 

and upon completion of a contract if the 

information regarding such compliance 

is not already available to the 

contracting officer. Evidence of 

compliance includes, but is not limited 

to, invoices, copies of subcontracts, or a 

list of the value of tasks performed. 

(f) Pursuant to Public Law 116–183, 

the Office of the Small and 

Disadvantaged Business Utilization 

(OSDBU) and Chief Acquisition Officer 

(CAO), will implement a process to 

monitor compliance with the 

requirement in this section. The OSDBU 

and CAO shall jointly refer any 

violations or suspected violations to the 

VA Office of Inspector General. This 

referral obligation does not relieve 

contracting officers of their obligation to 

report suspected violations of law to the 

OIG. 

(1) If the Secretary or designee 

determines in consultation with the 

Inspector General that an SDVOSB/ 

VOSB awarded a contract pursuant to 

38 U.S.C. 8127 did not act in good faith 

with respect to the requirements 

described in 819.7003 paragraph (d), 

such SDVOSB/VOSB shall be subject to 

any or all of the following— 

(i) Referral to the VA Suspension and 

Debarment Committee; 

(ii) A fine under section 16(g)(1) of the 

Small Business Act (15 U.S.C. 

645(g)(1)); and 

(iii) Prosecution for violating section 

1001 of title 18. 

(2) The Inspector General shall report 

to the Congress annually on the number 

of referred violations and suspected 

violations, and the disposition of such 

violations, including the number of 

small business concerns suspended or 

debarred from federal contracting or 

referred for Department of Justice 

prosecution. 

819.7005 Contracting order of priority. 

(a) In determining the acquisition 

strategy applicable to a procurement 

requirement not otherwise covered 

under 808.002, the contracting officer 

shall observe the order of contracting 

preferences in 38 U.S.C. 8127(h). 

(b) Specifically, preferences for 

awarding contracts to small business 

concerns shall be applied in the 

following order of priority: 

(1) Contracts awarded to small 

business concerns owned and 

controlled by Veterans with serviceconnected disabilities as provided in 

this subpart. 

(2) Contracts to small business 

concerns owned and controlled by 

Veterans that are not covered by 

paragraph (a)(1) of this section as 

provided in this subpart. 

(3) Contracts awarded pursuant to— 

(i) Section 8(a) of the Small Business 

Act (15 U.S.C. 637(a) as provided in 

FAR subpart 19.8—Contracting with the 

Small Business Administration (The 

8(a) Program); or 

(ii) Section 31 of the Small Business 

Act (15 U.S.C. 657a) as provided in FAR 

subpart 19.13—Historically 

Underutilized Business Zone 

(HUBZone) Program. 

(4) Contracts awarded pursuant to any 

other small business set aside 

contracting preference, with due 

deference to the priority for awarding to 

Women-owned small businesses as 

provided in FAR 19.203(b) through (e) 

and FAR subpart 19.15. 

819.7006 VA service-disabled veteranowned small business set-aside 

procedures. 

(a) The contracting officer shall 

consider SDVOSB set-asides before 

considering VOSB set-asides. Except as 

authorized by 808.002, 813.106, 

819.7007, and 819.7008, the contracting 

officer shall set-aside a contract action 

exceeding the micro-purchase threshold 


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for competition restricted to VIP-listed 

SDVOSB upon a reasonable expectation 

based on market research that— 

(1) Offers/quotations will be received 

from two or more eligible VIP-listed 

SDVOSBs; and 

(2) Award can be made at a fair and 

reasonable price that offers the best 

value to the Government. 

(b) When conducting SDVOSB setasides, the contracting officer shall 

ensure that— 

(1) Offerors are registered and verified 

as eligible in the VIP database at the 

time of submission of offers and at time 

of award; and 

(2) Offerors affirmatively represent 

their SDVOSB and small business status 

based on the size standard 

corresponding to the North American 

Industrial Classification System 

(NAICS) code assigned to the 

solicitation/contract, as set forth in 

819.7003(b) or (c). 

(c) If the contracting officer receives 

only one acceptable offer at a fair and 

reasonable price from an eligible VIPlisted SDVOSB, the contracting officer 

may make an award to that concern. If 

the contracting officer receives no 

acceptable offers from eligible 

SDVOSBs, the set-aside shall be 

withdrawn and the requirement, if still 

valid, set aside for VOSB competition if 

warranted or otherwise procured using 

the most appropriate strategy based on 

the results of market research. 

819.7007 VA veteran-owned small 

business set-aside procedures. 

(a) The contracting officer shall 

consider SDVOSB set-asides before 

considering VOSB set-asides. Except as 

authorized by 808.002, 813.106, 

819.7007, and 819.7008, the contracting 

officer shall set aside a contract action 

exceeding the micro-purchase threshold 

for competition restricted to VIP-listed 

VOSBs upon a reasonable expectation 

based on market research that— 

(1) Offers/quotations will be received 

from two or more VIP-listed VOSBs; and 

(2) Award can be made at a fair and 

reasonable price that offers the best 

value to the Government. 

(b) When conducting VOSB setasides, the contracting officer shall 

ensure that— 

(1) Offerors are registered and verified 

as eligible in the VIP database at the 

time of submission of offers and at time 

of award; and 

(2) Offerors affirmatively represent 

their SDVOSB/VOSB and small 

business status based on the size 

standard corresponding to the NAICS 

code assigned to the solicitation/ 

contract (see 819.7003(b) and (c)). 

(c) If the contracting officer receives 

only one acceptable offer at a fair and 

reasonable price from an eligible VIPlisted VOSB in response to a VOSB setaside, the contracting officer may make 

an award to that concern. If the 

contracting officer decides not to make 

an award to the single acceptable offer 

received, or if the contracting officer 

receives no acceptable offers from 

eligible VOSBs, the set-aside shall be 

withdrawn and the requirement, if still 

valid, set aside for other small business 

programs in accordance with 819.7005 

or otherwise procured using the most 

appropriate strategy based on the results 

of market research. 

819.7008 Sole source awards to verified 

service-disabled veteran-owned small 

businesses. 

(a) A contracting officer may award a 

contract to a VIP-listed service-disabled 

veteran-owned small business 

(SDVOSB) using other than competitive 

procedures provided— 

(1) The anticipated award price of the 

contract (including options) will not 

exceed $5 million; 

(2) The requirement is synopsized and 

the required justification pursuant to 

FAR 6.302–5(c)(2)(ii) is posted in 

accordance with FAR part 5; 

(3) The SDVOSB has been determined 

to be a responsible contractor with 

respect to performance; and 

(4) In the estimation of the contracting 

officer contract award can be made at a 

fair and reasonable price that offers best 

value to the Government. 

(b) The contracting officer’s 

determination to make a sole source 

award is a business decision wholly 

within the discretion of the contracting 

officer. To ensure that opportunities are 

available to the broadest number of 

SDVOSBs, this authority is to be used 

only when in the best interest of the 

Government. 

(c) A determination that only one 

SDVOSB can meet the requirement is 

not required. However, in accordance 

with FAR 6.302–5(c)(2)(ii), contracts 

awarded using this authority shall be 

supported by a written justification and 

approval described in FAR 6.303 and 

6.304, as applicable. 

(d) When conducting a SDVOSB sole 

source acquisition, the contracting 

officer shall ensure the business meets 

eligibility requirements in 819.7003. 

(e) A procurement requirement 

estimated to exceed the legislative 

threshold of $5 million shall not be split 

or subdivided to permit the use of this 

SDVOSB sole source authority. 

819.7009 Sole source awards to verified 

veteran-owned small businesses. 

(a) A contracting officer may award a 

contract to a VIP-listed veteran-owned 

small business (VOSB) using other than 

competitive procedures provided— 

(1) The anticipated award price of the 

contract (including options) will not 

exceed $5 million; 

(2) The requirement is synopsized and 

the required justification pursuant to 

6.302–5(c)(2)(ii) is posted in accordance 

with FAR part 5; 

(3) The VOSB has been determined to 

be a responsible contractor with respect 

to performance; 

(4) In the estimation of the contracting 

officer contract award can be made at a 

fair and reasonable price that offers best 

value to the Government; and 

(5) No responsible SDVOSB has been 

identified. 

(b) The contracting officer’s 

determination to make a sole source 

award is a business decision wholly 

within the discretion of the contracting 

officer. To ensure that opportunities are 

available to the broadest number of 

VOSBs, this authority is to be used only 

when in the best interest of the 

Government. 

(c) A determination that only one 

VOSB can meet the requirement is not 

required. However, in accordance with 

FAR 6.302–5(c)(2)(ii), contracts awarded 

using this authority shall be supported 

by a written justification and approval 

described in FAR 6.303 and 6.304, as 

applicable. 

(d) When conducting a VOSB sole 

source acquisition, the contracting 

officer shall ensure the business meets 

eligibility requirements in 819.7003. 

(e) A procurement requirement 

estimated to exceed the legislative 

threshold of $5 million shall not be split 

or subdivided to permit the use of this 

VOSB sole source authority. 

819.7010 Tiered set-aside evaluation. 

(a) Pursuant to the authority of 38 

U.S.C. 8127 and under limited 

circumstances as set forth in this 

section, contracting officers may 

consider using a tiered set-aside 

evaluation approach to minimize delays 

in the re-solicitation process. 

(b) Tiered evaluation of offers is a 

procedure that may be used in 

competitive negotiated acquisitions, 

including construction and acquisitions 

for commercial products and 

commercial services when the VA Rule 

of Two determination indicates a setaside is required, but other 

circumstances preclude a confident 

conclusion that an award can be made 

at the SDVOSB or VOSB tier. The 

contracting officer— 

(1) Solicits and receives offers from 

targeted tiers of small business groups, 

with SDVOSB as the first tier and VOSB 

as the second tier; 


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(2) Establishes a tiered order of 

priority for evaluating offers that is 

specified in the solicitation; and 

(3) If no award can be made at the first 

tier, evaluates offers at the next lower 

tier, until award can be made. 

(c) Market research, which shall be 

conducted and documented in advance 

of issuing the solicitation, will inform 

which of the following types of tiers 

will be included in the solicitation: 

(1) Tiered evaluations limited to 

SDVOSBs or VOSBs; 

(2) Tiered evaluations including 8(a) 

and HUBZone small businesses; or 

(3) Tiered evaluations including all 

other small business concerns. 

(d) The tiered order of priority shall 

be consistent with 819.7005. 

Consideration shall be given to 

HUBZone and 8(a) small business 

concerns before evaluating offers from 

other small business concerns. 

819.7011 Contract clauses. 

(a) The contracting officer shall insert 

clause 852.219–73, VA Notice of Total 

Set-Aside for Verified Service-Disabled 

Veteran-Owned Small Businesses, or 

clause 852.219–74, VA Notice of Total 

Set-Aside for Verified Veteran-Owned 

Small Businesses, as applicable, in 

solicitations, orders and contracts that 

are set-aside, reserved, evaluated or 

awarded under this subpart. This 

includes sole source awards as well as 

multiple-award contracts when orders 

may be set aside for SDVOSBs/VOSBs 

as described in 808.405 and FAR 

19.504(c)(1)(ii). 

(b) The contracting officer shall insert 

the clause at 852.219–75, VA Notice of 

Limitations on Subcontracting— 

Certificate of Compliance for Services 

and Construction, in solicitations and 

contracts for services and construction, 

including BPAs, BOAs, and orders, for 

acquisitions that are evaluated, setaside, or awarded on a sole source basis 

under this subpart. This includes orders 

awarded under multiple-award 

contracts to SDVOSBs/VOSBs. 

(c) The contracting officer shall insert 

the clause at 852.219–76, VA Notice of 

Limitations on Subcontracting— 

Certificate of Compliance for Supplies 

and Products, in solicitations and 

contracts for supplies or products, 

including BPAs, BOAs, and orders, for 

acquisitions that are to be awarded on 

the basis of an SDVOSB/VOSB set-aside, 

sole source, or an evaluation preference 

under this subpart. This includes orders 

awarded under multiple-award 

contracts to SDVOSBs/VOSBs. The 

contracting officer shall appropriately 

tailor the clause as set forth in 

paragraph (a)(2)(iii) of this section. 

Subpart 819.71—[Reserved] 

PART 832—CONTRACT FINANCING 

■ 10. The authority citation for part 832 

continues to read as follows: 

Authority: 40 U.S.C. 121(c); 41 U.S.C. 

1303, 41 U.S.C. 1702; and 48 CFR 1.301 

through 1.304. 

Subpart 832.9 [Removed and 

Reserved] 

■ 11. Remove and reserve subpart 832.9. 

PART 852—SOLICITATION 

PROVISIONS AND CONTRACT 

CLAUSES 

■ 12. Revise the authority citation for 

part 852 to read as follows: 

Authority: 38 U.S.C. 8127–8128, and 

8151–8153; 40 U.S.C. 121(c); 41 U.S.C. 

1121(c)(3), 41 U.S.C. 1303; 41 U.S.C. 1702; 

and 48 CFR 1.301 through 1.304. 

Subpart 852.2—Text of Provisions and 

Clauses 

852.207–70 [Removed and Reserved] 

■ 13. Remove and reserve section 

852.207–70. 

■ 14. Add Section 852.208–70 to read as 

follows: 

852.208–70 Service-Disabled VeteranOwned and Veteran-Owned Small Business 

Evaluation Factors—Orders or BPAs. 

As prescribed in 808.405–570, insert 

the following clause: 

SERVICE-DISABLED VETERANOWNED AND VETERAN-OWNED 

SMALL BUSINESS EVALUATION 

FACTORS—ORDERS OR BPAs (DATE) 

(a) In an effort to increase contracting 

opportunities for Veterans, depending 

on the evaluation factors included in the 

solicitation, VA will evaluate responses 

received based on the schedule 

Contractor’s VIP-verified servicedisabled veteran-owned small business/ 

veteran-owned small business 

(SDVOSB/VOSB) status; and/or their 

proposed use of VIP-listed SDVOSB/ 

VOSB as subcontractors or teaming 

partners. 

(b) To receive credit under this clause 

a contractor or subcontractor must be 

listed, at time of submission of offer/ 

quotes and at time of award, as an 

eligible SDVOSB/VOSB in the Vendor 

Information Pages (VIP) database at 

https://www.vetbiz.va.gov/vip/. 

(c) A VIP-listed SDVOSB schedule 

holder will receive full credit, and a 

VIP-listed VOSB schedule holder will 

receive partial credit for the SDVOSB/ 

VOSB status evaluation factor. 

(d) Offerors other than SDVOSBs or 

VOSBs proposing to use VIP-listed 

SDVOSBs/VOSBs as subcontractors/ 

teaming partners, will receive some 

consideration under this evaluation 

factor. To receive consideration, offerors 

must provide in their proposals: 

(1) The name(s) and contact 

information of the VIP-listed 

SDVOSB(s)/VOSB(s) with whom they 

intend to team or subcontract. 

(2) A brief description of the proposed 

team or subcontractor(s) arrangement. 

(3) The approximate dollar value of 

the proposed teaming arrangements or 

subcontract(s). 

(4) Evidence of teaming partner/ 

subcontractor’s VIP database registration 

and verification. 

(e) Pursuant to 38 U.S.C. 8127(g), any 

business concern that is determined by 

VA to have willfully and intentionally 

misrepresented a company’s SDVOSB/ 

VOSB status is subject to debarment for 

a period of not less than five years. This 

includes the debarment of all principals 

in the business. 

(End of clause) 

■ 15. Add section 852.208–71 to read as 

follows: 

852.208–71 Service-Disabled VeteranOwned and Veteran-Owned Small Business 

Evaluation Factor Commitments—Orders 

and BPAs. 

As prescribed in 808.405–570, insert 

the following clause: 

SERVICE-DISABLED VETERANOWNED AND VETERAN-OWNED 

SMALL BUSINESS EVALUATION 

FACTOR COMMITMENTS—ORDERS 

AND BPAs (DATE) 

(a) The Contractor agrees, if selected 

on the basis of service-disabled veteranowned small business (SDVOSB) or 

veteran-owned small business (VOSB) 

status, to comply with the eligibility 

requirements in subpart 819.70, 

including the limitation on 

subcontracting requirements at 13 CFR 

125.6. 

(b) The Contractor agrees, if selected 

for award on the basis of teaming/ 

subcontracting in accordance with 

852.208–70, Service-Disabled VeteranOwned and Veteran-Owned Small 

Business Evaluation Factors—Orders 

and BPAs, to use the evaluated firm(s) 

as proposed or if approved by 

contracting officer to substitute one or 

more VIP-verified SDVOSB/VOSB for 

work of the same or similar value. 

(c) Pursuant to 38 U.S.C. 8127(g), any 

business concern that is determined by 

VA to have willfully and intentionally 

misrepresented a company’s SDVOSB/ 

VOSB status is subject to debarment for 

a period of not less than five years. This 

includes the debarment of all principals 

in the business. 


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(End of clause) 

852.219–9 [Removed] 

■ 16. Remove Section 852.219–9. 

■ 17. Add section 852.219–70to read as 

follows: 

852.219–70 VA Small Business 

Subcontracting Plan Minimum 

Requirements. 

As prescribed in 819.708, insert the 

following clause: 

VA SMALL BUSINESS 

SUBCONTRACTING PLAN MINIMUM 

REQUIREMENTS (DATE) 

(a) This clause does not apply to small 

business concerns. 

(b) If the offeror is required to submit 

an individual subcontracting plan, the 

minimum goals for award of 

subcontracts to VA verified servicedisabled veteran-owned small business 

and veteran-owned small business 

SDVOSB/VOSB shall be at least 

commensurate with the Department’s 

annual SDVOSB/VOSB subcontracting 

goals. 

(c) For a commercial plan, the 

minimum goals for award of 

subcontracts to SDVOSB/VOSB shall be 

at least commensurate with the 

Department’s annual service-disabled 

veteran-owned small business and 

veteran-owned small business 

subcontracting goals for the total value 

of projected subcontracts to support the 

sales for the commercial plan. 

(d) To be credited toward goal 

achievements, SDVOSB/VOSBs must be 

verified as eligible in the VA’s Vendor 

Information Pages (VIP) database at 

https://www.vetbiz.va.gov/vip/. A 

contractor may reasonably rely on a 

subcontractor’s status as shown in the 

VIP database as of the date of 

subcontract award, provided the 

contractor retains records of the results 

of the VIP database query. 

(e) The Contractor shall annually 

submit a listing of SDVOSB/VOSB (for 

which credit toward goal achievement is 

to be applied) for review by personnel 

in the Office of Small and 

Disadvantaged Business Utilization. Use 

VA Form 0896A, Report of Subcontracts 

to Small and Veteran-Owned Business. 

(f) Pursuant to 38 U.S.C. 8127(g), any 

business concern that is determined by 

VA to have willfully and intentionally 

misrepresented a company’s SDVOSB/ 

VOSB status is subject to debarment for 

a period of not less than five years. This 

includes the debarment of all principals 

in the business. 

(End of clause) 

■ 18. Revise section 852.219–71 to read 

as follows: 

852.219–71 Notification of Competition 

Limited to Eligible 8(a) Participants. 

As prescribed in 819.811–370, when 

FAR 52.219–18, Notification of 

Competition Limited to Eligible 8(a) 

Participants, is utilized, use this clause 

in conjunction with the FAR clause. 

NOTIFICATION OF COMPETITION 

LIMITED TO ELIGIBLE 8(a) 

PARTICIPANTS (DATE) 

Substitute paragraph (c) in FAR 

Clause 52.219–18 as follows: 

(c) Any award resulting from this 

solicitation will be made directly by the 

Contracting Officer to the successful 8(a) 

offeror. Although SBA is not identified 

as such in the award form, SBA is still 

the Prime Contractor. Contractor shall 

comply with the limitations on 

subcontracting as provided in 13 CFR 

125.6 and other 8(a) program 

requirements, as set forth in 13 CFR part 

124. 

(End of clause) 

■ 19. Revise section 852.219–72 to read 

as follows: 

852.219–72 Notification of Section 8(a) 

Direct Award. 

As prescribed in 819.811–370, 

paragraph (a), insert the following 

clause: 

NOTIFICATION OF SECTION 8(a) 

DIRECT AWARD (DATE) 

(a) Offers are solicited only from small 

business concerns expressly certified by 

the Small Business Administration 

(SBA) for participation in the SBA’s 8(a) 

Program. By submission of its offer, the 

Offeror represents that it is in good 

standing and that it meets all of the 

criteria for participation in the program 

in accordance with 13 CFR part 124. 

(b) Any award resulting from this 

solicitation will be made directly by the 

Contracting Officer to the successful 8(a) 

offeror. Although SBA is not identified 

as such in the award form, SBA is still 

the Prime Contractor. 

(c) This contract is issued as a direct 

award between the contracting activity 

and the 8(a) Contractor pursuant to the 

Partnership Agreement (PA) between 

the Small Business Administration 

(SBA) and the Department of Veterans 

Affairs. 

(d) SBA retains responsibility for 8(a) 

certification, 8(a) eligibility 

determinations and related issues, and 

providing counseling and assistance to 

the 8(a) Contractor under the 8(a) 

program. The cognizant SBA district 

office is: 

[To be completed by the Contracting 

Officer at the time of award] 

(e) The contracting activity is 

responsible for administering the 

contract and taking any action on behalf 

of the Government under the terms and 

conditions of the contract. However, the 

contracting activity shall give advance 

notice to the SBA before it issues a final 

notice terminating performance, either 

in whole or in part, under the contract. 

The contracting activity shall obtain 

SBA’s approval prior to processing any 

novation agreement(s). The contracting 

activity may assign contract 

administration functions to a contract 

administration office. 

(f) The Contractor agrees: 

(1) To notify the Contracting Officer, 

simultaneous with its notification to 

SBA (as required by SBA’s 8(a) 

regulations), when the owner or owners 

upon whom 8(a) eligibility is based plan 

to relinquish ownership or control of 

the concern. 

(2) Consistent with 15 U.S.C. 

637(a)(21), transfer of ownership or 

control shall result in termination of the 

contract for convenience, unless SBA 

waives the requirement for termination 

prior to the actual relinquishing of 

ownership and control. 

(3) It will adhere to the requirements 

of 52.219–14, Limitations of 

Subcontracting and other requirements 

in 13 CFR part 124 and 13 CFR 125.6, 

as applicable 

(g) Any proposed joint venture 

involving an 8(a) Participant must be 

approved by SBA before contracts are 

awarded. 

(End of clause) 

852.219–10 [Removed] 

■ 20. Remove section 852.219–10. 

■ 21. Add section 852.219–73 to read as 

follows: 

852.219–73 VA Notice of Total Set-Aside 

for Verified Service-Disabled VeteranOwned Small Businesses. 

As prescribed in 819.7011, insert the 

following clause: 

VA NOTICE OF TOTAL SET-ASIDE 

FOR VERIFIED SERVICE-DISABLED 

VETERAN-OWNED SMALL 

BUSINESSES (DATE) 

(a) Definition. For the Department of 

Veterans Affairs, ‘‘Service-disabled 

Veteran-owned small business concern 

or SDVOSB’’: 

(1) Means a small business concern— 

(i) Not less than 51 percent of which 

is owned by one or more servicedisabled Veterans or, in the case of any 

publicly owned business, not less than 

51 percent of the stock of which is 

owned by one or more service-disabled 

Veterans or eligible surviving spouses 

(see VAAR 802.201, Surviving Spouse 

definition); 

(ii) The management and daily 

business operations of which are 


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controlled by one or more servicedisabled Veterans (or eligible surviving 

spouses) or, in the case of a servicedisabled Veteran with permanent and 

severe disability, the spouse or 

permanent caregiver of such Veteran; 

(iii) The business meets Federal small 

business size standards for the 

applicable North American Industry 

Classification System (NAICS) code 

identified in the solicitation document; 

(iv) The business has been verified for 

ownership and control pursuant to 38 

CFR part 74 and is listed in VA’s 

Vendor Information Pages (VIP) 

database at https://www.vetbiz.va.gov/ 

vip/; and 

(v) The business will comply with 

VAAR subpart 819.70 and Small 

Business Administration (SBA) 

regulations regarding small business 

size and government contracting 

programs at 13 CFR part 121 and 125, 

provided that any reference therein to a 

service-disabled veteran-owned small 

business concern or SDVO SBC, is to be 

construed to apply to a VA verified and 

VIP-listed SDVOSB, unless otherwise 

stated in this clause. 

(2) 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). 

(3) The term ‘‘small business 

concern’’ has the meaning given that 

term under section 3 of the Small 

Business Act (15 U.S.C. 632). 

(4) The term ‘‘small business concern 

owned and controlled by Veterans with 

service-connected disabilities’’ has the 

meaning given the term ‘‘small business 

concern owned and controlled by 

service-disabled veterans’’ under section 

3(q)(2) of the Small Business Act (15 

U.S.C. 632(q)(2)), except that for a VA 

contract the firm must be listed in the 

VIP database (see paragraph (a)(1)(iv) 

above). 

(b) General. (1) Offers are solicited 

only from VIP-listed SDVOSBs. Offers 

received from entities that are not VIPlisted SDVOSBs at the time of offer shall 

not be considered. 

(2) Any award resulting from this 

solicitation shall be made to a VIP-listed 

SDVOSB who is eligible at the time of 

submission of offer(s) and at the time of 

award. 

(3) The requirements in this clause 

apply to any contract, order or 

subcontract where the firm receives a 

benefit or preference from its 

designation as an SDVOSB, including 

set-asides, sole source awards, and 

evaluation preferences. 

(c) Representation. Pursuant to 38 

U.S.C. 8127(e), only VIP-listed 

SDVOSBs are considered eligible to 

receive award of a resulting contract. By 

submitting an offer, the prospective 

contractor represents that it is an 

eligible SDVOSB as defined in this 

clause, 38 CFR part 74, and VAAR 

subpart 819.70. 

(d) Agreement. When awarded a 

contract action, including orders under 

multiple-award contracts, an SDVOSB 

agrees that in the performance of the 

contract, the SDVOSB shall comply 

with requirements in VAAR subpart 

819.70 and SBA regulations on small 

business size and government 

contracting programs at 13 CFR part 121 

and part 125, including the nonmanufacturer rule and limitations on 

subcontracting requirements in 13 CFR 

121.406(b) and 13 CFR 125.6. Unless 

otherwise stated in this clause, a 

requirement in 13 CFR part 121 and 125 

that applies to an SDVO SBC, is to be 

construed to also apply to a VIP-listed 

SDVOSB. For the purpose of limitations 

on subcontracting, only VIP-listed 

SDVOSBs (including independent 

contractors) shall be considered eligible 

and/or ‘‘similarly situated’’ (i.e., a firm 

that has the same small business 

program status as the prime contractor). 

An otherwise eligible firm further agrees 

to comply with the required 

certification requirements in this 

solicitation (see 852.219–75 or 852.219– 

76 as applicable). These requirements 

are summarized as follows: 

(1) Services. In the case of a contract 

for services (except construction), the 

SDVOSB prime contractor will not pay 

more than 50% of the amount paid by 

the government to the prime for contract 

performance to firms that are not VIPlisted SDVOSBs (excluding direct costs 

to the extent they are not the principal 

purpose of the acquisition and the 

SDVOSB/VOSB does not provide the 

service, such as airline travel, cloud 

computing services, or mass media 

purchases). When a contract includes 

both services and supplies, the 50 

percent limitation shall apply only to 

the service portion of the contract 

(2) Supplies/products. (i) In the case 

of a contract for supplies or products 

(other than from a non-manufacturer of 

such supplies), the SDVOSB prime 

contractor will not pay more than 50% 

of the amount paid by the government 

to the prime for contract performance, 

excluding the cost of materials, to firms 

that are not VIP-listed SDVOSBs. When 

a contract includes both supply and 

services, the 50 percent limitation shall 

apply only to the supply portion of the 

contract. 

(ii) In the case of a contract for 

supplies from a non-manufacturer, the 

SDVOSB prime contractor will supply 

the product of a domestic small 

business manufacturer or processor, 

unless a waiver as described in 13 CFR 

121.406(b)(5) has been granted. Refer to 

13 CRF 125.6(a)(2)(ii) for guidance 

pertaining to multiple item 

procurements. 

(3) General construction. In the case 

of a contract for general construction, 

the SDVOSB prime contractor will not 

pay more than 85% of the amount paid 

by the government to the prime for 

contract performance, excluding the 

cost of materials, to firms that are not 

VIP-listed SDVOSBs. 

(4) Special trade construction 

contractors. In the case of a contract for 

special trade contractors, no more than 

75% of the amount paid by the 

government to the prime for contract 

performance, excluding the cost of 

materials, may be paid to firms that are 

not VIP-listed SDVOSBs. 

(5) Subcontracting. An SDVOSB must 

meet the NAICS size standard assigned 

by the prime contractor and be listed in 

VIP to count as similarly situated. Any 

work that a first tier VIP-listed SDVOSB 

subcontractor further subcontracts will 

count towards the percent of 

subcontract amount that cannot be 

exceeded. For supply or construction 

contracts, the cost of materials is 

excluded and not considered to be 

subcontracted. When a contract 

includes both services and supplies, the 

50 percent limitation shall apply only to 

the portion of the contract with the 

preponderance of the expenditure upon 

which the assigned NAICS is based. For 

information and more specific 

requirements, refer to 13 CFR 125.6. 

(e) Required limitations on 

subcontracting compliance 

measurement period. An SDVOSB shall 

comply with the limitations on 

subcontracting as follows: 

[Contracting Officer check as 

appropriate.] 

__ By the end of the base term of the 

contract or order, and then by the end 

of each subsequent option period; or 

__ By the end of the performance period 

for each order issued under the 

contract. 

(f) Joint ventures. A joint venture may 

be considered eligible as an SDVOSB if 

the joint venture is listed in VIP and 

complies with the requirements in 13 

CFR 125.18(b), provided that any 

requirement therein that applies to an 

SDVO SBC is to be construed to apply 

to a VIP-listed SDVOSB. A joint venture 

agrees that, in the performance of the 

contract, the applicable percentage 

specified in paragraph (d) of this clause 

will be performed by the aggregate of 

the joint venture participants. 


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(g) Precedence. The VA Veterans First 

Contracting Program, as defined in 

VAAR 802.101, subpart 819.70 and this 

clause, takes precedence over any 

inconsistencies between the 

requirements of the SBA Program for 

SDVO SBCs, and the VA Veterans First 

Contracting Program. 

(h) Misrepresentation. Pursuant to 38 

U.S.C. 8127(g), any business concern, 

including all its principals, that is 

determined by VA to have willfully and 

intentionally misrepresented a 

company’s SDVOSB status is subject to 

debarment from contracting with the 

Department for a period of not less than 

five years (see VAAR 809.406–2 Causes 

for Debarment). 

(End of clause) 

852.219–11 [Removed] 

■ 22. Remove section 852.219–11. 

■ 23. Add section 852.219–74 to read as 

follows: 

852.219–74 VA Notice of Total Set-Aside 

for Verified Veteran-Owned Small 

Businesses. 

As prescribed in 819.7011, insert the 

following clause: 

VA NOTICE OF TOTAL SET-ASIDE 

FOR VERIFIED VETERAN-OWNED 

SMALL BUSINESSES (DATE) 

(a) Definition. For the Department of 

Veterans Affairs, ‘‘Veteran-owned small 

business or VOSB’’: 

(1) Means a small business concern— 

(i) Not less than 51 percent of which 

is owned by one or more Veterans or, in 

the case of any publicly owned 

business, not less than 51 percent of the 

stock of which is owned by one or more 

Veteran(s); 

(ii) The management and daily 

business operations of which are 

controlled by one or more Veteran(s); 

(iii) The business meets Federal small 

business size standards for the 

applicable North American Industry 

Classification System (NAICS) code 

identified in the solicitation document; 

(iv) The business has been verified for 

ownership and control pursuant to 38 

CFR part 74 and is listed in VA’s 

Vendor Information Pages (VIP) 

database at: https://www.vetbiz.va.gov/ 

vip/; and 

(v) The business will comply with 

VAAR subpart 819.70 and Small 

Business Administration (SBA) 

regulations regarding small business 

size and government contracting 

programs at 13 CFR part 121 and 125, 

provided that any requirement therein 

that applies to a service-disabled 

veteran-owned small business concern 

or SDVO SBC, is to be construed to also 

apply to a VA verified and VIP-listed 

VOSB, unless otherwise stated in this 

clause. 

(vi) The term VOSB includes VIPlisted service-disabled veteran-owned 

small businesses (SDVOSB). 

(2) ‘‘Veteran’’ is defined in 38 U.S.C. 

101(2). 

(3) The term ‘‘small business 

concern’’ has the meaning given that 

term under section 3 of the Small 

Business Act (15 U.S.C. 632). 

(4) The term ‘‘small business concern 

owned and controlled by Veterans’’ has 

the meaning given that term under 

section 3(q)(3) of the Small Business Act 

(15 U.S.C. 632(q)(3)), except that for a 

VA contract the firm must be listed in 

the VIP database (see paragraph 

(a)(1)(iv) of this clause). 

(b) General. (1) Offers are solicited 

only from VIP-listed VOSBs, including 

VIP-listed SDVOSBs. Offers received 

from entities that are not VIP-listed at 

the time of offer shall not be considered. 

(2) Any award resulting from this 

solicitation shall be made only to a VIPlisted VOSB who is eligible at the time 

of submission of offer(s) and at time of 

award. 

(3) The requirements in this clause 

apply to any contract, order or 

subcontract where the firm receives a 

benefit or preference from its 

designation as a VOSB, including setasides, sole source awards, and 

evaluation preferences. 

(c) Representation. Pursuant to 38 

U.S.C. 8127(e), only VIP-listed VOSBs 

are considered eligible to receive award 

of a resulting contract. By submitting an 

offer, the prospective contractor 

represents that it is an eligible VOSB as 

defined in this clause, 38 CFR part 74, 

and VAAR subpart 819.70. 

(d) Agreement. When awarded a 

contract action, including orders under 

multiple-award contracts, a VOSB 

agrees that in the performance of the 

contract, the VOSB shall comply with 

requirements in VAAR subpart 819.70 

and SBA regulations on small business 

size and government contracting 

programs at 13 CFR part 121 and part 

125, including the non-manufacturer 

rule and limitations on-subcontracting 

requirements in 13 CFR 121.406(b) and 

125.6. Unless otherwise stated in this 

clause, any requirement in 13 CFR part 

121 and part 125 that applies to an 

SDVO SBC, is to be construed to also 

apply to a VIP-listed VOSB. For the 

purpose of the limitations on 

subcontracting, only VIP-listed VOSB, 

(including independent contractors) is 

considered eligible and/or ‘‘similarly 

situated’’ (i.e., a firm that has the same 

small business program status as the 

prime contractor). An otherwise eligible 

firm further agrees to comply with the 

required certification requirements in 

this solicitation (see 852.219–75 and/or 

852.219–76 as applicable). These 

requirements are summarized as 

follows: 

(1) Services. In the case of a contract 

for services (except construction), the 

VOSB prime contractor will not pay 

more than 50% of the amount paid by 

the government to the prime for contract 

performance to firms that are not VIPlisted VOSBs (excluding direct costs to 

the extent they are not the principal 

purpose of the acquisition and the 

SDVOSB/VOSB does not provide the 

service, such as airline travel, cloud 

computing services, or mass media 

purchases). When a contract includes 

both services and supplies, the 50 

percent limitation shall apply only to 

the service portion of the contract. 

(2) Supplies/products. (i) In the case 

of a contract for supplies or products 

(other than from a non-manufacturer of 

such supplies), the VOSB prime 

contractor will not pay more than 50% 

of the amount paid by the government 

to the prime for contract performance, 

excluding the cost of materials, to firms 

that are not VIP-listed VOSBs. When a 

contract includes both supply and 

services, the 50 percent limitation shall 

apply only to the supply portion of the 

contract. 

(ii) In the case of a contract for 

supplies from a non-manufacturer, the 

VOSB prime contractor will supply the 

product of a domestic small business 

manufacturer or processor, unless a 

waiver as described in 13 CFR 

121.406(b)(5) has been granted. Refer to 

13 CFR 125.6(a)(2)(ii) for guidance 

pertaining to multiple item 

procurements. 

(3) General construction. In the case 

of a contract for general construction, 

the VOSB prime contractor will not pay 

more than 85% of the amount paid by 

the government to the prime for contract 

performance, excluding the cost of 

materials, to firms that are not VIP-listed 

VOSBs. 

(4) Special trade construction 

contractors. In the case of a contract for 

special trade contractors, no more than 

75% of the amount paid by the 

government to the prime for contract 

performance, excluding the cost of 

materials, may be paid to firms that are 

not VIP-listed VOSBs. 

(5) Subcontracting. A VOSB must 

meet the NAICS size standard assigned 

by the prime contractor and be listed in 

VIP to count as similarly situated. Any 

work that a first tier VIP-listed VOSB 

subcontractor further subcontracts will 

count towards the percent of 

subcontract amount that cannot be 

exceeded. For supply or construction 


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contracts, the cost of materials is 

excluded and not considered to be 

subcontracted. When a contract 

includes both services and supplies, the 

50 percent limitation shall apply only to 

the portion of the contract with the 

preponderance of the expenditure upon 

which the assigned NAICS is based. For 

information and more specific 

requirements, refer to 13 CFR 125.6. 

(e) Required limitations on 

subcontracting compliance 

measurement period. A VOSB shall 

comply with the limitations on 

subcontracting as follows: 

[Contracting Officer check as 

appropriate.] 

__ By the end of the base term of the 

contract or order, and then by the end 

of each subsequent option period; or 

__ By the end of the performance period 

for each order issued under the 

contract. 

(f) Joint ventures. A joint venture may 

be considered eligible as a VOSB if the 

joint venture is listed in VIP and 

complies with the requirements in 13 

CFR 125.18(b), provided that any 

requirement therein that applies to an 

SDVO SBC is to be construed to also 

apply to a VIP-listed VOSB. A joint 

venture agrees that, in the performance 

of the contract, the applicable 

percentage specified in paragraph (d) of 

this clause will be performed by the 

aggregate of the joint venture 

participants. 

(g) Precedence. The VA Veterans First 

Contracting Program, as defined in 

VAAR 802.10, subpart 819.70 and this 

clause, takes precedence over any 

inconsistencies between the 

requirements of the SBA Program for 

SDVO SBCs and the VA Veterans First 

Contracting Program. 

(h) Misrepresentation. Pursuant to 38 

U.S.C. 8127(g), any business concern, 

including all its principals, that is 

determined by VA to have willfully and 

intentionally misrepresented a 

company’s VOSB status is subject to 

debarment from contracting with the 

Department for a period of not less than 

five years (see VAAR 809.406–2 Causes 

for Debarment). 

(End of clause) 

■ 24. Add section 852.219–75 to read as 

follows: 

852.219–75 VA Notice of Limitations on 

Subcontracting—Certificate of Compliance 

for Services and Construction. 

As prescribed in 819.7011(b), insert 

the following clause: 

VA NOTICE OF LIMITATIONS ON 

SUBCONTRACTING—CERTIFICATE 

OF COMPLIANCE FOR SERVICES AND 

CONSTRUCTION (DATE) 

(a) Pursuant to 38 U.S.C. 8127(k)(2), 

the offeror certifies that— 

(1) If awarded a contract (see FAR 

2.101 definition), it will comply with 

the limitations on subcontracting 

requirement as provided in the 

solicitation and the resultant contract, 

as follows: [Contracting Officer check 

the appropriate box below based on the 

predominant NAICS code assigned to 

the instant acquisition as set forth in 

FAR 19.102.] 

(i) b Services. In the case of a contract 

for services (except construction), the 

contractor will not pay more than 

50% of the amount paid by the 

government to it to firms that are not 

VIP-listed SDVOSBs as set forth in 

852.219–73 or VOSBs as set forth in 

852.219–74. Any work that a similarly 

situated VIP-listed subcontractor 

further subcontracts will count 

towards the 50% subcontract amount 

that cannot be exceeded. Other direct 

costs may be excluded to the extent 

they are not the principal purpose of 

the acquisition and small business 

concerns do not provide the service as 

set forth in 13 CFR 125.6. 

(ii) b General construction. In the case 

of a contract for general construction, 

the contractor will not pay more than 

85% of the amount paid by the 

government to it to firms that are not 

VIP-listed SDVOSBs as set forth in 

852.219–73 or VOSBs as set forth in 

852.219–74. Any work that a similarly 

situated VIP-listed subcontractor 

further subcontracts will count 

towards the 85% subcontract amount 

that cannot be exceeded. Cost of 

materials are excluded and not 

considered to be subcontracted. 

(iii) b Special trade construction 

contractors. In the case of a contract 

for special trade contractors, the 

contractor will not pay more than 

75% of the amount paid by the 

government to it to firms that are not 

VIP-listed SDVOSBs as set forth in 

852.219–73 or VOSBs as set forth in 

852.219–74. Any work that a similarly 

situated subcontractor further 

subcontracts will count towards the 

75% subcontract amount that cannot 

be exceeded. Cost of materials are 

excluded and not considered to be 

subcontracted. 

(2) The offeror acknowledges that this 

certification concerns a matter within 

the jurisdiction of an Agency of the 

United States. The offeror further 

acknowledges that this certification is 

subject to Title 18, United States Code, 

Section 1001, and, as such, a false, 

fictitious, or fraudulent certification 

may render the offeror subject to 

criminal, civil, or administrative 

penalties, including prosecution. 

(3) If VA determines that an SDVOSB/ 

VOSB awarded a contract pursuant to 

38 U.S.C. 8127 did not act in good faith, 

such SDVOSB/VOSB shall be subject to 

any or all of the following: 

(i) Referral to the VA Suspension and 

Debarment Committee; 

(ii) A fine under section 16(g)(1) of the 

Small Business Act (15 U.S.C. 

645(g)(1)); and 

(iii) Prosecution for violating section 

1001 of title 18. 

(b) The offeror represents and 

understands that by submission of its 

offer and award of a contract it may be 

required to provide copies of documents 

or records to VA that VA may review to 

determine whether the offeror complied 

with the limitations on subcontracting 

requirement specified in the contract. 

Contracting officers may, at their 

discretion, require the contractor to 

demonstrate its compliance with the 

limitations on subcontracting at any 

time during performance and upon 

completion of a contract if the 

information regarding such compliance 

is not already available to the 

contracting officer. Evidence of 

compliance includes, but is not limited 

to, invoices, copies of subcontracts, or a 

list of the value of tasks performed. 

(c) The offeror further agrees to 

cooperate fully and make available any 

documents or records as may be 

required to enable VA to determine 

compliance with the limitations on 

subcontracting requirement. The offeror 

understands that failure to provide 

documents as requested by VA may 

result in remedial action as the 

Government deems appropriate. 

(d) Offeror completed certification/ 

fill-in required. The formal certification 

must be completed, signed and returned 

with the offeror’s bid, quotation, or 

proposal. The Government will not 

consider offers for award from offerors 

that do not provide the certification, and 

all such responses will be deemed 

ineligible for evaluation and award. 

Certification 

I hereby certify that if awarded the 

contract, [insert name of offeror] will 

comply with the limitations on 

subcontracting specified in this clause 

and in the resultant contract. I further 

certify that I am authorized to execute 

this certification on behalf of [insert 

name of offeror]. 

Printed Name of Signee: 

llllllllllllllllll


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Printed Title of Signee: 

llllllllllllllllll

Signature: 

llllllllllllllllll

Date: 

llllllllllllllllll

Company Name and Address: 

llllllllllllllllll

llllllllllllllllll

(End of clause) 

■ 25. Add section 852.219–76 to read as 

follows: 

852.219–76 VA Notice of Limitations on 

Subcontracting—Certificate of Compliance 

for Supplies and Products. 

As prescribed in 819.7011(c), insert 

the following clause. The contracting 

officer shall tailor the clause in 

paragraph (a)(2)(iii) as appropriate: 

VA NOTICE OF LIMITATIONS ON 

SUBCONTRACTING—CERTIFICATE 

OF COMPLIANCE FOR SUPPLIES AND 

PRODUCTS (DATE) 

(a) Pursuant to 38 U.S.C. 8127(k)(2), 

the offeror certifies that— 

(1) If awarded a contract (see FAR 

2.101 definition), it will comply with 

the limitations on subcontracting 

requirement as provided in the 

solicitation and the resultant contract, 

as follows: [Offeror check the 

appropriate box] 

(i) b In the case of a contract for 

supplies or products (other than from 

a non-manufacturer of such supplies), 

it will not pay more than 50% of the 

amount paid by the government to it 

to firms that are not VIP-listed 

SDVOSBs as set forth in 852.219–73 

or VOSBs as set forth in 852.219–74. 

Any work that a similarly situated 

VIP-listed subcontractor further 

subcontracts will count towards the 

50% subcontract amount that cannot 

be exceeded. Cost of materials are 

excluded and not considered to be 

subcontracted. 

(ii) b In the case of a contract for 

supplies from a nonmanufacturer, it 

will supply the product of a domestic 

small business manufacturer or 

processor, unless a waiver as 

described in 13 CFR 121.406(b)(5) is 

granted. The offeror understands that, 

as provided in 13 CFR 121.406(b)(7), 

such a waiver has no effect on 

requirements external to the Small 

Business Act, such as the Buy 

American Act or the Trade 

Agreements Act. 

(2) Manufacturer or nonmanufacturer 

representation and certification. [Offeror 

fill-in—check each applicable box 

below. The offeror must select the 

applicable provision below, identifying 

itself as either a manufacturer or 

nonmanufacturer]: 

(i) b Manufacturer or producer. The 

offeror certifies that it is the 

manufacturer or producer of the end 

item being procured, and the end item 

is manufactured or produced in the 

United States, in accordance with 

paragraph (a)(1)(i). 

(ii) b Nonmanufacturer. The offeror 

certifies that it qualifies as a 

nonmanufacturer in accordance with 

the requirements of 13 CFR 121.406(b) 

and paragraph (a)(1)(ii). The offeror 

further certifies it meets each element 

below as required in order to qualify 

as a nonmanufacturer. [Offeror fillin—check each box below.] 

b The offeror certifies that it does not 

exceed 500 employees (or 150 

employees for the Information 

Technology Value Added Reseller 

exception to NAICS code 541519, 

which is found at 13 CFR 121.201, 

footnote 18). 

b The offeror certifies that it is 

primarily engaged in the retail or 

wholesale trade and normally sells 

the type of item being supplied. 

b The offeror certifies that it will take 

ownership or possession of the item(s) 

with its personnel, equipment, or 

facilities in a manner consistent with 

industry practice. 

(iii) b The offeror certifies that it will 

supply the end item of a small 

business manufacturer, processor, or 

producer made in the United States, 

unless a waiver as provided in 13 CFR 

121.406(b)(5) has been issued by SBA. 

[Contracting Officer fill-in or removal 

(see 13 CFR 121.1205). This 

requirement must be included for a 

single end item. However, if SBA has 

issued an applicable waiver of the 

nonmanufacturer rule for the end 

item, this requirement must be 

removed in the final solicitation or 

contract.] 

or [Contracting officer tailor clause to 

remove one or other block under 

subparagraph (iii).] 

b If this is a multiple item acquisition, 

the offeror certifies that at least 50% 

of the estimated contract value is 

composed of items that are 

manufactured by small business 

concerns. [Contracting Officer fill-in 

or removal. See 13 CFR 121.406(d) for 

multiple end items. If SBA has issued 

an applicable nonmanufacturer rule 

waiver, this requirement must be 

removed in the final solicitation or 

contract.] 

(3) The offeror acknowledges that this 

certification concerns a matter within 

the jurisdiction of an Agency of the 

United States. The offeror further 

acknowledges that this certification is 

subject to Title 18, United States Code, 

Section 1001, and, as such, a false, 

fictitious, or fraudulent certification 

may render the offeror subject to 

criminal, civil, or administrative 

penalties, including prosecution. 

(4) If VA determines that an SDVOSB/ 

VOSB awarded a contract pursuant to 

38 U.S.C. 8127 did not act in good faith, 

such SDVOSB/VOSB shall be subject to 

any or all of the following: 

(i) Referral to the VA Suspension and 

Debarment Committee; 

(ii) A fine under section 16(g)(1) of the 

Small Business Act (15 U.S.C. 

645(g)(1)); and 

(iii) Prosecution for violating section 

1001 of title 18. 

(b) The offeror represents and 

understands that by submission of its 

offer and award of a contract it may be 

required to provide copies of documents 

or records to VA that VA may review to 

determine whether the offeror complied 

with the limitations on subcontracting 

requirement specified in the contract or 

to determine whether the offeror 

qualifies as a manufacturer or 

nonmanufacturer in compliance with 

the limitations on subcontracting 

requirement. Contracting officers may, 

at their discretion, require the contractor 

to demonstrate its compliance with the 

limitations on subcontracting at any 

time during performance and upon 

completion of a contract if the 

information regarding such compliance 

is not already available to the 

contracting officer. Evidence of 

compliance includes, but is not limited 

to, invoices, copies of subcontracts, or a 

list of the value of tasks performed. 

(c) The offeror further agrees to 

cooperate fully and make available any 

documents or records as may be 

required to enable VA to determine 

compliance. The offeror understands 

that failure to provide documents as 

requested by VA may result in remedial 

action as the Government deems 

appropriate. 

(d) Offeror completed certification/ 

fill-in required. The formal certification 

must be completed, signed and returned 

with the offeror’s bid, quotation, or 

proposal. The Government will not 

consider offers for award from offerors 

that do not provide the certification, and 

all such responses will be deemed 

ineligible for evaluation and award. 

Certification 

I hereby certify that if awarded the 

contract, [insert name of offeror] will 

comply with the limitations on 

subcontracting specified in this clause 

and in the resultant contract. I further 

certify that I am authorized to execute 


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this certification on behalf of [insert 

name of offeror]. 

Printed Name of Signee: 

llllllllllllllllll

Printed Title of Signee: 

llllllllllllllllll

Signature: 

llllllllllllllllll

Date: 

llllllllllllllllll

Company Name and Address: 

llllllllllllllllll

llllllllllllllllll

(End of clause) 

PART 853—FORMS 

■ 26. Revise the authority citation for 

part 853 to read as follows: 

Authority: 40 U.S.C. 121(c); 41 U.S.C. 

1702; and 48 CFR 1.301 through 1.304. 

Subpart 853.2—Prescription of Forms 

■ 27. Add section 853.219 to read as 

follows: 

853.219 Small business forms. 

(a) VA Form 2268, Small Business 

Program and Contract Bundling Review. 

VA Form 2268 is prescribed for use to 

document actions and recommendations 

related to small business, as specified in 

819.202. 

(b) VA Form 0896A, Report of 

Subcontracts to Small and VeteranOwned Businesses. VA Form 0896A is 

prescribed for use to submit 

subcontracting information, as specified 

in 819.704–70. 

(c) Forms are available at: https://

www.va.gov/vaforms. 

[FR Doc. 2022–03677 Filed 3–8–22; 8:45 am] 

BILLING CODE 8320–01–P 


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