Veterans Benefits Act of 2003

On December 16, 2003, President George W. Bush signed into law H.R. 2297 enacting Public Law 108-183, Veterans Benefits Act of 2003.  Section 36- Procurement Program for Small Business Concerns Owned and controlled by Service-Disabled Veterans, of Public Law 108-183 outlines amendments to the United States Code regarding procurement opportunities awarded to service-disabled veteran small business owners.

A summary of Section 36-Procurement Program for Small Business Concerns Owned and Controlled by Service-Disabled Veterans follows:

Contracting officers may award a sole source contract to any small business concern owned and controlled by service-disabled veterans if the following circumstances are met:

1.   the small business owner is a responsible contractor based on his or her performance relative to the contract being awarded and the contracting officer does not expect that two or more service-disabled veterans small business owners will submit offers for the contract;

2.   the expected award price of the contract (including options) will not exceed:

a.   $5 million for a contract assigned a standard industrial classification code for manufacturing

b.    $3 million for any other contract, and

c.    based on the contracting officer’s judgment, the contract can be made at a fair and reasonable price.

Under the guidelines for Restricted Competition, the contracting officer may award contracts on the basis of competition restricted to service-disabled veteran small business owners if he or she (i.e., the contracting officer) has reasonably determined:

1.    that no less than two small business concerns owned and controlled by service-disabled veterans will submit bids and

2.    that the award can be made at a fair and reasonable price.

In reference to the Relationship to Other Contracting Preferences, the rule states that a procurement may not be made from a source on the basis of a preference provided under section (a) or (b) if the procurement would be otherwise made from a different source under section 4121 or 4125 of title 18, United States Code or the Javtis Wagner-O’Day Act (41 U.S.C. 46 et seq).