Which FAR Part 19 applies to an SDVOSB award?
Most large agencies now apply a revised FAR Part 19 that moves the SDVOSB set-aside and sole-source rules to new section numbers. VA runs veteran-owned awards under its own statute. Cite the rulebook the buying agency applies.
The question
A service-disabled veteran-owned small business (SDVOSB) is writing a capability statement or answering a sources-sought notice. It wants to cite the rule that lets a contracting officer set the work aside or award it without competition. Which section number is right?
The short answer
It depends on the agency buying.
- Agencies that adopted the revised FAR Part 19 (31 on the acquisition.gov deviation guide as of September 16, 2026, including the Department of Defense, Homeland Security, GSA and NASA): the SDVOSB set-aside is FAR 19.106-2 and the sole-source authority is FAR 19.106-3.
- Agencies that did not adopt it: the codified text still applies, with the set-aside at FAR 19.1405 and sole source at FAR 19.1406.
- Veterans Affairs, for veteran-owned awards: 38 U.S.C. 8127, implemented in the VA Acquisition Regulation, with the SDVOSB set-aside at VAAR 819.7006 and sole source at VAAR 819.7008.
The citations
The Revolutionary FAR Overhaul, started by an April 2025 executive order, publishes "model deviation text" for each FAR part. Agencies adopt it through class deviations. The Part 19 model text was issued on September 26, 2025 and updated on February 20, 2026. The Code of Federal Regulations still prints the old Part 19, so the printed text and what an agency applies can differ.
|
What you are citing |
Codified FAR |
Revised Part 19 |
VA, veteran-owned awards |
|---|---|---|---|
|
Small-business Rule of Two |
19.502-2 |
19.104-1(a) |
VA Rule of Two, VAAR 802.101 (38 U.S.C. 8127(d)) |
|
SDVOSB set-aside |
19.1405 |
19.106-2 |
VAAR 819.7006 |
|
SDVOSB sole source |
19.1406 |
19.106-3 |
VAAR 819.7008 (above the simplified acquisition threshold, per 38 U.S.C. 8127(c)) |
|
Sole-source ceiling |
$8.5M manufacturing / $5M other |
$8.5M manufacturing / $5M other |
Above the SAT, up to $5M, no manufacturing tier |
|
Who qualifies |
SBA-certified SDVOSB designated in SAM (19.1403(b)(1)), or a firm whose complete SBA application was filed by Dec. 31, 2023 and is still pending (19.1403(b)(2)) |
SBA-certified SDVOSB designated in SAM (19.106-1(b)); DoD checks SBA's Small Business Search instead (DFARS 219.106-70(a), deviation) |
Certified SDVOSB listed in SBA's certification database (VA class deviation, Feb. 16, 2023) |
Under the revised text, a sole-source SDVOSB award needs four things (19.106-3): no reasonable expectation of offers from two or more SDVOSBs; a price, including options, at or under $8.5 million for a manufacturing NAICS code or $5 million otherwise; a responsible firm; and a fair and reasonable price. Section 19.106-2(a)(2) adds a sequencing rule: the contracting officer "[m]ust consider SDVOSB set-asides before considering SDVOSB sole source awards."
At VA, the rules for veteran-owned awards differ in three ways that matter to a proposal:
- Under 38 U.S.C. 8127(c) and VAAR 806.302-570(c), a sole-source award under VAAR 819.7008 must be above the simplified acquisition threshold ($350,000 since October 1, 2025) and at most $5 million including options. There is no manufacturing tier.
- VA does not require a finding that only one SDVOSB can do the work (819.7008(c)).
- Below the SAT, 38 U.S.C. 8127(b) lets VA use other than competitive procedures with veteran-owned firms.
Two things to check before you cite
- SBA's regulation prints older figures. 13 CFR 128.405(b) still lists $7 million and $4 million, the FAR ceilings before October 1, 2025. Use the current FAR figures above.
- Certification, not self-certification. SBA took over SDVOSB certification through VetCert on January 1, 2023, and being veteran-owned does not by itself make a firm eligible for a set-aside or sole-source award. One narrow exception remains in SBA's rule and the codified FAR: outside VA, a firm that filed a complete application by December 31, 2023 may self-certify until SBA decides it (13 CFR 128.200(c)(1); FAR 19.1403(b)(2)). The revised Part 19 text does not repeat that exception, and VA does not recognize it.
Model language you can copy
For a sources-sought response to an agency on the revised Part 19:
"[Firm] is a service-disabled veteran-owned small business certified by SBA and designated as such in SAM (UEI [number]). We request that the agency consider an SDVOSB set-aside under FAR 19.106-2 and, if a set-aside is not appropriate, a sole-source award under FAR 19.106-3."
At DoD, contracting officers confirm the certification in SBA's Small Business Search rather than SAM, so make sure the firm appears there too.
For the same response to VA, for a requirement above the simplified acquisition threshold:
"[Firm] is a certified service-disabled veteran-owned small business listed in SBA's certification database (UEI [number]). We request that VA consider an SDVOSB set-aside under VAAR 819.7006, or a sole-source award under VAAR 819.7008 (38 U.S.C. 8127(c))."
Replace the bracketed fields, and only claim a certification the firm holds on the day it submits.
What to do
- Find the buying agency in the acquisition.gov FAR Part Deviation Guide and open its Part 19 row.
- If it adopted the revised Part 19, cite 19.104-1, 19.106-2 and 19.106-3.
- If it did not, cite the codified 19.502-2, 19.1405 and 19.1406.
- If the buyer is VA and the award is veteran-owned, cite 38 U.S.C. 8127 and VAAR 819.7006–819.7009.
- If you cannot confirm which text applies, cite at a level both share, such as "the SDVOSB sole-source authority in FAR Part 19".
- Check the deviation's date. Agencies revise them: DoD reissued its Part 19 deviation on July 24, 2026 (Class Deviation 2026-O0037, Revision 1), while the acquisition.gov guide still links the January 2026 version.
Verified: September 23, 2026, against the sources below.