Small Business Programs and Socioeconomic Goals

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Small Business Program

Our small business program implements the requirements to aid, counsel, assist, and protect the interests of small business concerns to ensure that a fair proportion of total purchases, contracts, and subcontracts for property and services for VA are placed with small businesses. For acquisition purposes, small businesses must be independently owned and operated, not dominant in the field of operation in which they are bidding on Government contracts, and otherwise qualify as small businesses under the criteria and size standards developed by the Small Business Administration (SBA).

Small Business Set-Asides

This program requires agencies to limit competition on certain contracts to qualified small businesses so that small firms do not have to compete with large ones for the same contracts. However, because the law requires the Government to buy at competitive prices, contracts are set aside when two small businesses are expected to submit offers to ensure adequate competition. SBA establishes size standards that determine a firm's eligibility to offer on set-asides. These standards are established on an industry-by-industry basis, using dollar volume of sales or number of employees, to determine eligibility.

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Small Disadvantaged Business Program

For the purpose of improving and stimulating this small business segment, VA established a realistic Department-wide goal for the award of contracts to small business concerns owned and controlled by socially and economically disadvantaged individuals. OSDBU is also responsible for the Department's program to encourage greater economic opportunity for minority entrepreneurs. To implement these requirements, goals are established for award of contracts to small disadvantaged businesses.

If your business is (a) at least 51 percent owned by one or more individuals who are both socially and economically disadvantaged and (b) managed and controlled by one or more such individuals, you are eligible to participate under this program. Economically or socially disadvantaged individuals for government procurement purposes include African Americans, Hispanic Americans, Native Americans, (American Indians, Eskimos, Aleuts, or Native Hawaiians): Asian Pacific Americans (persons with origins from Japan, China, the Philippines, Vietnam, Korea, Samoa, Guam, U.S. Trust Territory of the Pacific Islands, Northern Mariana Islands, Laos, Cambodia, or Taiwan, Asian Indian Americans (persons with origins from India, Pakistan or Bangladesh); and members of other groups designated from time to time by the SBA under 13 CFR 124.105(d).

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8(a) Program

OSDBU promotes increased utilization of small businesses owned and controlled by socially and economically disadvantaged individuals certified under the SBA Section 8(a) Program.

Section 8(a) of the Small Business Act, as amended, authorizes SBA to contract for goods and services with Federal agencies. SBA then subcontracts actual performance of the work to socially and economically disadvantaged small businesses which have been certified by SBA as eligible to receive these contracts. The major advantage of this program is that it provides Government contracts on a noncompetitive basis to socially and economically disadvantaged small businesses. SBA also offers managerial, technical, and financial support to participating firms.

The purpose of the 8(a) Program is to:

• Foster business ownership by individuals who are socially and economically disadvantaged.
• Promote the competitive viability of these firms by providing contract, technical, and management assistance.
• Expand acquisition opportunities for these firms.

To be eligible for the 8(a) Program a concern must:

• Qualify as a small businesses at least 51 percent owned by a U.S. citizen who is determined by SBA to be socially and economically disadvantaged.

Each SBA 8(a) concern is subject to a fixed program participation term.

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Women-Owned Business Program

In response to the need to aid and stimulate women's business enterprises, this advocacy program directs acquisition officials to take appropriate action to facilitate, preserve, and strengthen women's business enterprises and to ensure full participation by women in the free enterprise system. Appropriate action includes the award of prime contracts and subcontracts and counseling of women-owned businesses. "Women-owned small businesses" means small business concerns that are at least 51 percent owned, controlled, and operated by women who are United States citizens. OSDBU is responsible for negotiating annual goals with VA acquisition officials to increase Federal prime contracts with women-owned small businesses. The Federal Acquisition Streamlining Act of 1994 (FASA) set an overall goal of 5% for women-owned businesses. The Act did not, however, establish a specific procurement mechanism for accomplishing that goal.

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Veteran-Owned and Operated Small Business (VOB) Program

Consistent with the mandate and the mission of VA, we strongly encourage the participation of VOBs in the VA acquisition program. OSDBU is the advocate that monitors the Veteran-owned small business program. VA is not authorized to set aside contracts for veterans; however, veteran-owned small businesses are identified, targeted, and included in our existing acquisition programs. VA is the only agency which sets a goal and which tracks participation of veteran-owned small businesses. The goal for participation by veteran-owned small business had been set at 7 percent.

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Service Disabled Veteran Owned and Operated Small Business Program (SDVOSB)

Consistent with the mandate and the mission of VA, we strongly encourage the participation of SDVOSBs in the VA acquisition program. OSDBU is the advocate that monitors the Veteran-owned small business program, with a special emphasis on service-disabled veterans owned small businesses. Under the authority granted in Public Law 108-183, VA is now authorized to set aside contracts and/or award sole source contracts, to service-disabled veterans. VA’s goal for participation in procurement by service-disabled veterans is 3%.

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Subcontracting Program

Recognizing that small firms often do not have the capability to perform as a prime contractor on certain large contracts, VA promotes the involvement of small businesses at the subcontract level. VA requires that any contractor receiving a contract for more than $10,000 shall agree that small business concerns have the maximum practicable opportunity to participate in contracts awarded by the Department. Furthermore, all prime contracts not awarded to small businesses, in excess of $1,000,000 for construction and $500,000 for all others, which offer subcontracting opportunities must contain a subcontracting plan. Each subcontracting plan must contain percentage goals for the maximum practicable utilization of small business concerns, small disadvantaged business concerns, and women owned small business concerns.

To carry out this program, OSDBU:

• Recommends informational goals for solicitations.
• Reviews subcontracting plans and offers recommendations.
• Monitors compliance with subcontracting plans.
• Participates in prebid conferences and conducts small business workshops to provide small, small disadvantaged, women owned and veteran-owned small business firms the opportunity to present their capabilities to prime contractors.
• Publishes a directory of VA prime contractors as a marketing tool to assist small, small disadvantaged, women-owned, and veteran-owned small businesses.

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Additional information on these programs may be obtained by contacting:

U.S. Department of Veterans Affairs
Director, Office of Small and Disadvantaged Business Utilization (00SB)
810 Vermont Avenue, N. W.
Washington, DC 20420
Telephone: (202) 461-4300
Toll free: (800) 949-8387
Facsimile: (202) 461-4301
World Wide Web: http://www.va.gov/osdbu/
E-Mail: osdbu@va.gov

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