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New Small Business Administration Rule to Prohibit SDVOSBs From Self-Certifying to Receive Prime, Subcontracts

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New Small Business Administration Rule to Prohibit SDVOSBs From Self-Certifying to Receive Prime, Subcontracts
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The Small Business Administration has issued a direct final rule that requires service-disabled veteran-owned small businesses to register with the SBA Veteran Small Business Certification Program in order to receive prime or subcontracts that would be counted toward an agency’s or prime contractor’s SDVOSB participation targets.

The final rule, which goes into effect on Aug. 5, implements section 864 of the 2024 National Defense Authorization Act, according to an issuance posted Thursday on the Federal Register.

SDVOSBs not registered with the VetCert program but meet eligibility requirements were previously allowed to self-certify in order to receive prime or subcontracts that were not sole-source or SDVOSB set-asides but would be credited to the awarding agency’s or prime contractor’s SDVOSB participation goals.

Once the rule takes effect, SDVOSBs will have up to Dec. 22 to file an application for certification with SBA. While waiting on the SBA’s decision, applicants will be allowed to continue self-certifying to receive contracts.

Beyond Dec. 22, SDVOSBs that are not registered with VetCert or have not filed for certification will no longer be allowed to self-certify.