Disabled Vets' Set-Aside Is Open For Business Companies owned by service-disabled veterans may self-certify their eligibility for the new set-aside procurement program. The Small Business Administration issued an interim rule May 5 implementing the program that was passed by Congress and signed by President Bush last year. The rule is effective immediately. Under the program, agencies may award sole-source contracts worth up to $3 million, or $5 million for manufacturing. Contracting officers may set aside contracts for competition among SDV firms under the rule of two: if two eligible, qualified businesses can be expected to compete. The rule does not specifically establish an order of priority for set-asides for SDVs, 8(a) and HUBZone companies. In the preamble to the rule, SBA said, “This regulation provides that the [contracting officer] should look at the 8(a), HUBZone, and SDVO Program before considering setting-aside the requirement for [other small businesses].” The rule permits SDV firms to form joint ventures with other small businesses to compete for an SDV set-aside contract, as long as the SDV firm is the managing partner and is entitled to at least 51% of the profits from the venture. Congress has set a goal of awarding 3% of federal prime contract dollars to companies owned by service-disabled veterans, but those companies received less than two-tenths of 1% in fiscal 2003, according to GSA. The dollars awarded to service-disabled veterans increased from $298 million in 2002 to $510 million in 2003. The Department of Veterans Affairs has established a database of SDV companies at www.vetbiz.gov. Some agencies have complained that they have difficulty finding qualified firms. SBA said there are more than 4,800 companies registered in the Central Contractor Registration identifying themselves as SDV-owned, but it is not known how many of them qualify for the set-aside program; under the regulations, a firm must be at least 51% owned by the service-disabled veteran to be eligible. The SBA rule is FR Doc 04-9727 in the May 5 Federal Register. The Federal Acquisition Regulation councils’ interim rule is FR Doc 04-9752, published the same day. Comments are due by July 6.