The Small Business Administration (SBA) will eliminate self-certification for Service-Disabled Veteran-Owned Small Businesses (SDVOSB) starting October 1, 2024. The SBA confirmed on August 1, 2024, that it would go forward with its direct Final Rule issued on June 6. The SBA skipped the notice and comment process in which agencies typically must engage when amending regulations, but allowed a brief period for “significant adverse comments” to the Rule. It received none.
Effective October 1, only contracts with SDVOSBs registered in the Veteran Small Business Certification (VetCert) system will be counted toward goals for SDVOSB participation. Currently, agencies and prime contractors can receive small business participation credit for contracting with SDVOSBs that self-certify to their SDVOSB status. This can give self-certified SDVOSBs a leg up in the competition for contract awards, though only VetCert-certified SDVOSB contractors can receive set-aside or sole-source contracts. The new Rule makes self-certification practically meaningless.
SDVOSBs planning to apply for VetCert certification should note that the application website will be down for upgrades from August 1, 2024, through sometime in early September, according to certify.sba.gov. SDVOSBs can file their applications for certification with the SBA by December 22, 2024, and may continue to self-certify until the SBA makes a final decision on their applications.