The Federal Acquisition Regulation (FAR) has provisions for both SDVOSB set-aside competitions and SDVOSB sole-source awards.

13 C.F.R. 125.19 – SDVOSB set-aside competition: The contracting officer may make the procurement a SDVOSB set-aside competition if there is a “reasonable expectation that at least two responsible SDVOSBs will submit offers.” In addition, if there is a reasonable expectation that at least two responsible SDVOSBs will submit offers, the contracting officer should consider setting aside the requirement as a SDVOSB competition before considering setting aside the requirement as a general small business set-aside.

13 C.F.R. 125.20 – SDVOSB sole source: The contracting officer may make a sole source award up to $3M if a SDVOSB is able to perform the work and only one SDVOSB can be reasonably expected to submit an offer. .