The certification of Service-Disabled Veteran-Owned Small Businesses (SDVOSBs) as outlined in the interim rule include:

1. Definition and Ownership: SDVOSB concerns are defined as small businesses:

- Not less than 51 percent owned and controlled by one or more service-disabled veterans.

- In the case of any publicly owned business, not less than 51 percent of the stock is owned by one or more service-disabled veterans.

- The management and daily business operations must be controlled by one or more service-disabled veterans or, in the case of a veteran with a permanent and severe disability, the spouse or permanent caregiver of such veteran.

2. Eligibility for the SDVOSB Program: To be eligible under the SDVOSB Program:

- From January 1, 2024, a concern must be designated in the System for Award Management (SAM) as certified by the Small Business Administration (SBA) according to 13 CFR 128.300.

- Alternatively, it must have represented that it is an SDVOSB concern in SAM and submitted a complete application for certification to the SBA on or before December 31, 2023.

3. SDVOSB Program Authorization: The SDVOSB Program authorizes contracting officers to limit competition, including the award on a sole-source basis, to SDVOSB concerns eligible under the program.

4. Transition and Grace Period: For firms already verified by the VA before January 1, 2023, and with an eligibility period expiring within the first year of the SDVOSB certification program, the SBA will extend the eligibility of these concerns for up to one year to facilitate transition to the new certification requirement. This interim rule partially implements section 863 of the NDAA for FY 2022, requiring a small business concern to update its status in SAM no later than two days after a final determination that the concern does not meet the requirements of the status it claims to hold.

5. Documentation and Certification Process: The SBA does not anticipate the requirement for SBA certification to significantly impact small businesses seeking SDVOSB certification. SDVOSB concerns previously certified by the VA are reflected as certified in the SBA Veteran Small Business Certification Program database for the remaining term of their eligibility. The transition to SBA certification involves a grace period and the use of existing documentation for certification, with the process estimated to take approximately one hour of the concern’s time.

These rules are designed to streamline the certification process for SDVOSBs, ensuring that these businesses are owned and operated by service-disabled veterans and providing them with access to set-aside and sole-source contracts across the federal government.