SDVOSB Is Not an Alternative to GSA.It's the Law Congress Wrote First.
Under 38 U.S.C. § 8127(d), the VA must consider SDVOSB firms before using GSA Schedule or open competition. This is not optional guidance. It is federal statute. GSA is the fallback — SDVOSB is the mandate.
The Core Concept — Read This First
Congress established a statutory procurement preference for SDVOSB firms that applies specifically to the VA. This is not optional guidance. It is federal law.
"The Secretary shall award contracts on the basis of competition restricted to small business concerns owned and controlled by veterans... if two or more such concerns will submit offers..."— 38 U.S.C. § 8127(d)
And under 38 U.S.C. § 8127(a), the VA may award sole-source contracts to verified SDVOSB firms up to $4 million when only one SDVOSB firm is available.
The plain-English version:
SDVOSB is not an alternative to GSA. SDVOSB is the preferred procurement path. GSA Schedule is the fallback when no SDVOSB firm can meet the requirement. If you're reaching for GSA first, you're doing it in the wrong order.
The Three Tiers
How to Buy from TSS Group
Three clear paths based on your contract value. Pick your tier, follow the steps.
Under $15,000
Government Purchase Card (GPC)
Steps:
- 1Define your requirement
- 2Contact TSS Group for a quote
- 3Pay the invoice via GPC
You Don't Need:
FAR 13.201
$15,001 – $4,000,000
SDVOSB Sole-Source
Steps:
- 1Submit purchase request through normal channels
- 2CO verifies TSS in SAM.gov (UEI: VC8RJQ1TTGV5) — 2 minutes
- 3TSS Group provides firm-fixed-price quote
- 4CO writes 1–2 page justification (VA Form 10-0361)
- 5Award directly to TSS Group
- 6Payment via ACH through Treasury — same as GSA
You Don't Need:
38 U.S.C. § 8127(a); 13 CFR § 125.15
Over $4,000,000
SDVOSB Set-Aside Competition
Steps:
- 1Issue RFP restricted to SDVOSB firms
- 2TSS Group competes as prime or teaming partner
- 3Award to best-value SDVOSB offeror
You Don't Need:
38 U.S.C. § 8127(d)
Step-by-Step: SDVOSB Sole-Source (Tier 2)
For acquisitions between $15,001 and $4,000,000. This is the most common path for VA requirements.
Requiring Office Identifies the Need
Submit a purchase request through your normal internal channels. Nothing about the need-definition process changes. The security requirement is the same; the procurement vehicle is what differs.
Contracting Officer Verifies SDVOSB Status
Log into SAM.gov and search UEI: VC8RJQ1TTGV5. TSS Group LLC — CVE-Verified, Active, SDVOSB confirmed. This takes approximately two minutes. TSS Group can provide a verification screenshot if your file requires it.
UEI: VC8RJQ1TTGV5 | CAGE: 8QS65 | SAM.gov Active thru July 14, 2027
TSS Group Provides a Quote
TSS Group delivers a firm-fixed-price quote with full line-item breakdown, labor categories, and rates consistent with FAR 15.404-4. No guessing, no ranges — a real number you can put in your justification.
Contracting Officer Writes Justification
A brief 1–2 page memo. Most COs use VA Form 10-0361 or an existing template. The memo cites: 38 U.S.C. § 8127(a) as the authority; TSS Group's SDVOSB verification; a statement that TSS is a responsible contractor; and a determination that the requirement supports SDVOSB sole-source authority.
Most VA COs already have this template. Ask your supervisor or check VA procurement guidance.
Award
The VA awards directly to TSS Group. No GSA. No competition. No waiting for RFQ responses from multiple vendors. The award timeline is 3–7 days from documentation receipt versus 2–6 weeks for a GSA RFQ cycle.
Payment via ACH Through Treasury — Identical to GSA
TSS Group submits an invoice via IPP (Invoice Processing Platform) or VA's designated intake method. VA certifies against contract and accepted services. Treasury disburses via ACH/EFT to TSS Group's SAM.gov bank account. Net 30 per FAR 52.232-1.
This is the exact same ACH path used for every GSA Schedule payment. No new vendor setup. No alternate banking arrangement. The funding source, appropriation code, and obligation process are all identical.
Quick Decision Tool
Enter your estimated contract value and we'll tell you exactly what to do.
Enter a contract value above to see your procurement path.
Side by Side
GSA Schedule vs. SDVOSB Sole-Source
The facts. No spin. The only difference that actually matters is the procurement vehicle — not the payment.
| Question | GSA Schedule | SDVOSB Sole-Source |
|---|---|---|
| Required by law? | No — one option among many | Yes — Congress mandates VA consider SDVOSB first |
| Competition required? | Yes — multiple quotes needed | No — sole-source authorized up to $4M |
| TSS needs GSA Schedule? | Yes | No |
| How long does it take? | 2–6 weeks | 3–7 days |
| GSA Industrial Funding Fee (0.75%)? | Yes — baked into pricing | No — not applicable |
| Payment path different? | ACH through Treasury via IPP | Same ACH through Treasury via IPP |
| Appropriation code changes? | No | No — identical obligation process |
| Citation | FAR 8.405 | 38 U.S.C. § 8127(a); 13 CFR § 125.15 |
| Who can use it? | Any federal agency | VA-specific (VA-only mandate) |
The funding source is the same. The obligation process is the same. The appropriation code is the same. The payment path is the same. What changes is the procurement vehicle — and SDVOSB sole-source is the simpler, faster, congressionally-preferred one.
Common Questions
Answers to Every Objection
Every reason not to use SDVOSB, debunked with citations.
How to Budget for SDVOSB Support Services & Maintenance
Buying a security system is a one-time purchase. Keeping it running is an ongoing service. The SDVOSB procurement process works for both — but the budgeting is different. Here is the simple version.
Start Here
The Simple Version
If you understand this analogy, you understand the whole process.
Buying Equipment
Like buying a car.
- One-time payment
- You own it outright
- Budget it once, done
- No recurring cost (unless you add maintenance)
Buying Support Services
Like signing up for a maintenance plan.
- Recurring payment (monthly or annual)
- You pay for ongoing coverage, not ownership
- Budget it every year for as long as you need the service
- Can renew or cancel at option periods
Here is the key insight: The SDVOSB sole-source authority (38 U.S.C. § 8127) applies to services the same way it applies to products. The $4 million threshold, the 2-minute SAM.gov verification, the 1–2 page justification — all identical. What changes is how you budget, not how you buy.
What's Different from Buying Equipment
Four things change. That's it.
| Aspect | Equipment | Support Services |
|---|---|---|
| How you budget it | One line item, one year | One line item per year, for each year of the contract |
| When you obligate funds | All at once, when you buy | Year by year — base year first, then each option year as it comes |
| Contract length | Single purchase, done | Base year + option years (typically 1 base + 4 option = 5 years total) |
| Bona fide need rule | Must need it in the year you buy it | Must need the service in each year you fund it — but the contract can span multiple years |
The Vocabulary
Budget Cycle Concepts — Explained Simply
Four terms you will hear. Here is what they actually mean.
Base Year
The first year of the contract.
This is the year you obligate funds first. Everything else is an "option" to continue.
Option Years
Renewal periods the government can choose to activate.
Typically 1 base year + 4 option years. The VA decides each year whether to continue. No obligation to renew — but the pricing is locked in if you do.
Annual Funding
You budget each year separately.
You do not set aside all 5 years of money upfront. You request funds for the base year now, and request funds for each option year in that year's budget cycle.
Bona Fide Need Rule
Spend money in the year you actually need the service.
31 U.S.C. § 1502 says you cannot use this year's money for next year's needs. For services, this means each option year is funded in its own fiscal year — which is exactly how the option-year structure works.
How to Budget for SDVOSB Support Services
Seven steps. Follow them in order.
Identify What You Need
List the security systems that need ongoing support — access control, video surveillance, network infrastructure. For each, note: how many sites, how many devices, and what level of response you expect.
Example: "VA Phoenix campus — 47 access control doors, 62 cameras, 1 server room. Need 4-hour emergency response, quarterly preventive maintenance, badge management support."
Request a Service Quote from TSS Group
TSS Group provides a firm-fixed-price quote for the base year of service, plus priced option years. This gives you the exact dollar amounts you need for your budget submission — no guessing.
Example: "Base Year: $48,000 | Option Year 1: $49,920 (4% escalation) | Option Year 2: $51,917" — you put these exact numbers in your budget.
Determine the Contract Type
For most security maintenance, a Firm-Fixed-Price (FFP) contract is simplest — you pay a set amount per month regardless of how many service calls happen. For unpredictable needs, Time & Materials (T&M) may be better. TSS Group can help you choose.
Think of it like: FFP = a flat-rate phone plan. T&M = paying per minute. Most maintenance is FFP because it is predictable.
Verify TSS Group in SAM.gov
Same 2-minute step as equipment purchases. Search UEI: VC8RJQ1TTGV5. CVE-Verified SDVOSB. Active. This verification is valid for the entire contract period — you do not re-verify each year.
One verification covers the base year and all option years. No annual re-verification needed.
Write the Justification (Same as Equipment)
The same 1–2 page justification memo applies. Cite 38 U.S.C. § 8127(a) as the authority. Note that the requirement is for recurring support services. The sole-source threshold ($4M) applies to the total contract value including option years — not per year.
If base year is $48K and you want 4 option years at ~$50K each, total contract value is ~$248K — well under the $4M sole-source ceiling.
Obligate Base Year Funds
You obligate funds for the base year in the fiscal year the contract starts. For option years, you obligate funds in each respective fiscal year when the option is exercised. You do NOT obligate all years upfront.
FY2026: Obligate $48,000 (base year). FY2027: Obligate ~$49,920 (option year 1). FY2028: Obligate ~$51,917 (option year 2). Each year is its own budget line.
Exercise Option Years Annually
Before each option year begins, the CO sends a written notice to TSS Group (typically 30–60 days before the period starts) confirming the option is exercised. Funds for that year must be available. If you do not exercise, the contract ends — no penalty.
Think of it like renewing a subscription. You decide each year whether to continue. No auto-renewal unless you say so.
Contract Types
Three Ways to Pay for Services
Pick the one that matches how predictable your needs are.
Firm-Fixed-Price (FFP)
When the scope is predictable
Like a flat-rate phone plan — you pay the same every month no matter what.
Best for: preventive maintenance, scheduled service, badge management, reporting. Most security maintenance contracts use FFP.
Time & Materials (T&M)
When the scope is unpredictable
Like paying a plumber by the hour — you pay for actual time and parts used.
Best for: emergency repairs, ad-hoc troubleshooting, projects with unknown scope. TSS provides hourly rates and not-to-exceed ceilings.
Hybrid (FFP + T&M)
When you need both predictable and unpredictable support
Like a phone plan with a flat rate plus extra charges for going over your data limit.
Best for: most real-world security programs. FFP covers the predictable maintenance; T&M covers the surprises.
Budget Planning Timeline
From "I need a service contract" to "contract awarded" — and what happens each year after.
Days 1–5
Identify service needs and request quote from TSS Group
Days 5–10
Receive firm-fixed-price quote with priced option years
Days 10–14
CO verifies TSS in SAM.gov and writes justification
Days 14–21
Award — base year funds obligated
Each subsequent year
CO exercises option year — that year's funds obligated
Important: Start planning 90–120 days before your fiscal year begins. TSS Group provides quotes in 3–5 business days. The CO needs 3–7 days for the sole-source award. But your internal budget submission deadlines may require earlier planning — check with your budget office.
Common Questions
Budget Team Q&A
The questions every budget analyst asks. Answered simply.
The Bottom Line for Budget Teams
Same authority. 38 U.S.C. § 8127 applies to services exactly the same way it applies to equipment. Same $4M ceiling. Same 2-minute SAM.gov verification. Same 1–2 page justification.
Different budgeting. You obligate funds year by year (base year + option years), not all at once. Each year is its own budget line. You decide annually whether to continue.
Same payment path. ACH through Treasury via IPP. Net 30. Identical to every other VA payment. No special setup.
TSS Group provides firm-fixed-price service quotes with priced option years — so you have exact dollar amounts for your budget submission. No guessing. No ranges. Real numbers.
Legal References
| Authority | What It Does | Citation |
|---|---|---|
| SDVOSB Sole-Source | VA can sole-source up to $4M to verified SDVOSB firms | 38 U.S.C. § 8127(a); 13 CFR § 125.15 |
| SDVOSB Preference | VA must consider SDVOSB before GSA or open competition | 38 U.S.C. § 8127(d); VAAR 819.7004 |
| SDVOSB Verification | TSS Group is CVE-verified in SAM.gov | 38 U.S.C. § 8127(c); 13 CFR § 125.12 |
| Micro-Purchase Authority | GPC purchases under $15K, no competition required | FAR 13.201; FAR 13.003 |
| Bona Fide Need Rule | Funds obligated in year needed — applies equally to GSA and SDVOSB | 31 U.S.C. § 1502 |
| Payment Terms | Net 30, ACH/EFT through Treasury | FAR 52.232-1 |
Quick Reference
Print This. Keep It On Your Desk.
TSS Group LLC — SDVOSB Procurement Quick Reference
UEI: VC8RJQ1TTGV5 | CAGE: 8QS65 | CVE-Verified SDVOSB | SAM.gov Active
Key Point: SDVOSB is not an exception to the rule. SDVOSB is the rule. Congress wrote it that way. — 38 U.S.C. § 8127
Ready to Move Forward?
TSS Group is standing by to support your procurement with a firm-fixed-price quote, SAM.gov verification documentation, and any supporting materials your contracting file requires.
Cory Franek, President
TSS Group LLC