Veteran-Owned Small Business (VOSB) Preference
The Veteran-Owned Small Business (VOSB) Preference Ordinance, approved by City Council, became effective and applies to solicitations issued after January 15, 2014 and is consistent with the Council’s goal of promoting San Antonio veteran-owned small businesses. The performance of the VOSB Preference program will be evaluated regularly, and quarterly reports will be provided to Council.
Definition of Veteran-Owned Small Business
The program uses the federal definitions of veteran and veteran-owned small business found in 38 CFR Part 74. Firms must be included in the database of VOSBs maintained by the U.S. Small Business Administration or obtain a certification by another public or private entity that uses similar certification procedures.
- The term “veteran” means a person who served on active duty with the U.S. Army, Air Force, Navy, Marine Corps, or Coast Guard, for any length of time and at any place and who was discharged or released under conditions other than dishonorable. Reservists or members of the National Guard called to federal active duty or disabled from a disease or injury incurred or aggravated in line of duty or while in training status.
- A veteran-owned small business is a business that is not less than 51 percent owned by one or more veterans, or in the case of any publicly owned business, not less than 51 percent of the stock of which is owned by one or more veterans; the management and daily business operations of which are controlled by one or more veterans and qualifies as “small” for federal business size standard purposes.
Applicability of Preference
Procurements of discretionary expenditure and revenue contracts for goods, services, and concessions that exceed $50,000 in value, where the selection criteria are not limited by state or federal law.
- Awarding five (5) points to veteran-owned small businesses responding to discretionary solicitations for professional service contracts for which a VOSB preference may be applied
- Five (5) Points – to prime contractors meeting the definition of a veteran-owned small business; no geographic limitation
In order to determine whether the program can be expanded at a later date, the City tracks VOSB participation at both the prime contract and subcontract levels. Tracking is done for all contracts that exceed $50,000 in value, even for those to which no preference applies.
Program would not apply to:
- Texas Local Government Code Chapter 252 (Low Bids and RFCSPs)
- Texas Government Code Chapter 2254 (Professional Services)
- Texas Government Code Chapter 2269 (Alternative Construction Delivery Methods)
- Purchases of goods and non-professional services under $50,000