Qualified to Submit Compliant Proposal for DHS Solicitation except Secret FCL

DHS desires proposals from SDVOSBs with a GSA PSS 874-7 Schedule contract. Our firm meets those criteria. Our firm has assembled a team of 2 other Similarly Situated Entities (3 SDVOSBs) one SSE has a Secret FCL. DHS in answers to industry questions confirmed that proper facility clearance is required at proposal submission. DHS would not allow the use of a SSE team member to provide the Secret FCL. DHS said they would initiate the DD254 for the awardee but not sponsor a firm for a facility clearance.

Is there any recourse to get the government to allow a SSE team member with a Secret FCL to meet the DHS requirement for a proper facility clearance at proposal submission?

Let me see if I understand what you are asking:
You are asking if your firm, as a prime offeror, can use a subcontractor’s qualification (facility security clearance) in order to qualify. Is that correct?

Admittedly, I am not familiar with Department of Homeland Security’s acquisition process and I would suggest you to Homeland Security Acquisition Regulation on that. Nonetheless, with Government solicitations, it depends on what in the solicitation. The solicitation usually stipulates that the prime offeror needs to have the qualification regardless of the subcontractor’s qualifications. So, there is no way around it unless you ask and obtain a waiver from the contracting officer on the solicitation.

Anyway, here are some resources for you: https://acquisition.gov/, http://wifcon.com/, https://www.dau.mil/aap/Pages/default.aspx.