Service-Disabled Veteran-Owned Small Business (SDVOSB) Contracts
The federal government is committed to supporting service-disabled veterans through its SDVOSB contracting program. With a statutory goal of awarding at least 3% of all federal contracting dollars to SDVOSBs, agencies actively seek qualified veteran-owned firms for set-aside and sole-source opportunities. The program recognizes the sacrifices of our veterans by providing meaningful economic opportunities.
The SDVOSB Advantage
SDVOSBs enjoy one of the strongest contracting preferences in federal procurement. All federal agencies must strive to meet the 3% SDVOSB contracting goal, and many agencies voluntarily exceed it. The Department of Veterans Affairs has particularly aggressive targets and prioritizes veteran-owned firms in its procurements.
Like other socioeconomic programs, SDVOSB firms can receive sole-source contract awards up to $4.5 million for services and $8 million for manufacturing. Competitive SDVOSB set-asides restrict bidding to verified SDVOSBs, dramatically reducing competition compared to full and open procurements.
Certification Requirements
The business must be at least 51% owned and controlled by one or more service-disabled veterans. The veteran's service-connected disability must be documented by the VA or Department of Defense. The veteran owner(s) must manage the day-to-day operations and make long-term strategic decisions for the business.
SBA certification is now required for most federal SDVOSB set-aside contracts, replacing the previous self-certification model. The VA maintains a separate Vets First verification program for VA-specific contracts, which has additional requirements.
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Frequently Asked Questions
What qualifies as a service-connected disability?
A service-connected disability is any disability that was incurred or aggravated during active military service, as determined by the Department of Veterans Affairs or Department of Defense. The disability must be documented in the veteran's official records.
Is SDVOSB certification different from VA Vets First verification?
Yes. SBA SDVOSB certification is required for set-aside contracts across all federal agencies. VA Vets First verification is an additional program specifically for VA procurements. Firms seeking VA contracts should pursue both to maximize opportunities.
Do SDVOSB contracts only come from the VA?
No. While the VA is a major source of SDVOSB set-asides, all federal agencies have SDVOSB contracting goals. The Department of Defense, GSA, DHS, and virtually every other agency award SDVOSB set-aside contracts.
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