SDVOSB Government Contracts & Set-Asides
The Service-Disabled Veteran-Owned Small Business (SDVOSB) program provides preferential access to federal contracts for businesses owned by veterans with service-connected disabilities. In FY2024, the federal government awarded over $32 billion to SDVOSBs, exceeding the 3% statutory goal. Here is everything you need to know to take advantage of this program.
Use the free tool below to see open SAM.gov bids that match your business and presolicitations you can prepare for now. Then open a prepared dossier preview to see the match analysis, award history, pricing context, and AI-assisted next steps you can use when you find your own opportunities.
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GovSentry's full Search also checks relevant state and local procurement portals using your business description and service areas. Those harder-to-find opportunities are additional to this SAM.gov-only preview.
Choose an industry suggestion or enter an exact six-digit NAICS code and select Add code.
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This free first look counts SAM.gov notices. A paid search lets you investigate relevant notices and also checks state and local portals.
Prepared dossier preview
See the report exactly where customers use it
Explore a prepared GovSentry report preview. Where we have a historical notice or award, it is labeled as closed; otherwise the example is explicitly illustrative. The award comparisons, fit estimates, and AI guidance show the workflow—not verified facts about the same contract. Run Search for your company to apply these tools to current matches.
One example, not a contract-size ceiling
Your matched results can include simplified purchases and smaller service jobs, low-million-dollar contracts like this example, and larger prime or teaming opportunities. The mix depends on your NAICS codes, capabilities, certifications, and service area.
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GovSentryOpportunity Overview
Design and Build Covered Parking Structure for Fighter Aircraft
An illustrative construction dossier showing how a completed report organizes notice details, profile fit, award comparisons, and next steps. These example figures are not a verified current opportunity.
Target & Match Score92%
Eligibility Assessment
Eligible with verification items
Profile data indicates a fit; confirm all official solicitation requirements before pursuing.
NAICS alignment
NAICS 236220 appears in the prepared construction-company profile.
Small-business competition
This sample illustrates how a set-aside would be checked against a company profile.
SAM.gov registration
Verify the company UEI and registration renewal date before bidding.
Market Context
89
Records analyzed
$1.85M
Average award
$764K
Median award
Strong
Illustrative fit signal — not a win probability
Competition signal
Recent Department of Defense construction awards under $10M show a broad small-project market with meaningful small-business participation.
| Comparable market | Winner signal | Award value |
|---|---|---|
| Same NAICS and agency family | Example comparable awardee | $2.03M illustrative award |
| Historical award set | Multiple public winners | $764K median |
Related Award Context
Example comparable awardee
$2.03M illustrative award
A related awardee is market context, not proof that it held the exact requirement. A live dossier should link the award record and distinguish a confirmed prior contractor from a broader comparable.
Pricing Intelligence
$21.7K–$9.77M
Comparable range
$1.85M
Average
$764K
Median
The awarded value was $2.03M. Use that amount and the comparable-award distribution as context, then price the active solicitation from its actual drawings, labor, material, bonding, and schedule requirements.
Related Opportunities
Executive Summary
Recommendation: Pursue when scope and bonding fit. The prepared profile has strong NAICS, small-business, and geographic alignment. A contract near $2M is substantial but within reach for many established specialty and general contractors.
Market Context
⚠️ NAICS-Based Data Limitation: Market data includes all contracts under this NAICS code, which can range from $10K local projects to $1B+ specialized systems. Past award sizes and winners may not reflect this specific opportunity's scope. Always review the solicitation details to assess fit.
89 comparable awards were analyzed. The average award was $1.85M and the median was $764K. Recent Department of Defense construction awards under $10M show a broad small-project market with meaningful small-business participation..
Similar Contract Winners
These are comparable awards selected by available NAICS, agency, or location fields. The search can broaden to NAICS-only results, and cached awards can be older than two years. They are not confirmed predecessors for this solicitation.
⚠️ Note: Awards shown may be for vastly different scopes/sizes under the same NAICS category. A $500M system and a $50K service contract can share the same NAICS code.
Related award context: Example comparable awardee — $2.03M illustrative award. A related awardee is market context, not proof that it held the exact requirement. A live dossier should link the award record and distinguish a confirmed prior contractor from a broader comparable.
Positioning Strategy
Lead with comparable design-build work, airfield or secured-facility experience, local subcontractor coverage, safety performance, and a schedule that minimizes disruption to flight operations.
Pricing Guidance
Comparable range: $21.7K–$9.77M. The awarded value was $2.03M. Use that amount and the comparable-award distribution as context, then price the active solicitation from its actual drawings, labor, material, bonding, and schedule requirements. Firm-fixed-price design-build construction; validate scope before using historical awards as a bid target.
Recommended Next Steps
Verify SAM.gov registration and the prepared profile
Review drawings, bonding, and site-access requirements
Research the awardee and comparable winners
Build a labor, material, and contingency model
Track related recompetes and new construction notices
📋 Important Disclaimers
- • Market data is indicative, not definitive
- • Always review the actual solicitation documents for requirements and scope
- • GovSentry scores and AI judgments are screening aids, not calibrated win probabilities
- • Follow linked source records for factual claims; some estimates have no direct source link
- • Past performance data may include contracts of different sizes under the same NAICS code
- • GovSentry provides intelligence to inform your decision—final pursuit decisions require your expertise
Prepared by GovSentry AI; review the underlying notice before acting.
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Use all the NAICS codes in your company profile to uncover matching SAM.gov and beyond-SAM opportunities. Get complete dossier reports, eligibility checks, incumbent and pricing intelligence, AI-assisted next steps, and alerts when new matches arrive.
Prepared for sdvosb using an illustrative example.
Open the full dossier at normal sizeWhat Is the SDVOSB Program?
The SDVOSB program is a federal set-aside program that reserves certain government contracts exclusively for small businesses owned and controlled by service-disabled veterans. The federal government has a statutory goal of awarding at least 3% of all federal contracting dollars to SDVOSBs, which amounts to tens of billions of dollars annually. The government has exceeded this 3% goal every year since FY2016.
Contracting officers across all federal agencies can set aside contracts for SDVOSBs. The Department of Veterans Affairs (VA) has an even more aggressive target, with a goal of awarding 15% of its contract dollars to SDVOSBs and VOSBs combined, making VA one of the most active agencies for veteran-owned businesses.
The SDVOSB program differs from the VOSB (Veteran-Owned Small Business) program. VOSB status is for veteran-owned businesses without a service-connected disability. While the VA has set-aside authority for both VOSBs and SDVOSBs, government-wide set-asides are available only for SDVOSBs. If you have a service-connected disability, always pursue the SDVOSB designation — it gives you access to a much larger pool of contract opportunities.
Eligibility Requirements
To qualify as an SDVOSB, your business must meet these criteria:
- 1.Veteran ownership. The business must be at least 51% owned and controlled by one or more service-disabled veterans. The veteran must hold the highest officer position (or equivalent) and must control the day-to-day management and decision-making. If the veteran owns the company but someone else runs it, the application will be denied.
- 2.Service-connected disability. The veteran must have a disability rating from the VA that was incurred or aggravated during active military service. Any disability rating of 0% or higher qualifies. A 0% rating means the VA acknowledges the condition is service-connected but it does not currently rise to a compensable level. You will need your VA disability rating letter as proof.
- 3.Small business size. The business must qualify as small under the SBA size standard for its primary NAICS code. Size standards vary by industry — for example, most IT services fall under a $34 million annual revenue threshold, while manufacturing typically uses a 500 to 1,500 employee count.
- 4.Unconditional ownership. Ownership must be direct and unconditional. The SBA examines whether the veteran's ownership interest is subject to conditions, executory agreements, voting trusts, or other arrangements that could compromise control. Stock options, convertible notes, or agreements that would dilute the veteran's ownership below 51% can disqualify you.
Important note on permanent disability: If the service-disabled veteran becomes permanently and totally disabled, the spouse or permanent caregiver may be permitted to control the day-to-day management while the veteran retains ownership. This provision ensures that severely disabled veterans are not excluded from the program.
How to Get Certified: Step-by-Step
As of January 1, 2023, all SDVOSBs must be certified through the SBA's Veterans Small Business Certification (VetCert) program. Previously, the VA managed its own verification process, but this has been consolidated under the SBA. Here is how to apply:
Step 1. Register on SAM.gov
You must have an active SAM.gov registration with a valid UEI before applying for VetCert. If you are not yet registered, plan 2 to 4 weeks for the process.
Step 2. Gather required documents
You will need: DD-214 (Certificate of Release or Discharge from Active Duty) or equivalent discharge documentation, VA disability rating letter showing your service-connected disability percentage, business formation documents (articles of incorporation, operating agreement, bylaws), two years of business and personal tax returns, proof of operational control (bank signature cards, resumes of key personnel), and any buy-sell agreements or stock transfer agreements.
Step 3. Submit application online
Applications are submitted at veterans.certify.sba.gov. The application typically takes 2 to 4 hours to complete if all documents are ready. You can save progress and return later.
Step 4. SBA review
The SBA reviews your application, which typically takes 60 to 90 days. During review, the SBA may request additional documentation or clarification via email. Respond promptly — delays in providing requested documents will extend your review timeline.
Step 5. Certification and renewal
Once certified, your SDVOSB status is valid for three years. You must recertify before expiration to maintain your status. The SBA also sends periodic notifications about upcoming recertification deadlines. Set a calendar reminder at least 90 days before expiration to start the renewal process.
Sole-Source Thresholds and Benefits
- •Sole-source contracts up to $5 million for services and $7 million for manufacturing. This means a contracting officer can award a contract directly to your SDVOSB firm without competition. Note that the SDVOSB sole-source threshold for services ($5M) is higher than the 8(a) and WOSB thresholds ($4.5M), giving SDVOSBs an advantage for larger service contracts.
- •Competitive set-asides where only certified SDVOSBs can compete. For a competitive SDVOSB set-aside, the contracting officer must have a reasonable expectation that at least two SDVOSB firms will submit offers and that the award will be at a fair market price. This dramatically reduces the number of bidders compared to full and open competition.
- •3% government-wide goal ensures that agencies across the federal government actively seek out SDVOSB contractors to meet their statutory targets. Agency scorecards are published annually by the SBA, and agencies that miss their targets face pressure to increase SDVOSB awards.
- •VA's "Rule of Two" and 15% goal for SDVOSB and VOSB firms makes the Department of Veterans Affairs one of the best agencies for veteran-owned businesses. Under VA's "Veterans First" contracting program, the VA must first consider setting aside contracts for SDVOSBs and VOSBs before using any other contracting method. The VA awarded over $7.5 billion to SDVOSBs alone in FY2024.
- •Evaluation preference on some full-and-open contracts, where SDVOSB status can serve as a positive evaluation factor. Some agencies include SDVOSB participation as a rated criterion in their source selection evaluation.
- •Subcontracting preference since large prime contractors must include SDVOSB firms in their small business subcontracting plans for contracts over $900,000. Being SDVOSB certified makes you a more attractive teaming partner because primes need to demonstrate SDVOSB participation.
Top Federal Agencies for SDVOSB Contracts
While all federal agencies have SDVOSB contracting goals, some agencies consistently award more to veteran-owned businesses:
- •Department of Veterans Affairs (VA) — the single largest source of SDVOSB contracts, with its Veterans First contracting preference
- •Department of Defense (DoD) — by dollar volume, the largest buyer overall; the Army, Navy, and Air Force each have active SDVOSB programs
- •Department of Homeland Security (DHS) — consistently exceeds its SDVOSB goals, with strong demand for IT, security, and professional services
- •General Services Administration (GSA) — offers SDVOSB-specific vehicles like VETS 2 GWAC for IT services
Common Mistakes and Pitfalls
- ✗Not getting your VA disability rating documented. Some veterans do not file for a VA disability rating or allow their claim to go unresolved for years. Without an official VA disability rating letter, you cannot certify as SDVOSB. If you have not filed a claim, contact your local VA office or a Veterans Service Organization (VSO) to start the process.
- ✗Failing to demonstrate operational control. The SBA closely examines whether the veteran actually controls the business. If a non-veteran spouse, business partner, or employee appears to make key decisions, hold primary banking authority, or have a dominant role in operations, your application will likely be denied.
- ✗Only targeting VA contracts. While the VA is the most active agency for SDVOSB set-asides, every federal agency has a 3% SDVOSB goal. Limiting yourself to VA work means missing opportunities at DoD, DHS, GSA, and civilian agencies. Cast a wide net.
- ✗Letting VetCert certification lapse. SDVOSB certification must be renewed every three years. If it lapses, you immediately lose eligibility for SDVOSB set-asides. Mark your calendar at least 90 days before expiration.
- ✗Not stacking certifications. If you qualify for multiple programs (e.g., SDVOSB + 8(a), or SDVOSB + HUBZone), you should pursue all of them. Each certification opens up additional sole-source and set-aside contract opportunities. Take our Set-Aside Quiz to see which programs you qualify for.
Tips for Winning SDVOSB Contracts
- ✓Start with the VA. The VA's Veterans First program gives SDVOSBs preferential treatment. Research upcoming VA requirements through forecast databases and attend VA industry days.
- ✓Use the VETS 2 GWAC for IT work. If you provide IT products or services, the VETS 2 GWAC is a government-wide contract vehicle specifically for SDVOSBs. Getting on this vehicle gives you access to task orders from any federal agency.
- ✓Respond to Sources Sought notices. When agencies research whether to set aside a contract for SDVOSBs, they post Sources Sought notices on SAM.gov. Your response directly influences the contracting officer's decision to use an SDVOSB set-aside.
- ✓Leverage veteran networks. Organizations like the National Veteran Small Business Coalition (NVSBC) and the American Legion provide networking events, training, and matchmaking opportunities that connect veteran business owners with federal buyers.
- ✓Contact Procurement Technical Assistance Centers (PTACs). PTACs offer free counseling for government contractors, including help with VetCert applications, proposal review, and opportunity identification.
Frequently Asked Questions
Does a 0% disability rating qualify?
Yes. Any service-connected disability rating qualifies, including 0%. A 0% rating means the VA has acknowledged that your condition is service-connected, even though it does not currently meet the criteria for compensation.
Can the surviving spouse of a service-disabled veteran qualify?
Yes, under certain conditions. If the veteran is rated as 100% disabled or dies as a result of a service-connected disability, the surviving spouse may be eligible to continue operating the business as an SDVOSB for a limited period, typically three years after the veteran's death.
What is the difference between SDVOSB and VOSB?
SDVOSB is for veterans with service-connected disabilities. VOSB is for any veteran-owned business. The key difference: SDVOSB set-asides are available government-wide, while VOSB set-asides are limited to the VA. If you have a service-connected disability, always certify as SDVOSB to maximize your opportunities.
Can I hold SDVOSB and other certifications simultaneously?
Yes. You can hold SDVOSB, 8(a), HUBZone, and WOSB certifications at the same time if you meet each program's requirements. Many veteran-owned businesses qualify for multiple designations, and stacking them gives you access to the widest range of set-aside contracts.
How much does SDVOSB certification cost?
The SBA VetCert program is free. There is no application fee, annual fee, or renewal fee. Be wary of third-party companies that charge for SDVOSB certification assistance — while consultants can help prepare your application, the certification itself costs nothing.
Finding SDVOSB Opportunities
SDVOSB set-aside opportunities are posted on SAM.gov, where you can filter solicitations by set-aside type (look for "Service-Disabled Veteran-Owned Small Business Set-Aside" and "Service-Disabled Veteran-Owned Small Business Sole Source"). The VA also posts veteran-specific opportunities through its own procurement channels, including the VA eCMS (Electronic Contract Management System). Many state governments have parallel programs for veteran-owned businesses with their own procurement portals.
Rather than checking SAM.gov, VA portals, and 50 state procurement sites manually, GovSentry monitors all of these sources continuously. Set your SDVOSB certification and NAICS codes in your profile, and GovSentry will alert you the moment a matching SDVOSB opportunity is posted anywhere. Each alert includes AI-generated bid intelligence with incumbent analysis, pricing benchmarks and opportunity fit factors, not calibrated win probabilities.
Related Resources
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GovSentry monitors SAM.gov, VA-specific portals, and all 50 state procurement sites. Get daily alerts matched to your NAICS codes and certifications.