SDVOSB Set-Aside Contracts

What 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 billions of dollars annually.

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.

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.
• 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.
• 3.Small business size. The business must qualify as small under the SBA size standard for its primary NAICS code.

How to Get Certified

As of January 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.

Applications are submitted online at veterans.certify.sba.gov. You will need to provide your DD-214 (or equivalent discharge documentation), VA disability rating letter, business formation documents, tax returns, and proof of operational control. The review process typically takes 60 to 90 days.

For VA-specific contracts, you must also be listed in the VetBiz Vendor Information Pages (VIP) database at vetcert.va.gov.

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.
• •Competitive set-asides where only certified SDVOSBs can compete, dramatically reducing the number of bidders on a given contract.
• •3% government-wide goal ensures that agencies across the federal government actively seek out SDVOSB contractors to meet their statutory targets.
• •VA's 15% combined goal for SDVOSB and VOSB firms makes the Department of Veterans Affairs one of the best agencies for veteran-owned businesses to target.
• •Evaluation preference on some full-and-open contracts, where SDVOSB status can serve as a positive evaluation factor.

Finding SDVOSB Opportunities

SDVOSB set-aside opportunities are posted on SAM.gov, where you can filter solicitations by set-aside type. The VA also posts veteran-specific opportunities through its own procurement channels. 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.