SDVOSBContract Opportunities
The Service-Disabled Veteran-Owned Small Business program provides set-aside contracts for businesses owned by veterans with service-connected disabilities. Federal agencies must meet a 3% SDVOSB contracting goal.
Definition
What are SDVOSB contract opportunities? SDVOSB contract opportunities are federal set-asides reserved for small businesses at least 51% owned and controlled by service-disabled veterans. The program provides sole-source contracts up to $5 million for services, and the Department of Veterans Affairs gives SDVOSB firms top priority under its Veterans First policy.
Key Takeaways
- Federal agencies must award at least 3% of prime contract dollars to SDVOSB firms each fiscal year.
- Sole-source awards are available up to $5 million for services and $7 million for manufacturing.
- The VA has a Veterans First policy that gives SDVOSB firms top priority for all VA procurements.
- SBA VetCert certification is required and typically takes 2 to 4 weeks for complete applications.
Eligibility Requirements
What your business needs to qualify for SDVOSB certification
| Requirement | Details |
|---|---|
| Service-Connected Disability | Owner must have a VA-rated service-connected disability of 0% or higher. A disability rating letter from the VA is required. |
| Veteran Status | Owner must be a veteran as defined by 38 U.S.C. 101(2) and have been discharged under conditions other than dishonorable. |
| Ownership | The service-disabled veteran must directly own at least 51% of the business unconditionally. Ownership through trusts, entities, or other arrangements may require additional documentation. |
| Control | The service-disabled veteran must control the management and daily business operations, hold the highest officer position, and have the authority to make binding decisions. |
| Business Size | Must qualify as a small business under SBA size standards for your primary NAICS code. |
| SBA VetCert | Must be certified through the SBA VetCert program (vetcert.sba.gov). Self-certification is no longer accepted for federal set-aside contracts. |
How to Find SDVOSB Opportunities
From certification to winning your first SDVOSB contract
Confirm Your VA Disability Rating
Obtain your VA disability rating letter showing a service-connected disability rating. Any rating from 0% or higher qualifies. You can request a rating letter from the VA or download it from va.gov.
Verify Business Ownership Requirements
The service-disabled veteran must own at least 51% of the business unconditionally and directly, control the management and daily operations, and hold the highest officer position. Review SBA ownership and control requirements carefully.
Apply Through SBA VetCert
Submit your application through vetcert.sba.gov. Provide DD-214, VA disability rating letter, business formation documents, tax returns, and proof of management control. The SBA will review and may request additional documentation.
Register in SAM.gov
Ensure your SAM.gov registration is active and reflects your SDVOSB certification. Update your NAICS codes, capabilities narrative, and set-aside designations in your SAM profile.
Search for SDVOSB Set-Aside Opportunities
Filter opportunities on SAM.gov or GCFinder by the SDVOSB set-aside type. Pay special attention to VA opportunities, which have the strongest SDVOSB preference. Set up alerts for new SDVOSB postings.
Build Agency Relationships
Attend veteran-focused procurement events, register for VA vendor outreach sessions, and connect with agency small business offices. Many sole-source awards come through relationship-building with contracting officers.
Why SDVOSB Matters for Contractors
The 3% SDVOSB federal contracting goal means agencies actively seek SDVOSB firms to meet their annual targets, creating consistent demand for SDVOSB contractors.
The Department of Veterans Affairs Veterans First policy gives SDVOSB firms priority over all other set-aside categories, making the VA one of the most accessible agencies for SDVOSB contractors.
SDVOSB certification through VetCert is relatively fast (2-4 weeks) compared to other programs like 8(a), allowing you to start competing for set-aside contracts quickly.
Unlike the 8(a) program, SDVOSB certification has no program term limit. You can maintain your certification as long as you meet eligibility requirements.
Frequently Asked Questions
Common questions about SDVOSB certification and contracting
What qualifies as a service-connected disability for SDVOSB?
A service-connected disability is an injury or illness that was incurred or aggravated during active military service, as rated by the Department of Veterans Affairs. Any disability rating of 0% or higher from the VA qualifies. Common qualifying conditions include physical injuries, PTSD, traumatic brain injury, hearing loss, and other conditions documented in the veteran's VA disability rating letter.
What is VetCert and how do I apply?
VetCert is the SBA's certification program for verifying SDVOSB and VOSB status. Previously managed by the VA's Center for Verification and Evaluation (CVE), certification transferred to the SBA on January 1, 2023. Apply through the SBA's VetCert portal at vetcert.sba.gov. You will need your VA disability rating letter, DD-214, business formation documents, and financial records.
What is the SDVOSB sole-source contract limit?
Contracting officers can award sole-source contracts to SDVOSB firms up to $5 million for services and $7 million for manufacturing. The contract must be awarded at a fair and reasonable price. For the Department of Veterans Affairs, the Veterans First Contracting Program gives SDVOSB firms priority consideration for sole-source awards.
Does the VA have special SDVOSB contracting rules?
Yes. The Veterans First Contracting Program (38 U.S.C. 8127-8128) requires the VA to prioritize SDVOSB and VOSB firms before using other set-asides or full-and-open competition. The VA must first consider SDVOSB sole-source, then SDVOSB competitive, then VOSB sole-source, then VOSB competitive before opening procurement to other categories.
Can a VOSB (non-disabled) get SDVOSB contracts?
No. SDVOSB contracts are exclusively for service-disabled veteran-owned small businesses. However, VOSB firms can compete for general small business set-asides and VOSB-specific opportunities. The VA's Veterans First program also has VOSB-specific set-asides that are separate from SDVOSB set-asides.
How long does SDVOSB certification take?
The SBA VetCert process typically takes 2 to 4 weeks for straightforward applications. More complex cases involving ownership structures, joint ventures, or tribal organizations may take longer. Ensure you have all required documents ready before applying to avoid delays.
Find SDVOSB Set-Aside Contracts
Search live SDVOSB opportunities, get alerts for new VA and federal postings, and track deadlines.