Service-Disabled Veteran-Owned Small Business and Federal Contracting

October 3, 2023
3 min read

Disabled veterans in the United States have been granted increased preference for government contracts through various federal programs and regulations. The key program that provides this preference is the Service-Disabled Veteran-Owned Small Business (SDVOSB) program.

Under the SDVOSB program, the federal government sets aside contracts for small businesses that are at least 51% owned and controlled by service-disabled veterans. To qualify for SDVOSB status, the veteran must have a service-connected disability as determined by the Department of Veterans Affairs. The following are some details around SDVOSB awards and incentives:

  • Priority in Contract Awards: The federal government gives priority to SDVOSBs when awarding contracts. This means that if a qualified SDVOSB submits a competitive bid for a contract, it may be given preference over non-veteran-owned businesses.
  • Contract Set-Asides: Some contracts are specifically set aside for SDVOSBs, meaning that only eligible veteran-owned businesses can compete for those contracts.
  • Sole Source Awards: In certain cases, the government can award contracts on a sole source basis to SDVOSBs, meaning they don’t have to compete with other businesses for those contracts. This is typically done when it’s determined that only one SDVOSB can perform the work.
  • Subcontracting Opportunities: Large prime contractors who win government contracts are often required to subcontract a portion of the work to SDVOSBs to meet government-mandated subcontracting goals.

It’s important for disabled veterans who own businesses to go through the certification process to qualify for SDVOSB status. The process typically involves registering with the Department of Veterans Affairs (VA) and providing documentation to prove service-connected disability and ownership and control of the business.

These programs are designed to promote economic opportunities for service-disabled veterans and provide them with a competitive advantage when pursuing government contracts.

If you are an SDVOSB and are looking for guidance on bidding processes and/or have government contract compliance questions, feel free to schedule a consultative conversation today.

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