Service-Disabled Veteran-Owned Small Business — Government Set-Aside Program

The Service-Disabled Veteran-Owned Small Business (SDVOSB) program provides federal contracting set-asides and sole-source awards for small businesses owned and controlled by veterans who have a service-connected disability rated by the VA. The program operates government-wide through SBA's certification process (as of January 2023, all SDVOSB certifications are processed by SBA, not the VA). The VA also runs its own Veteran-First contracting program with SDVOSB preferences that applies specifically to VA acquisitions.

• Business must be a small business under SBA size standards for its primary NAICS code
• Business must be at least 51% owned and controlled by one or more service-disabled veterans
• Service-disabled veterans must hold a service-connected disability rating from the VA or DoD
• Service-disabled veteran owner must manage the day-to-day operations and make long-term decisions for the firm
• Service-disabled veteran owner must be a U.S. citizen
• Business must be formally certified through SBA's Veteran Small Business Certification (VetCert) program at certify.sba.gov

• 1
  Competitive set-aside contracts restricted to SDVOSB firms
• 2
  Sole-source awards up to $4.5M (services) and $7M (manufacturing) without competition
• 3
  VA-specific Veteran-First Contracting Program preferences (VA may set aside ANY acquisition for SDVOSB)
• 4
  Eligibility for SDVOSB subcontracting goals on large prime contracts
• 5
  No minimum time-in-business requirement for certification

1. 1

   Obtain your official service-connected disability rating letter from the VA (ebenefits.va.gov) or DoD

2. 2

   Create an account and apply at certify.sba.gov through the Veteran Small Business Certification (VetCert) program

3. 3

   Upload required documentation: disability rating letter, business ownership documents, operating agreement or bylaws, tax returns

4. 4

   SBA reviews application — processing time is typically 30–90 days

5. 5

   Once certified, register your SDVOSB status in SAM.gov under your company's certifications

6. 6

   Maintain certification by ensuring veteran owner continues to control and manage the firm

When a contracting officer restricts a procurement to SDVOSB firms, you will see language like this in the solicitation header:

“This acquisition is set aside for exclusive competition among Service-Disabled Veteran-Owned Small Business (SDVOSB) concerns.”

Look for this language in the SAM.gov opportunity description or the solicitation’s Section B (Contract Clauses) and solicitation preamble.