SDVOSB (Service-Disabled Veteran-Owned Small Business)

Full Definition

A Service-Disabled Veteran-Owned Small Business (SDVOSB) is a small business that is at least 51 percent unconditionally and directly owned and controlled in both management and daily operations by one or more veterans with a service-connected disability rating from the Department of Veterans Affairs. SDVOSB certification is administered through the SBA's VetCert program, which replaced the previous VA verification process in January 2023. The federal government has a statutory goal of awarding 3 percent of all prime and subcontract dollars to SDVOSBs. Contracting officers may set aside contracts exclusively for SDVOSBs and may award sole-source contracts up to $4.5 million for services and $7 million for manufacturing to certified SDVOSB firms when only one qualified SDVOSB can be identified.

Why It Matters

SDVOSB certification is one of the most powerful socioeconomic designations in federal contracting because set-asides are available across all agencies and every NAICS code with no geographic restrictions. Unlike the 8(a) program which has a nine-year limit, SDVOSB certification has no expiration as long as the ownership and control requirements are maintained and the disability rating remains active. Small businesses should apply through the SBA's VetCert portal with documentation including the VA disability rating letter, business ownership documents, and evidence of operational control. SDVOSB status can be combined with other certifications such as 8(a) or HUBZone to qualify for multiple set-aside categories simultaneously, dramatically expanding the opportunity pipeline.

Example

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