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Contracting

SDVOSB

Service-Disabled Veteran-Owned Small Business

A federal contracting designation for small businesses owned and controlled by veterans with service-connected disabilities, providing access to set-aside contracts.

What is SDVOSB?

The SDVOSB program provides contracting preferences to small businesses that are at least 51% owned and controlled by one or more service-disabled veterans. The veteran must have a service-connected disability rating from the Department of Veterans Affairs.

SDVOSB firms can compete for SDVOSB set-aside contracts and can receive sole-source contracts up to $4.5 million for goods and services or $7.5 million for manufacturing. The federal government has a goal of awarding 3% of prime contract dollars to SDVOSBs.

Certification is now managed by the SBA through the Veteran Small Business Certification (VetCert) program. Previously, firms could self-certify, but the system moved to SBA verification to reduce fraud and ensure program integrity.

For veteran founders in the defense technology space, SDVOSB certification combines naturally with the startup’s domain expertise. A service-disabled veteran who understands military operations and needs, running a technology company with relevant solutions, is a compelling combination for defense contracting officers.

Have questions about SDVOSB?

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