SDVOSB (Service-Disabled Veteran-Owned Small Business)

A federal certification for companies at least 51% owned and controlled by service-disabled veterans, providing access to set-aside contracts and sole source awards.

Service-Disabled Veteran-Owned Small Business (SDVOSB) is one of the most valuable small business designations in federal contracting. Certified firms gain access to set-aside contracts reserved exclusively for SDVOSBs and the ability to receive sole source awards from civilian agencies and the VA without competition.

Eligibility

To qualify, a business must meet SBA small business size standards, be at least 51% owned and controlled by one or more service-disabled veterans who are U.S. citizens, and those veterans must manage day-to-day operations and long-term decision-making. The owner must have a service-connected disability rating from the VA or DoD. There is no minimum disability percentage — any service-connected rating qualifies.

SBA Certification Requirement

As of January 2023, all SDVOSBs pursuing federal prime contracts must hold SBA certification. Self-certification is no longer accepted. Certification must be renewed every three years. The VA's separate VOSB/SDVOSB verification program was consolidated into SBA, so a single SBA certification now covers both federal-wide and VA set-aside opportunities.

Federal Contracting Goals and Preferences

Agencies have a statutory goal to award at least 3% of prime contract dollars to SDVOSBs. The VA applies an even stronger preference under the Veterans Benefits, Health Care, and Information Technology Act, requiring VA contracting officers to give SDVOSB firms first priority before opening competition under other set-aside programs. Sole source awards to SDVOSBs are available up to $4.5 million for services and $7 million for manufacturing.

Stacking Certifications

SDVOSB certification can be held simultaneously with 8(a), HUBZone, or WOSB. Holding multiple certifications increases the range of set-aside opportunities you can pursue. Each certification has its own application and renewal requirements, but the investment is worthwhile for businesses that qualify.