SDVOSB Contracts: How to Get Certified and Win Set-Aside Opportunities

The Service-Disabled Veteran-Owned Small Business (SDVOSB) program is one of the most powerful set-aside certifications in federal contracting. It gives eligible businesses access to sole-source contracts up to $5 million, mandatory set-asides at the VA, and preference across all federal agencies.

If you're a service-disabled veteran who owns a small business, this certification can fundamentally change your ability to compete for government contracts.

What Is SDVOSB?

SDVOSB is a federal designation for small businesses that are:

• At least 51% owned by one or more service-disabled veterans
• Controlled in management and daily operations by a service-disabled veteran
• Small under the SBA size standard for their primary NAICS code

A "service-disabled veteran" is a veteran with a disability incurred or aggravated in the line of active duty in the U.S. armed forces, as determined by the VA or DOD. Any disability rating (even 0%) qualifies.

SDVOSB Benefits

Federal-Wide Benefits

• 3% government-wide goal — agencies aim to award at least 3% of prime contract dollars to SDVOSBs
• Sole-source authority — agencies can award contracts up to $5M (services) or $7M (manufacturing) directly to an SDVOSB without competition
• Set-aside competitions — when two or more SDVOSBs can perform the work, agencies can restrict competition to SDVOSBs only
• Evaluation preference — some solicitations give evaluation credit for SDVOSB status

VA-Specific Benefits (Veterans First Program)

The VA goes further than any other agency. Under the Veterans First Contracting Program:

• Mandatory Rule of Two — VA contracting officers must set aside contracts for SDVOSBs/VOSBs before competing openly
• Higher sole-source limits — same $5M/$7M limits but applied more frequently
• Over 30% of VA dollars go to small businesses, with SDVOSB being the top priority

How to Get SDVOSB Certified

SBA VetCert (Required as of January 2023)

All SDVOSB certifications now go through the SBA's VetCert program. The VA's old CVE (Center for Verification and Evaluation) has been transferred to SBA.

1. Register in SAM.gov — must be active before applying
2. Apply through SBA's VetCert portal at veterans.certify.sba.gov
3. Provide documentation:
   • VA disability rating letter or DOD documentation
   • Business formation documents (articles of incorporation, operating agreement)
   • Proof of veteran's ownership stake (51%+)
   • Evidence of veteran's control over management and daily operations
   • Tax returns, financial statements
4. Wait for review — SBA processes applications in approximately 90 days
5. Maintain certification — recertification is required every 3 years

Finding SDVOSB Set-Aside Contracts

SDVOSB set-asides are posted across all the standard federal procurement channels:

• SAM.gov — filter by set-aside type "SDVOSB" or "Service-Disabled Veteran-Owned Small Business"
• VA-specific portals — the VA posts the most SDVOSB set-asides of any agency
• Agency forecast sites — many agencies publish procurement forecasts identifying upcoming SDVOSB set-asides
• BidSparq — automatically flags SDVOSB set-asides and sole-source opportunities across all sources

Winning Strategies

1. Target the VA first. The Veterans First program makes VA the highest-probability agency for SDVOSB wins. See our VA contracts guide.
2. Pursue sole-source opportunities. Reach out to contracting officers proactively. If you can demonstrate capability and fair pricing, they can award up to $5M without competition.
3. Search FPDS for SDVOSB patterns. Find agencies that regularly use SDVOSB set-asides in your NAICS code.
4. Combine with other certifications. SDVOSB can stack with 8(a), HUBZone, and SBA small business status for maximum preference.
5. Team as a prime. SDVOSB primes can subcontract up to 49% of the work (for services) while maintaining set-aside eligibility — giving you access to larger contracts through teaming.
6. Build past performance. Start with smaller SDVOSB set-asides and simplified acquisitions to build a track record, then pursue larger opportunities.

Common SDVOSB Mistakes

1. Not getting certified. Self-certification is no longer accepted. You must go through SBA VetCert to compete for set-asides.
2. Only targeting the VA. While the VA is the top agency, all federal agencies have SDVOSB goals. DOD, DHS, and GSA all regularly use SDVOSB set-asides.
3. Ignoring subcontracting. If you can't prime a large contract yet, subcontracting builds the past performance you need for future prime bids.
4. Not marketing your status. Put SDVOSB on your capability statement, website, and SAM.gov profile. Contracting officers actively search for verified SDVOSBs.

Frequently Asked Questions

What disability rating do I need for SDVOSB?

Any service-connected disability rating qualifies, including 0%. The disability must be service-connected as documented by the VA or DOD.

Can I be SDVOSB and 8(a) at the same time?

Yes. SDVOSB and 8(a) are separate programs that can be held simultaneously. Having both maximizes your access to set-aside contracts.

How long does SDVOSB certification take?

SBA VetCert currently takes approximately 90 days from application submission. Have all documentation ready before applying to avoid delays.

What happens if the veteran owner becomes unable to manage the business?

SBA allows a 12-month transition period for permanent incapacity and specific provisions for veteran owners who pass away. The business can maintain SDVOSB status during the transition under certain conditions.

Next Steps

• Start your free trial — BidSparq highlights SDVOSB set-asides across all agencies
• Read our VA contracts guide — the best agency for SDVOSB firms
• Learn about all federal set-aside programs
• Understand NAICS codes and how they affect your size standard
• Use FPDS to find agencies that use SDVOSB set-asides in your industry
• Browse open IT services RFPs and consulting RFPs with SDVOSB set-asides