Service-Disabled Veteran-Owned Small Business (SDVOSB)

Definition

A Service-Disabled Veteran-Owned Small Business (SDVOSB) is a small business at least 51% owned and controlled by one or more service-disabled veterans. SDVOSBs may compete for SDVOSB set-aside contracts and receive sole-source awards up to $4.5M (services) or $7M (manufacturing). As of 2024, SDVOSB certification is administered by SBA rather than VA, with all federal agencies accepting the unified certification. The VA maintains its own verification under the VetCert program for VA-specific set-asides.

Why It Matters

Federal agencies have a 3% SDVOSB goal, and the VA has its own 'Veterans First' rule that heavily prioritizes SDVOSBs for VA procurements. For veteran-owned firms, certification opens a lane of reduced-competition work. But certification requires continuous compliance: ownership, control, and management by the service-disabled veteran must be genuine and documented. Joint ventures with larger partners must also meet SBA's mentor-protégé rules.

Example

A 15-person SDVOSB wins a $4.1M VA sole-source award for medical-records transcription. The work is not competed because it falls under the Veterans First authority and SBA-certified SDVOSB status.

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