Purchasing & Small Business

Service Disabled Veteran-Owned Small Business

Service-Disabled Veteran-Owned Small Business (SDVOSB) is a small business owned at least 51% by a disabled veteran as deemed by the Veterans Administration. These business owners have access to certain federal contract sets asides. The Small Business Act (15 U.S.C. 644(g)), states that the President of the United States must set aside 3% of all federal contracts for these businesses. The terms veteran and service-disabled veteran are defined in 38 U.S.C. 101(2) and (16), respectively, the Department of Veterans Affairs, United States Code.

Presidential Executive Order 13360

Calls for a significant increase in federal contracting and subcontracting opportunities for service-disabled veteran-owned businesses. The central feature of the Executive Order calls for all Federal agencies to develop a strategic plan to significantly increase its contracting and subcontracting with small businesses owned and controlled by service-disabled veterans. The Department of Defense has put a bold and aggressive plan in place in response to Presidential Executive Order 13360. [1]

Website: US Small Business Administration – Veteran & Service-Disabled Veteran-Owned

Most Frequently Asked Questions [2]

1. How does a Veteran verify their status as a Service-Disabled Veteran?

To be considered a Service-Disabled Veteran, the veteran must have an adjudication letter from the Veterans Administration (VA), a Department of Defense Form 214, Certificate of Release or Discharge from Active Duty, or a Statement of Service from the National Archives and Records Administration, stating that the veteran has a service-connected disability.

2. Is there a minimum disability rating to participate in the SBVOSB program?

No, there is not a minimum disability rating. A veteran with a 0 to 100% disability rating is eligible to self-represent as a Service-Disabled Veteran for Federal contracting purposes.

3. Is there a formal certification process required from the SBA to participate in the SDVOSB procurement program?

No. The Veterans Benefits Act of 2003 that established restricted contracting in Federal procurement for Service-Disabled Veteran-Owned Small Business Concerns (SDVO SBC) did not require a formal process to certify concerns as SDVO SBC. A SDVO SBC self-represents its status for all Federal contracts. In order to place an offer on a Federal contract, the SBC must be registered in the System of Award Management (SAM). Once the SBC is registered in SAM, and an offer is submitted on a Federal Contract, the SDVO SBC will need to fill out an “On-Line Representations and Certifications Application.”

4. Are sole source or set-aside contracts allowed under the SDVOSB procurement program?

Yes. In accordance with 13 C.F.R. 125.19 and 125.20, contracting officers may award a sole source or set-aside contract to SDVOSBCs, if certain conditions are met.

5. Is there an order of precedence for the SDVOSB program?

No, however, the Contracting Officer should consider the 8(a), HUBZone, and SDVO Program before considering setting-aside the requirement for Small Business Concerns. If the Contracting Officer decides to set-aside the requirement for competition restricted to SDVO SBCs, the Contracting Officer must have a reasonable expectation that at least two responsible SDVO SBCs will submit offers and determine that award can be made at fair market price.

Other Disadvantaged Company Types

There are several other types of disadvantaged companies. A few of these are:

  • Small Disadvantaged Business (SBA): SDB status makes a company eligible for bidding and contracting benefit programs involved with federal procurement.
  • Women Owned Small Business: authorizes contracting officers to set aside certain federal contracts for eligible women-owned small businesses.
  • HUBZone Business: Helps small businesses in urban and rural communities gain preferential access to federal procurement opportunities.

AcqLinks and References:

Update: 4/20/2020

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