Question 1

What is the SDVOSB set-aside program?

Accepted Answer

Service-Disabled Veteran-Owned Small Business (SDVOSB) set-asides are federal contract competitions restricted exclusively to small businesses that are at least 51% owned and controlled by one or more veterans with a service-connected disability rating. These contracts are authorized under FAR 19.14 and support the government's annual 3% SDVOSB spending goal.

Question 2

How do I get SDVOSB certification?

Accepted Answer

SDVOSB certification is now handled by the SBA through its Veterans Small Business Certification (VetCert) program at certify.sba.gov. You will need to provide proof of honorable discharge, VA or DoD disability rating documentation, ownership and control documentation, and business financial records.

Question 3

What disability rating do I need to qualify as SDVOSB?

Accepted Answer

Any service-connected disability rating from the VA or DoD qualifies—there is no minimum percentage required. The disability must be service-connected, meaning it was incurred or aggravated in the line of duty. A 0% disability rating is sufficient for eligibility purposes.

Question 4

What is the difference between SDVOSB set-aside (SDVOSBC) and SDVOSB sole source (SDVOSBS)?

Accepted Answer

A set-aside (SDVOSBC) requires competition among at least two SDVOSB firms. A sole source (SDVOSBS) allows direct award to a single SDVOSB firm without competitive bidding, subject to dollar thresholds of $4.5M for manufacturing and $7M for other contracts.

Question 5

Is SDVOSB certification the same as VetBiz verification?

Accepted Answer

No. Historically, VetBiz (VA CVE) verified SDVOSB status for VA contracts only. The SBA VetCert program now serves as the single verification source for all federal agencies. Certifications from the old VA CVE program transitioned to SBA VetCert.

Question 6

Can a surviving spouse of a service-disabled veteran maintain SDVOSB status?

Accepted Answer

Yes, under limited circumstances. A surviving spouse or permanent caregiver of a service-disabled veteran with a 100% disability or who has died from a service-connected disability may temporarily maintain ownership and control to wind up business affairs, but permanent ongoing SDVOSB status requires a qualifying veteran in control.

Question 7

What happens if the service-disabled veteran owner dies or loses SDVOSB eligibility?

Accepted Answer

The business must notify the SBA and may no longer represent SDVOSB status on new contracts. Existing SDVOSB contracts may be completed, but new awards would no longer be available under SDVOSB set-aside authority.

Question 8

How does SamSearch help SDVOSB firms win more contracts?

Accepted Answer

SamSearch filters active solicitations by the SDVOSBC set-aside code, delivering a curated feed of competitive opportunities restricted to SDVOSB firms. You can further refine by NAICS code, agency, state, and response deadline to prioritize the best-fit opportunities.

Question 9

Do SDVOSB set-asides apply to all federal agencies?

Accepted Answer

Yes. FAR 19.14 applies government-wide. Every federal agency may use SDVOSB set-aside authority when market research supports a reasonable expectation of receiving offers from at least two SDVOSB firms at a fair market price.

Question 10

Can an SDVOSB firm also hold 8(a) or HUBZone certification?

Accepted Answer

Yes. Multiple certifications are permitted. Holding 8(a), HUBZone, WOSB, or other certifications expands the set-aside vehicles available to your firm. Each solicitation specifies which set-aside type applies.

Question 11

What is the performance-of-work requirement for SDVOSB contracts?

Accepted Answer

On SDVOSB set-aside contracts, the prime contractor must perform at least 50% of the cost of personnel for service contracts, at least 85% of the work for general construction, and at least 15% for specialty construction, under FAR 52.219-27. This prevents large businesses from using SDVOSB firms as pass-throughs. Violations can result in contract termination and suspension/debarment.

Question 12

What are the most common reasons for SDVOSB certification denial by the SBA?

Accepted Answer

Common denial reasons include: lack of genuine ownership control by the service-disabled veteran (management decisions made by non-veteran owners or employees), failure to demonstrate day-to-day management by the veteran, excessive involvement of outside investors in decision-making, not meeting SBA size standards, or incomplete documentation of the veteran's service-connected disability status from the VA or DoD.

Question 13

How does the SBA's affiliation rule affect SDVOSB competitive bids?

Accepted Answer

SBA affiliation rules can count employees and revenues of affiliated businesses toward your size standard. If your SDVOSB firm has contractual relationships with, economic dependence on, or common ownership with another business, that business may be considered affiliated, potentially taking you over the size standard for a given NAICS code. Review potential affiliations carefully before certifying size status on SDVOSB solicitations.

Question 14

Can an SDVOSB prime contractor team with a large business on set-aside contracts?

Accepted Answer

Yes, through subcontracting. A large business can serve as a subcontractor to an SDVOSB prime. However, the SDVOSB must perform the primary and vital work of the contract and meet the performance-of-work limitations. Using a large business as an ostensible subcontractor that actually performs the bulk of the work violates the limitation on subcontracting clause and can result in bid rejection or False Claims Act penalties.

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Frequently Asked Questions — Service-Disabled Veteran-Owned Small Business