What is a Service Disabled Veteran Owned Small Business (SDVOSB)?

WHO IS A SERVICE-DISABLED VETERAN?

The Small Business Act defines the term ‘‘service-disabled veteran’’ as one with a disability that is service-connected, as defined by Title 38 U.S.C., section 101. The term "service-connected disability" is a disability that was incurred or aggravated in the line of duty in the active military, naval, or air service.

WHAT IS THE SERVICE DISABLED VETERAN OWNED SMALL BUSINESS (SDVOSB) PROCUREMENT PROGRAM?

The Veterans Benefit Act of 2003 (15 U.S.C. 657f) created the procurement program for small business concerns owned and controlled by service-disabled veterans (referred to as the “Service-Disabled Veteran-owned Small Business Procurement Program,” FAR 19.14). The purpose of the Service-Disabled Veteran-Owned Small Business (SDVOSB) Program is to provide Federal contracting assistance to service-disabled veteran-owned small business concerns.

Is there a formal certification process required from the Small Business Administration (SBA) to participate in the SDVOSB procurement program?

Yes. Certification with SBA allows service-disabled veteran-owned small businesses (SDVOSBs) to compete for federal sole-source and set-aside contracts across the federal government. Certified veteran-owned small businesses (VOSBs) have additional opportunities to pursue sole-source and set-aside contracts at the U.S. Department of Veterans Affairs (VA) under the VA’s Vets First program.

SBA’s Veteran Small Business Certification program implements changes from the National Defense Authorization Act for Fiscal Year 2021 (NDAA 2021) which transferred the certification function from the VA to SBA as of January 1, 2023. The transfer provides veterans with a central support point for their small business certification needs.

The final rule, which provides program and governance guidance, was published in the Federal Register on November 29, 2022.

In order to place an offer on a Federal contract, the SBC must be registered in the Government's Central Contractor Registration (CCR) located within the System for Award Management (SAM). Once the SBC is registered in SAM, and an offer is submitted on a Federal Contract, the SDVOB needs to complete the On-Line Representations and Certifications Application that is also located in SAM. For more information about SAM and to register on-line, go to the System for Award Management located on the internet at www.sam.gov

IS MY SMALLBUSINESS ELIGIBLE FOR PARTICIPATION IN THE SDVOSB PROGRAM?

The following criteria must be met In order to be eligible as a service-disabled veteranowned small business concern:

1. The service-disabled veteran must have a service-connected disability that has been determined by the Department of Veterans Affairs or Department of Defense.
2. The service-disabled veteran-owned small business concern must be small under the North American Industrial Classification System (NAICS) code assigned to the procurement.
3. The service-disabled veteran-owned small business concern must also be at least 51% owned by one or more service-disabled veterans or, in the case of any publicly owned business, at least 51% of the stock of which is owned by one or more Service-Disabled Veterans.
4. Management and daily business operations of the service-disabled veteran-owned business concern must be controlled by one or more Service-Disabled Veterans or, in the case of a veteran with a permanent and severe disability, the spouse or permanent caregiver of such a veteran.
5. The service-disabled veteran must hold the highest officer position in the small business concern.

REFERENCES

Section 3(q) of the Small Business Act (15 U.S.C. 632(q)) and SBA’s Implement SDVSB Program Regulations (13 C.F.R.125).

Executive Order 13360

Public Law 105-135 and Public Law 108-183