Federal policy names veteran-owned and service-disabled veteran-owned small businesses among the firms that shall have the maximum practicable opportunity to participate in performing contracts let by any federal agency 1.
The veteran-owned test follows the familiar pattern. The business is not less than 51 percent owned and controlled by one or more veterans 2, and its management and daily business operations are controlled by one or more veterans 3.
For a service-disabled veteran-owned small business (SDVOSB), the owners must be service-disabled veterans: not less than 51 percent owned and controlled by one or more of them 4.
Daily control rests with service-disabled veterans or, in the case of a service-disabled veteran with permanent and severe disability, the spouse or permanent caregiver of that veteran 5.
Certification and the SDVOSB Program
Meeting the definition and being eligible under the SDVOSB Program are separate in the FAR. One route into the program, effective January 1, 2024, is to be designated in SAM as certified by SBA in accordance with 13 CFR 128.300 6.
The other route covers a firm that had represented itself as an SDVOSB in SAM and submitted a complete application for certification to SBA on or before December 31, 2023 7. That route is temporary: SBA's rule lets such a firm self-certify for SDVOSB sole source or set-aside contracts (other than VA contracts) only until SBA declines or approves the concern's application 8.
The program is what opens set-asides: it authorizes contracting officers to limit competition, including award on a sole-source basis, to SDVOSB concerns eligible under the program 9.
Bids2Bank's SAM.gov search can filter notices for SDVOSB set-asides 10.
When Bids2Bank scores a program set-aside, it checks it against the certifications listed on your SAM record 11.
Worked example. Contractor P is owned and run by a service-disabled veteran and has applied to SBA. Until its SAM record shows the certification, it bids small business set-asides and open competitions, and keeps a list of SDVOSB set-asides to pursue once certified.
Filter SAM.gov notices for SDVOSB set-asides →
Indented paragraphs are invented worked examples. Tool links open Bids2Bank and need a free account.