Set-Aside Programs
SDVOSB Contract Opportunities: Federal Set-Asides for Service-Disabled Veterans
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Service-Disabled Veteran-Owned Small Businesses (SDVOSBs) have access to exclusive federal set-aside contracts across all agencies — with particularly strong preferences at the Department of Veterans Affairs.
What Is SDVOSB?
SDVOSB (Service-Disabled Veteran-Owned Small Business) is a federal contracting designation for businesses that are at least 51% owned and controlled by one or more veterans with a service-connected disability. The designation is designed to support veteran entrepreneurs who have served and sacrificed for the country.
To qualify, the service-disabled veteran must:
- Own at least 51% of the business
- Control the management and daily business operations
- Have a service-connected disability determination from the VA or DoD
- Hold the highest officer position in the company
Certification must be obtained through the SBA's VetCert program at certifications.sba.gov. As of December 22, 2024, self-certification is no longer accepted for any federal contracting purpose.
SDVOSB vs VOSB: The Key Difference
| Factor | VOSB | SDVOSB |
|---|---|---|
| Owner qualification | Any veteran | Service-disabled veteran |
| SDVOSB set-asides | No | Yes |
| VOSB set-asides | Yes | Yes |
| VA preference priority | 2nd priority | 1st priority |
The VA and SDVOSB Contracting
The Department of Veterans Affairs has a statutory requirement to give first preference to SDVOSB firms, then VOSB firms, before opening competition more broadly. Governmentwide, SDVOSB-certified firms received $32.8 billion (SBA Annual Procurement Scorecard) in federal prime contracts in FY2024. This "Rule of Two" means if there are at least two qualified SDVOSB firms that can perform the work at fair market prices, the VA must restrict competition to SDVOSB firms only.
The federal government has a 5% annual spending goal for SDVOSB prime contracts (per SBA). The VA awards billions of dollars in SDVOSB contracts annually across healthcare products and services, construction, IT, professional services, and supplies. It is one of the most SDVOSB-friendly agencies in the federal government.
How to Find SDVOSB Contract Opportunities
On SAM.gov, filter by Set-Aside Type: Service-Disabled Veteran-Owned Small Business. On EasyGov, click the SDVOSB filter on the dashboard to see only SDVOSB set-aside solicitations.
For VA-specific opportunities, also check the VA's Vendor Information Pages (VIP) and look for VA contracting opportunities on SAM.gov filtered by agency.
Browse SDVOSB opportunities on EasyGov →Related Programs
Frequently Asked Questions
Who qualifies as service-disabled for SDVOSB?
A service-disabled veteran is a veteran who has a service-connected disability rating from the Department of Veterans Affairs (VA) or a determination from the Department of Defense. The disability rating can be any percentage — even a 0% rating (meaning a disability exists but does not affect compensation) qualifies. The veteran must own at least 51% of the business and control its management and daily operations.
Does the VA verify SDVOSB status?
Yes. As of December 22, 2024, all firms claiming SDVOSB or VOSB status must be certified through the SBA's VetCert program — self-certification is no longer accepted for any federal contracting purpose. Apply at certifications.sba.gov. VetCert certification covers all agencies, not just the VA.
What is the VOSB program vs SDVOSB?
VOSB (Veteran-Owned Small Business) is the broader category — any veteran-owned business qualifies regardless of disability status. SDVOSB is the subset where the owner has a service-connected disability. SDVOSBs qualify for all VOSB set-asides plus the exclusive SDVOSB set-asides. The VA is required to give priority to SDVOSB firms over VOSB firms in the preference hierarchy.
How much does the federal government spend on SDVOSB contracts?
The federal government has a 5% goal for prime contract spending with SDVOSBs, representing billions of dollars annually. The VA typically exceeds this goal as it has statutory requirements to prioritize SDVOSB and VOSB firms. DoD and other agencies also award significant SDVOSB contract dollars.