Land SDVOSB Construction Set-Asides: $4M Threshold (2026)
Federal agencies awarded $32.4 billion to SDVOSB firms in FY2024, and construction ranked among the largest spending categories. That number keeps climbing. The Bipartisan Infrastructure Law continues pumping billions into facility projects, and every contracting officer in every federal agency must hit a 3% SDVOSB spending goal or explain why they fell short.
Here is what that means for you: SDVOSB set-aside contracts eliminate the 15-to-20 firm bidding wars you face on full-and-open solicitations. Sole source awards up to $4 million let contracting officers hand you work directly. The VA's Veterans First program puts SDVOSB firms at the top of the priority stack before any other socioeconomic category even gets considered.
This guide covers everything a service-disabled veteran-owned construction business needs to win SDVOSB set-asides in 2026: VetCert certification, eligibility requirements, sole source and competitive thresholds, the VA Veterans First contracting program, Rule of Two application, finding opportunities, and strategies that produce consistent wins.
Quick Answer: SDVOSB set-asides reserve federal construction contracts for service-disabled veteran-owned firms, with sole source awards up to $4 million and competitive set-asides at any dollar value. SBA VetCert certification is mandatory.
Find SDVOSB construction set-asides across every federal agency. Start your free trial on ConstructionBids.ai and get instant alerts for SDVOSB opportunities matching your NAICS codes and location.
In This Guide:
- What Are SDVOSB Construction Set-Asides?
- SDVOSB Eligibility Requirements
- SBA VetCert Certification Process
- Sole Source and Competitive Thresholds
- VA Veterans First Contracting Program
- The Rule of Two Explained
- Finding SDVOSB Construction Opportunities
- NAICS Codes for SDVOSB Construction Firms
- Teaming Agreements and Joint Ventures
- SBA Mentor-Protege Program for SDVOSB Firms
- Winning Strategies for SDVOSB Contractors
- Stacking Certifications for Maximum Access
What Are SDVOSB Construction Set-Asides?
SDVOSB set-asides are federal contract opportunities reserved exclusively for service-disabled veteran-owned small businesses. When a contracting officer designates a construction solicitation as an SDVOSB set-aside, only firms holding active SBA VetCert certification compete for the award. This restriction eliminates competition from large contractors and non-veteran-owned businesses, dramatically improving win probability for qualified SDVOSB firms.
The federal government maintains a statutory goal of awarding 3% of all prime contract dollars to SDVOSB firms. In fiscal year 2024, federal agencies awarded approximately $32.4 billion to SDVOSB businesses across all industries, exceeding the 3% target. Construction consistently ranks among the top spending categories because of the capital-intensive nature of building projects and the strong pipeline of infrastructure funding from the Bipartisan Infrastructure Law.
$32.4 billion in federal prime contract dollars awarded to SDVOSB firms in FY2024, exceeding the 3% statutory goal across all agencies.
SDVOSB set-asides operate through two primary mechanisms:
Sole Source Awards allow contracting officers to award contracts directly to a single SDVOSB firm without competition, provided the contract value falls below the applicable threshold and the price is fair and reasonable.
Competitive Set-Asides restrict competition to SDVOSB firms only. Any number of certified SDVOSB businesses submit offers, and the contracting officer evaluates them using standard best-value or lowest-price technically acceptable criteria. These competitive set-asides have no dollar ceiling.
For construction contractors, the SDVOSB program offers a distinct pathway into federal work that bypasses the intense competition of full-and-open solicitations. A general contractor competing against 15-20 firms on a full-and-open basis faces far better odds when only 3-5 certified SDVOSB firms are eligible to bid.
Related: For a broader view of all small business set-aside categories, see our small business set-aside contracts guide.
SDVOSB Eligibility Requirements
Meeting SDVOSB eligibility requires satisfying both personal veteran requirements and business ownership requirements. The SBA evaluates these criteria during the VetCert certification process and conducts periodic recertification to confirm ongoing compliance.
Personal Requirements
The qualifying veteran must meet all of the following:
- Service-connected disability: Any VA disability rating of 0% or higher that is service-connected. The percentage does not matter; a 0% service-connected rating qualifies equally with a 100% rating
- Honorable discharge: DD-214 must show honorable or general discharge characterization
- U.S. citizen: The veteran owner must be a U.S. citizen
- Day-to-day management: The veteran must hold the highest officer position and manage daily business operations
Business Ownership Requirements
| Requirement | Standard | |-------------|----------| | Ownership percentage | 51% or more unconditionally and directly owned by one or more service-disabled veterans | | Control | Service-disabled veteran must control management and daily operations | | Highest officer | Veteran must hold the highest officer position (CEO, President, Managing Member) | | Business size | Must qualify as small under the NAICS code assigned to each solicitation | | Good standing | Business must be in good standing with its state of incorporation | | Active operations | Must be an operational business, not a shell company |
Survivorship Provision
If the service-disabled veteran owner passes away while the firm holds SDVOSB certification, the surviving spouse maintains eligibility for a limited period. The firm retains SDVOSB status for up to 10 years from the veteran's date of death or 3 years from the date of the veteran's VA disability rating, whichever is longer, provided the surviving spouse maintains ownership and control.
Common Disqualifiers
Several situations disqualify otherwise eligible firms:
- Pass-through arrangements: The veteran must actively manage the business, not serve as a figurehead while non-veterans run operations
- Excessive distribution agreements: Profit-sharing arrangements giving non-veteran partners disproportionate control trigger disqualification
- Affiliation: Revenue from affiliated companies can push the firm above size standards
- Lack of operational history: Newly formed shell companies without legitimate operational capacity fail the review
SBA VetCert Certification Process
Since January 1, 2023, the Small Business Administration manages all SDVOSB certification through the Veterans Small Business Certification (VetCert) program. This replaced the VA's Center for Verification and Evaluation (CVE) program and made SBA the single certifying authority for both SDVOSB and VOSB status across all federal agencies.
Step-by-Step: VetCert Application
- Create an account at vetcert.sba.gov using your SBA login credentials
- Complete the online application with business information, ownership structure, and veteran details
- Upload required documents: DD-214, VA disability rating letter, articles of incorporation, operating agreement, ownership certificates, tax returns (3 years), organizational chart
- Submit the application and receive a confirmation number for tracking
- Respond to analyst questions within 5 business days of any SBA information request
- Receive determination within 60-90 days of complete application submission
- Maintain certification through annual recertification and reporting material changes within 30 days
Required Documents Checklist
Prepare these documents before starting your application:
- DD Form 214 (Member 4 copy showing discharge characterization)
- VA disability rating letter showing service-connected disability
- Articles of incorporation or organization
- Operating agreement or bylaws
- Stock certificates or membership certificates
- Federal tax returns (3 most recent years)
- Organizational chart showing veteran's management position
- Resume of the service-disabled veteran owner
- Any partnership agreements, shareholder agreements, or voting trusts
Processing Timeline
VetCert applications follow a structured review process:
| Phase | Duration | Activity | |-------|----------|----------| | Initial review | 5-10 days | Completeness check, document verification | | Analyst assignment | 10-15 days | Case assigned to certification analyst | | Substantive review | 30-45 days | Ownership, control, and eligibility analysis | | Decision | 5-10 days | Approval or denial letter issued | | Total | 60-90 days | From complete application to decision |
Applications with missing documents or incomplete information take longer. Submit a complete package upfront to minimize delays. If denied, you receive a detailed explanation and can reapply after addressing the deficiencies.
Track SDVOSB construction opportunities as soon as your certification processes. Start your free trial and set up SDVOSB set-aside alerts across federal, state, and local agencies.
Sole Source and Competitive Thresholds
Understanding SDVOSB threshold amounts determines which contracting mechanism applies to each opportunity. These thresholds define when a contracting officer can award directly to a single SDVOSB firm versus requiring competitive bids among multiple SDVOSB businesses.
| Contract Type | Sole Source Threshold | Competitive Set-Aside | Key Requirement | |---------------|----------------------|----------------------|-----------------| | Construction | $4,000,000 | No dollar limit | Fair and reasonable price determination | | Services | $4,000,000 | No dollar limit | Responsible SDVOSB source available | | Manufacturing/Supply | $4,000,000 | No dollar limit | Rule of Two for competitive | | Simplified Acquisition | $250,000 | Micro-purchase to SAT | Small business reservation |
Sole Source Awards (Under $4M for Construction)
A contracting officer awards a sole source SDVOSB contract when:
- The contract value does not exceed $4 million for construction
- The contracting officer determines the SDVOSB firm is a responsible source
- The anticipated price is fair and reasonable
- The award serves the agency's needs
- Only one SDVOSB firm is identified or considered capable
Sole source awards represent the most direct path to federal construction work. No competition exists. The contracting officer identifies your firm, negotiates scope and price, and awards the contract. Building relationships with contracting officers and small business specialists at target agencies is essential for generating sole source opportunities.
Competitive Set-Asides (Any Dollar Value)
When two or more SDVOSB firms can perform the work at fair market prices, the contracting officer sets aside the contract for SDVOSB competition. These competitive set-asides have no dollar ceiling, meaning even multi-million-dollar construction projects get reserved for SDVOSB competition when sufficient capable firms exist.
The evaluation process follows standard federal procurement procedures: sealed bidding (IFB) or negotiated procurement (RFP) with evaluation factors defined in the solicitation. The only difference is that eligibility is restricted to VetCert-certified SDVOSB firms.
Related: Learn how sole source procurement works across all categories in our sole source procurement construction guide.
VA Veterans First Contracting Program
The Department of Veterans Affairs operates under a unique contracting hierarchy called Veterans First, codified in 38 U.S.C. 8127-8128. This program requires VA contracting officers to prioritize SDVOSB firms above every other socioeconomic category before considering full-and-open competition.
VA Contracting Priority Order
The VA follows this mandatory procurement hierarchy for every acquisition:
- SDVOSB set-aside or sole source (highest priority)
- VOSB set-aside or sole source (second priority)
- Other small business set-asides (8(a), HUBZone, WOSB)
- Full and open competition (last resort)
This hierarchy means the VA must first determine whether an SDVOSB firm can perform the work before considering any other contracting approach. For construction contractors, this creates a significant advantage because the VA spends billions annually on medical center construction, clinic renovations, cemetery improvements, and facility maintenance projects.
$5+ billion in annual VA construction and facility spending, with 15-20% directed to SDVOSB firms under the Veterans First contracting program.
VA Construction Spending Categories
VA construction opportunities fall into several major categories:
- Major construction: New medical centers, large-scale hospital renovations ($10M+ projects)
- Minor construction: Clinic buildouts, facility upgrades, parking structures ($750K-$10M)
- Non-recurring maintenance (NRM): Roof replacements, HVAC upgrades, ADA compliance ($100K-$5M)
- Lease construction: Tenant improvements for VA-leased clinical space
- National cemetery construction: Expansion and improvement of VA national cemeteries
The NRM category generates the highest volume of SDVOSB-eligible construction opportunities because project values frequently fall below the $4 million sole source threshold.
VA Verification vs. SBA VetCert
Prior to January 2023, the VA maintained its own verification program through the Center for Verification and Evaluation (CVE). The SBA now handles all SDVOSB certification through VetCert, and the VA accepts SBA VetCert certification for Veterans First contracting. You do not need separate VA verification. One VetCert certification covers all federal agencies including the VA.
The Rule of Two Explained
The Rule of Two is the contracting officer's decision framework for determining whether to set aside a contract for SDVOSB competition. Understanding how contracting officers apply this rule helps you position your firm to trigger favorable set-aside decisions.
How the Rule of Two Works
A contracting officer sets aside a contract for SDVOSB firms when there is a reasonable expectation that:
- At least two responsible SDVOSB firms will submit offers
- Award will be made at a fair market price
The contracting officer makes this determination through market research, which includes checking SAM.gov vendor registrations, reviewing past procurement history, publishing Sources Sought notices, and consulting with the agency's Office of Small and Disadvantaged Business Utilization (OSDBU).
How to Influence the Rule of Two
You actively influence Rule of Two determinations by:
- Maintaining a complete SAM.gov profile with accurate NAICS codes, capability descriptions, and past performance
- Responding to Sources Sought notices to demonstrate your firm's ability to perform the work
- Meeting with agency small business specialists to brief them on your capabilities before solicitations publish
- Attending industry days where agencies preview upcoming requirements
- Registering in agency-specific vendor databases (VA VIP, USACE Acquisition Business Information System)
When contracting officers conduct market research and find your firm registered, capable, and responsive, they gain confidence that the Rule of Two is satisfied, making SDVOSB set-asides more likely.
Related: Develop your overall federal contracting strategy with our guide on how to win federal construction contracts in 2026.
Finding SDVOSB Construction Opportunities
Identifying SDVOSB set-aside opportunities requires monitoring multiple federal procurement channels. Each source captures different opportunity types, and comprehensive coverage demands attention to all of them.
SAM.gov Contract Opportunities
SAM.gov is the primary source for all federal contract opportunities. To find SDVOSB construction set-asides:
- Navigate to sam.gov and select Contract Opportunities
- Apply the Set-Aside filter and select "Service-Disabled Veteran-Owned Small Business (SDVOSB)"
- Add NAICS code filters for your construction specialties (236xxx, 237xxx, 238xxx)
- Filter by Place of Performance for your target geographic area
- Save the search and enable daily email notifications
- Create separate saved searches for each NAICS code you hold
Agency Forecast Portals
Federal agencies publish procurement forecasts showing planned acquisitions months before solicitations post. Monitor these forecasts to prepare early:
| Agency | Forecast Location | Construction Focus | |--------|-------------------|-------------------| | VA | VA Acquisition Forecast (va.gov) | Medical centers, clinics, cemeteries | | USACE | ProjNet (projnet.org) | Military construction, civil works | | GSA | GSA Forecast of Contracting Opportunities | Federal buildings, courthouses | | NAVFAC | NAVFAC Contracting Opportunities | Naval installations, marine facilities | | USAF | SAF/AQC Contract Opportunities | Air bases, hangars, runways |
Bid Aggregation Platforms
Monitoring SAM.gov plus multiple agency portals daily consumes significant time. Bid aggregation platforms consolidate these sources into a single searchable dashboard with automated alerts filtered by set-aside type, NAICS code, and location.
Never miss an SDVOSB construction set-aside again. Start your free trial on ConstructionBids.ai and get instant alerts for SDVOSB opportunities matching your NAICS codes and location.
Subcontracting Opportunities
Large prime contractors need SDVOSB subcontractors to meet their small business subcontracting plan goals. These opportunities do not appear on SAM.gov. To find them:
- Register in prime contractor subcontracting databases (e.g., Hensel Phelps, Turner Construction, Clark Construction vendor portals)
- Attend SBA matchmaking events and Procurement Technical Assistance Center (PTAC) events
- Monitor SubNet on SBA.gov for subcontracting opportunities
- Build relationships at industry days where primes seek teaming partners
Related: Learn comprehensive strategies for finding government construction contracts across all set-aside categories.
NAICS Codes for SDVOSB Construction Firms
Your NAICS code registration directly controls which SDVOSB set-aside opportunities appear in your pipeline. Each federal solicitation assigns one primary NAICS code, and the corresponding SBA size standard determines whether your firm qualifies as small for that opportunity.
| NAICS Code | Description | Size Standard (Avg Annual Revenue) | |------------|-------------|-----------------------------------| | 236115 | New Single-Family Housing Construction | $45 million | | 236118 | Residential Remodelers | $45 million | | 236220 | Commercial and Institutional Building | $45 million | | 237110 | Water and Sewer Line Construction | $45 million | | 237310 | Highway, Street, and Bridge Construction | $45 million | | 237990 | Other Heavy/Civil Engineering Construction | $45 million | | 238210 | Electrical Contractors | $19 million | | 238220 | Plumbing, Heating, A/C Contractors | $19 million | | 238310 | Drywall and Insulation Contractors | $19 million | | 238910 | Site Preparation Contractors | $19 million | | 238990 | All Other Specialty Trade Contractors | $19 million |
Register every NAICS code that reflects your actual capabilities. Most construction firms register 3-8 codes covering their primary trade plus adjacent services. Each code you add expands the pool of SDVOSB set-asides you receive notifications for and can bid on.
Size standards matter because you must qualify as small under the NAICS code assigned to each specific solicitation. A firm with $25 million in average annual receipts qualifies as small under 236220 ($45M threshold) but exceeds the size standard for 238210 ($19M threshold). Strategic NAICS code awareness prevents bidding on opportunities where your firm exceeds the size limit.
Related: Deep-dive into NAICS strategy with our NAICS codes for construction bidding guide.
Teaming Agreements and Joint Ventures
SDVOSB firms frequently pursue contracts larger than their individual capacity through teaming agreements and joint ventures. These arrangements allow smaller veteran-owned firms to compete for multi-million-dollar construction projects by combining resources, experience, and bonding capacity with other firms.
Teaming Agreements
A teaming agreement establishes a prime-subcontractor relationship where the SDVOSB firm serves as prime contractor and brings in teammates (which can be large businesses) as subcontractors. Key requirements:
- The SDVOSB prime must perform at least 15% of the construction contract value with its own workforce
- The teaming agreement must not transfer control of the contract away from the SDVOSB firm
- The SDVOSB firm must manage contract performance and maintain the contracting relationship with the government
SDVOSB Joint Ventures
Joint ventures between an SDVOSB firm and another company (including large businesses) qualify for SDVOSB set-asides if structured properly under SBA regulations:
Requirements (Must Meet All):
- SDVOSB firm must own at least 51% of the joint venture
- SDVOSB managing venturer controls the joint venture's management decisions
- SDVOSB managing venturer's project manager serves as the joint venture's project manager
- Joint venture performs no more than 3 contracts over a 2-year period before recertification
- Joint venture files a separate SAM.gov registration
Benefits:
- Access bonding capacity of the larger partner
- Leverage past performance of both partners
- Combine workforce and equipment resources
- Pursue contracts significantly larger than the SDVOSB firm's individual capacity
- Build experience and past performance for future independent pursuits
Populated Joint Ventures vs. Unpopulated
Populated joint ventures employ their own staff and have dedicated resources. Unpopulated joint ventures rely on the employees and resources of their member firms. Most SDVOSB construction joint ventures are unpopulated, drawing workers and equipment from each partner firm as needed for specific projects.
Related: Explore partnership structures further in our construction joint venture bidding guide.
SBA Mentor-Protege Program for SDVOSB Firms
The SBA All Small Mentor-Protege Program provides a formalized path for SDVOSB firms to partner with established contractors for business development and joint venture opportunities. This program is particularly valuable for newer SDVOSB construction firms building their federal track record.
How the Program Works
A mentor (any size business, including large firms) partners with an SDVOSB protege to provide:
- Technical and management assistance in construction operations
- Financial assistance through loans, equity investments, or bonding support
- Joint venture formation for specific contract pursuits
- Proposal development assistance for federal solicitations
- Past performance sharing through joint venture arrangements
Critical Advantage: Joint Venture Size
A mentor-protege joint venture is evaluated for size status based on the protege's size alone, not the combined size of both firms. This means an SDVOSB firm with $5 million in annual revenue can joint venture with a $500 million contractor and still qualify as small for SDVOSB set-asides. This rule creates extraordinary opportunity for smaller SDVOSB construction firms to pursue large-scale federal projects.
$4 million sole source ceiling and unlimited competitive set-aside value for SDVOSB mentor-protege joint ventures, with size determined by the protege firm alone.
Application Process
- Identify a mentor firm willing to partner (attend SBA matchmaking events, PTAC networking)
- Develop a mentor-protege agreement outlining assistance areas and joint venture plans
- Submit the agreement to the SBA for approval
- Upon approval, form joint ventures for specific contract pursuits
- Agreement lasts up to 6 years with possible extensions
Finding a Mentor
Target mentor firms that complement your capabilities:
- Large construction firms active in your target agencies
- Companies holding IDIQ (Indefinite Delivery/Indefinite Quantity) contracts they need small business support for
- Firms with bonding capacity you lack but need for larger projects
- Companies with past performance in project types you want to enter
Winning Strategies for SDVOSB Contractors
Certification opens the door. Winning contracts requires deliberate strategy across relationship building, proposal development, and operational excellence.
Build Agency Relationships Before Solicitations Post
Contracting officers and small business specialists determine which contracts receive SDVOSB set-asides. Build relationships with these decision-makers before you need them:
- Schedule capability briefings with agency small business offices (OSDBU)
- Attend every industry day and pre-bid conference for agencies you target
- Respond to Sources Sought notices even when you do not plan to bid the eventual solicitation
- Participate in SBA PTAC counseling for introductions to agency buyers
Specialize in High-Volume Agency Programs
Rather than chasing every SDVOSB opportunity, concentrate on agencies with the highest SDVOSB spending:
| Agency | Annual SDVOSB Spend | Primary Construction Types | |--------|-------------------|---------------------------| | Department of Veterans Affairs | $5+ billion | Medical facilities, clinics, cemeteries | | Army Corps of Engineers | $3+ billion | Military construction, civil works | | Department of Defense (other) | $4+ billion | Installation support, facility maintenance | | General Services Administration | $1+ billion | Federal buildings, courthouses | | Department of Energy | $800+ million | Laboratory facilities, cleanup sites |
Master Past Performance Documentation
Federal evaluators weigh past performance heavily. Build a structured past performance library:
- Document every completed project with scope, value, timeline, and client contact
- Collect Contractor Performance Assessment Reports (CPARs) from federal clients
- Request written references from commercial and state/local clients
- Photograph completed projects for proposal visual evidence
- Track safety record, schedule adherence, and budget performance metrics
Price Competitively with Accurate Estimating
SDVOSB set-asides reduce competition but do not eliminate the need for competitive pricing. Winning SDVOSB bids typically require pricing within 10-15% of market rates. Invest in accurate construction estimating processes and understand Davis-Bacon prevailing wage requirements that apply to federal construction.
Stacking Certifications for Maximum Access
SDVOSB certification stacks with other SBA socioeconomic programs, and holding multiple certifications multiplies your eligible contract pool. Each certification opens a separate category of set-aside opportunities.
| Certification | Sole Source Threshold (Construction) | Can Stack with SDVOSB? | Certifying Agency | |---------------|-------------------------------------|----------------------|-------------------| | SDVOSB | $4 million | N/A (base) | SBA VetCert | | 8(a) Business Development | $4.5 million | Yes | SBA | | HUBZone | $4 million | Yes | SBA | | WOSB/EDWOSB | $4.5 million | Yes (if woman veteran) | SBA | | Small Disadvantaged Business | N/A (goaling only) | Yes | SBA |
A construction firm that is both SDVOSB and 8(a) certified competes for SDVOSB set-asides, 8(a) set-asides, and general small business set-asides. This triple eligibility dramatically expands the addressable opportunity set compared to firms holding only one certification.
State and Local Veteran Preferences
Many state and local governments offer veteran-owned business preferences independent of federal SDVOSB certification:
- Bid price preferences: 5-10% price evaluation advantage for veteran-owned firms
- State set-asides: Several states reserve a percentage of procurement for veteran-owned businesses
- Tax incentives: State tax credits for agencies contracting with veteran-owned firms
- Bonding assistance: State-level surety bond guarantee programs targeting veteran contractors
Check your state's procurement office for veteran-specific programs that complement your federal SDVOSB strategy. These state programs use different certification requirements than the federal VetCert process, so apply separately.
Related: Explore more bonding strategies in our SBA surety bond guarantee program guide and learn how to navigate your first government contract.
Frequently Asked Questions
What is an SDVOSB set-aside in construction?
An SDVOSB set-aside reserves a federal construction contract exclusively for service-disabled veteran-owned small businesses. Only VetCert-certified SDVOSB firms compete for these opportunities, reducing competition and increasing win rates compared to full-and-open solicitations.
How do I get SDVOSB certified for construction contracts?
Apply through the SBA VetCert portal at vetcert.sba.gov. Submit DD-214 showing honorable discharge, VA disability rating letter, ownership documents proving 51% veteran ownership, and business formation documents. Processing takes 60-90 days.
What is the SDVOSB sole source threshold for construction?
The SDVOSB sole source threshold for construction is $4 million. Contracting officers award construction contracts up to $4 million directly to a single SDVOSB firm without competition, provided the price is fair and reasonable.
What is the Rule of Two for SDVOSB contracts?
The Rule of Two requires contracting officers to set aside a contract for SDVOSB competition when they expect at least two responsible SDVOSB firms will submit offers at fair market prices. This applies to contracts above the sole source threshold.
Can I bid on SDVOSB set-asides without VetCert certification?
No. Since January 2023, SBA VetCert certification is mandatory for all SDVOSB set-aside and sole source contracts across every federal agency. Self-certification is no longer accepted. Your firm must hold active VetCert status at the time of offer.
What VA disability rating qualifies for SDVOSB?
Any service-connected disability rating of 0% or higher from the VA qualifies you for SDVOSB status. The key requirement is that the disability is service-connected, not the percentage. A 0% service-connected rating qualifies equally with a 100% rating.
How does the VA Veterans First program benefit SDVOSB contractors?
The VA Veterans First program requires VA contracting officers to consider SDVOSB firms before any other socioeconomic category. VA must set aside contracts for SDVOSB firms when the Rule of Two is met, giving veteran-owned construction companies priority access to VA facility projects.
What NAICS codes apply to SDVOSB construction contracts?
SDVOSB construction firms use the same NAICS codes as all construction contractors: 236220 for commercial building, 237310 for highway construction, 238xxx for specialty trades. The SDVOSB set-aside applies on top of the NAICS code assignment. Size standards range from $16.5M to $45M.
Can SDVOSB firms use teaming agreements for larger contracts?
Yes. SDVOSB firms form teaming agreements, joint ventures, and mentor-protege joint ventures to pursue contracts beyond their individual capacity. The SDVOSB firm must perform at least 15% of the construction work with its own employees.
How do I find SDVOSB construction bid opportunities?
Search SAM.gov Contract Opportunities filtered by SDVOSB set-aside type and construction NAICS codes. Monitor VA-specific portals for Veterans First opportunities. Use bid aggregation platforms like ConstructionBids.ai to consolidate SDVOSB opportunities into one searchable dashboard.
What percentage of federal contracts go to SDVOSB firms?
The federal government targets 3% of all prime contract dollars for SDVOSB firms, translating to over $15 billion annually. The VA consistently exceeds this goal, awarding 15-20% of its contracts to SDVOSB firms through the Veterans First program.
Can my SDVOSB firm also hold 8(a) or HUBZone certification?
Yes. SDVOSB certification stacks with 8(a), HUBZone, and WOSB certifications. Holding multiple certifications expands your eligible contract pool across all set-aside categories, maximizing opportunity access and pipeline volume.