In Plain English
Quick Answer
A small business at least 51% owned and run by veterans with a service-connected disability. Certification lets you win federal contracts set aside for service-disabled veterans.
Definition
Definition
A Service-Disabled Veteran-Owned Small Business (SDVOSB) is a small business at least 51% owned and controlled by one or more veterans with a service-connected disability. SDVOSB certification, administered through the SBA's Veteran Small Business Certification (VetCert) program, makes a firm eligible for veteran set-aside and sole-source federal contracts.
Context
Why It Matters in Bidding
SDVOSB certification unlocks veteran set-aside and sole-source contracts, especially heavy VA construction spend, that non-certified firms cannot touch. Since certification now runs through SBA's VetCert, contractors time their certification to be in hand before targeting veteran set-aside solicitations.
Example
Example
A veteran-owned electrical contractor with SDVOSB certification wins a VA facility upgrade set aside for service-disabled veterans, competing only against other SDVOSBs.
See Also
Related Terms
FAQ
Questions Contractors Ask
How do I get SDVOSB certified?
Certification is handled through the SBA's Veteran Small Business Certification (VetCert) program, which verifies the veteran's service-connected disability, ownership, and control. Self-certification is no longer sufficient for set-aside awards, so firms must complete VetCert before relying on SDVOSB status to bid.
What ownership and control rules apply?
At least 51% of the firm must be owned by one or more service-disabled veterans, who must also control day-to-day management and long-term decisions. In cases of permanent and severe disability, a spouse or caregiver may run daily operations while the veteran retains ultimate control.
Does the VA and the rest of government use the same certification?
Since the certification programs were consolidated, a single SBA VetCert certification is recognized both for VA set-asides and for governmentwide SDVOSB opportunities. This ended the earlier split where the VA and other agencies ran separate verification processes.
Can an SDVOSB be awarded sole-source contracts?
Yes. Agencies can make sole-source SDVOSB awards up to program dollar thresholds when only one capable veteran-owned firm is identified, or set aside competitions restricted to SDVOSBs. Both routes sharply reduce competition compared with full-and-open bidding.
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