If your company is a certified service-disabled veteran-owned small business (SDVOSB), it may be eligible for set-asides in federal contracts. (“Set-asides” are a small percentage of a government procurement designated to be spent with a specific type of supplier.) The SDVOSB certification substantially increases the number of opportunities available to a certified business.
What is a Service-Disabled Veteran-Owned Small Business (SDVOSB)?
To qualify for SDVOSB certification and set-asides in federal contracts, a business must meet the following criteria:
- The service-disabled veteran (SDV) must have a service-related disability that has been determined by the Department of Veterans Affairs or Department of Defense
- The SDVOSB must be “small” under the North American Industry Classification System (NAICS) code assigned to the procurement
- The SDV must unconditionally own 51 percent of the SDVOSB
- The SDV must control the management and daily operations of the SDVOSB
- The SDV must hold the highest officer position in the SDVOSB
Each federal agency sets participation goals for small businesses in procurement contracts. Regulations require Federal purchases more than $3,000, but less than $150,000 to automatically reserve, or set aside, a portion of the contract monies for small businesses. There are exceptions; full details are available on the SBA website.
- Bookmark these two websites for more information:
- Self-certify your eligibility as an SDVOSB
- Certify your military service
- Validate your Service-Connected Disability
How to certify your military service
To be considered a veteran you must have your DD Form 214 (Certificate of Release or Discharge from Active Duty) in order to prove your service in the armed forces. Go to the National Archives site to request your service record.
How to validate your service-connected disability
To be considered a service-disabled veteran you must have a letter from the Department of Veterans Affairs (VA), or your discharge paper from the branch of service you were in, stating that you have a service-connected disability rating ranging from 0–100 percent disability.
Why you should self-certify
According to Veterans Affairs, Public Law 106-50, the Veterans Entrepreneurship and Small Business Development Act of 1999, there is no required minimum disability rating. This means a veteran with a 0 percent disability rating letter is eligible to self-represent as a service-disabled veteran for federal contracting purposes. The important factor is to make sure you have established a disability rating from your branch of the service—not the degree of the disability.