SDVOSB (Service-Disabled Veteran-Owned Small Business)

What is Sdvosb Service Disabled Veteran Owned Small Business?

A Service-Disabled Veteran-Owned Small Business (SDVOSB) is a business classification recognized by the U.S. Federal government that provides certain advantages in the government contracting arena. These businesses are owned and controlled by veterans who have sustained a service-connected disability during their military service. SDVOSB status allows these businesses to compete for set-aside contracts, specifically designated for them by various government agencies.

Definition

An SDVOSB is defined as a small business concern, as defined by the Small Business Administration (SBA), that meets the following criteria: at least 51% of the business is owned by one or more service-disabled veterans; the management and daily business operations are controlled by one or more service-disabled veterans; and the service-disabled veteran(s) must have a disability that is connected to their service in the U.S. military. The legal and regulatory basis for SDVOSB preferences is primarily found in the Veterans Benefits Act of 2003 and subsequent regulations implemented by the SBA and the Department of Veterans Affairs (VA). This designation matters to government contractors because it offers access to set-aside contracts and preferential treatment, enabling them to grow their businesses and contribute to the national economy.

Key Points

• Ownership and Control: A service-disabled veteran(s) must own at least 51% of the business and control its management and daily operations. This ensures that the benefits intended for veteran-owned businesses are realized.
• VA Verification: SDVOSBs must be verified by the Department of Veterans Affairs (VA) through the Vets First Verification Program to be eligible for set-aside contracts offered by the VA and other agencies.
• Set-Aside Contracts: SDVOSBs are eligible to compete for set-aside contracts, meaning specific contracts are exclusively reserved for competition among SDVOSBs. This provides a significant advantage in bidding.
• Federal Acquisition Regulation (FAR): The FAR contains specific provisions and clauses related to SDVOSB participation in government contracts, outlining the requirements and procedures for SDVOSB set-asides and preferences.

Practical Examples

1. VA Medical Center Construction: The Department of Veterans Affairs has a set-aside contract for the construction of a new medical facility specifically for SDVOSBs. An SDVOSB construction company can bid on this project, facing competition only from other verified SDVOSBs.
2. IT Services for the Department of Defense: The Department of Defense (DoD) needs specialized IT services. If the agency determines that there are at least two SDVOSBs capable of performing the work at a fair price, they may set aside the contract exclusively for SDVOSB competition.
3. General Services Administration (GSA) Schedule: An SDVOSB offering office supplies can obtain a GSA Schedule contract. This allows them to sell their products directly to federal agencies through the GSA's online platform, often receiving preference or set-asides on orders placed through the schedule.