VOSB (Veteran Owned Small Business)

What is VOSB (Veteran Owned Small Business)?

A Veteran Owned Small Business (VOSB) is a business that is at least 51% owned and controlled by one or more veterans. While the federal government primarily uses the SDVOSB (Service-Disabled Veteran Owned Small Business) category for set-aside contracts, VOSB status is still valuable in government contracting. It can enhance a business's visibility and open doors to subcontracting opportunities.

Definition

The term VOSB is widely used throughout the government contracting arena, often in conjunction with SDVOSB. The legal and regulatory basis for preferences related to veteran-owned businesses stems from various laws, including the Small Business Act. While there isn't a specific federal VOSB set-aside program, many agencies have goals for awarding contracts to veteran-owned businesses, and some states have their own VOSB programs. Demonstrating VOSB status can be a significant advantage when competing for contracts, especially when combined with other socio-economic designations. Verification through the Department of Veteran Affairs (VA) is not required for VOSB status as it is for SDVOSB status when competing for VA contracts, but proper self-certification is essential.

Key Points

• Ownership Requirement: At least 51% of the business must be owned and controlled by one or more veterans. Control involves demonstrable managerial and operational decision-making authority.
• Size Standards: The VOSB must meet the Small Business Administration's (SBA) size standards for its primary NAICS code. This means the business must qualify as "small" under the SBA's definition.
• Self-Certification: Contractors self-certify their VOSB status in the System for Award Management (SAM) database. Accurate representation is crucial, as misrepresentation can lead to penalties.
• Subcontracting Opportunities: Large prime contractors often have subcontracting goals for VOSBs, creating opportunities for smaller veteran-owned businesses to participate in larger federal projects.

Practical Examples

1. IT Services Bid: A small IT services company owned by a veteran bids on a Department of Defense contract. While the contract isn't specifically set aside for VOSBs, the company's VOSB status helps it stand out from other bidders and aligns with the agency's veteran-owned business goals.
2. Construction Subcontract: A large construction firm wins a contract to build a new federal building. They seek out VOSB subcontractors for various aspects of the project, such as electrical work and landscaping, to meet their subcontracting goals.
3. Professional Services Contract: A veteran-owned consulting firm is awarded a contract because, in addition to meeting all technical requirements, they are a VOSB, giving them an edge over equally qualified non-VOSB firms.