Glossary / Business
Service-Disabled Veteran-Owned Small BusinessSDVOSB
A Service-Disabled Veteran-Owned Small Business (SDVOSB) is a small business at least 51% owned and controlled by one or more service-disabled veterans. SDVOSBs may compete for SDVOSB set-aside contracts and receive sole-source awards up to $5 million ($8.5 million for manufacturing) (FAR 19.1406). SBA took over certification from VA in January 2023 through its Veteran Small Business Certification program (VetCert), and since January 1, 2024 SDVOSB set-asides and sole-source awards go only to SBA-certified firms (or firms that applied by December 31, 2023).
Why it matters to your pipeline
The governmentwide SDVOSB goal is 5% of prime contract dollars (raised from 3% by the FY2024 NDAA), and the VA has its own 'Veterans First' rule that heavily prioritizes SDVOSBs for VA procurements. For veteran-owned firms, certification opens a lane of reduced-competition work. But certification requires continuous compliance: ownership, control, and management by the service-disabled veteran must be genuine and documented. Joint ventures with larger partners must also meet SBA's mentor-protégé rules.
When this term shows up in an opening GovSmith finds for you, your vCM explains what it means for that pursuit and does whatever it calls for. You decide; we do the work.
Example
A 15-person SDVOSB wins a $4.1M VA sole-source award for medical-records transcription. The work is not competed because it falls under the Veterans First authority and SBA-certified SDVOSB status.
Find out what applies to you
Some terms will matter to your business right away and some won’t for years. A vCM can tell you which are which.