What Is An SDVOSB?

Header image: U.S. Marine Corps photo by Lance Cpl. Thomas Mudd

Quick Answer

An SDVOSB (Service-Disabled Veteran-Owned Small Business) is a small business at least 51% owned and controlled by one or more veterans with a VA service-connected disability rating. Certified through the SBA VetCert program since January 1, 2023, SDVOSBs compete for federal sole-source and set-aside contracts across every civilian agency and the Department of Defense. The federal contracting goal for SDVOSB prime awards is 5% of all federal prime contracting dollars each year.

SDVOSB Definition And Legal Foundation

The Veterans Benefit Act of 2003 (15 U.S.C. 657f) created the SDVOSB procurement program, implemented through FAR Subpart 19.14. To qualify, a firm must meet four requirements: (1) be a small business under SBA size standards for its primary NAICS code, (2) be at least 51% unconditionally owned by one or more veterans with a VA service-connected disability rating, (3) have day-to-day management and long-term decision-making controlled by a service-disabled veteran, and (4) hold current SBA VetCert certification.

There is no minimum disability rating percentage required. A veteran rated at 0% or higher by the VA qualifies, provided the disability is service-connected. For veterans who are permanently and totally disabled and unable to manage daily business operations, their business may still qualify if a spouse or permanent caregiver controls the firm.

The 2023 SDVOSB Certification Transfer: VA CVE To SBA VetCert

The most significant recent change to the SDVOSB program is the transfer of certification authority. Before January 1, 2023, SDVOSBs could self-certify for most federal contracts and held separate VA Center for Verification and Eligibility (CVE) certification for VA-specific work. The National Defense Authorization Act for Fiscal Year 2021 mandated the transfer of certification responsibility from the VA to the SBA, with a final rule published November 29, 2022.

Effective January 1, 2024, all firms competing for SDVOSB set-aside or sole-source contracts must be designated in SAM.gov as SBA-certified. Self-certification is no longer an option. Firms that applied to SBA for certification on or before December 31, 2023 could continue competing while their application was pending, but that grace period has closed. Any firm without an active SBA VetCert designation is not eligible for SDVOSB set-aside competition.

The result is a single certification system. SBA now handles SDVOSB certification for contracts across the entire federal government. Certified SDVOSBs and VOSBs (Veteran-Owned Small Businesses, which do not require a service-connected disability) continue to have access to VA-specific set-asides under the VA Vets First Contracting Program. Apply through the SBA VetCert portal or the newer MySBA Certifications system.

What SDVOSB Certification Opens Up

Set-aside contracts. Contracting officers must consider SDVOSB set-asides before opening competition to the general small business market. When there is a reasonable expectation that at least two certified SDVOSBs will submit offers at a fair market price, the contracting officer shall restrict competition to SDVOSB firms. This gate gives certified SDVOSBs a structural advantage in the acquisition funnel.

Sole-source awards. Contracting officers can award directly to a single certified SDVOSB firm when only one SDVOSB can satisfy the requirement, competition would be impracticable, or price is fair. This path is valuable for specialized products and services with a thin vendor base.

VA Vets First priority. The VA is required to give priority to SDVOSBs and VOSBs over all other small business categories for VA contract competitions, making VA a particularly high-value customer for certified firms.

Subcontracting credit. Large prime contractors with subcontracting plans can count purchases from certified SDVOSBs toward their SDVOSB subcontracting goals. For a PPE distributor like BDG Safety, this makes SDVOSB status a procurement advantage at every tier of the supply chain.

How To Apply For SDVOSB Certification

The application process through SBA Certifications requires an active SAM.gov entity registration, VA disability documentation, and corporate documents demonstrating at least 51% ownership and management control by the service-disabled veteran. SBA provides checklists and pre-application guides. Once certified, firms must report changes in ownership or control within 30 days and complete annual certification updates. Support is available at 866-SBA-HELP (866-722-4357), Monday through Friday, 8 AM to 6 PM ET.

BDG Safety: A Certified SDVOSB Distributor

BDG Safety is a certified SDVOSB founded by Navy veterans in 2021. We distribute premium safety PPE including Type II safety helmets, hi-vis apparel, hearing protection, and eye protection. Federal agencies purchase from BDG under GSA Multiple Award Schedule contract 47QSMS24D0046. Approximately 70% of BDG's revenue comes from government contracts. Federal buyers who source PPE from BDG satisfy SDVOSB prime contracting and subcontracting goals, and get compliant, mission-ready equipment delivered on time.

SDVOSB Key Statistics

5% of all federal prime contracting dollars is the government's annual SDVOSB award goal, per SBA contracting program guidelines.

23% of all federal contracting dollars are targeted for small businesses overall (SBA).

January 1, 2023: the date SDVOSB certification authority transferred from the VA to the SBA under NDAA 2021.

PPE From A Certified SDVOSB

Studson SHK-1 safety helmets - Type II compliant, used on federal projects across the country.

Hardknock Resolve FullBrim helmets - the contractor standard for USACE and federal job sites.

Related SDVOSB And Procurement Resources

Federal procurement set-asides - how set-aside contracts work, who can compete, and how buyers use them.

FAR requirements explained - the regulatory framework that governs every federal purchase.

Supporting veteran-owned businesses - why buying from SDVOSBs matters and how to find certified suppliers.

Transitioning from military to skilled trades - career pathways for veterans entering construction and industrial work.

Frequently Asked Questions About SDVOSBs

Q: Is an SDVOSB the same as a VOSB?

A: No. A VOSB (Veteran-Owned Small Business) requires 51% ownership and control by a veteran but does not require a service-connected disability. An SDVOSB additionally requires the veteran to hold a VA service-connected disability rating. SDVOSBs are eligible for set-asides and sole-source contracts across the federal government. VOSBs have additional priority access specifically at the VA.

Q: Can a company still self-certify as an SDVOSB?

A: No. Self-certification was phased out with the transfer to SBA. Effective January 1, 2024, all firms competing for SDVOSB set-aside or sole-source contracts must hold current SBA VetCert certification and be designated as certified in SAM.gov.

Q: Where can I verify a firm is SDVOSB-certified?

A: Search the SBA VetCert database at veterans.certify.sba.gov or look up the firm's SAM.gov entity record. The SDVOSB designation appears in the firm's SAM.gov profile when SBA certification is active.

Q: Does a prime contractor get credit for buying from an SDVOSB subcontractor?

A: Yes. Large prime contractors with subcontracting plans count purchases from certified SDVOSBs toward their SDVOSB subcontracting goals. This is one reason why federal prime contractors actively seek certified SDVOSB suppliers for PPE and other recurring commodity purchases.

Buy Compliant PPE From A Certified SDVOSB

BDG Safety is a Navy veteran-founded, SBA-certified SDVOSB with a GSA Schedule for safety PPE. Whether you are a contracting officer, a safety manager on a federal project, or a prime contractor looking to satisfy your SDVOSB subcontracting goals, we make the purchase straightforward. Contact BDG Safety or call (619) 992-7621.

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