SDVOSB (Service-Disabled Veteran-Owned Small Business)

What is SDVOSB?

A Service-Disabled Veteran-Owned Small Business (SDVOSB) is a small business that is at least 51% owned by one or more service-disabled veterans, with management and daily operations controlled by such veteran(s). Agencies may set aside contracts for, or make sole-source awards to, SDVOSBs in support of governmentwide goals for veteran participation in federal contracting. The Department of Veterans Affairs also operates a related veteran-owned program with its own priority for VA acquisitions.

Certification consolidated under the SBA's Veteran Small Business Certification process: firms must be verified as meeting the ownership, control, service-disability, and small-business size requirements to use SDVOSB set-asides and sole-source authorities. As with other socio-economic programs, eligibility depends on the assigned NAICS code's size standard, and misrepresentation is subject to significant penalties.

For vendors, SDVOSB status opens reserved opportunities and supports sole-source awards up to defined ceilings, making it a meaningful competitive lever for qualifying firms. Maintaining current certification and accurate ownership/control documentation is essential, because eligibility is verified and can be challenged.