The Veterans Benefit Act of 2003 (15 U.S.C. 657f) created the procurement program for small business concerns owned and controlled by service-disabled veterans (commonly referred to as the "Service-Disabled Veteran-owned Small Business (SDVOSB) Procurement Program"). The purpose of the Service-Disabled Veteran-Owned Small Business Program is to provide Federal contracting assistance to service-disabled veteran-owned small business concerns.

The Act also requires that Federal contracting agencies establish and achieve a participation goal of 3% of the total value of all prime contract and sub-contract awards for each fiscal year for small businesses owned and controlled by veterans with service-connected disabilities.

You can learn more about the Veteran's Business Program on the SBA web site at http://www.sba.gov/vets/
or the Department of Veterans Affairs Center of Veterans Enterprise web site at: http://www.va.gov/osdbu.

Frequently Asked Questions

Is there a Federal government contract set aside program for Veteran owned small businesses or Disabled veteran owned small businesses?
Yes. There are is a set-aside program for veterans. A contracting officer may award contracts to service-disabled veteran-owned small business concerns on a sole source basis (see 19.501(d) and 6.302-5), provided-

1. Only one service-disabled veteran-owned small business concern can satisfy the requirement, based on market research performed by the contracting officer.
2. The anticipated award price of the contract (including options) will not exceed-
1. $5 million for a requirement within the NAICS codes for manufacturing; or
2. $3 million for a requirement within any other NAICS code;
3. The service-disabled veteran-owned small business concern has been determined to be a responsible contractor with respect to performance; and
4. Award can be made at a fair and reasonable price.

What is a "service-disabled veteran" ownership of small business?
The term "small business concern owned and controlled by service-disabled veterans" shall mean a small business concern which is at least 51 percent owned by one or more service-disabled veterans; or, in the case of any publicly owned business, at least 51 percent of the stock of which is owned by one or more service-disabled veterans; and, whose management and daily business operations are controlled by one or more service-disabled veterans or, in the case of a veteran with permanent and severe disability, the spouse or permanent care-giver of such veteran.

Is there a certification process for a veteran or service-disabled veteran to receive a government contract?
No. There is no certification process for veterans. A veteran or a service-disabled veteran self certifies his/her veteran status when he/she registers on CCR.gov and when responding to a government solicitation. Proof of being a service-disabled veteran can be evidenced by a DD Form 214 and a Veteran's Administration certified letter as to disability.

Can awards be made to SDVOSB below the Federal Acquisition Regulation (FAR) simplified acquisition level (purchases below $100,000)?
Yes. This ensures that DOT exercise the broadest options to aggressively pursue the statutory 3% contracting goal for SDVOSB's.

Are 8(a) certified contractors allowed to migrate 8(a) contracts to the SDVOSB procurement program?
No. the 8(a) program is a business development program. The SDVOSB program is a procurement mechanism to enhance Federal-contracting opportunities for SDVOSB. To allow the migration of contracts from one program into another would adversely impact both programs by limiting business development opportunities available for 8(a) firms.

Is there an Order of Precedence for the SDVOSB contracting?
No. The statute established a discretionary set-aside and sole-source authority for SDVOSB contracting. The statute did not establish a preference for SDVOSB's relative to the 8(a) or HUBZone programs.

Is SDVOSB participation restricted to those U.S. Veterans that are also citizens of the United States?
No. the SDVOSB law as written does not include a residency or citizenship requirement to qualify for SDVOSB status.
You can learn more about the Veteran's Business Program on the SBA web site at http://www.sba.gov/vets/ or the Department of Veterans Affairs Center of Veterans Enterprise web site at: www.va.gov/osdbu.