Frequently Asked Questions about SDVOSB

A Quick Guide for your SDVOSB

SDVOSB, or Service-Disabled Veteran-Owned Small Business, is the focus of an outreach effort by the Department of Defense (DOD) of improving prime and subcontracting opportunity availability to such firms. The DOD’s commitment to helping SDVOSB succeed is in line with the belief that the sacrifices and efforts of veterans in service of the country should be recognized at all levels.

Important Information for All Service Disable Veteran-Owned Small Business

If you are a contractor or subcontractor concerned with a small business that can qualify as a SDVOSB, read on to know more about your opportunities and obligations.

1.      Who is a Service-Disabled Veteran?

A Service-Disabled Veteran is a person who served in active military, naval or air service, discharged or released under non-dishonorable conditions, with a disability incurred or aggravated in line of duty.

Under the Department of Veterans Affairs and U.S. Code, “veteran” refers to a person who has served in the active military, air or naval service, and who was discharged or released under non-dishonorable conditions.

“Service-connected” disability or death means that the condition of the person was incurred or aggravated, or the death resulted from the incurred or aggravated disability, in line of duty in active service. A service-connected disability is said to have been obtained in line of duty if there was no misconduct on the part of the person. There must also be no abuse of alcohol or drugs. In case it happened while absent from work, the absence must be with permission or authorized.

Note that there is no minimum disability rating needed to self-represent for Federal contracting purposes and to participate in the SDVOSB program.

2.      What is considered an SDVOSB Concern?

An SDVOSB Concern or SDVO SBC is a small business concern that is owned and controlled by a person or persons considered Service-Disabled Veteran/s.

Under the SDVOSB program, sole source or set-aside contracts are allowed if certain conditions are met.

3.      How is the status of an SDVOSBC verified?

The status of an SDVO SBC can be challenged, as stipulated by the Veterans Benefits Act of 2003. The eligibility of any SDVO SBC can be verified through the following:

  • The SBA or Contracting Officer can protest the apparent successful offeror’s status, for sole source procurements
  • Any interested party can protest the status, for competitive set-asides

The SDVO SBCs should then be prepared to provide the SBA with proof of status as a Service-Disabled Veteran.

4.      What are the requirements for participation?

There is no formal certification process required from the SBA to participate and to certify concerns as SDVO SBC, under the Veterans Benefits Act of 2003 which establishes restricted contracting in Federal procurement for SDVOSBCs.  

However, the SBC should be registered in the Government’s Central Contractor Registration in order to place an offer. After registering and submitting an offer on a Federal contract, the SBC should fill out an “On-Line Representations and Certifications Application.”

In terms of eligibility requirements, the concern should be a small business as defined by the North American Industrial Classification System or NAICS code, as assigned by the Contracting Officer to the procurement. The concern should be owned at least 51% unconditionally and directly by one or more Service-Disabled Veterans. The management and daily operations of the concern should also be controlled by one or more service-disabled veterans, or a spouse or permanent caregiver in the case of permanent and severe disability.

5.      Can awards below the simplified acquisition thresholds be made to SDVO SBCs?

Yes. Contracting officers can set aside requirements at or below the thresholds for consideration.

6.      What are allowed under the SDVO SBC program?

Joint ventures are allowed under the SDVO SBC program, as long as there is at least one SDVO SBC. Each concern must be small given the size standard under the NAICS code.

Non-manufacturers can submit an offer on a sole source or set-aside SDVO contract, as long as they meet the requirements of the non-manufacturer rule as set by SBA regulation.

Note also that the procurement program is not limited to certain NAICS codes. That is, the Contracting Officer assigns the NAICS in line with the requirement of the Agency.

7.      For the SDVOSB program, is there an order of precedence?

No. However, the 8(a), HUBZone and the SDVO Program are considered by the Contracting Officer before setting-aside the requirement for SBCs. The Contracting Officer should then have a reasonable expectation that at least two SDVO SBCs will submit offers and that the award can be made at fair market price.

8.      Are there procurement programs for other categories of Veterans?

The Government provides a range of benefits for veterans who suffer service-connected disability, such as assistance in entering the Federal procurement marketplace. The Small Business Act provides that the President should establish a goal of at least 3% for participation by service-disabled veteran businesses in Federal Contracting. The Act also provides agency contracting officers the authority to reserve procurements for service-disabled veteran businesses.

Learn More about Running You SDVOSB with ARCHER JORDAN

When President Bush issued EO 13360 on October 20, 2004, opportunities in Federal contracting for SDVOSB Concerns were strengthened. The Department of Defense has also issued a five-year strategic implementation plan.

Maximize the opportunities available to you and your firm. Our team of professionals and our thirty years of experience in the industry can help you navigate the different requirements and processes involved in government contracting. Contact ARCHER JORDAN today for more details.