Veterans Day Special: SDVOSB Contracting Opportunities and How to Compete Effectively

As we honor our nation's veterans this Veterans Day, there's never been a better time for service-disabled veteran entrepreneurs to pursue federal contracting opportunities. With recent legislative changes increasing the federal spending goal for SDVOSBs from 3% to 5%, the door to government contracts has opened wider than ever before.

The $31 Billion Opportunity

The National Defense Authorization Act for Fiscal Year 2024 fundamentally changed the landscape for veteran contractors. Congress increased the federal government's annual goal for contract awards to Service-Disabled Veteran-Owned Small Businesses (SDVOSBs) to "not less than 5 percent" of all prime contract and subcontract dollars.

This represents a 67% increase in targeted opportunities—from approximately $19 billion to over $31 billion annually.

To put this in perspective: In FY2024, the federal government awarded $773.68 billion in contracts to over 108,000 companies. SDVOSB set-asides alone accounted for $8.5 billion of those awards. With the new 5% goal, that number is expected to grow significantly.

What is SDVOSB Certification?

The Service-Disabled Veteran-Owned Small Business program is a federal contracting preference program that allows eligible businesses to compete for sole-source and set-aside contracts across the federal government.

Eligibility Requirements

According to the SBA's Veteran Contracting Assistance Programs, to qualify as an SDVOSB, your business must meet these criteria:

1. Ownership: At least 51% of the business must be owned and controlled by one or more service-disabled veterans
2. Service-Connected Disability: The veteran owner(s) must have a disability rating from the Department of Veterans Affairs
3. Small Business Status: The company must qualify as a small business under the size standards for its NAICS codes
4. U.S. Citizenship: The principal owner must be a U.S. citizen
5. Daily Management: The service-disabled veteran must control the management and daily business operations

For veterans who are permanently and totally disabled and unable to manage daily operations, their spouse or appointed permanent caregiver may assist in management while still maintaining eligibility.

The Certification Process

As of January 2023, the SBA took over the VOSB and SDVOSB certification program from the Department of Veterans Affairs. Here's how to get certified through the SBA's VetCert portal:

Step 1: Register in SAM.gov

Before applying for SDVOSB certification, you must register your business in the System for Award Management (SAM). This free registration provides your Unique Entity Identifier (UEI), which is required for all federal contracting.

Step 2: Gather Required Documentation

You'll need to provide:

• DD Form 214 (Certificate of Release or Discharge)
• VA disability rating letter
• Business ownership documentation
• Financial statements and tax returns
• Operating agreements or corporate documents

Step 3: Submit Your Application

Applications are submitted through the VetCert portal. The processing timeline is typically 60-90 days, depending on workload and any additional document requests.

Step 4: Maintain Certification

SDVOSB certification requires periodic recertification. In May 2025, the SBA issued a program update providing certified participants an additional six-month eligibility extension to help businesses maintain their status.

Types of Contract Opportunities

Once certified, SDVOSBs have access to several contracting vehicles:

Set-Aside Contracts

Contracting officers can set aside contracts exclusively for SDVOSB competition when they expect at least two qualified SDVOSB offerors to submit competitive proposals.

Sole-Source Awards

Perhaps the most valuable benefit, SDVOSBs can receive sole-source contracts without competition up to:

• $8.5 million for manufacturing requirements
• $5 million for all other NAICS codes

These thresholds make SDVOSB status particularly attractive for businesses pursuing contracts that fall below these amounts.

VA-Specific Opportunities

The Department of Veterans Affairs sets aside at least 7% of its contracts specifically for certified VOSBs and SDVOSBs—significantly higher than the government-wide 5% goal. If you're in healthcare, IT, construction, or professional services, the VA represents a substantial opportunity.

Strategies for Winning SDVOSB Contracts

Having SDVOSB certification is just the first step. Winning contracts requires a systematic approach to pursuing and responding to opportunities.

1. Target the Right Opportunities

Not every RFP is worth pursuing. Before investing time in a proposal, evaluate:

• Does the contract align with your capabilities and past performance?
• Is the competition limited to other SDVOSBs, or are you competing against larger firms?
• Can you realistically deliver on the requirements?

2. Build Your Past Performance Early

Federal contracting officers heavily weight past performance in their evaluations. If you're new to federal contracting:

• Start with smaller contracts to build your track record
• Consider subcontracting with established primes
• Document commercial contracts that demonstrate relevant capabilities

3. Master the Compliance Requirements

Federal RFPs are notoriously detailed. A typical solicitation might contain 100+ requirements spread across multiple documents. Missing even one mandatory element can result in your proposal being rejected as "non-responsive."

This is where systematic requirement tracking becomes essential. Every form, certification, and compliance element must be identified, tracked, and addressed in your submission.

4. Develop Strong Proposal Content

Winning proposals do more than check boxes—they tell a compelling story about why your company is the best choice. Focus on:

• Clear understanding of the customer's mission and needs
• Specific technical approach, not generic boilerplate
• Quantified benefits and outcomes
• Risk mitigation strategies

5. Build Reusable Content Libraries

The most successful contractors don't start from scratch with every proposal. They maintain libraries of:

• Company capability descriptions
• Past performance narratives
• Key personnel resumes
• Certifications and compliance documentation

This approach dramatically reduces proposal development time and ensures consistency across submissions.

Common Mistakes to Avoid

Pursuing Every Opportunity

The biggest mistake new contractors make is spreading themselves too thin. With limited resources, it's better to pursue five opportunities with excellent proposals than twenty with mediocre ones.

Ignoring Small Business Mentoring Programs

Programs like Mentor-Protege arrangements can provide access to larger contracts while you build capabilities. Don't overlook these partnership opportunities.

Underestimating Proposal Requirements

Federal proposals require significant time and resources. A typical RFP response might involve:

• 50+ hours of technical writing
• Multiple volumes (technical, management, past performance, pricing)
• Dozens of forms and certifications
• Compliance with strict formatting requirements

Plan accordingly and build your proposal team before opportunities arrive.

Missing Mandatory Forms

One of the most preventable reasons for proposal rejection is missing mandatory forms. Federal RFPs often require SF-1449, past performance questionnaires, representations and certifications, and other mandatory documentation.

Always create a comprehensive checklist of required submissions and verify completeness before submitting.

Finding SDVOSB Opportunities

Several resources help SDVOSBs find relevant contract opportunities:

SAM.gov

The System for Award Management is the official government contracting opportunity database. You can filter searches specifically for SDVOSB set-asides.

Agency Forecast Tools

Many agencies publish procurement forecasts showing planned acquisitions. These forecasts help you prepare for opportunities before they're officially released.

Industry Days and Conferences

Government agencies regularly hold industry days where they discuss upcoming requirements. These events provide invaluable insight into agency priorities and help you position for future competitions.

The Competitive Advantage

The SDVOSB program exists because the federal government recognizes the unique value veteran-owned businesses bring to federal contracting. Your military experience translates directly to project management, security awareness, and mission-focused execution.

With the new 5% contracting goal, agencies are actively looking for qualified SDVOSBs. The opportunity has never been greater—but success requires preparation, discipline, and a systematic approach to capturing contracts.

As you develop your federal contracting strategy, remember that winning proposals start with thorough requirement analysis and end with demonstrable compliance. The difference between winning and losing often comes down to who best understood—and addressed—every requirement in the solicitation.