SDVOSB Overview

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To qualify as a Veteran-Owned Small Business (VOSB), a business concern must be at least 51% owned by one or more eligible veterans; or, in the case of any publicly-owned business, at least 51% of the stock is owned by one or more veterans, and whose management and daily business operations are controlled by such veterans.  There is no certification program for VOSBs.

In 2003, Congress created a 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 program is to provide federal contracting assistance to SDVOSBs.

The SDVOSB program 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.

There is no federal SDVOSB certification program.  The service disabled veteran business owner self represents his or her service-disabled status and small business status in the contract representations and certifications.

To be eligible for the SDVOSB program, a veteran must be able to produce one of the following stating that s/he has a service-connected disability in the event of a protest:

  • Adjudication letter from the Veterans Administration; or
  • Department of Defense Form 214, Certificate of Release or Discharge from Active Duty.

According to the Center for Veteran’s Enterprise, Defense Form 214 is needed to prove that the individual is honorably discharged and it also documents the type of service disability. The letter from VA is needed for confirmation that individual is eligible under the program and that there is a disability.

To be seen as a SDVOSB, a small business concern must meet the following two conditions through a self-certification process:

  • At least 51% owned by one or more Service-Disabled Veterans or, in the case of any publicly owned business, at least 51% of the stock of which is owned by one or more Service-Disabled Veterans; and
  • Management and daily business operations are controlled by one or more Service-Disabled Veterans or, in the case of a veteran with a permanent and severe disability, the spouse or permanent caregiver of such a veteran.

The Central Contractor Registration (CCR) is a public record which can be viewed at  https://www.bpn.gov/CCRSearch/detail.aspx.

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