Set-Asides

Service-Disabled Veteran-Owned Small Business (SDVOSB)

A federal set-aside program for small businesses owned and controlled by service-disabled veterans.

Definition

SDVOSB firms must be at least 51% owned and controlled by service-disabled veterans, with the service-disabled veterans controlling daily operations and long-term decision-making. Certification (administered by SBA effective 2023) is required. Certified firms can compete for SDVOSB-only set-asides and receive sole-source awards up to $4M ($7M for manufacturing).

When it applies

Federal agencies have a 3% government-wide goal for SDVOSB participation. The Department of Veterans Affairs additionally runs a Vets First program with SDVOSB-only preferences on VA contracts.

Written by the ProcureTap procurement research team. Last reviewed .