SDVOSB is the federal designation for small businesses at least 51% owned and controlled by one or more veterans with a service-connected disability rating from the VA. Verification runs through the SBA's VetCert program, which absorbed the VA's CVE program in 2023. Once certified, an SDVOSB is eligible for contracts contracting officers set aside specifically for the program — competitions where only certified firms can bid.
SDVOSB sits inside the broader small business framework alongside 8(a), HUBZone, and WOSB. The federal government has a 5% government-wide contracting goal for SDVOSBs, established in statute. Contracting officers can issue sole-source contracts to SDVOSBs up to specific dollar thresholds without full-and-open competition — the most powerful tool in the SDVOSB toolkit. Beyond sole-source, SDVOSB-set-aside competitions limit eligibility to certified firms only, dramatically reducing the bidder pool. The combination of sole-source authority and limited competition makes SDVOSB one of the most strategically valuable certifications in federal contracting.
SDVOSB certification is the single highest-leverage credential a veteran-founded small business can hold in federal contracting. The certification narrows competition, unlocks sole-source authority, and earns priority in agency small business strategies. Capture decisions for SDVOSB firms hinge on knowing which opportunities carry the set-aside, what an agency's set-aside history looks like, and where sole-source thresholds make a direct ask viable instead of a competed bid.