A Service-Disabled Veteran-Owned Small Business (SDVOSB) set-aside reserves a federal contract for firms at least 51% owned and controlled by one or more service-disabled veterans. Since January 1, 2023, you can no longer self-certify your way into these awards — eligibility runs through the SBA’s Veteran Small Business Certification (VetCert) program, and the same certification now covers VA work that the old VA CVE process used to handle. If you sell IT or technical services to the government, this is one of the cleaner paths to a less-crowded competition. This page explains who qualifies, how the certification works, and how the government-wide set-aside differs from the VA’s Vets First priority. It is educational, not legal advice — verify every rule against SBA and the solicitation.
Ownership is the math. Control is where firms fail.
An SDVOSB is a small business that is at least 51% owned and controlled by one or more service-disabled veterans.
Most owners can do the 51% ownership math in their sleep. The requirement that actually disqualifies firms during review is control — the service-disabled veteran has to genuinely run the company, not just hold the shares.
At least 51%, held directly and unconditionally
One or more service-disabled veterans must own no less than 51% of the firm. Under SBA’s rules, that ownership is generally direct — held by the veteran, not through another entity or trust — and unconditional, meaning it isn’t subject to voting trusts, executory agreements, or arrangements that route the benefits of ownership to someone else. The disability rating is determined by the VA.
The veteran has to actually run it
Per 13 CFR 128.203, the qualifying service-disabled veteran generally must hold the highest officer position, manage day-to-day operations and long-term strategy, and work at the firm full-time during business hours. Outside obligations, a non-veteran with veto power, or a manager who runs the shop can all sink an application. Map your governance documents to this test before you apply.
VetCert: one door, at SBA, for every SDVOSB award
As of January 1, 2023, SDVOSB and VOSB certification consolidated under SBA. Self-certification for set-asides is gone.
The old split — VA’s Center for Verification and Evaluation (CVE) for VA contracts, self-certification everywhere else — is retired. SBA now runs the single Veteran Small Business Certification (VetCert) program, and you cannot receive an SDVOSB set-aside or sole-source award without it.
Self-certification phased out
You can still call yourself a veteran-owned firm in marketing, but to win a set-aside or sole-source award the government now requires an active SBA certification. The grace period for already-self-certified firms has lapsed — confirm your current status rather than assuming.
SBA, not the VA
Apply through SBA’s veteran certification portal. The same certification is recognized government-wide and for VA procurements, so there’s no longer a separate VA verification track to maintain.
Stay registered and current
Keep your SAM.gov registration active and your certification in good standing. Certifications carry a term and require recertification; the firm must remain eligible the whole time, not just on the day it was granted.
Two different powers — keep them straight
The government-wide SDVOSB set-aside and the VA’s Vets First priority are separate mechanisms with separate rules.
This is where new entrants get confused. There is a government-wide SDVOSB set-aside that any agency can use, and there is a VA-specific priority that goes further. They are not the same thing.
| Government-wide SDVOSB | VA “Vets First” | |
|---|---|---|
| Who buys | Any federal agency | The Department of Veterans Affairs |
| Authority | FAR Subpart 19.14 / clause 52.219-27 | 38 U.S.C. 8127 & 8128, VAAR 819.70 |
| Powers | Set-aside and sole-source for SDVOSB | Priority for SDVOSB/VOSB, applied before other FAR 19.203 preferences |
| Requires VetCert | Yes | Yes |
Government-wide: set-aside and sole-source
A contracting officer at any agency may restrict a competition to certified SDVOSBs (a set-aside) and, when the rules are met, award directly to a single SDVOSB (a sole-source) up to applicable dollar thresholds. The government-wide statutory goal is to award 3% of federal prime contracting dollars to SDVOSBs each year — a goal, not a guarantee of any specific contract. Verify the current sole-source thresholds against FAR 19.14, as figures change.
VA: priority that comes first
For its own buys, the VA must apply the Vets First priority before other small-business preferences in FAR 19.203. Set-asides for certified SDVOSBs/VOSBs are mandatory whenever the contracting officer reasonably expects two or more capable, certified firms and a fair, reasonable price — the “rule of two.” This is the single strongest veteran preference in federal contracting.
From certified to competitive
The certificate gets you in the room. Winning still takes a credible, IT-fluent offer.
An SDVOSB set-aside thins the field — but the buyer still picks the most credible firm in that thinner field. For IT and software work, that means past performance, a clean compliance posture, and a capability statement that speaks the agency’s language.
- Confirm your active VetCert status and a current SAM.gov registration before you bid.
- Filter opportunities for SDVOSB set-asides — and watch VA buys, where the priority is strongest.
- Have a tight, NAICS-aligned capability statement ready to send the day a CO asks.
- Stand up the security posture buyers ask about up front — at BrandShyp we maintain our own NIST 800-171 posture and bid federal and state IT work every week, so we know what the questions look like.
- When in doubt, ask the contracting officer or check the set-aside program rules — don’t guess at eligibility.