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glossary

SDVOSB (Service-Disabled Veteran-Owned Small Business)

What is a Service-Disabled Veteran-Owned Small Business (SDVOSB)?

A Service-Disabled Veteran-Owned Small Business is a small business that is at least 51 percent owned, and controlled in its management and daily operations, by one or more veterans with a service-connected disability. The federal government maintains a procurement preference for these firms as a way to direct meaningful work to veterans who were disabled in service.

What it unlocks

The status opens dedicated set-asides, requirements competed only among SDVOSBs, and sole-source awards up to certain thresholds when only one capable SDVOSB is identified. Agencies also pursue governmentwide goals for the share of dollars going to SDVOSBs, which gives contracting officers an active incentive to find and use qualified firms. For an eligible company, the designation can be a significant competitive edge.

Certification and using the status

To compete for SDVOSB set-asides, firms must be certified through the Small Business Administration's certification process rather than simply self-identifying. Once certified, the firms that benefit most treat the status as a door-opener rather than a guarantee: they combine it with genuine capability, targeted relationships, and teaming, including joint ventures, to convert eligibility into awards. SDVOSB sits alongside other socioeconomic categories such as 8(a), WOSB, and HUBZone.

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