The Service-Disabled Veteran-Owned Small Business program is one of two veteran-specific federal set-aside programs (the other is VOSB, for veteran-owned firms generally). SDVOSB gives eligible firms access to set-aside contracts where the competition is limited exclusively to other SDVOSBs, plus a 3% government-wide contracting goal under 15 U.S.C. § 657f.
For a consulting or professional services firm under NAICS 541611 (Administrative Management and General Management Consulting Services), this program opens access to a wide range of federal agency contracts. DoD, VA, DHS, and civilian agencies all contract heavily for management consulting, organizational effectiveness, training, and program management services.
SBA now runs SDVOSB verification
This changed in January 2023. Prior to that date, the Department of Veterans Affairs ran its own separate verification program (through a platform called VetBiz). As of January 1, 2023, the SBA assumed control of SDVOSB and VOSB verification for all federal contracts under the authority of the Veterans Benefits, Health Care, and Information Technology Act.
What this means practically: there is one certification process now, administered through SBA's Certify.SBA.gov portal. The old VA-specific VOSB certification is no longer a separate credential. If you were previously verified through VetBiz, your certification was migrated to the SBA system (or you needed to reapply through the SBA).
Eligibility requirements
Under 13 CFR Part 128, to qualify as an SDVOSB:
Veteran status: The veteran owner must have served in the active military, naval, air, or space service and been discharged or released under conditions other than dishonorable.
Service-connected disability: The veteran must have a service-connected disability rating from the VA or DoD. There is no minimum disability rating. A 10% rating qualifies just as a 100% rating does.
Ownership: The service-disabled veteran must own at least 51% of the firm. Ownership must be unconditional — options, convertible debt, or agreements to transfer ownership at a later date can compromise this requirement.
Control: The service-disabled veteran must control the firm's daily operations and long-term strategy. The same control standards that apply to 8(a) and WOSB apply here. If the veteran owner has a permanent incapacitating disability that prevents day-to-day management, a spouse or permanent caregiver can manage operations while the veteran retains ownership (13 CFR 128.202(b)).
Size: The firm must qualify as small under the SBA size standard for its primary NAICS code.
NAICS 541611 size standard
NAICS 541611 (Administrative Management and General Management Consulting Services) has an SBA size standard of $24.5 million in average annual receipts. If your consulting firm's revenue is below that threshold, you qualify as small.
Other professional services NAICS codes you might use:
- 541612 (Human Resources Consulting Services): $24.5 million
- 541613 (Marketing Consulting Services): $24.5 million
- 541614 (Process, Physical Distribution, and Logistics Consulting Services): $24.5 million
- 541618 (Other Management Consulting Services): $24.5 million
- 541690 (Other Scientific and Technical Consulting Services): $19 million
Your SAM.gov registration should list all NAICS codes relevant to the work you actually perform. Contracting officers search SAM.gov by NAICS code when looking for SDVOSB firms for set-asides.
Documentation required for SBA verification
The SBA's verification process is more rigorous than the old VA process. Expect to provide:
Veteran documentation: - DD-214 (Certificate of Release or Discharge from Active Duty) — must show character of discharge - VA disability rating letter (official letter from VA indicating service-connected disability rating and percentage)
Ownership documentation: - Articles of incorporation, articles of organization, or partnership agreement - Operating agreement or bylaws - Stock ledger or membership interest certificate - Any other documents showing the veteran's ownership percentage
Control documentation: - Evidence of the veteran's management role (employment contracts, organizational chart, bank signature authority) - Meeting minutes or written consent actions showing the veteran's decision-making role
Business documentation: - Federal tax returns (typically three years) - Business license - Documentation of the firm being in operation
The SBA may conduct a site visit for SDVOSB verification, particularly for higher-value certifications or if the application raises questions.
The control standard for consulting firms
Professional services firms present specific control questions because the nature of the work often means senior non-veteran staff lead client relationships. For SDVOSB purposes, the SBA looks at whether the veteran owner:
- Sets the firm's business development strategy
- Makes final decisions on which contracts to pursue
- Manages the firm's finances (has signature authority on bank accounts)
- Hires and fires key personnel
- Approves or signs major client contracts
A veteran partner who primarily does business development while a non-veteran manages the firm's operations and finances is a risk. The SBA has denied SDVOSB applications where the veteran owner's role was primarily external-facing while internal operations were controlled by non-veteran management.
If the veteran owner is also a full-time employee of another firm, the SBA will scrutinize whether they have time to actually manage the SDVOSB. This has been a common denial reason.
Federal contracting opportunities for SDVOSB consulting firms
VA contracts: The VA has a mandatory set-aside program for SDVOSBs and VOSBs. When a contracting officer at the VA has a requirement that at least two SDVOSBs can fulfill, the contract must be set aside for SDVOSBs first (this is the "rule of two" applied with a SDVOSB-first priority under 38 U.S.C. § 8127). The VA obligated approximately $10 billion to veteran-owned small businesses in FY2023 according to VA's OSDBU data.
DoD contracts: DoD has its own veteran-owned small business goals. Defense agencies set aside individual acquisitions for SDVOSBs across a range of service categories. Management consulting, training services, and logistics consulting regularly appear as SDVOSB set-asides.
Civilian agency contracts: GSA, DHS, DOJ, and Treasury all contract for management consulting services and issue SDVOSB set-aside task orders under various GWAC (Government-Wide Acquisition Contract) vehicles.
A concrete example: The VA's Strategic Acquisition Center (SAC) at the VA's National Acquisition Center regularly awards SDVOSB set-aside contracts for management consulting and program support services under NAICS 541611. Contract values for individual task orders typically range from $500,000 to $5 million. Multi-year task order contracts can total $10–30 million over the performance period.
Contract vehicles worth targeting
Getting on a contract vehicle — rather than chasing standalone procurements — is the efficient strategy for consulting firms. Relevant vehicles include:
GSA OASIS+: The GSA's One Acquisition Solution for Integrated Services contract is a multi-award IDIQ vehicle for professional services. It has a small business track with SDVOSB set-aside pools. Getting on OASIS+ gives access to task orders from agencies government-wide without competing on each individual procurement.
GSA Schedule 00CORP/MAS Consulting: GSA's Multiple Award Schedule for consulting services (now under the MAS program) allows SDVOSB firms to receive task order set-asides from agencies that use GSA Schedules.
Agency-specific IDIQ contracts: Many agencies (VA, DoD, DHS) maintain their own multi-year consulting contract vehicles with SDVOSB set-aside pools.
Competing for a slot on a contract vehicle requires proposal writing capability and past performance references. If you are new to federal contracting, consider teaming with a larger prime that already holds contract vehicles, performing as a subcontractor initially to build past performance, then competing for your own vehicle slots.
Maintaining SDVOSB certification
SBA SDVOSB certification does not expire on a fixed schedule, but firms must recertify annually through Certify.SBA.gov. The SBA also conducts random reviews and can initiate decertification reviews based on protests.
Key events that require notification to the SBA: - Changes in ownership percentage - Changes in the veteran's disability status (though a disability rating, once granted, is rarely revoked) - Changes in business structure (merger, acquisition, new partners) - Exceeding the size standard
How to apply
- Gather your DD-214 and VA disability rating letter. If you do not have your rating letter, request it through the VA at va.gov
- Prepare your business ownership documents: operating agreement, articles of organization or incorporation, and any shareholder or membership agreements
- Register or confirm your registration in SAM.gov with active status
- Apply through certify.sba.gov. Select SDVOSB certification
- The SBA typically processes applications within 90 days. Track your application status in the portal
- After certification, connect with your nearest PTAP office for assistance pursuing your first federal contract at aptac.org
- For VA-specific opportunities, contact the VA's Office of Small and Disadvantaged Business Utilization at va.gov/osdbu
