The Department of Veterans Affairs is the second-largest federal agency by budget, and it runs the most veteran-friendly procurement system in the federal government. That's not marketing copy — it's statutory. Under 38 U.S.C. § 8127–8128, contracting officers at the VA must give priority to Service-Disabled Veteran-Owned Small Businesses (SDVOSBs) and Veteran-Owned Small Businesses (VOSBs) before they can consider any other set-aside category. If you hold one of those certifications and your NAICS code aligns with what the VA buys, this is the single most favorable agency you can pursue.
How much the VA spends and on what
The VA obligated approximately $29 billion in contracts in FY2023. About 17–18% of that, roughly $5 billion, went to SDVOSBs alone — a share that dwarfs most other agencies. The agency buys across a wide range of categories:
- Medical supplies and pharmaceuticals: disposables, prosthetics, imaging equipment, drugs
- Construction and facilities: HVAC, electrical, roofing, janitorial services across 170+ medical centers
- IT and professional services: EHR support, cybersecurity, program management
- Food service and logistics: cafeteria operations, supply chain
- Mental health and social services: counseling, telehealth platforms
The VA's National Acquisition Center (NAC) handles high-volume medical/pharmaceutical contracts through Federal Supply Schedules. The Technology Acquisition Center (TAC) in Eatontown, NJ handles large IT buys. Regional contracting offices at each VAMC handle facility-level purchases, often under the simplified acquisition threshold.
The Veterans First hierarchy
Every VA contracting officer follows a mandatory priority order before awarding a contract. It goes:
- SDVOSB set-aside
- VOSB set-aside
- 8(a) small business (SBA-certified)
- HUBZone small business
- WOSB/EDWOSB
- Small business (unrestricted)
This hierarchy is law, not policy. An 8(a) firm cannot be prioritized over an SDVOSB at the VA. A contracting officer who skips Step 1 without documenting that no SDVOSB can meet the requirement is out of compliance. That structure creates real leverage for veterans who get certified and show up to bid.
WOSB and SDB certifications still matter here — they improve your competitive position in the lower rungs of the hierarchy — but if you're an SDVOSB or VOSB, lead with that.
CVE certification through VetCert — the mandatory gate
Before FY2023, veteran-owned businesses self-certified status to sell to the VA. That changed. All SDVOSBs and VOSBs selling to the VA must now be verified through the VA's Center for Verification and Evaluation (CVE) via the VetCert portal at vetbiz.va.gov.
CVE verification requires: - Proof of veteran or service-disabled veteran status (DD-214, VA disability rating letter) - Unconditional ownership and control by the qualifying veteran (51%+ ownership, documented) - Operating agreement or bylaws showing day-to-day management by the veteran - Personal financial statements for all owners
The review can take 60–90 days. Common denial reasons include ownership structures where a non-veteran has veto rights, management agreements that shift effective control, or missing documentation on the service-connected disability. Get an attorney to review your operating agreement before you apply if your ownership structure is anything other than a sole proprietorship.
Once verified, you're listed in the Veteran Small Business Certification (VetCert) database, which contracting officers search when set-aside opportunities come up.
Note: The SBA now also verifies SDVOSB status for non-VA federal contracts. The two programs are separate but the underlying eligibility rules are largely the same.
Finding VA opportunities on SAM.gov and FPDS
VA solicitations are posted on SAM.gov like all federal opportunities. Filter by:
- Agency: Department of Veterans Affairs
- Set-aside: Service-Disabled Veteran-Owned Small Business, or Veteran-Owned Small Business
- NAICS code: Use your primary NAICS
- Place of performance: If you're targeting local VAMC work, add your state
For historical spend data, pull from FPDS-NG or USASpending.gov. Search by VA + your NAICS + SDVOSB set-aside to find what the agency has awarded in your category over the past three years. That tells you average contract value, award frequency, and which contractors are currently holding the work.
The VA also publishes an annual procurement forecast. It's searchable at va.gov/osdbu, maintained by the VA's Office of Small and Disadvantaged Business Utilization. Not every opportunity makes it into the forecast, but large recurring contracts usually appear there 6–12 months before solicitation.
The VA's Schedules and the Federal Supply Schedule route
The VA manages several GSA Federal Supply Schedules internally, notably Schedule 65 (medical supplies) and Schedule 66 (scientific equipment). Having a VA or GSA Schedule contract is not required for most VAMC-level purchases, but it dramatically simplifies the award process for medical and commodity buys.
For Schedule contracts, you apply through GSA's eOffer system. Once awarded, individual VA facilities can buy directly off the Schedule using a task order without a full competitive solicitation. If your products fall under Schedules 65 or 66, getting on Schedule is worth the effort — VA facilities issue hundreds of task orders monthly.
The VA also has a Schedules acquisition set-aside mechanism. A Schedule order can still be set aside for SDVOSBs, so holding both a Schedule contract and VetCert verification compounds your advantage.
Subcontracting through VA primes
If you're not yet ready to prime a VA contract, subcontracting is a real entry path. Several large primes hold multi-year VA contracts and are required to meet SDVOSB/VOSB subcontracting goals.
Primes with significant VA contract portfolios include: - Leidos — holds VA IT and EHR modernization work (the EHRM program with Oracle/Cerner) - Booz Allen Hamilton — analytics, cybersecurity, program management across VA - Peraton — network infrastructure and IT services - DXC Technology — IT support services - Compass Group / Aramark — food service at VA medical centers
These firms have supplier diversity teams and small business liaisons. Introduce yourself before the solicitation, not after. The subcontracting plan is submitted with the prime's proposal, so your relationship needs to exist at the teaming stage.
The VA's Subcontracting Directory is not a centralized public tool, but you can find current prime contractors for specific VAMCs through FPDS and then cold-contact their small business liaisons. SBA's SubNet lists subcontracting opportunities posted by primes.
Practical first steps
Step 1: Get VetCert verification. Everything else depends on it. Start the application at vetbiz.va.gov. Pull your DD-214 and disability rating letter before you start; missing documents are the most common delay.
Step 2: Register in SAM.gov and confirm your NAICS codes. Your SAM.gov profile should list every NAICS code relevant to your business, not just your primary. VA contracting officers filter by NAICS.
Step 3: Find the VA medical centers or offices near you. Each VAMC has its own contracting office. For facility-level services (construction, food, IT support), the local VAMC contracting officer has real authority. Look up your nearest VAMC at va.gov and find their contracting or acquisitions office directly.
Step 4: Contact the VA's OSDBU. The VA Office of Small and Disadvantaged Business Utilization runs matchmaking events, procurement conferences, and one-on-one sessions with contracting officers. Their website lists upcoming events. Showing up in person — or virtually — to a VA procurement conference is worth three cold emails.
Step 5: Search FPDS for the incumbent. For any contract you want to compete on, find who currently holds it and when it expires. An expiring contract with no follow-on solicitation posted is an active opportunity. The incumbent's price history tells you what the agency has historically paid.
Step 6: File a Sources Sought response. When the VA posts a Sources Sought notice, responding is free and puts your name and capabilities in front of the contracting officer before the solicitation releases. Even if you don't win the contract, you've made contact.
The VA's Veterans First mandate is one of the strongest structural advantages in federal procurement for SDVOSBs and VOSBs. The work is real, the volume is consistent, and the preference is statutory. The entry barrier is VetCert verification, not relationships. Get verified, get registered, and go find the contracting office at your nearest VAMC.
