Here's a number that should get every veteran entrepreneur's attention: $10.2 billion.
That's how much the Department of Veterans Affairs awarded to Service-Disabled Veteran-Owned Small Businesses (SDVOSBs) in their most recent fiscal year. It represents 23% of the VA's total prime contract dollars—nearly five times the 5% statutory requirement.
But the VA isn't the only agency. Across the federal government, SDVOSB contract awards are growing, goals are increasing, and veteran-owned businesses are winning work in everything from IT services to construction to healthcare staffing.
If you're a veteran who owns a business—or you're thinking about starting one—federal contracting represents a massive, underutilized opportunity. Here's what you need to know to take advantage of it.
The federal government's preference for veteran-owned businesses isn't just a nice gesture—it's written into law and backed by money.
The numbers:
- The statutory goal for SDVOSB contracting is now 5% of all federal contract dollars (increased from 3% by the NDAA FY2024)
- The VA alone has awarded over $10 billion annually to SDVOSBs
- Over 2,300 SDVOSB firms received VA awards last year—a 3% increase in participation
- Government-wide, veteran entrepreneurs report that federal contracting is more reliable and yields higher average revenue than corporate contracting
The increased 5% goal matters because it creates institutional pressure. Agency leadership tracks these numbers. Contracting officers have incentive to find qualified SDVOSB vendors. And with the goal raised, there's more opportunity for firms like yours.
Understanding the Two Certifications: SDVOSB vs. VOSBNot all veteran business certifications are created equal. Here's the difference:
Service-Disabled Veteran-Owned Small Business (SDVOSB):
- Requires 51% ownership by one or more service-disabled veterans
- The veteran(s) must have a service-connected disability rating from the VA
- Eligible for sole-source contracts up to $5 million (goods) or $7 million (services)
- Subject to the 5% federal contracting goal
- Certified through SBA (transferred from VA as of January 1, 2023)
Veteran-Owned Small Business (VOSB):
- Requires 51% ownership by one or more veterans (no disability requirement)
- Primarily relevant for VA-specific set-asides under the Veterans First Contracting Program
- Not subject to a government-wide statutory goal
- Also certified through SBA
If you qualify for SDVOSB status, that's generally the more valuable certification due to the broader applicability across all federal agencies.
How to Get Certified: The Step-by-Step ProcessThe certification process moved from the VA to SBA on January 1, 2023. Here's how it works now:
Step 1: Verify your eligibility
- Your business must be small under your primary NAICS code
- You (or co-owning veterans) must own at least 51% of the business
- For SDVOSB, you need a service-connected disability rating from the VA (any percentage qualifies)
- You must control the daily management and long-term decision-making
Step 2: Register in SAM.gov
If you don't already have an active SAM registration, you need one before you can apply for certification. This requires your DUNS number (or UEI) and basic business information.
Step 3: Apply through SBA's VetCert portal
Submit your application at VetCert.sba.gov. You'll need to provide:
- DD-214 or other proof of veteran status
- VA disability rating letter (for SDVOSB)
- Business formation documents
- Proof of ownership (stock certificates, operating agreements, etc.)
- Evidence that you control the business (meeting minutes, management agreements, etc.)
Step 4: Wait for determination
SBA aims to process applications within 90 days. You may receive requests for additional documentation.
- Verify you meet size standards for your NAICS code
- Locate your DD-214 or other proof of service
- Obtain your VA disability rating letter (for SDVOSB)
- Gather business ownership documentation
- Register or update your SAM.gov profile
- Complete your VetCert application at vetcert.sba.gov
Once you're certified, you need to know where to look for opportunities. Here are the primary channels:
SAM.gov (Contract Opportunities)
This is the official source for federal contract opportunities. You can filter by set-aside type to see SDVOSB-specific opportunities. Set up saved searches with email alerts so you don't miss relevant postings.
VA's Vendor Information Pages (VIP)
For VA-specific opportunities, the Vendor Information Pages database is essential. Many VA contracting officers use this to find potential vendors.
Agency Small Business Offices
Every major federal agency has an Office of Small and Disadvantaged Business Utilization (OSDBU). These offices can help connect you with contracting opportunities and provide guidance on working with their agency.
Prime Contractor Subcontracting
Large prime contractors often need SDVOSB subcontractors to meet their own small business subcontracting goals. Check SubNet (within SAM.gov) for subcontracting opportunities.
The Industries Where SDVOSBs Are WinningWhile SDVOSB opportunities exist across many sectors, two consistently dominate:
Information Technology: IT services, cybersecurity, software development, and systems integration remain the largest category of federal small business spending. If you have tech capabilities, this is a target-rich environment.
Professional Services: Management consulting, engineering, training, and program management services are in constant demand across federal agencies.
Other strong categories include construction, healthcare staffing, logistics, and facilities management. The key is matching your capabilities to genuine federal needs—don't try to be everything to everyone.
Success Story: How SDVOSBs Are Thinking About 2026I recently spoke with several successful SDVOSB owners about their strategies. The common themes:
Focus on relationships. "I spend as much time building relationships with contracting officers and small business advocates as I do responding to RFPs," one IT services contractor told me. "Those relationships are how I learn about opportunities before they hit SAM.gov."
Excellent past performance. "Your CPARS ratings matter more than any marketing," said another. "Do the work right, and opportunities find you."
Teaming strategically. "I partner with larger firms as a subcontractor to build my past performance, then pursue primes when I have the track record."
Staying compliant. "I treat compliance like a second job. Every documentation requirement, every reporting obligation—I stay on top of it. One mistake can cost you your certification or an award."
Getting Started TodayIf you're a veteran entrepreneur who hasn't yet explored federal contracting, here's your action plan:
This week: Check your SAM.gov registration status. If you're not registered, start the process.
This month: Apply for SDVOSB or VOSB certification through VetCert if you're eligible.
Next 90 days: While waiting for certification, research opportunities in your industry. Identify 5-10 target agencies or prime contractors. Attend a Procurement Technical Assistance Center (PTAC) workshop—they're free and designed to help businesses win government contracts.
The federal government has committed to spending at least 5% of its hundreds of billions in annual contracts with service-disabled veteran-owned businesses. That money is going somewhere. With the right certification, strategy, and persistence, it could be going to you.
