GSA's VETS 2 GWAC is one of the few federal IT vehicles where your veteran-owned status is not a tiebreaker — it's the entry ticket. The contract is reserved exclusively for Service-Disabled Veteran-Owned Small Businesses (SDVOSBs) and Veteran-Owned Small Businesses (VOSBs), with a $5 billion ceiling and a scope that covers most of the IT services the federal government buys.
If you're an SDVOSB doing IT work and you don't hold a VETS 2 contract, you're leaving money on the table that your competitors with VETS 2 access are picking up.
What VETS 2 actually is
VETS 2 stands for Veteran Technology Services 2. GSA's Federal Acquisition Service (FAS) runs it as a Government-Wide Acquisition Contract (GWAC), which means any federal civilian agency — and, with proper delegation, DoD components — can use it to buy IT services without going through a separate full and open competition.
The contract has a $5 billion ceiling spread across an indefinite number of task orders. It's not a blanket purchase agreement or a multiple-award schedule. VETS 2 is a true GWAC, which carries specific legal standing under FAR 16.505 for ordering. That distinction matters because agencies that use GWACs get acquisition efficiencies that simple schedule purchases don't provide.
VETS 2 is a Multiple-Award IDIQ. GSA awards VETS 2 contracts to a pool of qualified SDVOSBs and VOSBs. Agencies then issue task orders to compete among that pool. You must hold a prime contract to receive task orders — you cannot participate as a subcontractor to a VETS 2 holder and claim VETS 2 credit.
What IT work it covers
VETS 2 is organized into two functional areas:
Functional Area 1 — IT Services: This covers the bulk of what most IT shops do. Software development, IT operations and maintenance, help desk and end-user support, IT program management, systems engineering, data management, and cybersecurity services all fall here.
Functional Area 2 — Ancillary IT Services: Training, program support, and other services that are incidental to the primary IT engagement.
Most task orders will be under FA1. FA2 is typically used when an agency needs wraparound support that doesn't fit cleanly into a straight IT services bucket.
NAICS codes matter. Your VETS 2 contract authorizes specific NAICS codes, and task orders issued under your contract must align with those codes. If an agency posts a task order under a NAICS your VETS 2 doesn't cover, you cannot compete on it — even if you hold the contract.
VETS 2 vs. STARS III: the real difference
The comparison that comes up constantly is VETS 2 versus STARS III. Both are GSA GWACs. Both cover IT services. Both are for small businesses. But the set-aside structures are entirely different.
STARS III is a small business IT GWAC — it's open to any small business, not just veteran-owned firms. STARS III also has a higher ceiling ($50 billion), broader NAICS coverage, and a larger pool of prime contractors. The trade-off is that on STARS III, you're competing against every qualified small business IT shop in the country.
On VETS 2, you're competing only against SDVOSBs and VOSBs. The pool is meaningfully smaller. Agencies that want to credit their SDVOSB spending goals choose VETS 2 specifically because each dollar spent there counts toward their VA and agency SDVOSB/VOSB spending targets.
From a BD perspective: if an agency's contracting office is trying to meet a SDVOSB set-aside requirement on a specific acquisition, VETS 2 is often the path of least resistance. The legal set-aside is already built into the contract structure. The CO doesn't have to run a separate market research file to justify restricting competition.
Which agencies actually use VETS 2
GSA publishes task order data through the VETS 2 program page and through FPDS (Federal Procurement Data System). The heaviest users have historically been civilian agencies with large IT footprints: Department of Veterans Affairs, Department of Homeland Security, Department of Health and Human Services, and the Social Security Administration.
The VA connection is not coincidental. VA has statutory SDVOSB spending goals and a longstanding mandate to prioritize veteran-owned businesses. VETS 2 gives VA contracting officers a ready-made GWAC that satisfies both the set-aside requirement and the procurement vehicle requirement simultaneously.
DoD components can also access VETS 2 through a delegation of procurement authority. Not every DoD organization has or uses that delegation, so check whether the specific office you're targeting is cleared to use it before building a pipeline around a DoD VETS 2 strategy.
How task order competition works
Once you hold a VETS 2 prime contract, GSA is not issuing you work. You compete for task orders individually. Here's the practical flow:
The ordering agency posts a task order request (also called an RFQ or RFP depending on the size) to the VETS 2 contract holders — either to all of them or to a subset. Under FAR 16.505, the agency must provide all VETS 2 holders a "fair opportunity to be considered" for orders above the simplified acquisition threshold. For orders above $10 million, the fair opportunity process has additional procedural requirements.
Small task orders (under the micro-purchase threshold, currently $10,000 for most agencies) can go to a single vendor without competition. Task orders in the $10,001 to $250,000 range typically involve three or more quotes. Orders above $250,000 usually require a more formal RFP with technical evaluation criteria.
Your win rate on VETS 2 task orders depends on the same factors as any federal IT win: past performance, technical approach, price, and teaming. Holding the vehicle gets you to the table. It doesn't guarantee work.
Getting a VETS 2 contract
VETS 2 is not currently open for new on-ramping as of mid-2025. GSA has run on-ramping periods periodically, and the program office has indicated additional on-ramps are planned. Watch the VETS 2 program page on gsa.gov and GSA's Interact community for announcements.
Eligibility requires SDVOSB or VOSB status verified through SBA's certification program (as of January 1, 2023, VA's CVE program was unified under SBA). You must hold a valid SBA SDVOSB or VOSB certification before you can apply during an open on-ramp. If you don't have that certification yet, get it now — the process takes 90 days on average, and waiting until an on-ramp opens is a guaranteed miss.
Size standards are based on the NAICS codes you propose. Check your primary NAICS code's employee-count or revenue threshold before applying.
Three action steps
- Get your SBA SDVOSB certification if you don't have it. The certification is free and now runs through SBA's MySBA portal. It's the prerequisite for every veteran set-aside — VETS 2, VA set-asides under the Veterans First Contracting Program, and any agency-specific SDVOSB reserve. Apply now so you're ready when the next VETS 2 on-ramp opens.
- Pull FPDS data on VETS 2 task orders in your target agencies. Go to fpds.gov, filter by VETS 2 contract numbers (they begin with 47QTVA), and see which agencies are spending, in which NAICS codes, and at what dollar levels. That's your market sizing for a VETS 2 strategy.
- Identify VETS 2 holders in your space and build teaming relationships now. If you can't hold a prime contract yet, you can subcontract to current VETS 2 holders. That gets you past performance on the vehicle and positions you to compete as a prime when the next on-ramp opens. Look up current VETS 2 contract holders on GSA's contract awards list and reach out to those whose NAICS and agency focus align with yours.
