VBE Certification for Construction & Trades Companies

For businesses that are at least 51% owned by one or more veterans.

Construction is one of the most certification-driven industries. Here's why it matters:

Federal Requirements: The Department of Transportation requires state DOTs to award a percentage of federally-funded contracts to Disadvantaged Business Enterprises (DBEs). This creates billions in set-aside opportunities annually.

Tier 1 Subcontracting: Major general contractors like Turner, Skanska, and Gilbane have aggressive diversity goals. They actively seek certified diverse subcontractors to meet their contractual obligations on large projects.

Bonding Advantages: Many certification programs offer bonding assistance and surety support, helping smaller contractors qualify for larger projects.

State and Local Set-Asides: Most states have MBE/WBE goals for public construction projects, creating additional opportunities beyond federal contracts.

The construction industry awarded over $45 billion to diverse contractors in the last fiscal year, making it one of the largest opportunity areas for certified diverse businesses.

Must be at least 51% owned by veterans of the U.S. Armed Forces.

VBE eligibility requires veteran status, honorable discharge, and genuine 51% ownership and control. There is no disability requirement.

Veteran status

• Must have served in the U.S. Armed Forces: Army, Navy, Air Force, Marine Corps, Coast Guard, or Space Force
• Discharge must be under honorable conditions: honorable discharge, general under honorable conditions, or medical separation
• Other-than-honorable and dishonorable discharges do not qualify
• Reservists and National Guard members who completed active duty service qualify if discharge meets the above standard

Ownership

• At least 51% unconditionally owned by one or more veterans who are U.S. citizens
• Ownership must reflect genuine equity, not a nominal arrangement created to qualify
• For corporations: veterans must own at least 51% of all voting stock
• For LLCs: veterans must hold at least 51% of membership interests without override provisions that give non-veteran members effective control

Control: management and operations

• Veteran owner(s) must hold the highest officer position (President, CEO, or Managing Member)
• Veteran owner(s) must control day-to-day operations and make long-term strategic decisions
• Management authority cannot be effectively delegated to non-veteran individuals through employment agreements or informal arrangements

Business requirements

• For-profit enterprise operating in the U.S.
• No specific years-in-business minimum, though newer businesses may be asked for additional evidence of operations
• Independent business: not a subsidiary or affiliate where a non-veteran entity exercises control

Step 1: Locate your DD-214 before anything else Your DD-214 (Certificate of Release or Discharge from Active Duty) is the foundational document for VBE certification. It must clearly show your character of discharge. If you need a replacement, request it through the National Archives milrecs.militaryrecords.archives.gov (allow 3-4 weeks for standard requests). Start here if there's any doubt about your DD-214 status.

Step 2: Gather your full document package Before opening the NaVOBA application, collect: DD-214, articles of incorporation or organization, operating agreement or bylaws showing the veteran owner's percentage and management authority, stock certificates or membership ledger, government-issued photo ID, two to three years of business tax returns, current financial statements (P&L and balance sheet), business license, and a representative signed contract or purchase order. Complete preparation prevents mid-session delays.

Step 3: Create your NaVOBA account and complete the application at navoba.org Register at navoba.org/certification/ and work through the application. Sections cover veteran status documentation, ownership structure, management authority, and business profile. Be precise and consistent; any discrepancy between application answers and uploaded documents will trigger a follow-up request.

Step 4: Pay the application fee NaVOBA fees scale with company size, tiered from $350 to $2,000. Verify the current fee schedule at navoba.org before starting the application. Payment is generally required before review begins.

Step 5: NaVOBA review NaVOBA staff reviews the application and supporting documents. For some applicants this includes a follow-up request for clarification or additional documentation. Respond within any stated deadline to avoid delays.

Step 6: Certification decision NaVOBA targets a decision within 30-60 days of a complete application. Once certified, you are listed in NaVOBA's veteran supplier database and can begin using the VBE certification mark.

Federal Opportunities

The federal government is the largest buyer of construction services. Key agencies include:

• Department of Transportation (DOT): Manages the DBE program for highway, transit, and airport construction
• Army Corps of Engineers: Billions in civil works, military construction
• General Services Administration (GSA): Federal building construction and renovation
• Department of Defense: Military base construction worldwide

How to Access: Register in SAM.gov, get your NAICS codes certified, and monitor opportunities on SAM.gov and agency-specific portals.

State and Local

Every state has a transportation department with DBE requirements. Many also have state-funded MBE/WBE programs for building construction and public works.