Question 1

What causes an SDVOSB to lose its status?

Accepted Answer

An SDVOSB loses status when it no longer meets eligibility requirements. Common causes include: exceeding the applicable SBA size standard, transferring more than 49% ownership to non-veterans, a veteran owner losing operational control, the veteran owner's death without a qualifying successor, or the veteran owner's disability status being revoked. Merger with or acquisition by a non-SDVOSB firm also triggers loss of status for recompetes.

Question 2

How often must an SDVOSB recertify its status?

Accepted Answer

Under SBA's VetCert program, SDVOSB certifications are valid for three years. Firms must recertify before their certification expires to maintain eligibility. Additionally, firms must notify SBA within 30 days of any change that affects their eligibility — such as a change in ownership, size, or veteran status. Certain contract events (such as mergers) also trigger immediate recertification requirements.

Question 3

What happens to SDVOSB status if the veteran owner dies or becomes incapacitated?

Accepted Answer

If the veteran owner dies, SDVOSB status generally ends unless a surviving spouse exception applies or another qualifying veteran inherits the ownership and control. If the veteran becomes permanently incapacitated and unable to manage the firm, a surviving spouse may temporarily maintain status. Businesses should have succession plans in place. On existing SDVOSB contracts, performance can typically continue to completion regardless of a status change.

Question 4

What happens to SDVOSB set-aside contracts after a merger?

Accepted Answer

After a merger or acquisition, the surviving entity must recertify its SDVOSB status. If the surviving entity does not qualify as an SDVOSB, it cannot be awarded new SDVOSB set-aside contracts but can generally complete existing ones. For IDIQ and multiple-award contracts, the contracting officer must be notified within 30 days and recertification is required at each order. Loss of SDVOSB status may affect future task order eligibility.

What causes an SDVOSB to lose its status?

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