Question 1

What is a Service-Disabled Veteran-Owned Small Business (SDVOSB)?

Accepted Answer

A Service-Disabled Veteran-Owned Small Business (SDVOSB) is a small business that is at least 51% owned and controlled by one or more service-disabled veterans. The veteran must have a service-connected disability rating from the Department of Veterans Affairs (VA) or the Department of Defense (DoD). SDVOSBs are eligible for exclusive set-aside contracts and sole-source awards under federal procurement rules.

Question 2

What is the difference between SDVOSB and VOSB?

Accepted Answer

A Veteran-Owned Small Business (VOSB) is owned and controlled by any veteran, including those without a service-connected disability. An SDVOSB is a subset of VOSB — the veteran must have a documented service-connected disability. SDVOSBs receive a higher priority in VA procurement under the Veterans First Contracting Program, and both designations qualify for separate set-aside pools at the VA.

Question 3

Who qualifies as a service-disabled veteran for SDVOSB purposes?

Accepted Answer

A service-disabled veteran is a veteran with a disability that was incurred or aggravated in the line of duty during active service in the U.S. military, Naval, or Air Service. The disability must be documented through a disability rating from the VA or a determination from DoD. There is no minimum disability percentage required for most federal SDVOSB programs — even a 0% rating qualifies — though VA's Veterans First program requires confirmation from VA records.

Question 4

What is an SDVOSB set-aside contract?

Accepted Answer

An SDVOSB set-aside is a federal contract reserved exclusively for competition among Service-Disabled Veteran-Owned Small Businesses. Contracting officers use set-asides when they reasonably expect to receive offers from at least two eligible SDVOSBs at a fair market price (the 'rule of two'). Set-asides help ensure SDVOSBs get a fair share of federal contract dollars as mandated by Congress.

What is a Service-Disabled Veteran-Owned Small Business (SDVOSB)?

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