13 CFR Part 128
Veteran Small Business Certification Program
In Plain English
13 CFR Part 128 is the rulebook for becoming and staying an SDVOSB. It sets the eligibility tests — who counts as a service-disabled veteran, what 51% ownership and control mean, and the small-size requirement — and it establishes the SBA's Veteran Small Business Certification (VetCert) program. Since January 1, 2023, the SBA (not the VA) certifies SDVOSBs and VOSBs governmentwide under this part, replacing the old VA Center for Verification and Evaluation process. A firm must hold this certification before it can win an SDVOSB set-aside or sole-source award.
Who It Applies To
- Small businesses seeking SDVOSB or VOSB certification through SBA VetCert.
- Firms already certified that must maintain eligibility and recertify every three years.
- Surviving spouses and employee-owned succession arrangements relying on the part's special rules.
- Contracting officers and competitors evaluating whether a firm's certification is valid.
Key Provisions
| Provision | What It Means |
|---|---|
| Ownership (§ 128.202) | One or more service-disabled veterans must unconditionally and directly own at least 51% of the firm. 'Unconditional' means the ownership cannot be subject to conditions, executory agreements, or arrangements that could cause it to lapse. |
| Control (§ 128.203) | A service-disabled veteran must control both the long-term decision-making and the day-to-day management of the firm, and must hold the highest officer position. Negative controls held by non-veteran owners (e.g., supermajority vetoes over ordinary business) can defeat eligibility. |
| Service-disabled veteran status | The qualifying owner must be a veteran with a service-connected disability rated by the VA or determined by DoD. Any rating, including 0%, can qualify; the rating amount does not change eligibility. |
| Certification & term | Eligibility is established through SBA VetCert. A certification lasts three years, after which the firm must recertify; the firm must also notify SBA of material changes that affect eligibility between cycles. |
| Surviving spouse continuation | If a qualifying veteran with a disability rating of 100% (or who dies of a service-connected disability) passes away, a surviving spouse may, for a limited time, continue the firm's SDVOSB status under defined conditions. |
Common Pitfalls
- Treating SAM.gov self-representation as certification — since 2023 you must hold an actual SBA VetCert certification, not merely check a box in SAM.gov.
- Letting non-veteran owners or investors hold negative-control rights (supermajority vetoes, board control) that quietly defeat the control test.
- Missing the three-year recertification window or failing to report a change in ownership or control between cycles.
- Assuming VA's old verification still applies — the program moved to SBA under this part on January 1, 2023.
Frequently Asked
What does 13 CFR Part 128 cover?
It is the SBA regulation that defines SDVOSB and VOSB eligibility — ownership, control, and service-disabled veteran status — and establishes the VetCert certification program that, since January 1, 2023, the SBA uses to certify these firms governmentwide.
Did 13 CFR Part 128 replace the VA's verification program?
Yes. As of January 1, 2023, SBA certification under 13 CFR Part 128 replaced the VA Center for Verification and Evaluation process. The SBA now certifies SDVOSBs and VOSBs for the entire federal government through VetCert.
How long does an SDVOSB certification last under this rule?
Three years. After that the firm must recertify, and it must also report material changes in ownership or control that affect eligibility between certification cycles.
Primary Sources
Plain-English explainer, not legal advice. SDVOSB rules are still settling after the 2023 transfer of certification to the SBA, and federal acquisition dollar thresholds are periodically adjusted for inflation — verify current figures and procedures against the cited authority and your contracting officer before acting.
Change log (1)
- LaunchedPublished plain-English regulation explainers for 13 CFR Part 128 (VetCert), FAR Subpart 19.14, 13 CFR § 125.6 (limitations on subcontracting), 38 U.S.C. § 8127 (Veterans First), FAR 52.219-27, and 13 CFR Part 134 Subpart J (status protests) — each with a key-provisions table, common pitfalls, FAQPage and Legislation structured data, primary-source citations, and cross-links into the glossary, how-to guides, FAQ, and comparisons.