In its mission to care for veterans, the federal government developed the veterans set-aside certifications for Veteran-Owned Small Businesses (“VOSB”) and Service-Disabled Veteran-Owned Small Businesses (“SDVOSB”). Per the SBA there are approximately 2.5 million veteran owned businesses in the U.S., but only 15,299 are certified through the Veterans Administration (“VA”).
In this episode of FedBiz’5 we are hosting Amanda Bach from FedBiz Access to discuss the benefits of the veteran certification program.
The federal government has set-aside and sole source contracts available for veteran-owned small businesses that have been certified through the VA. In total the SBA goal for awarding small businesses federal contracts is 23.0% of all federal contract spending. For FY2021 this spending exceeded 27.0% or $154.2 Billion.
In particular, set-aside federal contract spending for SDVOSB has a targeted goal of 3.0% and exceeded this in FY2021 to 4.4% or $25 Billion.
To qualify as a veteran-owned small business, a business must:
- Be a for-profit small business according to SBA’s size standards
- Be at least 51% owned and controlled by one or more veterans that have been honorably discharged
- Have one or more veterans manage day-to-day operations and make long-term decisions
- In addition, to qualify for the SDVOSB designation eligible veterans must have a VA verified service-connected disability
Currently, eligible small businesses must receive their VOSB and SDVOSB certification through VA’s Center for Verification and Evaluation (“CVE”), as required by the National Defense Authorization Act (“NDAA”) of 2021.
Effective January 1, 2023, the VA’s CVE responsibilities will be transferred to SBA. At that time veterans will no longer be able to self-certify in the SBA Dynamic Small Business System (“DSBS”).
Federal agencies will still be mandated to set-aside a certain percentage of their business to certified VOSB and SDVOSB businesses. This will increase the need for SBA certified veteran-owned business, instead of relying on self-certification to be considered for candidacy for certain of those set-aside awards.
FedBiz Access honors the sacrifice of our veterans and proudly offers support services to help veteran-owned businesses expedite registration for certification as a VOSB or SDVOSB business eligible for certain federal contracts set-aside specifically under the SDVOSB and VOSB designations.
FedBiz Access has over 21 years of experience working with companies to help them win business by ensuring their set-aside certifications, research, engagement strategy, registrations, and GSA Multiple Award Schedules are current, complete, and compliant.
FedBiz Access helps companies build a clear path from registration to award.
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Episode 29 – VOSB & SDVOSB: Get Certified
Jesse Sherr 00:02
My name is Jesse, and I work with small businesses in the government marketplace.
Jesse Sherr 00:06
You're listening to FedBiz'5, where you get informed, get connected, and get results on everything government contracting.
Jesse Sherr 00:13
Hello, and welcome to another episode of FedBiz'5. We have our senior government contracting advisor and honorable armed forces veteran, Amanda Bach. So, I want to start by saying, “Thank you for your service.”
Amanda Bach 00:29
Thanks, Jesse. It's always a pleasure to be here, and I want to thank all of the veterans who are listening for their service.
Jesse Sherr 00:35
So that said, you'd be the person to talk to about veterans and service-disabled veteran business set asides. Could you please share with our veterans and disabled veterans, the government benefits their businesses receive for serving in the United States armed forces?
Amanda Bach 00:52
There are a lot of benefits for veteran and service-disabled veteran businesses that are VA certified firms. Having that certification makes businesses eligible for set asides and sole source contracts.
Amanda Bach 01:06
The United States federal government by law has to set aside a percentage of their annual budget to procure products, services, and/or solutions that are offered by veteran and service-disabled veteran owned businesses.
Amanda Bach 01:19
However, you do have to be certified in order to be eligible for those set asides.
Jesse Sherr 01:23
Can you expand more on the government spending for veteran and service-disabled veteran business set asides?
Amanda Bach 01:29
Certainly, simply put, it's federally mandated that governmental agencies must by law set aside a percentage of their spending and their annual budget for certified veteran and service-disabled veteran small businesses.
Jesse Sherr 01:42
Okay, well then how can our veteran listeners take part in the spending?
Amanda Bach 01:46
That's a really good question. Because not all veteran owned small businesses are eligible for this set aside spending, you have got to be federally certified to be considered for candidacy for any of those set asides. And there are eligibility requirements for the certifications.
Jesse Sherr 02:04
So, what are some of the eligibility requirements for the certification?
Amanda Bach 02:09
For both of the certifications that are veteran-owned and service-disabled veteran-owned, the business must be at least at minimum 51% owned by one or more honorably discharged veteran(s).
Amanda Bach 02:22
The business has the sole focus of the veteran owner, that means that they don't have another 1099 or W-2 employment.
Amanda Bach 02:31
And, the veteran owner must manage the day-to-day operations and make the long term decisions.
Jesse Sherr 02:36
Thank you for that information. That's very beneficial. Before we go though, do you have any advice for our listeners?
Amanda Bach 02:43
So, my advice to you would be getting a certification for any of the disadvantaged categories as soon as you're eligible for them.
Amanda Bach 02:50
And, with or without any or all certifications, it is essential that you're marketing your capabilities and proactively engaging with the right government buyers.
Jesse Sherr 03:03
Right and adhering to their standards as well, as far as what they expect to see and what they're going to accept.
Amanda Bach 03:08
Correct.
Jesse Sherr 03:09
But thank you again. We are only a great nation because of people like you. So my heart goes out to everyone. Thank you.
Amanda Bach 03:15
I appreciate the sentiment and I look forward to the next time that we can do this.
Jesse Sherr 03:21
Take care of Amanda.
Jesse Sherr 03:22
You as well.
Jesse Sherr 03:23
This concludes this week's episode of FedBiz'5, where you get informed, get connected, and get results.
Jesse Sherr 03:31
Today's podcast is sponsored by FedBiz Access, government contracting made simple.
Jesse Sherr 03:37
Visit them at FedBizAccess.com or contact them at 888-299-4498.