SDVOSB Set-Aside

SDVOSB set-asides exist government-wide, but their strongest form is at the VA, where the Veterans First Contracting Program requires the agency to prioritize verified SDVOSB firms ahead of other socioeconomic categories.

Who can bid: SBA-certified service-disabled veteran-owned small businesses
Authority: FAR 19.14 and 38 U.S.C. 8127-8128 for VA
Typical thresholds: Set-aside or sole source within program thresholds
Where to search: SAM.gov set-aside filter

Key takeaways

Set-asides shrink the field — your real competition is often three to eight firms, not fifty.
Limitations on subcontracting apply: you must perform the required share of the work yourself.
Eligibility is determined as of your initial offer including price, so certifications must be current at submission.
Ineligible bids are protestable, and size or status protests are common in tight competitions.

How the set-aside works

Only SBA-certified SDVOSB firms may receive these awards. At the VA, the statutory preference hierarchy places SDVOSB first, then VOSB, before other small business categories, which materially changes who wins.

Finding these opportunities

Search SAM.gov filtered to SDVOSB set-asides, and monitor VA contracting offices specifically since VA generates a disproportionate share of these awards across healthcare, construction, and IT.

Competing and winning

Lead with VA-relevant delivery evidence — clinical staffing, facility work, or health IT — and address transition risk explicitly. VA panels discount proposals that don't explain how care or operations continue uninterrupted on day one.