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SBA SDVOSBC Program – Sole Source and Set-Aside Government Contracts

The Service Disabled Veteran Owned Small Business Concern (SDVOSBC) program is designed to give service-disabled veterans preferential access to government contracts. Created by the Small Business Administration (SBA), certified businesses can bid on contracts that are set aside especially for them. In addition, SDVOSBCs can be awarded sole source contracts as well.

All government agencies have set aside 3% of the total value of all prime contract and subcontract awards for small businesses controlled by service-disabled veterans. Since the Presidential Executive Order 11360, federal agencies are required to make a significant increase in set-asides for SDVOSBCs; therefore, there is far greater opportunity now than in past years.

What Are the Benefits of the SDVOSBC Program?

If you are involved in the SDVOSBC program, you will have a higher chance of winning set-aside and sole source contracts with government agencies. Set-asides are contracts that are to be fulfilled exclusively by small business concerns. To be automatically set aside for small businesses, a federal purchase must be between $3,000 and less than $150,000. Sole source contracts are awarded to one supplier without a competitive process.

The SBA defines a disability as service-related if it occurred during active duty in military, Navy, or Air Force.

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