VA VOSB and SDVOS Programs: Sole Source and Set-Aside Government Contracts

The Veteran-Owned Small Business (VOSB) and Service-Disabled Veteran-Owned Small Business (SDVOSB) programs are designed to give veterans and service-disabled veterans preferential access to government contracts. Created by the Veteran’s Administration (VA), certified businesses can bid on contracts that are set aside especially for them. In addition, VOSBs and SDVOSBs can be awarded sole source contracts as well.

Government agencies are required to set aside at least 3% of the total value of all prime contract and subcontract awards for small businesses controlled by service-disabled veterans. The SBA defines a disability as service-related if it occurred during active duty in military, Navy, or Air Force.

What Are the Benefits of the VOSB and SDVOSB Programs?

If you are involved in the SDVOS 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 thousand and less than $150 thousand. Sole source contracts are awarded to one supplier without a competitive process.

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