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Contract Procurement of Sole-Sourced Work as an SDVOSB & VOSB

April 26, 2018

Veteran-owned businesses can get federal contract procurement of sole-sourced work through either a VOSB or an SDVOSB designation. These companies must meet the qualifications for a veteran-owned small business (VOSB) or a service-disabled, veteran-owned small business (SDVOSB).

 

 

 

Are these programs right for your business, and can they help you achieve your goals for growth and profitability? 

 

Federal Contract Procurement with VOSB or SDVOSB Certification

 

The Veterans Entrepreneurship and Small Business Development Act of 1999 mandates that 3 percent of all federal government contract awards (prime and subcontract) go to veteran-owned small businesses.

 

Although it’s not required, the Small Business Administration (SBA) offers a certification program for entities that qualify as SDVOSBs. The U.S. Veterans Administration offers both VOSB and SDVOSB designations. 

 

SDVOSB & VOSB Eligibility for Sole-Source Federal Contract Procurement

 

Although having these designations does not give your business any priority in a competitive proposal scenario, it does allow any federal agency to make a negotiated, sole-source award. It also simplifies the award process and expedites procurement time. 

 

In addition to government-wide, sole-sourced work, the VA sets aside the majority of its contracting opportunities for small, service-disabled, veteran-owned and controlled companies. 

 

To meet the designation, it’s not enough to have a service-disabled veteran on staff or even in a high-ranking position of authority. Companies must be both owned owned (with at least 51 percent ownership interest) and run by someone who meets this definition.

 

The VA can award sole-sourced contracts to both VOSB and SDVOSB entities. Other government agencies, however, must award contracts to companies that qualify as SDVOSBs.

 

What Do You Need for Contract Procurement as a VOSB or SDVOSB?

 

To meet the requirements of these certification programs, your business must qualify under the SBA’s definition of a small business

 

In addition, the company must be at least 51 percent owned by a veteran or service-disabled veteran. Most important, however, is that a service-disabled veteran must be in charge of day-to-day operations as well as the long-term guidance of the company. A qualified service veteran must also hold the highest designated position in the company, based on the entity’s structure (corporation, LLC, etc.).

 

The SBA requires that you meet its qualifications and register your veteran-owned business. To be eligible for VA-awarded work, you must have your eligibility verified through the Vets First Verification program.  

 

It is important to note that, while these certifications alone will not make your business qualified for any contract award, they will provide eligibility for sole-sourced opportunities as well as set-aside work. To improve your chances of landing new work, consider working with an experienced proposal management firm like Meridian West Consultants.

 

Our experienced team can help you evaluate various designations for which you may qualify. For those that you deem beneficial, we can help you navigate the potentially confusing and complex process required for certification. As a part of our comprehensive business development services, we provide proposal management, bid/no-bid analysis and proposal writing to help you achieve your goals. 

 

Contact us today to learn more about how we can help you grow your small business with our federal contract procurement services.

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