Contract Advantages for Veterans

By William J. Cook, Of Counsel

As an entrepreneurial veteran, you have a unique advantage when it comes to government contracting. By obtaining your veteran-owned small businesses (VOSB) and service-disabled veteran-owned small businesses (SDVOSB) designations you take top priority in government contracting requirements. 

A VOSB is a small business that is at least 51% unconditionally owned and controlled by a veteran. A SDVOSB is a small business that is 51% unconditionally owned and controlled by a service-disabled veteran. 

SDVOSBs and VOSBs are given important preferences in government contracting. The most significant is at the Department of Veterans Affairs. The VA must, in some cases, set aside contracts for SDVOSB or VOSB contractors. The VA can also award SDVOSB or VOSBs sole source contracts. 

For non-VA agencies, only SDVOSBs are entitled to a contracting preference like sole source contracts or solicitations. VOSB status can be helpful in helping large contractors reach subcontracting goals. 

Overall, the government aims to award at least 3% of prime contract dollars annually to SDVOSBs. The government surpassed that goal in 2016, awarding SDVOSBs contracts worth more than $16 billion.

Here’s where this program gets a little tricky. For non-VA projects, a SDVOSB simply has to self-certify as to its status in the government’s SAM database. It’s essential to do due diligence before self-certifying because incorrectly self-certifying can carry significant penalties—ranging from losing the award to being debarred.

For VA projects, however, SDVOSBs and VOSBs must be verified by the VA’s Center for Verification and Evaluation before the bid date. Joint ventures seeking SDVOSB awards also have to be verified. This verification process can take several weeks and involve some back-and-forth—in fact, we’ve seen cases where the VA relies on outdated regulations to question a joint venture’s eligibility, when the joint venture agreement was fully compliant with current regulations. 

Veterans deserve our respect and gratitude for their selfless service. The SDVOSB and VOSB contracting preferences are one way our country can repay this debt. For more information or assistance in these matters contact us today.