# Veteran Contractor Programs and Preferences: A Comprehensive Guide

Veterans transitioning from military service to entrepreneurship possess valuable skills—leadership, discipline, and problem-solving—that translate well into business ownership. The federal government, recognizing veterans' sacrifices and capabilities, has established numerous programs to help veteran-owned businesses succeed in the competitive world of government contracting. This guide explores certifications, bidding advantages, set-asides, and resources available to veteran contractors.

## Understanding Veteran Business Certifications

Certification is the gateway to accessing veteran-specific contracting opportunities. Two primary designations exist for veteran entrepreneurs:

**Veteran-Owned Small Business (VOSB):** To qualify, a business must be at least 51% owned and controlled by one or more veterans. The veteran(s) must manage day-to-day operations and make long-term strategic decisions.

**Service-Disabled Veteran-Owned Small Business (SDVOSB):** This designation requires the same 51% ownership standard, but the owner(s) must have a service-connected disability as verified by the Department of Veterans Affairs (VA) or Department of Defense.

As of January 2023, the certification process for both VOSB and SDVOSB moved from the VA to the **Small Business Administration (SBA)** under the Veteran Small Business Certification (VetCert) program. This consolidation streamlined the process and expanded certification benefits across federal agencies, not just the VA.

## The Certification Process

To obtain certification through the SBA's VetCert program, applicants must:

1. **Register in SAM.gov:** Before applying, businesses must have an active registration in the System for Award Management (SAM), which includes obtaining a Unique Entity Identifier (UEI).

2. **Verify Veteran Status:** Documentation such as a DD-214 (Certificate of Release or Discharge from Active Duty) confirms military service.

3. **Confirm Disability Rating:** SDVOSB applicants must provide VA documentation of their service-connected disability.

4. **Submit Application:** Applications are filed through the VetCert portal at **veterans.certify.sba.gov**. Businesses must demonstrate ownership and control requirements with supporting documents including operating agreements, tax returns, and corporate records.

Certification typically remains valid for three years, after which businesses must recertify. The SBA offers a self-certification option for certain contracts, though formal certification is required for sole-source and set-aside awards.

## Bidding Advantages and Set-Asides

The most significant benefit of veteran certification is access to **set-aside contracts**—federal procurements reserved specifically for eligible businesses. These reduce competition and increase the likelihood of winning contracts.

**Federal Set-Aside Goals:** The federal government maintains a statutory goal of awarding at least **3% of all federal contracting dollars** to SDVOSBs annually. Many agencies exceed this benchmark, creating substantial opportunities. In recent years, the government has awarded over $30 billion annually to SDVOSBs.

**Sole-Source Awards:** For SDVOSBs, contracting officers may award contracts without competition (sole-source) up to $4.5 million for goods and services, and up to $7 million for manufacturing contracts, provided the business is deemed responsible and the price is fair.

**Set-Aside Competitions:** When two or more SDVOSBs can perform the work at fair market prices, contracting officers must set aside the procurement for competition among these businesses only.

**The "Rule of Two":** At the VA specifically, the Veterans First Contracting Program mandates that contracting officers must set aside procurements for VOSBs or SDVOSBs whenever there's a reasonable expectation that at least two such businesses will submit offers at fair prices. This gives veteran businesses priority at the VA above all other socioeconomic programs.

## Additional Preferences and Programs

Beyond set-asides, veteran contractors benefit from several complementary programs:

**Subcontracting Opportunities:** Large prime contractors must establish subcontracting plans that include goals for using SDVOSBs. This creates a secondary market for veteran businesses to partner with established contractors.

**Mentor-Protégé Programs:** The SBA's All Small Mentor-Protégé Program allows veteran-owned businesses to partner with experienced firms for guidance, capital, and joint venture opportunities, enabling them to pursue larger contracts.

**State-Level Programs:** Many states offer their own veteran business preferences, tax incentives, and set-aside programs for state contracts. Veterans should research opportunities in their specific states.

## Key Resources for Veteran Contractors

Numerous organizations provide support, training, and guidance:

**SBA Office of Veterans Business Development (OVBD):** This office oversees veteran entrepreneurship programs and coordinates resources nationwide. - Website: www.sba.gov/ovbd - Phone: (202) 205-6773

**Veterans Business Outreach Centers (VBOCs):** These centers offer business plan workshops, counseling, mentorship, and training. With locations across the country, VBOCs provide hands-on assistance for launching and growing businesses. - Find your local center at: www.sba.gov/vboc

**Procurement Technical Assistance Centers (PTACs)/APEX Accelerators:** Now known as APEX Accelerators, these organizations provide free counseling on government contracting, helping businesses navigate registration, certification, and bid preparation. - Website: www.apexaccelerators.us

**VA Office of Small and Disadvantaged Business Utilization (OSDBU):** This office supports veteran businesses in accessing VA contracts. - Website: www.va.gov/osdbu - Phone: (866) 584-2344

**National Veteran-Owned Business Association (NaVOBA):** A nonprofit certifying and connecting ve