Government Contracts

SDVOSB Construction Contracts: Veteran Contractor Guide 2025

Win federal SDVOSB set-aside construction contracts. Learn certification requirements, VA verification, sole-source opportunities, and strategies for veteran-owned contractors.

BidFinds Team
December 11, 2025
11 min read

SDVOSB Program Overview

SDVOSB Program Benefits

Federal Goal:

3%

Of federal contracts

Sole Source Limit:

$8M

Construction contracts

VA Goal:

10%

VA prime contracts

The Service-Disabled Veteran-Owned Small Business (SDVOSB) program provides significant advantages for construction contractors with qualifying veteran ownership. Through set-aside contracts and sole-source opportunities, SDVOSB certified firms can access billions in federal construction spending with reduced competition.

Program Advantages

Competitive Benefits

  • • Set-aside contracts (limited competition)
  • • Sole-source awards up to $8M
  • • Evaluation preferences on some contracts
  • • Priority over other small business programs

Strategic Benefits

  • • Joint ventures with large contractors
  • • Mentor-protégé program access
  • • Subcontracting opportunities
  • • State/local veteran preferences

SDVOSB Certification Process

SBA Certification (Required for All Federal Set-Asides)

As of January 2023, the SBA's Veteran Small Business Certification (VetCert) program manages all SDVOSB certifications for federal contracts.

1

Register in SAM.gov

Complete System for Award Management registration with current information

2

Gather Documentation

VA disability rating letter, DD-214, ownership documents, financial records

3

Submit Application

Apply through SBA's Veteran Small Business Certification portal

4

Site Visit & Review

SBA may conduct interviews and site visits to verify control

Eligibility Requirements
  • 51%+ owned by service-disabled veteran(s)
  • Service-connected disability rating from VA
  • SDVO must control daily operations
  • Meet small business size standards
  • Good character (no debarments)
Required Documentation
  • VA disability rating letter
  • DD-214 (discharge papers)
  • Corporate/ownership documents
  • Financial statements
  • Tax returns (3 years)

Contract Opportunities

Where to Find SDVOSB Construction Contracts

SAM.gov Contract Opportunities

Primary source for federal opportunities. Filter by set-aside type "SDVOSB" and NAICS codes for construction.

VA eCMS

Department of Veterans Affairs electronic Contract Management System for VA-specific opportunities.

Agency Forecast Portals

Corps of Engineers, NAVFAC, GSA, and other agencies post acquisition forecasts.

Subcontracting Opportunities

Large contractors seek SDVOSB subcontractors to meet subcontracting plan goals.

Major Agencies for SDVOSB Construction

High-Volume Agencies

  • • Department of Veterans Affairs
  • • Army Corps of Engineers
  • • Navy Facilities (NAVFAC)
  • • General Services Administration

Growing Opportunities

  • • Air Force Civil Engineering
  • • Department of Homeland Security
  • • National Park Service
  • • Bureau of Indian Affairs

Set-Aside Rules & Thresholds

Contract Award Thresholds

Sole-Source Contracts

Up to $8 million for construction contracts when only one SDVOSB can perform the work at a fair and reasonable price.

Set-Aside Contracts

No dollar limit. Requires expectation that at least 2 SDVOSB firms will submit bids at fair market prices.

Evaluation Preference

Some contracts allow 10% price evaluation preference for SDVOSB in full and open competition.

Limitations on Subcontracting

SDVOSB prime contractors must perform a minimum percentage of the contract:

15%

General construction

25%

Specialty trade

50%

Services

*Similarly situated SDVOSBs can count toward the performance requirement

VA Construction Contracts

Veterans First Contracting Program

The VA has unique authority to restrict competition to verified SDVOSBs and VOSBs, creating significant opportunities for veteran-owned construction firms.

VA Priority Order

  • 1. SDVOSB set-aside
  • 2. VOSB set-aside
  • 3. Other small business programs
  • 4. Full and open competition

VA Construction Types

  • • Medical facility construction
  • • Cemetery improvements
  • • Clinic buildouts
  • • Renovation and maintenance
VA-Specific Requirements
  • Must be verified in VetCert database
  • Additional subcontracting limitations may apply
  • Past performance in VA healthcare environments preferred
  • Security clearances may be required
  • VA Master Specifications compliance

Winning Strategies for SDVOSB Contractors

Keys to Success
  • Build Past Performance Early

    Start with smaller contracts to build CPARS ratings. Consider subcontracting first to gain federal experience.

  • Develop Agency Relationships

    Attend industry days, meet small business specialists, and register in agency vendor databases.

  • Consider Mentor-Protégé Programs

    Partner with experienced federal contractors through SBA or agency-specific mentor-protégé programs.

  • Target the Right Contracts

    Focus on contracts matching your experience and bonding capacity. Don't chase every opportunity.

Compliance Warnings
  • Pass-through schemes (using SDVOSB status without real work) are fraud
  • Maintain updated SAM.gov registration at all times
  • Document control by service-disabled veteran owner
  • Report changes in ownership or control immediately
  • False claims can result in criminal prosecution

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