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.
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.
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
As of January 2023, the SBA's Veteran Small Business Certification (VetCert) program manages all SDVOSB certifications for federal contracts.
Register in SAM.gov
Complete System for Award Management registration with current information
Gather Documentation
VA disability rating letter, DD-214, ownership documents, financial records
Submit Application
Apply through SBA's Veteran Small Business Certification portal
Site Visit & Review
SBA may conduct interviews and site visits to verify control
- 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)
- VA disability rating letter
- DD-214 (discharge papers)
- Corporate/ownership documents
- Financial statements
- Tax returns (3 years)
Contract Opportunities
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.
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
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.
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
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
- 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
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.
- 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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