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FIDELITY CONSORTIUM
SERVICED DISABLED VETERAN (SDVOB) AND MINORITY, WOMAN OWNED SMALL BUSINESS. OUR TEAM IS EMPOWERING WOMAN IN SMALL BUSINESS.
FREQUENTLY ASKED QUESTIONS ABOUT SDVOB'S
Please reach us at kcovington@fidelityconsortium.org if you cannot find an answer to your question.
It stands for Service-Disabled Veteran Owned Business. A service-disabled veteran-owned small business (SDVOSB) is a small business that is 51% unconditionally owned and controlled by a service-disabled veteran. The terms veteran and service-disabled veteran are defined in 38 U.S.C. 101(2) and (16) respectively, the Department of Veterans Affairs, United States Code. The term "veteran" means a person who served in the active military, naval, or air service, and who was discharged or released under conditions other than dishonorable. The term "service-connected" means, with respect to disability or death, that such disability was incurred or aggravated, or that the death resulted from a disability incurred or aggravated, in line of duty in the active military, naval, or air service. An injury or disease incurred during military service will be deemed to have been incurred in the line of duty unless the disability was caused by the veteran's own misconduct or abuse of alcohol or drugs, or was incurred while absent without permission or while confined by military or civilian authorities for serious crimes.
The federal government aims to award at least 3% of all federal contracting dollars to SDVOSBs each year.
Competition is limited for certain federal contract opportunities to businesses that participate in the SDVOSB program.
Joining the SDVOSB program makes your business eligible to compete for the program’s set-aside and sole source contracts.
SDVOSBs may self-certify their status through 2023 to compete for set-aside contracts at most federal agencies. However, VA does not recognize SDVOSB self-certification. Self-certified SDVOSBs must apply for SBA certification by the January 1, 2024 to be able to compete for set-aside contracts with the federal government.
The executive order gives SDVOSBs a competitive advantage that extends to the businesses that partner with them.
1.Prioritized for government contracts.
Three percent of contracts may seem like a small percentage, but it is a sure percentage allocated for businesses owned by service-disabled veterans. If your local industry has a small percentage of certified SDVOSBs, your chances of winning contracts will be higher than your competitors if you are in partnership with an SDVOSB.
If you represent a big company, you can also benefit from the program by subcontracting SDVOSBs. One of the requirements for government contracts worth $550,000 or more (up to $1 million for construction projects) is to involve a small business as a subcontractor. More specifically, the small business for consideration should be SDVOSBs, DVSBs, DVBEs, and businesses in HudZone areas.
It can also work the other way around for construction contracts. An SDVOSB can subcontract another company as long as the subcontracted work doesn’t exceed 75 percent.
1.Opportunity to establish stronger business ties based on merit.
Each contract one is an opportunity to build a lasting relationship with the agency that awards it. Government contracts can go on for the long term, and when a business wins the trust of the agency, they could get more contracts in the future.
2.Consumers are inclined to support SDVOSBs and their affiliates.
Many consumers support veteran businesses by principle, and not just people who have families and friends who are veteran business owners. This is the very reason that veterans who own businesses make their histories known to their customers and audience.
When given the choice between two products that are of the same level in terms of quality and price, customers will choose the business with even the slightest advantage, and an affiliation with an SDVOSB counts as one.
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