Federal Contracting: Changes are coming to our Service Disabled Veteran-owned Small Business (SDVOSB)

In 2020, the 2021 National Defense Authorization Act required government-wide SDVOSB certification to to become a reality. The act transfers control of the verification process used by & reviewed by the US VA Center for Verification and Evaluation to the US SBA.

In January 2023, the US VA Center for Verification will formally transfer the validation (certification) duties over to the US SBA. This means that moving forward the US SBA will be certifying eligible companies; just as they have done for 8(a), HUBZone and Woman Owned Small Business (WOSB) for many years. 

The 3% contracting goal, federal wide, has been specific to Service Disabled Veteran Owned Small Business (SDVOSB) but the US VA has always had an exception to the rule. That means; US VA has included Veteran Owned Small Business (VOSB) in their agency goals in addition to the Service Disabled Veteran Owned Small Business (SDVOSB) that they have verified. All other federal agencies have had a sole goal for SDVOSB as self-identified in the System for Award Management (SAM)

If you are verified by the US VA; what does this coming change mean for you?

  • There is no immediate action required for VOSB or SDVOSB verified small business owners at this time.
  • SBA will provide additional guidance for self-certified SDVOSBs. The 2021 NDAA permits self-certified SDVOSBs up to one year after the transfer to remain self-certified.
  • VOSBs or SDVOSBs verified by VA at the time of the transfer will not lose their status.
  • VA and SBA are committed to being transparent and providing a seamless transition with minimal impact to small businesses participating in the program.
  • Both agencies will keep all stakeholders, including VOSBs and SDVOSBs, updated on the new CVE processes.

If you have not pursued the verification as a veteran owned small business or service disabled veteran owned small business; should you wait? Absolutely not. If you are eligible and interested, I would encourage you to move forward so that you are in a strong position when the transfer of responsibility occurs.

The Illinois APEX Accelerator at College of DuPage is here to assist and answer any of your questions regarding federal contracting or certifications – reach out today!