Service-Disabled Veteran-Owned Small Business (SDVOSB)
An SDVOSB is a distinguished business classification in the United States that specifically recognizes small businesses owned and operated by veterans with disabilities incurred during military service. The U.S. government supports these businesses through exclusive access to certain government contracts. SDVOSBs must be at least 51% owned by one or more service-disabled veterans, and the management and daily operations must be controlled by one of these veterans.
This designation not only opens the door to set-aside and sole-source federal contracts but also ensures that these businesses are prioritized in the awarding of government contracts, contributing to the federal goal of supporting veteran entrepreneurs. This support framework facilitates the reintegration of veterans into the civilian workforce, harnessing their skills for economic and social impact.
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Access to Set-Aside Contracts
The U.S. government sets aside a certain percentage of federal contracting dollars specifically for SDVOSBs. Companies that partner with or subcontract to SDVOSBs can access these lucrative and often less competitive government contracts, providing a significant boost to their business opportunities.
Joint Ventures & Tax Incentives
Businesses may qualify for tax benefits when they work with SDVOSBs. For instance, there are federal and state tax incentives available for companies that use SDVOSBs as suppliers or subcontractors. These incentives can help reduce the overall tax burden, making projects more financially attractive.
Enhanced Brand Image & Social Responsibility
Working with SDVOSBs can enhance a company's brand image by demonstrating a commitment to supporting veterans and contributing to corporate social responsibility (CSR) initiatives.
This positive branding can attract customers who value social responsibility, potentially increasing sales and market share.
The SBA sets aside at least 3% of federal contracting dollars specifically for SDVOSBs. This is part of the government's goal to expand access to resources for veterans and promote their participation in federal procurement. Based on reported federal spending on contracts, here are the estimated amounts set aside for SDVOSBs:
2023: The government awarded approximately $715 billion in contracts.
3% set aside for SDVOSBs amounts to approximately $21.45 billion.
2022: The government awarded approximately $750 billion in contracts.
3% set aside for SDVOSBs amounts to approximately $22.5 billion.
2021: The government awarded approximately $690 billion in contracts.
3% set aside for SDVOSBs amounts to approximately $20.7 billion.
Diverse & Innovative Solutions
Veterans often bring unique skills, experiences, and perspectives to their businesses. By partnering with SDVOSBs, companies can benefit from these diverse insights, which can lead to innovative solutions and improvements in products and services.
Competitive
Advantage
Companies that engage SDVOSBs in their supply chain can gain a competitive advantage when bidding for certain contracts, especially those that value or require veteran involvement. This can be particularly relevant in industries like defense, where veteran expertise is highly valued.
Guaranteed Funding Security
SDVOSBs benefit from the security of guaranteed funding from the government. Once a contract has been awarded to an SDVOSB, the funds are secured and earmarked for the business, providing a reliable and predictable stream of revenue. This allows SDVOSBs and their partners to allocate resources confidently toward project execution and business development. This level of funding security is a significant advantage, reducing risks associated with non-payment or delayed funding.
The SBA sets aside at least 3% of federal contracting dollars specifically for SDVOSBs. This is part of the government's goal to expand access to resources for veterans and promote their participation in federal procurement. Based on reported federal spending on contracts, here are the estimated amounts set aside for SDVOSBs:
2023: The government awarded approximately $715 billion in contracts.
3% set aside for SDVOSBs amounts to approximately
$21.45 billion.
2022: The government awarded approximately $750 billion in contracts.
2021: The government awarded approximately $690 billion in contracts.
3% set aside for SDVOSBs amounts to approximately $20.7 billion.
3% set aside for SDVOSBs amounts to approximately $22.5 billion.
Access to Set-Aside Contracts
The U.S. government sets aside a certain percentage of federal contracting dollars specifically for SDVOSBs. Companies that partner with or subcontract to SDVOSBs can access these lucrative and often less competitive government contracts, providing a significant boost to their business opportunities.
Joint Ventures & Tax Incentives
Businesses may qualify for tax benefits when they work with SDVOSBs. For instance, there are federal and state tax incentives available for companies that use SDVOSBs as suppliers or subcontractors. These incentives can help reduce the overall tax burden, making projects more financially attractive.
Enhanced Brand Image & Social Responsibility
Working with SDVOSBs can enhance a company's brand image by demonstrating a commitment to supporting veterans and contributing to corporate social responsibility (CSR) initiatives.
This positive branding can attract customers who value social responsibility, potentially increasing sales and market share.
Diverse & Innovative Solutions
Veterans often bring unique skills, experiences, and perspectives to their businesses. By partnering with SDVOSBs, companies can benefit from these diverse insights, which can lead to innovative solutions and improvements in products and services.
Competitive Advantage
Companies that engage SDVOSBs in their supply chain can gain a competitive advantage when bidding for certain contracts, especially those that value or require veteran involvement. This can be particularly relevant in industries like defense, where veteran expertise is highly valued.
Guaranteed Funding Security
SDVOSBs benefit from the security of guaranteed funding from the government. Once a contract has been awarded to an SDVOSB, the funds are secured and earmarked for the business, providing a reliable and predictable stream of revenue. This allows SDVOSBs and their partners to allocate resources confidently toward project execution and business development. This level of funding security is a significant advantage, reducing risks associated with non-payment or delayed funding.
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Cobalt Technologies delivers comprehensive technology and cybersecurity consulting services providing bespoke, scalable, solutions for clients from small businesses to globally diverse organizations. As a Service-Disabled Veteran-Owned Small Business (SDVOSB), we uphold the highest standards of leadership and discipline. We empower our clients with actionable, security-forward insights, ensuring informed decision-making.
Our commitment to excellence guarantees top-tier service delivery across industries.
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Cobalt Technologies, LLC
201 North Union Street, Suite 110
Alexandria, VA 22314
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