PrimeRFP SCOUT · Federal Set-Aside Program
Service-Disabled Veteran-Owned Small Business (SDVOSB)
Federal contracts reserved for service-disabled veteran-owned small businesses — includes sole-source contracting and participation goals at all federal agencies.
$10.0B
TTM Obligated
1.3%
% of Federal (TTM)
17,536
Awards ≥$100K
VA
Top Agency
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What is Service-Disabled Veteran-Owned Small Business?
Federal contracts reserved for service-disabled veteran-owned small businesses — includes sole-source contracting and participation goals at all federal agencies.
Certification Process
Verify service-connected disability rating with VA, prove 51%+ ownership by service-disabled veteran(s), register as a small business in SAM.gov, and obtain CVE (Center for Verification & Evaluation) certification (online, typically approved within 30 days).
Business Development Strategy
SDVOSB primes received $32.5B in FY2025 — slightly under the FY2024 high of $32.8B but still meeting/exceeding the 5% government-wide goal. VA's mandatory SDVOSB-first policy continues to anchor the category.
Top Agencies Buying Service-Disabled Veteran-Owned Small Business
| Rank | Agency | SCOUT TTM |
|---|---|---|
| #1 | Department of Veterans Affairs | $7.9B |
| #2 | Department of Defense | $883M |
| #3 | Department of Health and Human Services | $379M |
| #4 | Department of Homeland Security | $217M |
Designated SDVOSB set-aside obligations · Aug 2025 – Aug 2026
Market Opportunity
Current designated market (SCOUT TTM)
$10.0B
1.3% of federal TTM · 17,536 awards ≥$100K
Momentum inside the window
CY2025 $4.8B → CY2026 (partial) $5.2B
Calendar buckets from the same TTM extract — not full fiscal years
Official annual picture (SBA)
$32.5B · ~6% CAGR →
FY2025 Procurement Scorecard
Frequently Asked Questions
Who qualifies for SDVOSB certification?
You must be a U.S. citizen with a service-connected disability rating from VA, own a small business (51%+ ownership), meet small business size standards for your NAICS, and apply through the VA's Center for Verification & Evaluation (CVE) online. Approval typically takes 30 days.
What is unique about the VA SDVOSB-first policy?
The VA has a mandatory SDVOSB-first procurement policy for many contracting categories — SDVOSB firms are given first consideration before competitive solicitation. This creates predictable opportunities and higher win rates for SDVOSB firms at VA.
How much federal contracting is reserved for SDVOSB?
In FY2025, service-disabled veteran-owned small businesses received $32.5 billion in prime obligations — meeting the 5% government-wide goal (slightly under the FY2024 high of $32.8B). The VA remains the largest buyer. Source: SBA FY2025 Procurement Scorecard.
SCOUT figures mark designated SDVOSB set-aside obligations from USASpending (≥ $100,000 · obligations_only) for Aug 2025 – Aug 2026. Share of federal uses the same TTM denominator ($787B). Distinct from the SBA scorecard annual context above.
SCOUT Signal
September 2026
Service-disabled veteran-owned contract actions fell 15% at the VA in a single month.
Meanwhile VA's service-disabled veteran-owned contract actions fell 15.3%. The same agency, the same month, the large-vendor lane expanding while the small-business lane contracted. Figures are civilian-agency obligations through 2026-08-31; DoD FPDS for this window is labeled incomplete.
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