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.
$27B
Total Obligated
4.3%
% of Federal Spend
30,000+
Total Awards
↑
Trend (~5%)
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 is the most policy-protected set-aside with strong congressional and VA support. VA has a mandatory SDVOSB-first procurement policy for many categories. Steady growth and predictable recompete pipeline.
Top Agencies Buying Service-Disabled Veteran-Owned Small Business
| Rank | Agency | Estimated Spend |
|---|---|---|
| #1 | Department of Veterans Affairs | $12B |
| #2 | Department of Defense | $8B |
| #3 | Department of Homeland Security | $2.5B |
| #4 | Department of Health and Human Services | $1.8B |
| #5 | General Services Administration | $1.2B |
FY2025 estimated federal spending
Market Opportunity
Total Market Size
$27B
4.3% of all federal contracting
Growth Rate
~5% annual growth
3-year compound annual growth rate
Trend
↑
Current direction and momentum
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?
Approximately 4.3% of federal contracting ($27B FY2025) goes to SDVOSB firms. The VA is the largest buyer. Growth is steady (~5% CAGR) due to strong congressional support and the VA's mandatory contracting goals.
Ready to compete as a Service-Disabled Veteran-Owned Small Business firm?
Get certified, find Service-Disabled Veteran-Owned Small Business opportunities, learn winning strategies, and connect with federal buyers in PrimeRFP SCOUT.