What Are Veteran Owned Small Business Federal Contracts?

Veteran Owned Small Business (VOSB) federal contracts are procurement opportunities specifically designated for businesses owned and controlled by veterans. These contracts are part of the federal government's effort to allocate a portion of its purchasing power to support veteran entrepreneurs. The most notable program is the Veterans First Contracting Program, administered by the Department of Veterans Affairs (VA).

To qualify for these opportunities, businesses must be verified through the Veteran Small Business Certification (VetCert) program, now managed by the Small Business Administration (SBA). This certification confirms that the business is legitimately owned and controlled by one or more veterans. For service-disabled veterans, the Service-Disabled Veteran-Owned Small Business (SDVOSB) designation provides even more contracting privileges, including access to sole-source contracts and set-asides across all federal agencies.

How VOSB Federal Contract Programs Work

The federal government operates with annual procurement goals, including allocating at least 3% of all federal contracting dollars to SDVOSBs. This creates a substantial market opportunity, with billions of dollars in contracts available each year. The process begins with proper certification through the SBA's VetCert program, which replaced the VA's verification program in January 2023.

Once certified, veteran business owners can access set-aside contracts, which limit competition to VOSBs or SDVOSBs. There are also sole-source contracts that can be awarded directly without competition if certain conditions are met. Veteran entrepreneurs can identify opportunities through the System for Award Management (SAM) portal and USASpending.gov, which list available federal contracts. Networking with contracting officers and attending agency outreach events can also uncover potential opportunities that align with your business capabilities.

Provider Comparison: Resources for VOSB Certification and Support

Several organizations offer assistance to veterans seeking federal contracts. Here's a comparison of key providers:

SBA's Office of Veterans Business Development - The Small Business Administration offers comprehensive resources including the Boots to Business program for transitioning service members. They now manage the VetCert program and provide free business counseling.

Veterans Business Outreach Centers (VBOCs) - These SBA-funded centers provide specialized training and mentorship specifically for veteran entrepreneurs seeking federal contracts.

Procurement Technical Assistance Centers (PTACs) - PTACs offer free or low-cost assistance with government contracting, including help with registrations, certifications, and bid proposals.

National Veteran Small Business Coalition - This nonprofit organization advocates for veteran-owned businesses and provides networking opportunities with federal agencies and prime contractors.

VET-Force - The Veterans Entrepreneurship Task Force helps veterans navigate federal contracting opportunities and advocates for policy improvements.

Benefits and Challenges of VOSB Federal Contracts

Benefits:

  • Limited competition through set-aside contracts that only VOSBs and SDVOSBs can bid on
  • Potential for sole-source awards without competitive bidding
  • Access to the VA's Veterans First Contracting Program, which prioritizes VOSBs
  • Opportunities to build past performance credentials with federal agencies
  • Networking opportunities with prime contractors seeking veteran-owned business partners

Challenges:

  • Complex certification process requiring detailed documentation
  • Navigating federal acquisition regulations and compliance requirements
  • Meeting strict performance and delivery standards
  • Competing with well-established government contractors
  • Managing working capital needs while waiting for government payments

Many successful veteran entrepreneurs recommend starting with subcontracting opportunities under prime contractors to build past performance before pursuing prime contracts directly. SCORE mentors with government contracting experience can provide valuable guidance throughout this process.

Preparing Your VOSB for Contract Success

Securing federal contracts requires preparation beyond certification. Start by developing a clear capability statement that outlines your business's core competencies, past performance, and unique value proposition. Register in the System for Award Management (SAM.gov) and obtain the necessary NAICS codes that align with your services.

Develop relationships with contracting officers at agencies that purchase your products or services. Research agency procurement forecasts to identify upcoming opportunities that match your capabilities. Consider pursuing smaller contracts initially to build your past performance record, which is crucial for winning larger contracts.

Many successful VOSBs also participate in the SBA's 8(a) Business Development Program if they qualify as socially and economically disadvantaged. This nine-year program provides training, counseling, and access to set-aside and sole-source contracts. Veterans who utilize multiple contracting programs strategically often see the greatest success in the federal marketplace.

Conclusion

Veteran Owned Small Business federal contracts represent a significant opportunity for former service members to grow successful businesses while continuing to serve their country. The federal government's commitment to supporting veteran entrepreneurs through these programs creates a pathway to business success that leverages military experience and discipline. While navigating the certification and bidding process requires dedication and persistence, the potential rewards make it worthwhile for many veteran business owners.

For veterans considering this path, start by obtaining proper certification through the SBA's VetCert program, then build relationships with contracting officers and resource partners who can provide guidance. With proper preparation and strategic approach, veteran entrepreneurs can successfully transition their military leadership skills into building thriving businesses that serve government needs.

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This content was written by AI and reviewed by a human for quality and compliance.