A SDVOSB stands for Service-Disabled Veteran-Owned Small Business. It's a type of business designation in the United States that provides procurement advantages to small businesses owned and controlled by service-disabled veterans.
To qualify as a SDVOSB, a business must meet specific criteria set forth by the U.S. Small Business Administration (SBA) or other relevant government agencies. These criteria typically include:
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Ownership: The business must be at least 51% owned by one or more service-disabled veterans. Ownership means the veterans have both the ultimate decision-making authority and a controlling financial interest in the company.
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Control: The service-disabled veteran(s) must have full control over the management and daily operations of the business. This control includes decision-making authority in key areas such as strategic planning, hiring, and financial management.
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Size Standards: The business must meet the SBA's definition of a small business based on its industry classification and revenue or employee count.
The designation as a SDVOSB provides several benefits, including:
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Government Contracting Opportunities: Federal agencies have goals for contracting with SDVOSBs, which means they set aside certain contracts specifically for these businesses. This provides SDVOSBs with opportunities to secure government contracts that might otherwise be competitive with larger companies.
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Set-Aside Contracts: In addition to open competition, some government contracts are set aside exclusively for SDVOSBs. This means that only qualified SDVOSBs are eligible to bid on these contracts, reducing competition from larger companies.
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Priority in Contracting: SDVOSBs may receive priority consideration for government contracts, particularly when the government is determining how to allocate contracts among qualified small businesses.
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Subcontracting Opportunities: Prime contractors working on government contracts are often required to subcontract a portion of the work to SDVOSBs, providing additional opportunities for these businesses to participate in government contracting.
In summary, a Service-Disabled Veteran-Owned Small Business (SDVOSB) is a business owned and operated by one or more service-disabled veterans that qualifies for certain procurement advantages, particularly in government contracting, to support and promote the economic empowerment of disabled veterans.