Updated as of July 2023, this article provides the most recent and relevant insights into the advantages of being a Veteran-Owned Small Business in federal contracting.
Veteran-Owned Small Businesses (VOSBs) and Service-Disabled Veteran-Owned Small Businesses (SDVOSBs) enjoy unique advantages in the world of federal contracting. Chief among these is the Veteran's First Verification Program, a pathway that offers these businesses preferential treatment.
The Landscape of Federal Spending on VOSBs and SDVOSBs
As of July 10, 2023, the total federal spending on VOSBs and SDVOSBs for 2022 and the first half of 2023 is an impressive $132.7 billion, with $82.5 billion spent in 2022 and $50.2 billion in 2023 (up to June 30, 2023). These figures include both prime awards and subcontracts.
The leading agencies allocating contracts to VOSBs and SDVOSBs are the Department of Defense, Department of Veterans Affairs, Department of Energy, Department of Homeland Security, and the Department of Agriculture.
Furthermore, contracts have been predominantly awarded to VOSBs and SDVOSBs in the following industries:
- Construction
- Professional, scientific, and technical services
- Manufacturing
- Transportation and warehousing
- Information
Data from USAspending.gov, updated daily, suggests that the total spending with VOSBs and SDVOSBs may be even higher today.
The Crucial Role of Certification
Certification through the Veteran’s First Verification Program offers a significant advantage for VOSBs or SDVOSBs seeking to secure contracts. Alongside being registered in the System for Award Management (SAM), certification through this program is an essential step.
However, registration and certification form the initial steps. Success in federal contracting demands a blend of determination, strategic insight, and a keen understanding of the processes involved.
Key Focus Areas for VOSBs and SDVOSBs
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Efficient Certification and Registration: Streamlining bureaucratic procedures involved in certification and registration can save valuable time and resources.
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Recognizing Agencies' Preferences: Some federal agencies, such as Veterans Affairs, exhibit strong preferences for contracting with VOSBs and SDVOSBs. Understanding these preferences can inform your bid proposals.
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Finding Favorable Contracts: Some contracts are awarded to VOSBs and SDOVSBs with minimal competition. Identifying these contracts can provide your business with strategic advantages.
Knowledge and understanding are key to turning these opportunities into successful federal contracts. If you need additional assistance, consider working with a Registration & Contracting Specialist to assess your business's qualifications and explore your options.
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