Top federal agencies offering small business set-asides in 2025 include the Department of Defense, Veterans Affairs, and GSA Multiple Award Schedule program. The VA’s Vets First program provides significant opportunities for certified veteran-owned businesses, while the DoD maintains substantial set-aside contracts across multiple sectors. GSA’s streamlined procurement system, despite phasing out SBSA SINs, continues supporting set-aside orders through standard SINs. Additional agency-specific programs reveal expanded opportunities for qualified contractors.
Defense & Veterans Affairs: Prime Opportunities for Small Business Set-Asides
Veteran-owned small businesses seeking government contracts face significant certification changes in the coming year. By December 22, 2024, all Service-Disabled Veteran-Owned Small Businesses (SDVOSBs) must obtain SBA VetCert certification to remain eligible for federal contracts.
Major certification updates await veteran business owners as SDVOSBs must secure SBA VetCert approval to maintain federal contract eligibility.
The Department of Defense and Veterans Affairs present substantial opportunities through set-aside contracts. SDVOSBs must maintain 51% ownership by service-disabled veterans and register through the MySBA Certifications portal. The new requirements are based on Section 862 NDAA implementation. Successful proposals require mastering RFP requirements to effectively compete for these contracts. When navigating certification processes, businesses should utilize the search functionality to locate specific requirements and forms.
These businesses can compete for government-wide sole-source contracts, while certified Veteran-Owned Small Businesses (VOSBs) specifically qualify for VA’s Vets First program.
Businesses must maintain accurate System for Award Management (SAM) profiles and update their status within two days if the SBA denies eligibility. Currently self-certified firms retain eligibility until their certification determination is complete.
GSA and Housing: Strategic Pathways for Small Business Contracts
While the General Services Administration (GSA) implements significant changes to its Multiple Award Schedule program in 2025, small businesses must prepare for the phase-out of Small Business Set-Aside Special Item Numbers (SBSA SINs).
Beginning January 2025, GSA Refresh 24 will close SBSA SINs to new awards, converting existing contracts to standard SINs by May 2025.
Despite these changes, small businesses retain access to federal contracting opportunities through streamlined set-aside orders under standard SINs. The new changes include clear requirements that minimum experience levels must directly relate to proposed labor categories. With approximately 12,000 vendors currently engaged under the GSA Multiple Award Schedule, competition remains robust.
GSA will provide conversion support for contract modifications, ensuring businesses maintain their competitive position. Users should note that independent verification of contract requirements is essential for compliance.
The consolidation eliminates redundant contract management while preserving agencies’ authority to issue set-aside task orders and Blanket Purchase Agreements under MAS, aligning with modernized procurement practices and FAR 8.405-5 updates.
Frequently Asked Questions
How Long Does It Take to Get Certified as an 8(A) Business?
The 8(a) certification process typically takes 90 days for complete applications, though it may extend to 120 days if additional information is needed.
Pre-certification preparation requires significant time for gathering documentation, including three years of tax returns, financial statements, and social disadvantage narratives.
Incomplete submissions, discrepancies in documentation, or complex cases can extend the timeline.
The SBA maintains an aggressive 90-day evaluation target for properly submitted applications.
What Percentage of Federal Contracts Must Agencies Award to Small Businesses?
Federal agencies are required to award at least 23% of their prime contracts to small businesses.
This governmentwide goal includes specific subcategories: 5% for small disadvantaged businesses, 5% for women-owned small businesses, 3% for HUBZone-certified firms, and 3% for service-disabled veteran-owned small businesses.
In 2024, agencies exceeded the overall target by awarding 28.8% ($183 billion) of federal contracts to small businesses.
Can Companies Qualify for Multiple Socioeconomic Small Business Certifications Simultaneously?
Yes, companies can qualify for multiple socioeconomic certifications simultaneously if they meet each program’s specific requirements.
For example, a business could be certified as both a Women-Owned Small Business (WOSB) and a Service-Disabled Veteran-Owned Small Business (SDVOSB).
The SBA’s Size Standards Tool helps determine eligibility across programs, and the new MySBA Certifications platform will streamline the process for obtaining multiple certifications starting September 2024.
Are Joint Ventures Allowed to Bid on Small Business Set-Aside Contracts?
Joint ventures can bid on small business set-aside contracts when they meet specific eligibility requirements.
The small business partner must maintain control as managing venturer and perform at least 40% of the work.
The joint venture must have a written agreement, register in SAM.gov, and comply with subcontracting limits.
Additionally, all venturers must maintain their small business certification status throughout the contract period to remain eligible.
What Happens if a Company Outgrows Its Small Business Size Standards?
When a company exceeds small business size standards, it must recertify within 30 days and can no longer bid on new small business set-aside contracts.
The company can continue performing existing contracts until completion but shifts to unrestricted competition status.
Companies may face operational challenges like infrastructure scaling and potential layoffs.
However, they can maintain eligibility for certain GSA schedule task orders and explore strategies like joint ventures or mentor-protégé relationships to ease the shift.
