Service-disabled veteran-owned small businesses will see major federal contracting opportunities in 2025, particularly in technology, cybersecurity, and infrastructure sectors. The Department of Veterans Affairs leads contract awards, while Defense and Homeland Security increase technology service contracts. Key growth areas include IT infrastructure, digital security initiatives, and renewable energy projects. The mandatory SBA VetCert Program certification by December 2024 will position verified SDVOSBs to secure these expanding opportunities.
Growing SDVOSB Opportunities Reshape Federal Contracting Landscape
Service-disabled veteran-owned small businesses (SDVOSBs) are positioned for unprecedented growth in federal contracting opportunities throughout 2025, with several agencies expanding their commitment to veteran-owned enterprises. The Department of Veterans Affairs continues to lead the charge, while the Department of Defense and Homeland Security are markedly increasing their SDVOSB contract awards, particularly in technology and security services. Federal agencies are actively working to meet the mandated 5% contracting goal for SDVOSBs across all procurement activities.
The shift to mandatory SBA VetCert Program certification marks a pivotal change in the federal contracting landscape, requiring all SDVOSB firms to complete certification by December 2024. This standardization guarantees that qualifying businesses, owned at least 51% by service-disabled veterans, can effectively compete for sole-source and set-aside contracts across federal agencies. The Biden administration’s focus on promoting inclusivity has further strengthened opportunities for veteran entrepreneurs.
The VetCert certification requirement ensures legitimate service-disabled veteran businesses can access federal contracting opportunities through standardized verification.
Technology and cybersecurity sectors present particularly promising opportunities, with federal agencies actively seeking SDVOSB contractors for IT infrastructure and digital security initiatives. Construction and infrastructure projects remain steady sources of contracts, while renewable energy projects through the Department of Energy offer emerging opportunities for qualified SDVOSBs. Users should note that legal disclaimers apply when accessing specific contract opportunities through federal websites.
Multiple award vehicles have become increasingly common in SDVOSB procurement, streamlining the acquisition process and providing more efficient access to federal contracts. Indefinite-delivery, indefinite-quantity contracts offer flexible procurement options, particularly beneficial for technology services and ongoing maintenance projects.
The National Defense Authorization Act has strengthened SDVOSB opportunities through increased funding allocations and specific procurement goals. Federal agencies must meet socio-economic targets, creating a favorable environment for SDVOSBs to secure contracts in professional services, logistics, and supply chain management.
Professional services, including consulting and training, represent another notable growth area for SDVOSBs. Agencies seek expertise in areas ranging from project management to specialized technical training, creating diverse opportunities across multiple contract vehicles.
The General Services Administration, in particular, has expanded its use of SDVOSB partners for procurement and supply management services.
For businesses seeking to capitalize on these opportunities, maintaining proper certification and meeting size standards under relevant NAICS codes remains essential. The streamlined VetCert process has simplified verification, while executive orders continue to prioritize SDVOSB participation in major federal projects.
With increased transparency requirements and accountability measures in place, SDVOSBs can expect a more structured and accessible contracting environment throughout 2025.
Frequently Asked Questions
How Can Non-Veteran Businesses Partner With SDVOSBS for Contract Opportunities?
Non-veteran businesses can partner with SDVOSBs through subcontracting agreements, mentor-protégé programs, and joint ventures. These collaborations enable access to set-aside contracts while meeting federal compliance requirements for veteran business participation.
What Documentation Is Required to Prove SDVOSB Status for Federal Contracts?
Required SDVOSB documentation includes VA disability rating verification, DD-214 discharge papers, proof of 51% veteran ownership, business control evidence, SAM registration, and SBA VetCert Program certification for federal contract eligibility.
Are State-Level SDVOSB Contracts Different From Federal Contract Opportunities?
Yes, state-level SDVOSB contracts differ considerably from federal opportunities regarding certification requirements, funding allocation, procurement processes, and available resources. Each state maintains its own distinct regulations and program structures.
Can SDVOSBS Submit Proposals for Multiple Contract Categories Simultaneously?
SDVOSBs can submit proposals for multiple contract categories simultaneously, provided they maintain proper certification and comply with NAICS codes for each category. This flexibility allows them to pursue diverse contracting opportunities across different industries.
What Happens to SDVOSB Status if the Veteran Owner Passes Away?
Upon a veteran owner’s death, SDVOSB status can continue for three years, or up to 10 years if the veteran was 100% disabled. Surviving spouses must inherit 51% ownership and maintain active business management.
