Did you know that you can benefit from preferential procurement if you are a service-disabled veteran? Veterans who run small businesses can qualify for government contracts under the Service-Disabled Veteran-Owned Small Business (SDVOSB) arrangement. More so, an SDVOSB firm stands a better chance of winning contract bids if it enrolls with the Solutions for Enterprise-wide Procurement (SEWP) NASA program office.
What Is SDVOB?
The Service-Disabled Veteran-Owned Small Business (SDVOSB) is a Department of Defense (DoD) initiative. The program aims at identifying, registering, and pre-qualifying small businesses owned by service-disabled veterans for particular contracts. The United States government reserves contracting opportunities for SDVOSB companies available through government agencies. To qualify for the SDVOSB program, one must be considered a veteran. In this case, a veteran is any person who served on active duty in the US Armed Forces, Reservists, and National Guard members.
One is eligible to register an SDVOSB firm if they meet the following qualifications:
- A veteran who owns at least 51% of the firm they wish to register.
- The veteran must exercise complete control in the business management.
- The entrepreneur should have managerial experience and capacity.
- A veteran who incurred disability during military service
Why Run an SDVOSB?
Running an SDVOSB registered business provides considerable benefits to service-disabled veterans. Firstly, SDVOSBs have access to priority contracts. The government sets aside procurement contracts for the specific help of SDVOSBs. Thus, a veteran with the SDVOSB certificate has a better chance of winning a government agency contract compared to other bidders.
Secondly, SDVOSBs benefit from the government contract quotas. The goal is for the total value of contracts awards to SDVOSBs by the government to be 3% of all annual contract values. This arrangement is affirmative action for service-disabled veterans since government agencies appreciate their value. Besides, one may benefit from tax exemptions for preferential procurement. Lastly, SDVOSBs can take advantage of their special status to enter into partnerships with prime contractors. In this situation, SDVOSB firms act as sub-contractors for more prominent companies with more capacity. However, SDVOSBs may have access to limited contract opportunities limited to government agencies.
What Is SEWP?
Firms that qualify as SDVOSBs can maximize their contracting opportunities by joining the Solutions for Enterprise-Wide Procurement (SEWP) program. SEWP is a NASA procurement initiative for pre-qualified contract holders, including small firms. SDVOSBs can utilize SEWP as a vehicle to access contracts for ICT/AV products. The SEWP program office offers contracts for supplying, installing, and maintaining advanced technologies. Products under SWEP contracts include ICT devices, software, cybersecurity, and storage systems.
Service-disabled veterans can find procurement contract opportunities through SDVOSB and SEWP. These programs support veteran's entrepreneurship development through preferential procurement. Fundamentally, such entrepreneurs must consider the qualifications and benefits of the programs.