According to the SBA’s FY2019 Small Business Procurement Scorecard, the last year for which official data is available, contracts awarded to Service-Disabled Veteran-Owned Small Businesses (SDVOSBs) reached a whopping $22 billion. This amounted to 4.39% of the total federal awards, exceeding the government’s 3% goal.
For non-SDVOSBs, now is the perfect time to partner with an SDVOSB and gain access to valuable contracting opportunities. Working with an SDVOSB, like Fortuna BMC, can provide competitive advantages and improve your bottom line.
What qualifies as an SDVOSB?
As its name implies, an SDVOSB is a company that is owned and managed by veterans who were injured or disabled while serving in the military.
To qualify as an SDVOSB, the company must meet the following criteria:
- Be classified as a small business according to SBA standards
- Be at least 51% owned and controlled by one or more service-disabled veterans
- Have one or more service-disabled veterans oversee daily operations and long-term decision-making
Access to more contract awards
The Veterans Benefits Act of 2003 established a Procurement Program for SDVOSBs enabling contracting officers to award companies a “sole source” or “set-aside” contract and limit competition.
Additionally, government contracting rules state that any business receiving a prime contract that exceeds the simplified acquisition threshold of $100,000 must provide small businesses with the “maximum practicable opportunity” to engage in the contract.
For contracts that are individually projected to exceed $550,000 ($1 million for construction contracts) and have subcontracting opportunities, the prime contractor must appoint a small business particularly DVBEs, DVSBs, SDVOSBs, and companies in HUBZone areas as a subcontractor.
Since the government prioritizes the SDVOSB program, teaming up with SDVOSBs gives you more chances of acquiring contracts than your competitors.
Furthermore, contracts acquired in partnership with an SDVOSB offers an opportunity to build a lasting relationship with the agency that grants it. Government contracts are often built for the long-term. Once your business earns the trust of the agency, you’re in a better position to acquire more contracts and valuable connections down the line.
Other advantages of working with an SDVOSB
Apart from greater contract opportunities, working with an SDVOSB gives you access to a disciplined and dependable team. Military veterans are trained leaders and goal getters. They have a proven track record of trustworthiness, strong work ethic, and dedication to the job.
Working with an SDVOSB is also a great way to attract new customers including other veterans, military families, and anyone who wishes to support them.
Trust Fortuna BMC for your business consultancy needs
If you’re planning to subcontract SDVOSBs, Fortuna Business Management Consulting (Fortuna BMC) can help. Aside from being an SDVOSB, we are also a Historically Underutilized Business Zone (HUBZone).
As a certified SDVOSB, we are well-versed in the process and requirements needed to apply for federal contracts and subcontracting agreements. Our team of dependable project managers, business analysts, and service experts are trained to deliver consulting and staff augmentation services tailored to each client’s specifications.
Book an appointment and let us help you achieve your contract goals.