Why Working with SDVOSBs Gives Your Business an Advantage


What are the fundamental qualities you’re looking for in a potential business partner? Reliable, a long tenure and experience in the industry, good financial health, and high-quality products and services are surely among your top criteria. We recommend that you include another: whenever possible, work with a certified SDVOSB.

There are many benefits of working with businesses and enterprises like ours, which we’ll be talking about in today’s blog. But first, what is a SDVOSB?

Federal Government-Backed Benefits for Veteran-Owned Businesses

A Service Disabled Veteran Owned Small Business (SDVOSB) is a commercial entity owned by a service-disabled veteran. SDVOSBs are the beneficiaries of the Executive Order 13360 or the Service Disabled Veteran Owned Small Business Program.

It is thanks to this executive order that working with SDVSOB can be advantageous to your business. The program is one of the legacies of the Bush Administration. Established in October 2004, its goal is to support the business enterprises of retired, service-disabled military personnel by requiring federal agencies to provide contracting and subcontracting opportunities to SDVOSBs.

This was followed by Public Law 106-50, which goes on to establish a contracting goal or quota for federal agencies to meet. This law states that federal agencies must award 3 percent of their contracts to qualified SDVOSBs.

This benefit is in recognition of the bravery and sacrifices of our country’s soldiers whose services have been cut short due to the injuries and disabilities they sustained on deployment.

The Advantages of Partnering with SDVOSBs

The executive order gives SDVOSBs a competitive advantage that extends to the businesses that partner with them.

1.Prioritized for government contracts.

Three percent of contracts may seem like a small percentage, but it is a sure percentage allocated for businesses owned by service-disabled veterans. If your local industry has a small percentage of certified SDVOSBs, your chances of winning contracts will be higher than your competitors if you are in partnership with an SDVOSB.

If you represent a big company, you can also benefit from the program by subcontracting SDVOSBs. One of the requirements for government contracts worth $550,000 or more (up to $1 million for construction projects) is to involve a small business as a subcontractor. More specifically, the small business for consideration should be SDVOSBs, DVSBs, DVBEs, and businesses in HubZone areas.

It can also work the other way around for construction contracts. An SDVOSB can subcontract another company as long as the subcontracted work doesn’t exceed 75 percent.

1.Opportunity to establish stronger business ties based on merit.

Each contract one is an opportunity to build a lasting relationship with the agency that awards it. Government contracts can go on for the long term, and when a business wins the trust of the agency, they could get more contracts in the future.

2.Consumers are inclined to support SDVOSBs and their affiliates.

Many consumers support veteran businesses by principle, and not just people who have families and friends who are veteran business owners. This is the very reason that veterans who own businesses make their histories known to their customers and audience.

When given the choice between two products that are of the same level in terms of quality and price, customers will choose the business with even the slightest advantage, and an affiliation with an SDVOSB counts as one.

Working with an SDVOSB Business Consultancy

Big companies interested in subcontracting SDVOSBs often need advice on how to pursue a partnership that will be highly beneficial for both businesses. This is a specialty of Fortuna BMC. As a certified SDVOSB, we know first-hand the procedures and requirements in applying for federal contracts as well as subcontracting agreements.

Fortuna BMC was founded in 2012 by experienced business professionals. We offer business consultancy services from our offices, which are head quartered in California and and offices in Los Angeles and New York .

Contact us today and schedule a meeting with our consultants.


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