On average, $4.65 billion in contracts is awarded to Service-Disabled, Veteran-Owned Small Businesses (SDVOSB) per year. With our deep roots in the U.S. military, Rivera Group is honored to be certified as an SDVOSB. Being an SDVOSB provides several significant benefits for three major players – government agencies, future contract partners and Rivera Group.

What is an SDVOSB?

To begin, an SDVOSB is characterized as a company that is owned by one or more veterans who were injured or disabled during their military service. Along with necessary documentation, the Department of Veterans Affairs (VA) has four requirements that must be met for verification.

  • Be classified as a small business by the Small Business Administration (SBA)
  • Be at least 51% owned by one or more Service-Disabled Veterans (SDV) who control management and daily business operations
  • The SDV must hold the highest officer position at the company
  • The company must be assigned to the North American Industry Classification System (NAICS)

Government Agencies Meet Contracting Goals

Since the majority of Americans work for small businesses, the Federal Government has set various goals for small business participation in government contracting. By having a certain percentage of total procurement go to varying types of small businesses, the government is able to support these disadvantaged companies.

An SDVOSB Procurement Program was developed to allow contracting officers to award firms – like Rivera Group – a sole source or set-aside contract to reduce competition. From this, a required 3% minimum of the total prime contract awards must go to SDVOSB companies.

Additionally, set-aside requirements are placed on contracts based on the value of the goods and services the government wants to purchase. For example, any contract under $150,000 must be set-aside exclusively for small businesses. Also, any contract over that limit will go to a small business if there are two or more qualified, competing small businesses with similar market price, quality and delivery, which is known as the Rule of Two.

Although total procurement spending has decreased, the amount in contracts going specifically to SDVOSB companies and partnerships is rising.SDVOSB Annual Set-Aside trend

Ultimately, government agencies prefer to award their contracts to SDVOSB companies to meet their contracting goals and small business quotas. This results in a higher number of SDVOSBs being chosen for prime contract and subcontract awards.

Potential Partners Increase Contract Wins

Partnering with a SDVOSB like Rivera Group for a Request for Proposal (RFP) dramatically increases your chance to win contract awards.

Since many RFPs contain set-aside requirements that allow only small businesses to respond as the prime contractor, a partnership with an SDVOSB would let you submit your company for the contract award, limit the competition available and strengthen your likelihood for success.

From the viewpoint of government agencies, these partnerships are also more desirable since companies can use their unique capabilities to offer the best combination of performance, cost and delivery.

In short, you’re more likely to win a contract with Rivera Group as the prime or subcontractor since many RFP opportunities require a small business. As a result, this restricts the pool of possible competitors, and it allows the two companies to share the risk of the project.

Rivera Group Receives More Contract Opportunities

Being an SDVOSB company offers many advantages for Rivera Group. First, some agencies favor companies with the SDVOSB status. The VA, for example, sets priority for SDVOSBs, which means that each set-aside or sole source contract created by the VA goes directly to a qualified SDVOSB.

In addition, DoD contracting officers tend to prefer SDVOSB companies since the SDV better understands the military’s need for security risk reduction. Our company utilizes our extensive experience with the U.S. military to gain a greater understanding of the contract’s requirements and how to accomplish the contract’s objectives.

There are not many companies, especially in the IT industry, that are SDVOSB certified. This presents Rivera Group with ample opportunities for sole source and set-aside contracts. Plus, having this status provides a higher possibility of winning contract awards due to the government procurement quotas and preferences.

What to do Now

For your next RFP, choosing to partner with an SDVOSB company will greatly improve your chance of winning the contract award.

If you’re looking for an SDVOSB IT services contractor, try using a prime contract vehicle with preapproved small businesses including GSA 8(a) STARS II, GSA Schedule 70 and US Army CECOM SEC NEXGEN. To learn the benefits of using these contract vehicles, take a look at our GSA 8(a) STARS II blog post.

If you want to know more about SDVOSB certification or how Rivera Group can help you with your next contract, leave us a comment below or contact us.

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