SDVOSB Set Asides: 2026 Bid Checklist and VA vs FAR Table

By Aoba Works · Published October 31, 2026 · 17 min read

• Sdvosb
• Set Asides
• Vetcert
• Government Contracts

An SDVOSB set-aside is a federal solicitation that a contracting officer limits to certified service-disabled veteran-owned small businesses. Your SDVOSB certification (from SBA's VetCert program) is what makes you eligible to bid on those set-asides. VOSB status is a broader category, and outside the Department of Veterans Affairs it does not get you into SDVOSB set-asides. To win one, get certified, filter SAM.gov for the set-aside types tied to FAR 19.14 and the VA, and bid only on notices whose NAICS size standard and subcontracting limits you can actually meet.

Which option is right for you?

Start with whichever row matches where your business is today. Each pick comes with a one-line reason.

Who each pick is for, in one line each:

• Beginner: a SAM.gov registration comes before everything else. If you don't have one yet, follow the SAM.gov registration guide first.
• Daily work use: a saved search costs nothing and catches new notices that a one-time manual search would miss.
• Budget: VetCert has no application fee (SBA). Paying a consultant is optional.

What Is an SDVOSB Set-Aside?

An SDVOSB set-aside is a contracting method in which a contracting officer reserves a specific solicitation for competition only among SDVOSB firms. It is a different thing from SDVOSB certification, which is the eligibility status you need before you can bid on one. In other words, the set-aside belongs to the contract, and the certification belongs to your company.

The authority for most agencies is FAR Subpart 19.14. A contracting officer may restrict competition to SDVOSB concerns when there is a reasonable expectation that "two or more SDVOSB concerns eligible under the SDVOSB Program will submit offers" and the award can be made at a fair market price (FAR 19.1405(b)). The same subpart also allows sole-source awards to an SDVOSB in some cases (FAR 19.1406).

Two flavors show up on SAM.gov:

• Competitive set-aside. On SAM.gov it is labeled "Service-Disabled Veteran-Owned Small Business (SDVOSB) Set-Aside (FAR 19.14)". Any eligible certified SDVOSB can compete.
• Sole source. It is labeled "Service-Disabled Veteran-Owned Small Business (SDVOSB) Sole Source (FAR 19.14)". The agency has already chosen one firm, and the notice is usually informational (examples indexed by set-aside code).

Example: A Navy base posts a janitorial RFQ marked "SDVOSB Set-Aside (FAR 19.14)" under NAICS 561720. Only firms that are certified SDVOSBs and small under that NAICS size standard on the offer date can win it. A non-veteran small business can still read the notice, but it would be ineligible for award.

Pitfalls and fixes

• Treating a sole-source notice as an open bid. Read the notice type and description. If a firm is already named, contact that firm about subcontracting rather than writing a proposal.
• Assuming certification alone is enough. You also have to be small under the solicitation's NAICS code. Check it against the SBA size standards by NAICS guide.
• Ignoring the subcontracting limits. Set-aside awards carry FAR 52.219-14 (FAR 19.1405 points to 19.507(e)). That clause caps how much of the contract value you can pass to firms that aren't similarly situated. The 51 rule checklist walks through the math.

SDVOSB Set-Aside vs. SDVOSB Certification vs. VOSB Status

Certification confirms your business status. VOSB is the broader veteran-owned category with no service-disability requirement. The set-aside is the acquisition tool that limits competition to certified SDVOSBs. People mix these up all the time because SAM.gov, the VA and SBA use all three terms side by side.

The last row is the one that catches people out. FAR 19.1405(c)(1) says that from January 1, 2024, an offeror on an SDVOSB set-aside must be "designated in SAM as an SDVOSB concern certified by SBA." The only exception covers firms that represented SDVOSB status in SAM and applied by December 31, 2023 while their application is pending (Acquisition.gov). For a new firm in 2026, ticking the box in SAM.gov is not enough. You need a VetCert approval.

VetCert eligibility details are covered in the existing SDVOSB set-aside requirements checklist, so this guide doesn't repeat them. Two things matter for planning, though. Certifications run three years (SBA VetCert fact sheet via NorCal VBOC). Commonly cited review times are 60–90 days (Small Biz Handbook), which is a third-party estimate, so confirm it with SBA. Apply before you need to bid, because a solicitation won't wait for your approval.

How Do SDVOSB Set-Aside Requirements Work?

Contracting officers apply the "Rule of Two." They set the acquisition aside when they reasonably expect at least two certified SDVOSBs to submit competitive offers at a fair price. If market research turns up fewer than two, the work goes to another set-aside type or to full and open competition.

Under FAR 19.14, that decision is discretionary for the contracting officer ("may"). The VA's version is mandatory. The VA contracting officer "shall" set aside a contract action above the micro-purchase threshold when the two-firm expectation is met (VAAR 819.7006).

How a set-aside decision usually unfolds, and what you can do at each stage:

1. Market research. The agency posts a Sources Sought notice or RFI, or searches SAM.gov and the SBA certification database. Your move: answer Sources Sought notices in your NAICS codes and state your SDVOSB certification clearly. The Sources Sought response template covers the format.
2. Rule of Two determination. The contracting officer documents whether two or more capable SDVOSBs exist. Your move: make sure your SAM.gov profile, NAICS codes and SBA certification all match, so the contracting officer can find you.
3. Set-aside type selection. The solicitation names a set-aside code. Your move: read Section I or the clause list for FAR 52.219-27 (SDVOSB set-aside, per FAR 19.1407) or, at the VA, VAAR 852.219-73 (VAAR 819.7011).
4. Offer and eligibility check. You must be certified and small on the date of your offer. Your move: check the solicitation's NAICS size standard before you write a word.
5. Award and performance. The subcontracting limits apply for the whole contract. Your move: build your staffing plan around them from day one.

Pitfalls and fixes

• A capable firm that is invisible. If your SAM.gov "Entity Information" lists the wrong NAICS codes, market research can miss you, and the agency may conclude there aren't two SDVOSBs. Update your NAICS list in SAM.gov.
• Planning on the old "parity" assumption. The Revolutionary FAR Overhaul (RFO) model text for Part 19, released September 26, 2025, removed the formal preference among socioeconomic programs and says small business set-asides take priority over other program set-asides (PilieroMazza). Agencies adopt it through their own class deviations, each with its own effective date. Examples include NASA's Part 19 deviation posted on Acquisition.gov (NASA RFO Deviation Part 19) and the VA's memo dated November 19, 2025 (VA deviation memo). For any other agency, look up its own deviation before you rely on a date. In practice, check which version the solicitation cites.
• Expecting a set-aside on every task order. Under the RFO Part 19 text, setting aside orders under multiple-award contracts is discretionary and "expressly not subject to protest" (PilieroMazza).

What Is the SDVOSB Set-Aside Percentage Goal?

The government-wide goal is 5% of eligible prime contract dollars to SDVOSBs each year, tracked on SBA's annual Small Business Procurement Scorecard. Many older articles still say 3%. The FY2024 National Defense Authorization Act raised the goal from 3% to 5% (Congressional Research Service), and SBA's program page states that the government "aims to award at least 5% of all federal contracting dollars" to SDVOSBs (SBA).

Latest numbers (as of October 2026; check the official scorecard):

Sources: Fed Contract Pros, New Jersey Business Magazine, SBA scorecard page.

Two decisions follow from this. The prime goal was met by a margin of 0.01 percentage points, so agencies have little room to pull back on SDVOSB set-asides without missing the goal. Meanwhile, subcontracting fell well short at 2.42%. Large primes that carry subcontracting plans have a documented gap to fill, which makes teaming a realistic first route for a newly certified firm. The subcontracting guide covers how to approach them.

The goal is a target for agencies. It doesn't guarantee any individual firm a share, and it doesn't force a set-aside on any particular contract.

How to Find SDVOSB Set-Aside Opportunities

Use SAM.gov's Contract Opportunities search with the SDVOSB set-aside filter, then add agency-specific sources to find live solicitations that match your NAICS codes. SAM.gov is the official source for federal notices above $25,000, and it's free.

Step-by-step search on SAM.gov

The labels below match SAM.gov's search filters as of October 2026. The interface changes from time to time, so look for the closest matching label if one has moved.

1. Go to sam.gov and click Search. Under Select Domain, choose Contract Opportunities.
2. In the left filter panel, open Status and keep Active checked so that archived notices drop out.
3. Open Set Aside and check:
4. Service-Disabled Veteran-Owned Small Business (SDVOSB) Set-Aside (FAR 19.14)
5. Service-Disabled Veteran-Owned Small Business (SDVOSB) Sole Source (FAR 19.14), but only if you want to see who is winning, for teaming leads
6. If you bid with the VA, also check the VA-specific veteran set-aside entries listed for the Department of Veterans Affairs.
7. Open Product or Service Information and enter your NAICS code(s), for example 561720 or 236220.
8. Open Notice Type and select Solicitation and Combined Synopsis/Solicitation for biddable work. Add Sources Sought and Presolicitation to catch work before it's set aside.
9. Optionally narrow by Place of Performance to the states you can staff.
10. Sign in and use Save Search. SAM.gov can then notify you about new matches for that saved search.

Example search (illustrative values): Active + SDVOSB Set-Aside (FAR 19.14) + NAICS 561720 + Notice Type "Combined Synopsis/Solicitation" + Place of Performance "Virginia". That produces a short list of janitorial RFQs you could realistically staff.

Read each hit with these four checks

Other sources worth adding

• Sources Sought and RFIs on SAM.gov. These are how SDVOSB set-asides get created in the first place, so responding to them affects whether a set-aside happens at all.
• Agency forecasts. The VA, DoD components and civilian agencies publish procurement forecasts through their small business offices (for the VA, start at VA OSDBU).
• Subcontract work under primes that are short of their 5% SDVOSB subcontracting goal (FY2025 actual: 2.42%, per the sources above).

Pitfalls and fixes

• Filtering on keyword only. Keywords miss notices that are worded differently. Filter by NAICS and set-aside code instead.
• Leaving Status on "All." You will waste time on closed notices. Keep it on Active.
• Bidding outside your size standard. A NAICS code you are "large" under makes you ineligible even if you're certified.

How Does VA SDVOSB Set-Aside Differ from General Federal Set-Asides?

The VA follows its own "Veterans First" hierarchy in VAAR Subpart 819.70, which puts SDVOSBs in the top priority tier for VA contracts. That places them above VOSBs, 8(a) firms and general small business set-asides. Other agencies follow FAR 19.14, where an SDVOSB set-aside is one option among several.

The VA's contracting order of priority in VAAR 819.7005 is:

1. SDVOSBs
2. VOSBs
3. 8(a) awards
4. Any other small business set-aside

Set-asides under subpart 819.70 take precedence over other FAR Part 19 set-asides, both above and below the simplified acquisition threshold (VA OAL, VAAR 819).

Pitfalls and fixes

• Old "VIP verified" language. VAAR text still refers to firms listed as verified on VA's Vendor Information Pages (Acquisition.gov). Certification has since moved to SBA's VetCert, and the VA issued a class deviation for the SBA veteran certification program. In practice, your SBA certification is what counts. If a solicitation still says "VIP," ask the contracting officer through the question process instead of assuming you're ineligible.
• VOSBs bidding on non-VA work. VOSB certification gets you set-asides at the VA (SBA). At DoD or GSA, a VOSB-only firm competes in general small business set-asides.
• Missing a tiered evaluation. In a tiered solicitation, the VA looks at SDVOSB offers first. Read Section M to see which tier you fall into.

What Are the FAR Rules Governing SDVOSB Set-Asides?

FAR Subpart 19.14 lets civilian and DoD contracting officers set aside or sole-source acquisitions to SDVOSBs when the conditions are met. It is separate from the VA's stricter VAAR rules. Acquisition.gov publishes the current text of the subpart (Acquisition.gov). Check the effective date shown on that page before you rely on it. Where an agency has issued an RFO Part 19 class deviation, that deviation controls for the agency's solicitations.

Key provisions and numbers (as of October 2026; check the official page):

The ceilings in FAR 19.1406 matter when you're marketing directly to an agency. If you pitch a sole-source award, the full value including options has to stay under the cap for your NAICS type. Example: a $4.2M services requirement with a $1.2M option year totals $5.4M, which is above the $5M non-manufacturing cap, so a FAR 19.14 sole source would not work for it.

The RFO Part 19 model text did not make substantive changes to SDVOSB program rules, according to the law-firm analyses. The changes were the parity rule and the treatment of task orders (Holland & Knight, PilieroMazza). You can find each agency's deviation on Acquisition.gov's FAR overhaul pages, for example the VA Part 19 deviation memo dated November 19, 2025.

Does NYS Have Its Own SDVOSB Set-Aside Program?

Yes. New York State runs its own Service-Disabled Veteran-Owned Business (SDVOB) program, with a separate state certification and a 6% participation goal on state contracts. It operates independently of the federal SBA/VA program. Search results sometimes say "NYS Division of Veterans' Services," but the program is administered by the Office of General Services' Division of Service-Disabled Veterans' Business Development under Article 3 of the Veterans' Services Law (NYS OGS; OGS 2025 annual report).

Pitfalls and fixes

• Assuming the two certifications transfer. They don't. A federal VetCert approval doesn't put you in the NYS directory, and NYS certification counts for nothing on SAM.gov. Apply to each one you plan to use.
• Reading "6% goal" as a set-aside. Many NYS contracts carry an SDVOB participation goal that the prime meets through subcontracting (see a sample goal attachment from OASAS). Getting listed in the directory is how primes find you.
• Guessing at eligibility. OGS's public page sends applicants to the certification process for the detailed criteria. Call (518) 474-2015 or email VeteransDevelopment@ogs.ny.gov before you apply (OGS).

Next steps

You can do the first actions today without paying anyone.

Do it yourself today

1. Log in to SAM.gov and confirm your registration is Active and that your NAICS codes match the work you want. If you aren't certified yet, start your application at veterans.certify.sba.gov.
2. Build the saved search from the steps above: Active + SDVOSB Set-Aside (FAR 19.14) + your NAICS codes + Solicitation/Sources Sought. Then click Save Search.
3. Pick one open Sources Sought notice in your NAICS code and answer it this week. It tells the contracting officer that an SDVOSB exists, which feeds their Rule of Two count.

If you would rather not do it alone

• APEX Accelerators (formerly PTACs) are funded through DoD and give one-on-one help with SAM.gov, bid searches and proposal reviews, generally at no cost (APEX Accelerators). They suit first-time bidders who want a human to check their work. They don't suit you if you need someone to write and submit proposals for you, because counselors advise and won't prepare bids on your behalf. Appointment wait times vary by office.
• Veterans Business Outreach Centers (VBOCs) are SBA-funded and help with VetCert preparation (SBA VBOC program). Their free services fit veteran owners. They are less useful if you're already certified and only need bid matching.
• Paid consultants and bid-matching subscriptions exist. Prices vary widely, so get a written scope and check the official vendor page (as of October 2026). VetCert itself is free, so a fee charged just to "file your certification" doesn't buy you access to anything.

Related guides on Set-Aside Brief

• SDVOSB Set Aside Requirements: 2026 Eligibility Checklist
• How to Bid on Government Contracts: 7 Steps, 2026 Costs
• Capability Statement Example: 5 Sections Buyers Read First
• Total vs Partial Small Business Set Aside: 2026 Checklist

FAQ

What is an SDVOSB set-aside?

It is a federal solicitation restricted so that only certified service-disabled veteran-owned small businesses can compete. Outside the VA, contracting officers use FAR 19.14 when they expect at least two eligible SDVOSBs to offer at a fair market price. At the VA, VAAR 819.7006 requires the set-aside once that test is met.

Where do I find SDVOSB set-aside contracts?

On SAM.gov, go to Contract Opportunities, keep Status on Active, and under Set Aside select "Service-Disabled Veteran-Owned Small Business (SDVOSB) Set-Aside (FAR 19.14)." Add your NAICS codes and save the search. Agency procurement forecasts and Sources Sought notices show work before it is formally set aside.

What does SDVOSB set-aside mean for a VOSB?

For most agencies, a VOSB without a service-disability rating can't bid on an SDVOSB set-aside. At the VA, VOSBs have their own set-aside tier, second after SDVOSBs, and can receive sole-source awards up to $5 million under VAAR 819.7009.

What is a VAAR SDVOSB set-aside?

It is a VA contract set aside under VAAR Subpart 819.70, the Veterans First program, which puts SDVOSBs ahead of VOSBs, 8(a) firms and other small business set-asides. VA solicitations use clause 852.219-73 for the set-aside and 852.219-75 or 852.219-76 for the subcontracting limits.

Sources

• FAR Subpart 19.14 (Acquisition.gov)
• VAAR Part 819 (Acquisition.gov)
• VAAR 819 (VA Office of Acquisition and Logistics)
• VA Class Deviation, SBA Veteran Small Business Certification Program
• VA FAR Part 19 Deviation Memo, November 19, 2025
• SBA Veteran Contracting Assistance Programs
• SBA Small Business Procurement Scorecard
• SBA VetCert Portal
• VetCert Fact Sheet (NorCal VBOC)
• Small Biz Handbook: SDVOSB Certification (VetCert) 2026
• CRS Insight IN12018: Federal Small Business Contracting Goals
• Fed Contract Pros: FY25 SBA Scorecard
• New Jersey Business Magazine: SBA Releases FY25 Scorecard
• PilieroMazza: Long-Awaited Release of FAR Part 19
• Holland & Knight: FAR Overhaul Series, FAR Part 19
• NASA RFO Deviation Part 19 (Acquisition.gov)
• SAMSearch: SDVOSB Sole Source (FAR 19.14) code index
• SAM.gov
• VA Office of Small and Disadvantaged Business Utilization
• NYS OGS Service-Disabled Veteran-Owned Business Program
• NYS OGS 2025 SDVOB Annual Report
• NYS OASAS SDVOB Goal Attachment (example)
• APEX Accelerators
• SBA Veterans Business Outreach Centers

Spotted something out of date or wrong? Tell us at shigoto.ai.note@gmail.com. Guides are re-checked against official sources on a rolling schedule.