In recent years, the National Veterans Small Business Coalition (NVSBC) has tirelessly advocated for Congress to raise the government-wide funding goal for service-disabled veteran-owned small businesses (SDVOSBs). This year, that goal has been achieved. The National Defense Authorization Act (NDAA) now includes an increase from 3% to 5% in the budget allocation for SDVOSBs.
“This significant victory comes at a time when veterans in government contracting are providing immense value to our nation and the government, this time as business owners,” said NVSBC’s Executive Director, Scott Jensen, in a press release. “We veterans look forward to continuing to deliver value to federal agencies and the American people.”
Throughout 2022 and 2023, NVSBC leadership worked closely with Congress members and staff on the Senate and House Small Business and Armed Services Committees. They urged an increase in the SDVOSB set-aside goal and pushed for the elimination of self-certification by SDVOSB subcontractors.
With this increase, the fiscal year 2024 NDAA now prohibits the government from counting awards to self-certified SDVOSBs towards its prime and subcontracting goals, closing a significant loophole in certification eligibility.
“Our coalition represents the 40,000 veteran-owned firms across America seeking to work with the federal government,” explained Jensen. “About 12,000 of these veteran business owners currently have contracts to provide products or services to federal agencies. SDVOSB firms support every category of products and services, including construction, information technology, home health services, supply chain logistics, and janitorial services. They work with every federal agency in every state and all 14 U.S. territories.”
The 5% goal will take effect once the President signs the NDAA into law. Additionally, the prohibition on counting awards made to self-certified SDVOSBs at the subcontract level is expected to be effective on October 1, 2024, while the prohibition on awarding prime contracts to self-certified SDVOSBs became effective on January 1, 2024.
The NVSBC was established to advocate for and support veteran-owned businesses. In partnership with other organizations, companies, and institutions of higher education, it provides resources, mentoring, networking opportunities, and access to veterans who own businesses or are looking to start their entrepreneurial journey. The increase in funding fulfills one of the organization’s founding goals.
“It’s been a long journey, but SDVOSBs can now look forward to our long-desired 5% set-aside,” Jensen added. “It’s smart policy to utilize veteran entrepreneurs, who are known for delivering best-in-class performance.”
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