Federal procurement policy affecting SDVOSB firms continues to evolve. SBA certification processes, set-aside thresholds, and agency-level small business programs all see periodic updates that directly affect how certified firms pursue and win contracts. Staying current on these changes helps you avoid compliance gaps and capitalize on new opportunities before less-informed competitors notice them.
SBA certification consolidation continues
The consolidation of veteran small business certification under the SBA, which transferred verification authority from the VA's Center for Verification and Eligibility to the SBA in January 2023, has been substantially completed. The SBA's unified certification portal now handles SDVOSB, VOSB, and other small business certifications through a single application system.
For firms that were previously certified under the VA's CVE process, the transition to SBA certification is largely administrative. Certification records were transferred, and most firms renewed through the SBA's portal on their normal three-year cycle without interruption. If your firm has not yet confirmed that your SBA certification record is current and accurate, do so immediately through the SBA's certification portal.
Updated small business size standards
The SBA updates its size standards periodically to account for inflation and structural changes in industries. Recent updates have increased the revenue thresholds for several professional services NAICS codes, which means some firms that were previously at or above their size standard limit may now qualify as small businesses.
Review the current size standard for your primary NAICS code, particularly if your annual revenues have grown in recent years. If you are approaching the limit of your current size standard, a change in the applicable threshold could affect your SDVOSB eligibility. Check the SBA's current size standards table at sba.gov/size-standards.
Increased set-aside usage across agencies
Federal agencies have continued to increase their utilization of SDVOSB set-asides in response to Congressional pressure and SBA outreach. The government-wide SDVOSB contracting goal remains at 3 percent of eligible federal spending, but many agencies are reporting improved performance against this target.
The VA continues to lead all agencies in SDVOSB utilization due to the Veterans First Contracting Program mandate. Non-VA agencies showing increased SDVOSB set-aside activity include the Department of Homeland Security, the General Services Administration, and several DoD components.
If you have been focused exclusively on VA contracting, the increased set-aside activity at other agencies is worth evaluating for your BD strategy. The agency-specific contracting patterns are visible in USASpending.gov, as described in the contract awards analysis guide.
Sole source threshold adjustments
SDVOSB sole source thresholds are adjusted by statute and regulation on a periodic basis. As of 2025, the applicable thresholds are $5 million for service contracts, $4 million for supply contracts, and $7 million for manufacturing contracts. Monitor the Federal Register for any updates to these thresholds, as they are subject to adjustment.
For VA-specific sole source awards under the Veterans First Contracting Program, different thresholds and justification requirements apply. Review the current VA Acquisition Regulation (VAAR) if your firm is pursuing VA sole source opportunities.
Recertification requirements
The SBA's three-year recertification cycle continues to apply to all SDVOSB and VOSB certifications. Firms that received initial certification in 2022 or 2023 are approaching their first recertification deadline. The recertification process requires demonstrating that all eligibility requirements remain met, including business size, veteran ownership, and veteran control.
Self-reporting obligations also remain in effect. Any material change to your business, including changes in ownership percentage, changes in the controlling veteran's role, or business growth that affects your size classification, must be reported to the SBA within 30 days. Failure to self-report can result in loss of certification and potential false claims liability.
Compliance focus areas in 2026
Federal acquisition oversight has increased scrutiny on SDVOSB certification compliance in recent years. The SBA's Office of Inspector General has conducted audits of the certification program and identified cases of ineligible firms receiving set-aside contracts.
The compliance areas receiving the most attention include control requirements, particularly in situations where non-veteran employees or investors have significant influence over business decisions; size standard compliance, including affiliate relationships that affect size calculations; and documentation of ongoing veteran involvement in firms where the veteran owner has reduced their operational role as the business has grown.
Review your current compliance posture against these areas. If any of them apply to your situation, consult with an SBA procurement attorney before your next recertification or before bidding on a set-aside contract.
New opportunities in emerging technology categories
Federal investment in cybersecurity, artificial intelligence, cloud migration, and clean energy is creating new contracting categories where SDVOSB set-asides are increasingly available. These areas represent growth opportunities for SDVOSB firms with relevant technical capabilities.
NAICS codes associated with these emerging categories, particularly 541512 (Computer Systems Design), 541519 (Other Computer Related Services), and 541330 (Engineering Services), have seen increased set-aside activity in recent procurement cycles. If your firm has capabilities in these areas, ensure the relevant NAICS codes are registered in your SAM.gov profile and actively monitor SAM.gov for set-aside opportunities.
Staying current
Federal procurement policy changes appear in the Federal Register, SBA policy notices, and agency-specific acquisition bulletins. The most reliable way to stay current is to subscribe to agency procurement newsletters, monitor the SBA's news releases, and maintain active membership in industry associations that track procurement policy.
VetBid's Scout feed provides a real-time view of SDVOSB set-aside opportunities as they are posted on SAM.gov, ensuring that new opportunities in your NAICS codes are visible without manual monitoring.