“To care for him who shall have borne the battle, and for his widow, and his orphan…” – President Abraham Lincoln
What is a Service Disabled Veteran Owned Small Business? The United States Government sets aside contract benefits for companies considered Service-Disabled Veteran-Owned Small Business (SDVOSB.) A business considered SDVOSB must be at least 51% owned by an individual who can be considered by the government as a SDVOSB. The terms "veteran" and "service-disabled veteran" are defined in 38 U.S.C 101(2) and (16). The following definitions are as stated in that code. Veteran- The term "veteran" means a person who served in the active military, naval, or air service, and who was discharged or released under conditions other than dishonorable. Service Disabled- with respect to disability, that such disability was incurred or aggravated in the line of duty in the active military, naval, or air service. An injury or disease incurred during military service will be deemed to have been incurred in the line of duty unless the disability was caused by the veteran’s own misconduct or abuse of alcohol or other drugs, or was incurred while absent without permission or while confined by military or civilian authorities for serious crimes. Note that this definition does not require the disability to be causally connected to military service. Such disability does not require a minimum rating to be considered. A veteran with a 0 to 100% disability rating is eligible to self-represent as a Service-Disabled Veteran for Federal contracting purposes. How Does a Business Become a Service Disabled Veteran Owned Small Business? The core requirements for a company to become verified by the United States Department of Veterans Affairs are: The Veteran owner(s) have direct, unconditional ownership of at least 51 percent of the company (38 CFR 74.3) and have full decision making authority (38 CFR 74.4 (g)). The Veteran manages the company on both strategic policy and day-to-day basis (CFR 74.4). The Veteran holds the highest officer position (38 CFR 74.4(c)(2)). The Veteran should be the highest compensated employee. If not, the Veteran will need to submit an explanation regarding how taking a lower salary than another employee(s) helps the business (38 CFR 74.4 (g) (3)). The Veteran has the managerial experience of the extent and complexity needed to manage the company. The Veteran bears the burden of proof of adequately establishing its claimed Veteran status. There are 4 stages of verification for a business to be officially recognized by the US Department of Veterans Affairs through the Center for Verification and Evaluation (CVE). They are: Initiation Initiation is the first phase of the Verification process. During this time the Center for Verification and Evaluation (CVE) will verify basic company information. The staff may take a more in depth look at the company profile. They may also perform other background checks on the business and/or business owners, upload documents, and make recommendations on the verification record. The business will then move to the Examination phase. Examination While in the Examination phase, CVE will validate various attributes of the business, (such as the company website, or the number of Government contracts you reported in the business profile, etc.). They may also perform other background checks on the business and/or business owners, upload documents, and make recommendations before moving the business profile to the Evaluation phase. Evaluation CVE is reviewing the additions to the Verification record. The staff may contact someone about the status of the business, contacting one of the business representatives and/or visit the business site in order to collect further information. At this time an approval/denial determination will be made regarding the business profile. Determination The business has completed the Verification process. The business will be notified via email and a mailed notification informing you of the results of the Verification record and the status of the business. Once Verified, the business will be listed in the VA’s Vendor Information Pages or on the VIP database. Re-verification occurs every two years. • • • United States Department of Veterans Affairs, Office of Small and Disadvantaged Business Utilization, Center for Verification and Evaluation. (2014, October 1). Verification Process FAQs. Retrieved from http://www.va.gov. United States Small Business Administration, Office of Government Contracting & Business Development. (2012, January). Government Contracting 101, Part One. Retrieved from http://www.sba.gov.

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