You’ve registered on SAM.gov. You’ve gotten your SDVOSB verification through VetCert. Now what?
This is where most veteran business owners stall. The federal contracting world is massive, and figuring out which contracts to pursue first can feel overwhelming. There are hundreds of thousands of opportunities posted every year across dozens of agencies, and the terminology alone is enough to make your head spin.
But here’s the truth. You don’t need to understand the entire system to win your first contract. You need to understand which types of contracts are realistic for a new SDVOSB, which agencies are veteran-friendly, and how to position yourself to win.
Here’s where to start.
Start with What You Already Know
The biggest mistake new SDVOSBs make is chasing contracts in industries they have no experience in. Government contracting rewards past performance and demonstrated capability. If you’ve never done IT consulting, don’t bid on a $2 million IT contract as your first opportunity.
Instead, look at your existing skills and experience. What did you do in the military? What do you do in your civilian career? What services can your business realistically deliver right now?
Common service areas where veteran-owned businesses win contracts include IT support and cybersecurity, facilities maintenance and janitorial services, construction and renovation, logistics and supply chain management, consulting and professional services, staffing and recruiting, landscaping and groundskeeping, and administrative support.
You don’t need a large team to start. Many SDVOSBs begin as one-person operations and scale up as they win contracts. The key is matching your capabilities to the right opportunities.
The Best Agencies for New SDVOSBs
Not all federal agencies are equally accessible to new contractors. Some have complex procurement processes that favor established companies. Others actively seek out small and veteran-owned businesses.
Department of Veterans Affairs (VA). The VA is the most SDVOSB-friendly agency in the federal government. Under the Veterans First Contracting Program, the VA is required to prioritize SDVOSBs before opening contracts to other businesses. If you’re going to start anywhere, start here.
General Services Administration (GSA). GSA manages procurement for many federal agencies. Getting on a GSA Schedule (a pre-approved contract vehicle) makes it easier for agencies to buy from you without a full competitive process. The GSA also has programs specifically designed to help small businesses enter the federal marketplace.
Department of Defense (DoD). The DoD is the largest federal buyer, spending hundreds of billions annually. While the biggest contracts go to major defense companies, there are thousands of smaller contracts and subcontracting opportunities accessible to SDVOSBs. The DoD’s Office of Small Business Programs actively works to connect small businesses with opportunities.
Small Business Administration (SBA). While the SBA doesn’t award contracts directly, they manage programs that help SDVOSBs compete. The SBA’s Mentor-Protege program pairs new businesses with experienced contractors who can help you navigate the system and win work.
Department of Homeland Security (DHS). DHS has strong small business goals and regularly awards contracts to SDVOSBs in areas like security, IT, and professional services.
Types of Contracts to Target First
Not all contract types are created equal for a new SDVOSB. Some are much more accessible than others.
Micro-purchases (under $10,000). Federal agencies can buy goods and services under $10,000 without a formal bidding process. These purchases are often made with a government purchase card (essentially a credit card). They’re small, but they build your track record with an agency and establish a relationship. Many SDVOSBs get their foot in the door through micro-purchases.
Simplified acquisitions ($10,000 to $250,000). These contracts use a streamlined process with less paperwork than full competitive bids. Agencies are required to set aside simplified acquisitions for small businesses when possible. This is the sweet spot for new SDVOSBs. The contracts are big enough to be meaningful but small enough that the competition is manageable.
SDVOSB set-asides. These contracts are reserved exclusively for verified SDVOSBs. Contracting officers can set aside any contract for SDVOSB competition if they believe at least two qualified SDVOSBs will bid. The competition pool is dramatically smaller than open market contracts.
Sole-source contracts (up to $5 million). A contracting officer can award a contract up to $5 million directly to an SDVOSB without competition if certain conditions are met. Building relationships with contracting officers is how you position yourself for sole-source awards. They need to know you exist and trust that you can deliver.
Subcontracting. Large prime contractors are often required to subcontract a percentage of their work to small businesses, including SDVOSBs. Subcontracting lets you work on large projects, build past performance, and learn the system without carrying the full risk of a prime contract. This is one of the fastest paths to meaningful revenue for a new SDVOSB.
How to Find Contract Opportunities
All federal contract opportunities over $25,000 are posted publicly on SAM.gov under the Contract Opportunities section (formerly known as FedBizOpps).
Search by NAICS code. Filter opportunities by the NAICS codes you registered in your SAM.gov profile. This narrows results to contracts that match your service capabilities.
Search by set-aside type. Filter for SDVOSB set-aside contracts to see opportunities reserved for businesses like yours.
Search by agency. If you’re targeting the VA or DoD, filter by agency to see their current postings.
Set up saved searches. SAM.gov lets you save search criteria and receive email alerts when new opportunities matching your filters are posted. Set this up immediately so you never miss a relevant posting.
Check agency forecast pages. Many agencies publish annual procurement forecasts listing contracts they plan to award in the coming year. This gives you advance notice to prepare before the opportunity is officially posted.
Build Your Capability Statement
Before you start reaching out to agencies or prime contractors, you need a capability statement. This is a one-page document that serves as your business resume in the government contracting world.
Your capability statement should include your company name, UEI number, and CAGE code. List your NAICS codes, your SDVOSB and any other certifications, a brief description of your core competencies, any past performance or relevant experience (military or civilian), and your contact information.
Keep it to one page. Make it clean and professional. This is what you hand to contracting officers at industry days and what you send to prime contractors when introducing your business.
The Subcontracting Strategy
If you have no past performance in government contracting, subcontracting is your fastest path to building a track record.
Large companies that hold prime contracts with the government are often required to meet small business subcontracting goals. They need SDVOSBs to partner with. This is a win-win. They meet their goals, and you get work experience, revenue, and past performance you can reference on future bids.
To find subcontracting opportunities, search the SBA’s SubNet database, attend industry days and small business matchmaking events hosted by agencies, look at the small business offices of major defense contractors like Lockheed Martin, Raytheon, and Booz Allen Hamilton, and check agency websites for lists of prime contractors on current contracts.
When you approach a prime contractor, lead with your capability statement and your SDVOSB status. Be specific about what you can deliver. “I’m an SDVOSB looking for work” is too vague. “I’m a verified SDVOSB specializing in facilities maintenance with 10 years of military experience managing building operations” is much stronger.
Common Mistakes New SDVOSBs Make
Bidding on everything. Focus on contracts that match your capabilities and where you can realistically compete. Submitting weak proposals on dozens of contracts is less effective than submitting strong proposals on a few well-matched opportunities.
Ignoring relationships. Government contracting is a relationship business. Attend industry days, meet contracting officers, connect with prime contractors, and join veteran business organizations like the National Veteran Small Business Coalition (NVSBC). The relationships you build are often more valuable than the proposals you write.
Underpricing to win. Winning a contract at a price that loses you money is worse than not winning at all. Price your work fairly and account for all costs including labor, overhead, and profit margin.
Skipping the Mentor-Protege program. The SBA’s Mentor-Protege program pairs new businesses with experienced contractors. Your mentor can help you navigate proposals, pricing, and compliance. This is a free resource that dramatically increases your chances of success.
Not renewing SAM.gov registration. Your SAM registration expires every 365 days. If it lapses, you can’t receive contracts or payments. Set a calendar reminder for 30 days before expiration.
How Government Contracting Fits Your Wealth-Building Plan
Government contracting is one of the most scalable business models available to veterans. You start with small contracts to build past performance, then grow into larger opportunities as your track record develops.
An SDVOSB doing $500,000 in annual government contracts with 15% profit margins is clearing $75,000 in profit. Scale that to $2 million in contracts and you’re at $300,000 in annual profit. At $5 million, the math speaks for itself.
This income can fund your real estate investments, max out your Roth IRA every year, and build the financial foundation that leads to generational wealth.
Combined with VA loan house hacking and tax-free investment growth, government contracting becomes one of three engines driving your wealth forward.
The Bottom Line
You don’t need to understand the entire federal procurement system to get started. You need to register on SAM.gov, get your SDVOSB verification, build a capability statement, and start pursuing contracts that match your skills.
Begin with micro-purchases and simplified acquisitions. Pursue subcontracting relationships with prime contractors. Target veteran-friendly agencies like the VA and GSA. And build relationships at every opportunity.
The federal government is spending billions on contracts reserved for businesses like yours. The only question is whether you’re going to go get your share.
For a complete breakdown of the SDVOSB vs VOSB certifications and which one you need, start there.