Quick answer
VETS 2 is a GSA IDIQ contract vehicle set aside exclusively for service-disabled veteran-owned small businesses providing IT services to federal agencies.
Veterans Technology Services 2 (VETS 2) is a multiple-award IDIQ contract vehicle administered by GSA that is set aside exclusively for service-disabled veteran-owned small businesses (SDVOSBs) to provide information technology services across the federal government.
What is VETS 2?
VETS 2 succeeded the original VETS contract and was designed to expand IT contracting opportunities for SDVOSBs across all federal agencies. The vehicle covers a comprehensive range of IT services including systems design, software development, cybersecurity, IT operations, help desk, and data management. Because VETS 2 is a government-wide acquisition contract (GWAC) with a full small business set-aside, agencies that order under it satisfy both their IT procurement needs and their veteran-owned small business contracting goals simultaneously. Ordering agencies include both civilian agencies and some defense activities. VETS 2 operates through task orders, and competing for those orders requires firms to already hold a VETS 2 prime contract. GSA manages on-ramps periodically to allow additional SDVOSBs to join. The vehicle's ceiling is substantial, making it one of the most valuable SDVOSB-exclusive IT vehicles in the federal market, alongside T4NG's SDVOSB pool.
Why VETS 2 matters for government contractors
For SDVOSB IT firms, VETS 2 is among the highest-value vehicles available. The SDVOSB restriction means that all competition within the vehicle comes from other veteran-owned small businesses, leveling the field against large primes. Agencies seeking to hit their SDVOSB spending targets actively look for VETS 2-eligible requirements, creating consistent task order demand across multiple departments.
Example
A cybersecurity firm owned by a service-disabled veteran wins a VETS 2 prime contract. The Department of Homeland Security issues a task order request for continuous monitoring services. The firm competes against other VETS 2 holders, wins a two-year base with three option years, and uses the performance record to strengthen future bids.
Frequently Asked Questions
Who is eligible for a VETS 2 prime contract?
Eligibility is limited to firms verified as service-disabled veteran-owned small businesses (SDVOSBs). Firms must be verified through the SBA's VetCert program (which replaced VA's CVE verification) and must qualify as small under the applicable NAICS codes.
How is VETS 2 different from T4NG's SDVOSB pool?
VETS 2 is a GSA-managed government-wide vehicle open to all federal agencies, while T4NG's SDVOSB pool is a VA-specific vehicle primarily for VA requirements. Firms that hold both have the broadest access to SDVOSB IT opportunities across the federal market.
What NAICS codes does VETS 2 cover?
VETS 2 covers a range of IT-related NAICS codes tied to computer systems design, consulting, and related professional services. The specific codes are defined in the contract's scope and ordering guide, which GSA publishes on the vehicle's webpage.
Can a VETS 2 prime use subcontractors who are not SDVOSBs?
Yes, primes may use non-SDVOSB subcontractors, but they must comply with limitations on subcontracting rules that require the prime to perform a specified percentage of the work itself. Violating these limits can trigger SBA investigations and potential False Claims Act exposure.
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Related terms
Indefinite Delivery, Indefinite Quantity (IDIQ) Contract
A flexible federal contract that lets agencies order an indefinite quantity of supplies or services over a set period.
ViewGSA Schedule (Multiple Award Schedule)
A long-term governmentwide contract that lets agencies buy commercial products and services at pre-negotiated rates.
ViewTransformation Twenty-One Total Technology Next Generation (T4NG)
T4NG is a VA-managed IDIQ contract vehicle providing IT services and solutions to the Department of Veterans Affairs and authorized ordering agencies.
ViewNAICS Code
The North American Industry Classification System code that classifies a business by industry for federal contracting.
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