Veteran-Owned Small Business (VOSB)

A Veteran-Owned Small Business (VOSB) is a small business at least 51% unconditionally and directly owned and controlled by one or more veterans who served honorably in the U.S. military. SBA certification is required as of January 2023, and VOSB status is used primarily by the Department of Veterans Affairs under its Veterans First Contracting Program.

What is a VOSB?

The VOSB designation was established alongside SDVOSB in the Veterans Benefits, Health Care, and Information Technology Act of 2006. The core difference is that VOSB requires only honorable military service, without the service-connected disability requirement that defines SDVOSB. In practice, the VOSB preference is most significant at the Department of Veterans Affairs, where the Veterans First Contracting Program mandates that contracting officers prioritize SDVOSBs first and VOSBs second before considering any other set-aside or full and open competition.

The SBA assumed certification authority for VOSBs effective January 1, 2023. Qualifying veterans apply through the SBA certification portal with documentation of service (DD-214 or equivalent), ownership documentation, and evidence of managerial control. Size standards follow the applicable SBA size standard for the firm's primary NAICS code.

Outside the VA, VOSB status provides less direct contracting preference than SDVOSB because the government-wide statutory goal applies to SDVOSBs, not VOSBs separately. However, many primes count VOSB subcontractors toward their veteran subcontracting goals in subcontracting plans. For firms that do not have a service-connected disability, VOSB certification is the appropriate designation rather than SDVOSB.

Why VOSB Matters for Government Contractors

The VA is one of the largest federal civilian agencies by contract spending. VA's Veterans First program creates a tiered preference structure that effectively locks non-veteran firms out of a large share of VA procurements. VOSB-certified firms that invest in VA customer relationships, understand VA-specific contract vehicles, and maintain strong CPARS records can build sustainable revenue pipelines in healthcare IT, facilities, professional services, and supply chain within the VA ecosystem.

Example

A management consulting firm owned by two Army veterans without service-connected disabilities obtains SBA VOSB certification. The firm targets the VA's Network Contracting Offices and wins a $2.1M VOSB set-aside contract for healthcare operations consulting. Because the VAMC had no SDVOSBs offering the required specialty, the contracting officer moved to the VOSB tier under Veterans First and found the certified firm through DSBS.

Frequently Asked Questions

Is VOSB used outside the Department of Veterans Affairs?

VOSB set-asides are authorized government-wide but are used most consistently at the VA under the Veterans First mandate. Other federal agencies have discretion to use VOSB set-asides but rarely do so because the government-wide statutory goal focuses on SDVOSB, not VOSB. For non-VA federal opportunities, SDVOSB certification provides more practical benefit if the veteran qualifies.

What documentation does the SBA require for VOSB certification?

The SBA requires a DD-214 (Certificate of Release or Discharge from Active Duty) or equivalent documentation proving honorable service, business ownership documents (operating agreement, bylaws, or stock certificates), a signed certification questionnaire, and evidence demonstrating that the veteran exercises day-to-day managerial control. The SBA may also conduct an in-person or virtual examination.

Can a VOSB also hold 8(a) certification?

Yes. A VOSB can simultaneously hold SBA 8(a) certification if the veteran owner also qualifies as socially and economically disadvantaged. Holding both designations expands set-aside eligibility to 8(a) competitions, VA-specific VOSB competitions, and general small business competitions. This combination can be particularly effective for firms targeting both VA and DoD civilian agency markets.

How does VOSB status help when subcontracting?

Large prime contractors required to submit subcontracting plans under FAR 19.7 often seek VOSB subcontractors to demonstrate veteran business support. While the FAR's required subcontracting goals focus on SDVOSBs for the veteran category, some agency-specific subcontracting plans and prime contractor strategies include VOSB goals. Being certified and visible in DSBS increases a VOSB's likelihood of receiving teaming and subcontract inquiries.