The SDVO Initiative

In August of 1999, the President and Congress recognized the challenges Service-disabled veteran-owned small businesses (SDVOSBs) face in participating in government contracting. As a result the "Veterans Entrepreneurship and Small Business Development Act of 1999" was enacted to mandate that "the government-wide goal for participation by small business concerns owned and controlled by Service-disabled veterans shall be established at not less than three percent of the total value of all prime contract and subcontract awards for each fiscal year."

Following that lead, President Bush, in October 2004, further increased opportunities for SDVOSBs in government contracting by mandating a Service-Disabled Veterans Executive Order. The Executive Order stated that Federal agencies may restrict certain contracts to SDVOSBs if at least two are expected to submit offers or sole source to an SDVOSB for up to $5 million for manufacturing contracts and $3 million for non-manufacturing contracts, provided there is no reasonable expectation that at least two SDVOSBs are expected to submit offers.

Until this point, Federal agencies have had difficulty meeting their contracting with SDVOSBs, due partly to the lack of identified SDVOSBs in the marketplace. To aid in this process, General Service Administration (GSA) has dedicated significant resources to identifying SDVOSBs, assist them in obtaining a GSA contract, and help them position themselves to compete for government business.