The U.S. Small Business Administration (SBA) raised its fiscal year 2027 agency-level contracting goal for veteran-owned and service-disabled veteran-owned small businesses from 5% to 10%. The new guidance sets a 10% goal for prime contracting and a separate 10% goal for subcontracting, with both types of veteran-owned businesses counted in the same category. Read the SBA’s original November 9 announcement.
The announcement follows a year in which service-disabled veteran-owned small businesses received $32.5 billion in federal prime contracts, according to the SBA. The 10% figure is the SBA’s FY 2027 agency-level target for the combined category. Federal law sets a government-wide minimum goal of 5% specifically for service-disabled veteran-owned small businesses. See the federal contracting goals in the Small Business Act.
What the 10% Goal Means for Veteran-Owned Businesses
Where VOSB and SDVOSB Certification Fit
Through its Veteran Small Business Certification program, known as VetCert, the SBA certifies eligible businesses in two categories. Certified Veteran-Owned Small Businesses (VOSBs) can pursue eligible set-aside and sole-source contracts through the Department of Veterans Affairs’ Vets First program. Certified Service-Disabled Veteran-Owned Small Businesses (SDVOSBs) can pursue eligible set-aside and sole-source opportunities across federal agencies. See the SBA’s VetCert program overview.
In general, applicants must meet SBA small-business size standards and have at least 51% qualifying veteran ownership. Qualifying veterans must also control the business. For SDVOSB certification, the qualifying owners generally must have a VA-rated service-connected disability. If you’re unsure which category fits your business, review GSE’s VOSB and SDVOSB certification services.
How to Prepare for FY 2027 Opportunities
Start by identifying federal buyers that already purchase what your business sells. Look at recent awards to see which agencies buy those products or services and which prime contractors have won similar work. You can use GSE’s GovExpert contracting database to research buyers, past awards, and open opportunities.
If you plan to bid directly, check that your SAM.gov registration is active and that your industry codes reflect the work you want to pursue. If your registration is due for renewal or your business information has changed, explore GSE’s SAM registration and renewal services.
If you plan to approach prime contractors, prepare a capability statement that shows what you do, where you can deliver, and which past projects demonstrate your experience. Include your certification status and tailor the examples to the work the prime contractor performs. See what to include in a capability statement.
