VA Veteran-Owned Small Business (VOSB) Verification
Important — program transferred: As of January 1, 2023, certification of VOSBs and SDVOSBs transferred from the VA's Center for Verification and Evaluation (CVE) to the Small Business Administration's Veteran Small Business Certification Program (VetCert) under § 862 of the FY2021 NDAA. Governing regulations are now at 13 CFR Part 128; the legacy VA regulations at 38 CFR Part 74 covering CVE are no longer the operative certification pathway. Firms previously verified by CVE were deemed SBA-certified for the remainder of their three-year term and received a one-year extension. The legacy framework described below is preserved for historical reference; current applicants must use SBA's VetCert portal at veterans.certify.sba.gov.
The historical Department of Veterans Affairs verification program certified veteran-owned small businesses (VOSBs) and service-disabled veteran-owned small businesses (SDVOSBs) for participation in VA's set-aside contracting program. Verified businesses were listed in the VA's Vendor Information Pages (VIP) database, which served as the gateway to billions of dollars in annual VA contracts reserved exclusively for veteran-owned firms. The verification process was run by VA's Center for Verification and Evaluation (CVE) and required demonstrating unconditional veteran ownership and control — standards designed to prevent "front companies" that claim veteran ownership while actually being managed by non-veterans. Verified status was valid for three years.
Current Rule (2026)
| Parameter | Value |
|---|---|
| Operative citation | 13 CFR Part 128 (SBA VetCert) as of Jan 1, 2023 |
| Issuing agency | Small Business Administration — Veteran Small Business Certification Program (VetCert) |
| Statutory authority | 15 U.S.C. § 657f (SDVOSB government-wide set-asides); 38 U.S.C. §§ 8127–8128 (VA Veterans First); NDAA FY2021 § 862 (transfer to SBA) |
| Last major rulemaking | 87 FR 73400 (Nov 29, 2022) — SBA final certification rule |
| Certification database | veterans.certify.sba.gov |
| Eligibility term | 3 years from SBA certification |
| Legacy VA framework | 38 CFR Part 74 (CVE) — historical only |
Legal Authority
- 38 U.S.C. §§ 8127–8128 (Veterans First Contracting Program) — Require VA to give priority in contract awards to verified Service-Disabled Veteran-Owned Small Businesses (SDVOSBs) and Veteran-Owned Small Businesses (VOSBs); mandate the VA's Vendor Information Pages (VIP) database as the verification registry
- 15 U.S.C. § 657f — Small Business Act provision authorizing government-wide SDVOSB set-asides; SBA administers SDVOSB certification for non-VA federal contracts
- NDAA FY2021, § 862 — Transferred VOSB certification authority from VA's Center for Verification and Evaluation (CVE) to SBA effective January 1, 2023; SBA now provides the single verification database for both VA and government-wide SDVOSB/VOSB set-asides
- 38 CFR Part 74 — VA legacy VOSB verification regulations (CVE era, prior to 2023 transfer); SBA has issued new regulations governing the unified certification program
Key Mechanics
The VA Veterans First Contracting Program (38 U.S.C. §§ 8127–8128) requires VA contracting officers to set aside contracts for Service-Disabled Veteran-Owned Small Businesses (SDVOSBs) and Veteran-Owned Small Businesses (VOSBs) when at least two qualified verified firms can compete at a fair price. To participate in VA set-asides, firms must be verified in the SBA's certification system (since January 1, 2023, when the NDAA FY2021 transfer took effect). Verification requires demonstrating: (1) veteran or service-disabled veteran ownership — at least 51% unconditional, direct ownership; (2) veteran control — the qualifying veteran must manage the day-to-day operations and hold the highest officer position; (3) small business status under SBA size standards for the relevant NAICS code. The application is made through the SBA's MySBA platform; SBA reviewers examine corporate documents, operating agreements, ownership records, and officer responsibilities. Verification denials and revocations are appealable within the SBA. For VA contracts specifically, the "Veterans First" hierarchy applies: SDVOSBs have priority over VOSBs, which have priority over HUBZone, 8(a), WOSB, and general small business set-aside categories.
What This Rule Does
The VA's Veterans First Contracting Program, established by 38 U.S.C. § 8127, gives priority in VA contract awards to verified VOSBs and SDVOSBs — VA must award contracts to SDVOSBs if at least two SDVOSBs can compete at a fair price; if not, priority shifts to VOSBs. But that set-aside preference only extends to firms in the VIP database. Part 74 governs who gets into that database and how.
To qualify for VIP Verification, a concern must be unconditionally owned and controlled by one or more eligible veterans, service-disabled veterans, or surviving spouses. "Unconditional" means ownership cannot be subject to conditions or agreements that would allow a non-veteran to exercise control. The CVE examines corporate bylaws, shareholder agreements, operating agreements, voting records, and financial statements to verify that a veteran actually runs the business — not merely holds nominal equity while a non-veteran makes operational decisions. Firms owned through trusts, holding companies, or complex equity structures face particular scrutiny.
Beyond veteran ownership, the rule requires good character: owners and controlling persons must not be debarred or suspended from federal contracting (checked via the System for Award Management), must not be incarcerated or on parole or probation for a felony or crime involving business integrity, and must not have been convicted of crimes listed at 48 CFR § 9.406-2(b)(3). These exclusions apply even if the criminal conviction is unrelated to the firm's core business.
Key Provisions
- § 74.2 — Eligibility requirements: unconditional ownership and control by eligible veteran(s); good character requirement; inclusion in SAM (no debarment or suspension); eligibility extends to service-disabled veterans and surviving spouses
- § 74.10 — Application filed electronically in the VIP database at va.gov/osdbu; paper applications not accepted
- § 74.11 — Processing: CVE contacts the applicant within 30 days of registration to initiate review; 90-application-day target for processing complete packages; CVE may request clarification of eligibility documentation at any point; incomplete applications are not processed
- § 74.12 — Documentation required: VA Form 0877 plus articles of incorporation/organization, bylaws or operating agreements, shareholder agreements, voting records, trust agreements, franchise agreements, payroll records, bank signature cards, financial statements, and federal tax returns for up to 3 years
- § 74.13 — Denial appeals: applicants may appeal denials (other than veteran-eligibility denials) to the SBA Office of Hearings and Appeals (OHA) under 13 CFR Part 134; denials based on failure to meet veteran eligibility criteria are final and not subject to appeal; size determination issues may be referred to SBA
- § 74.14 — Reapplication: after a final denial or cancellation, applicants must wait 6 months before CVE will process a new application; participants removed for ineligibility forfeit their remaining eligibility period
- § 74.15 — Eligibility term: 3-year term from approval letter; participants must notify CVE within 30 days of any change affecting eligibility; CVE may initiate a verification examination whenever it receives credible information about a participant's continued eligibility
- § 74.21 — Voluntary withdrawal: a verified participant may withdraw from the VIP database at any time
- § 74.22 — Cancellation: CVE cancels verified status for firms that no longer meet eligibility requirements; participants may appeal cancellation to SBA OHA
How It Affects You
If you own a veteran-owned small business: VIP Verification is the ticket to VA set-aside contracts — if you are not in the VIP database, your firm cannot compete in VA SDVOSB or VOSB set-aside acquisitions even if you clearly qualify. Start at va.gov/osdbu, create an account in the VIP portal, complete VA Form 0877, and gather the substantial documentation package (three years of tax returns, all corporate governance documents, financial records). CVE's 90-day processing window is a target, not a guarantee — complex ownership structures take longer. If denied, you can appeal to SBA OHA, but denials based on veteran eligibility (e.g., you do not meet the statutory definition of "veteran" or "service-disabled veteran") are final at the CVE level. Verified status lasts 3 years — calendar the renewal 6 months before expiration so you are not caught without active verification during a pending procurement.
If your firm has a complex ownership structure: CVE scrutinizes any arrangement that could reduce a veteran's unconditional control — trusts, multiple-member LLCs where a non-veteran holds economic rights, franchise agreements that give the franchisor operational control, or shareholder agreements with drag-along rights. If a non-veteran spouse, partner, or investor can override the veteran's decisions in any material business matter, CVE may deny verification. Restructuring before applying (rather than after a denial) saves the 6-month waiting period.
If you are a VA contracting officer: the VIP database is your authority for confirming VOSB/SDVOSB status. CVE verification is required — unlike SBA's 8(a) program, which allows self-certification for most purposes, VA's Veterans First program requires confirmed VIP Verification status before set-aside awards. Contracting officers who award to unverified firms risk protests and corrective actions.
Statutory Authority
- 38 U.S.C. § 8127 — Veterans First contracting: VA must give first priority to SDVOSBs, then VOSBs in set-aside contracting; the verified VOSB/SDVOSB status required for these set-asides is determined by CVE under Part 74
- 38 U.S.C. § 8128 — Contracting goals: VA must annually report on the percentage of contract dollars awarded to VOSBs and SDVOSBs; the VIP database supports compliance tracking
- 38 U.S.C. § 501 — General VA rulemaking authority
Recent Rulemakings
83 FR 48229–48232 (September 24, 2018) — Comprehensive update to Part 74 implementing changes from the National Defense Authorization Act for FY2017 (Pub. L. 114-328): updated ownership and control standards to align with SBA definitions, clarified appeals procedures, and revised the documentation requirements for entities with complex ownership structures (trusts, multi-tiered holding companies, franchise arrangements). This rulemaking reflected years of litigation over what "unconditional ownership and control" means in practice — GAO bid protest decisions and federal court cases (including Kingdomware Technologies, Inc. v. United States, 136 S. Ct. 1969 (2016), which confirmed VA's mandatory use of the Veterans First priority) shaped the final standards.
75 FR 6101 (February 2010) — Original Part 74 rule establishing the VIP Verification Program; created CVE and the initial verification procedures.