The Veterans benefits, Health Care, and Information Technology Act of 2006 provides the VA with unique authority for contracting with VOSBs (Veteran Owned Small Business) and SDVOSBs (Service-Disabled Veteran Owned Small Business). This means, in a nutshell, that there are many federal agencies and private businesses looking to work with your veteran owned business. Simply put, you may be missing out on new revenue opportunities.
There is one federal government agency that sets aside almost all, or at least the majority of, its contracts’ for service disabled veteran-owned small businesses (SDVOSB). That is the Department of Veterans Affairs (VA). They have special authority for Service Disabled Veteran-Owned Small Business and Veteran-Owned Small Business (SDVOSB/VOSB) set aside and sole source contracts
If your company had an SDVOSB Certification, and your company was in a line-of-business NAICS code that was highly sought-after by the VA, then having this certification would dramatically improve your chances of competing and capturing such contracts. There are many small businesses that cater their entire lives towards capturing VA contracts as their single best customer.
Contracts would not be limited by what the VA and the federal government are offering.
If your company has a SDVOSB classification, then many larger companies will seek out your company to act as sub-contractor for their larger projects. This is because large contracts typically mandate that the prime contractorship, the large company who originally takes the contract, must meet a small business participation goal (e.g. SDVOSB) as a percentage of its overall contract. Within the construction industry and several other NAICS codes, this can result in dramatically improved chances to be a sub-contractor on large projects and gain some meaningful workshare.
The DoD also recognizes the value of a Veteran.
There are many DoD-sector contracting officers who place intrinsic value on a company that is headed by a SDVOSB because they understand how the military veteran’s experience will be leveraged towards programmatic risk reduction and unique knowledge of military goals, resolve in settling obligations (work-ethic), and reduction of security risk.
There could be State Tax benefits as well, although these vary by state.
In order to obtain some of the contracts and projects above, an insurance policy will have to be in place to meet federal and private contractor requirements. At Insurance for Vets we specialize in finding a good fit for your business needs. Please contact us for guidance in setting up your VOSB or your SDVOSB, and ask us about your current insurance needs.
*Some of this article was taken from http://www.military.com/veteran-jobs/career-advice/on-the-job/pros-and-cons-running-a-service-disabled-veteran-owned-small.html, from an article by Michael J. Erickson*