In order to determine which agencies SDVOSB firms perform best with, it’s best to make a comparison of federal agencies’ spending with SDVOSB firms to small business spending overall.
The Veterans Administration hands down provides the greatest percentage of small business sales to SDVOSB firms at 77.2%. Because of the massive preference the VA gives SDVOSB firms, I generally tell SDVOSB clients that they should look at opportunities at the VA first before pursuing all other agencies.
DOJ utilizes SDVOSB firms to the second greatest extent. The DOJ was at 21.8% of small business sales to SDVOSB firms. This could be due to many of the specialized applicable skills ex-military personnel have that are helpful in their agency’s mission.
US Military and Department of State place a high value on utilizing SDVOSB firms. They average between 14-19% of small business sales. Similar to the rationale for DOJ SDVOSB sales, these agencies like working with SDVOSB firms for the specialized skills and knowledge these firms possess.
You can see the breakdown of the other major spending agencies to see where they fall below:
SDVOSB |
Small Business |
SDVOSB Market Share |
|
2020 |
2020 |
||
Department of Defense |
12,223,251,457 |
82,347,950,207 |
14.8% |
-Air Force |
2,950,681,217 |
15,410,183,480 |
19.1% |
-Navy |
2,801,150,948 |
18,117,771,375 |
15.5% |
-Army |
3,747,620,711 |
25,894,137,803 |
14.5% |
SDVOSB |
Small Business |
SDVOSB Market Share |
|
Non-DoD Major Spending Agencies |
2020 |
2020 |
|
Veterans Affairs |
7,491,179,235 |
9,704,635,005 |
77.2% |
DOJ |
612,395,195 |
2,806,563,479 |
21.8% |
Department of State |
497,132,497 |
3,113,586,076 |
16.0% |
Department of Labor |
144,440,279 |
908,113,716 |
15.9% |
DHS |
1,185,000,119 |
7,539,272,820 |
15.7% |
Department of Transportation |
278,701,707 |
2,631,075,716 |
10.6% |
Department of the Interior |
256,624,965 |
2,601,455,231 |
9.9% |
Department of Commerce |
245,272,006 |
2,592,993,901 |
9.5% |
Department of Energy |
193,434,056 |
2,297,495,704 |
8.4% |
Department of the Treasury |
221,934,185 |
3,062,531,549 |
7.2% |
Department of Health and Human Services |
757,704,071 |
11,041,352,430 |
6.9% |
Department of Education |
29,569,293 |
712,817,716 |
4.1% |
Department of Agriculture |
248,917,139 |
6,957,815,216 |
3.6% |
An SDVOSB is a very well-respected Verification within the Federal government. Many SDVOSB firms would gain more agency market access by adding a GSA Schedule or 8(a) Certification with their SDVOSB as well.
The robust growth for SDVOSB firms makes this verification more valuable than ever to holders. If you would like to go over the qualifications for becoming SDVOSB, or how to market an existing SDVOSB, I always recommend contacting an industry expert such as ez8a or Advance 8a. Neither charge a fee for an initial phone consultation.
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