NDAA 2024 - A new era for SDVOSB - Service Disabled Veteran Owned Businesses - SBA Certified

Overview

The National Defense Authorization Act (NDAA) for Fiscal Year 2024 has brought significant updates for Service-Disabled Veteran-Owned Small Businesses (SDVOSBs), marking a pivotal moment in the U.S. government's commitment to these enterprises. Here's an overview of the key changes and insights gathered from various sources:

NDAA 2024: A Game Changer for SDVOSBs

  1. Increased Government Contracting Goals: The most notable change is the increase in the government-wide goal for utilizing SDVOSBs in federal contracting, from 3% to 5%. This substantial commitment ensures a larger share of contracting dollars goes to businesses owned by service-disabled veterans, translating into tangible opportunities and increased revenue potential for these enterprises.
  2. Certification Process Overhaul: The NDAA mandates that SDVOSBs must now certify through the Small Business Administration (SBA), moving away from the previous self-certification or certification through the Veterans Administration. This aims to streamline the process and ensure uniform standards for all SDVOSBs seeking federal contracts.
  3. Recognition of Veterans' Value: This legislative action acknowledges the sacrifices of service-disabled veterans and their challenges in re-entering civilian life. By facilitating greater access to federal contracts, the government leverages their skills and leadership honed in military service.
  4. Economic Benefits: The increase in the SDVOSB utilization goal reflects an understanding of the broader economic benefits, such as promoting competition and encouraging innovation in the government's supplier base.

Positioning SDVOSBs for Success

Given these significant changes, SDVOSBs should take proactive steps to capitalize on the increased opportunities:

  1. Understand New Certification Requirements: Familiarize with the new SBA certification process. While this shift may pose challenges, it aims to create a fairer marketplace.
  2. Leverage Skills and Experience: Emphasize the unique skills, discipline, and leadership qualities that veterans bring to the business world.
  3. Explore Diverse Contracting Opportunities: With the increased goal, there's a broader scope for securing contracts across various federal agencies and sectors.
  4. Build Strategic Partnerships: Collaborate with other businesses, including non-SDVOSBs, to enhance capabilities and bid competitively for larger contracts.
  5. Stay Informed and Adaptive: Keep abreast of further legislative changes and adapt business strategies accordingly.
  6. Engage in Advocacy and Networking: Participate in veteran business coalitions and networking events to stay connected with policy changes and opportunities.

Conclusion

The NDAA for Fiscal Year 2024 represents a significant stride in supporting SDVOSBs, acknowledging their invaluable contribution to the nation's economy and the unique challenges faced by service-disabled veterans. By increasing the government contracting goals and overhauling the certification process, this legislation opens new avenues for growth and success for these businesses. It's crucial for SDVOSBs to understand these changes, adapt their strategies, and leverage the available resources to fully benefit from this legislative advancement.

References: 

  1. Hagan, Stephanie. “The FY 2024 NDAA Defense Policy Bill: What it Means for Veteran-Owned Businesses.” Winvale, info.winvale.com/blog/the-fy-2024-ndaa-defense-policy-bill-what-it-means-for-veteran-owned-businesses.
  2. “Congress Increases the Government-Wide Goal for Awards to Service-Disabled Veteran-Owned Small Businesses From 3% to 5% in a Victory for NVSBC, Veterans and American Small Businesses.” PR Newswire, www.prnewswire.com/news-releases/congress-increases-the-government-wide-goal-for-awards-to-service-disabled-veteran-owned-small-businesses-from-3-to-5-in-a-victory-for-nvsbc-veterans-and-american-small-businesses-302022339.html.
  3. Koprince, Steven. “Congress Increases SDVOSB Prime Contracting Goal to Five Percent.” LinkedIn, www.linkedin.com/pulse/congress-increases-sdvosb-prime-contracting-goal-five-steven-koprince-tozxc.
  4. Wiens, Jason. “Bipartisan Support for Small Businesses Set to Continue in 2024.” Bipartisan Policy Center, bipartisanpolicy.org/blog/bipartisan-support-for-small-businesses-set-to-continue-in-2024/.
  5. “Federal Gov't Bill Raises SDVOSB Goals.” Contractor News, www.contractornews.com/761/federal-gov-t-bill-raises-sdvosb-goals.