SBA Implements Mandatory Certification for SDVOSBs, Ending Self-Certification

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The U.S. Small Business Administration (SBA) has issued a direct final rule to eliminate self-certification for Service-Disabled Veteran-Owned Small Businesses (SDVOSBs). Effective August 5, 2024, this rule requires SDVOSBs seeking federal contracts or subcontracts that count towards agency or subcontracting goals to be certified through the SBA’s Veteran Small Business Certification (VetCert) Program.

Key points of the rule include:

• Certification Requirement: Effective October 1, 2024, all SDVOSBs must be certified by SBA’s VetCert to be eligible for federal contracts or subcontracts.
• Grace Period: Firms that apply for certification by December 22, 2024, can continue to self-certify until SBA decides on their application.
• End of Self-Certification: After December 22, 2024, firms that are not certified or have not applied for certification will not be eligible to self-certify for federal contracts or subcontracts.

The SBA estimates that around 20,408 currently self-certified firms might need to apply for certification. This rule shifts the responsibility of verifying SDVOSB eligibility from contracting officers to the SBA. This rule was expedited due to statutory requirements, eliminating the need for prior public comment to implement the changes swiftly.