Earlier to land government contracts service-disabled veteran-owned businesses (SDVOSB) simply had to self-certify themselves. Now, going forwards, the rules regulating the Veteran Small Business Certification (VetCert) Program of the U.S. Small Business Administration (SBA) will be amended by this direct final rule. 

The National Defense Authorization Act for Fiscal Year 2024 (NDAA 2024) contains a provision that requires SDVOSBs to receive Federal Government contracts or subcontracts that count toward agency or subcontracting goals to remove their self-certification. To implement this provision, the SBA is revising its regulations. With the implementation of NDAA 2024, SBA's regulations are modified by this direct final rule.

The rule is all set to be implemented from August 8th, unless there is some “significant adverse comment”. Currently, the bill is open for public opinion till July 8th. 

Once implemented, SDVOSBs will have to get certified by the SBA through the VetCert program. You can check here: https://veterans.certify.sba.gov/

Since public comment is not required, SBA is posting this rule as a direct final rule. SBA sees this as a non-controversial administrative action with the only purpose of carrying out NDAA 2024's provisions, which do away with SDVOSBs' ability to self-certify. These are required by statute, and SBA is not allowed to change them in response to feedback. 

The awarding contracting officer bears the responsibility of ensuring SDVOSB compliance for goaling purposes under the current system. Now, this burden falls on SBA. The only task left to the contracting officer would be to verify that the requesting company is, in fact, listed in the SBA's certification database as a certified SDVOSB. The contracting agencies may save a little money due to this decreased obligation to confirm eligibility at the time of contract award.

While there would be no additional expenses for current VetCert Program participants as a result of this direct final rule, SBA expects charges for self-certified SDVOSBs who are currently vying for prime contracts or subcontracts with the federal government. Up to 20,408 self-certified SDVOSBs may apply for certification.