What Is an SDVOSB? How Veteran-Owned Businesses Win Federal Contracts

If you work in federal procurement — or if you're a veteran-owned business exploring government contracting — you've probably heard the term SDVOSB. Here's a plain-English breakdown of what it means, how agencies use it, and what it means for Pardo Digital.

What Is an SDVOSB?

SDVOSB stands for Service-Disabled Veteran-Owned Small Business. It's a federal designation for small businesses that are at least 51% owned and controlled by one or more service-disabled veterans — veterans who were injured in the line of duty and received a disability rating from the VA or Department of Defense.

To qualify, the veteran must also control day-to-day operations and long-term decision-making for the business. It's not enough to own shares — the veteran has to actually run the company.

How Federal Agencies Use SDVOSB Set-Asides

Federal law requires agencies to meet small business contracting goals — and SDVOSB is one of the socioeconomic categories agencies use to meet those goals. In practice, this means:

• →Set-aside contracts: Agencies can restrict competition on a contract to SDVOSB firms only, meaning large corporations can't compete.
• →Sole-source awards: For contracts under certain thresholds, agencies can award directly to an SDVOSB without competition.
• →VA Veterans First Program: The VA is required to give priority to SDVOSBs and VOSBs before opening competition to other small businesses.

For contracting officers, working with SDVOSBs is a practical way to meet statutory goals while still getting quality work done.

NAICS Codes and What Work Is Eligible

SDVOSB contracts are tied to NAICS (North American Industry Classification System) codes — the six-digit codes that classify what kind of work a business does. Pardo Digital holds the following codes:

• →541511 — Custom Computer Programming Services
• →541512 — Computer Systems Design Services
• →541513 — Computer Facilities Management Services
• →541618 — Other Management Consulting Services

These cover cloud infrastructure, IT modernization, web application development, and related digital services — the core of what we do for federal clients.

Why Work With an SDVOSB Contractor?

Beyond the procurement benefits, SDVOSBs tend to be lean, mission-driven, and hands-on. When you work with an SDVOSB like Pardo Digital, you're working directly with the people doing the work — not routing through layers of subcontractors and account managers.

• →Direct access to the principal — no account manager in between
• →Agile execution without large-firm bureaucracy
• →Mission-first culture from founders who served
• →Competitive pricing without agency overhead

About Pardo Digital's SDVOSB Status

Pardo Digital was founded by Julio Cesar Pardo, a U.S. Army veteran and AWS Solutions Architect Associate. We are SDVOSB eligible and registered in SAM.gov. Our capability statement is available for download and covers our core competencies, past performance, and contact information for procurement.