DOD to audit its SDVOSB set-aside program

News - Published Nov 05, 2018

The Department of Defense (DOD) is set to audit its set-aside program for service-disabled veteran-owned small businesses (SDVOSBs) after rule changes at the U.S. Small Business Administration (SBA) and a report from the DOD's Office of the Inspector General (IG). The audit will focus on whether or not SDVOSBs to which sole-source or set-aside contracts were awarded were in fact eligible to be considered SDVOSBs at the time that the awards in question were made.

This audit comes after the SBA put in place rule changes (effective October 1st, 2018) which standardize eligibility requirements between SBA and the Department of Veterans Affairs (VA) for SDVOSB certification. As part of the standardization, "self-certification" for SDVOSBs has been eliminated. In addition, the IG had made a report stating that there was not adequate oversight over the DOD's SDVOSB set-aside program six years prior.

The audit is expected to consist of a number of possible components that will bring the IG into direct contact with various SDVOSBs, ranging from requests for interviews and document submissions to on-site visits.

To learn more about the DOD's SDVOSB audit, visit

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