Veterans: Win Government Contracts in 2026

For many veterans transitioning to civilian life, entrepreneurship offers a powerful path to purpose and prosperity. Building a veteran small business can be incredibly rewarding, especially when tapping into the immense potential of government contracts. In fact, the federal government aims to award at least 3% of all federal contracting dollars to Service-Disabled Veteran-Owned Small Businesses (SDVOSBs) annually, a target that translates into billions of dollars. How can your veteran-owned business secure a piece of that pie?

1. Establish Your Business Foundation and Legal Structure

Before you even think about government contracts, your business needs to be a solid entity. This means forming a legal structure and getting your basic registrations in order. I’ve seen too many promising veteran entrepreneurs get bogged down because their foundational paperwork wasn’t pristine. You want to present an image of professionalism and compliance from day one.

First, choose your business structure: sole proprietorship, partnership, LLC, or corporation. For federal contracting, an LLC or corporation often provides better credibility and liability protection. Next, obtain your Employer Identification Number (EIN) from the IRS. This is essentially your business’s social security number. Without it, you can’t open a business bank account or bid on contracts.

Finally, register your business in your state. For example, if you’re in Georgia, you’d register with the Georgia Secretary of State. This step ensures your business is legally recognized within your operating state, which is a prerequisite for federal engagement. Don’t skip these seemingly minor details; they are the bedrock.

Pro Tip: Consult with a business attorney specializing in small business formation. They can help you choose the right structure and navigate state-specific requirements, potentially saving you headaches and costly errors down the line. It’s an investment, not an expense.

Common Mistake: Operating as a sole proprietorship for too long. While simple, it offers no personal liability protection, which can be disastrous if a contract goes sideways or a lawsuit arises. Incorporate or form an LLC as soon as your business starts gaining traction.

2. Register in the System for Award Management (SAM.gov)

This is non-negotiable. The System for Award Management (SAM.gov) is the primary database for all entities wishing to do business with the federal government. Think of it as the government’s vendor rolodex. If you’re not in SAM, you don’t exist to federal contracting officers.

The registration process can be detailed, requiring your EIN, DUNS number (now replaced by a Unique Entity Identifier or UEI generated in SAM), bank account information for direct deposit, and North American Industry Classification System (NAICS) codes. NAICS codes classify your business by its primary economic activity. Be precise here; selecting the correct codes ensures you’re visible for relevant opportunities. For instance, a construction company might use NAICS code 236220 for “Commercial and Institutional Building Construction,” while an IT consulting firm might use 541512 for “Computer Systems Design Services.” You can have multiple NAICS codes, but identify your primary one.

When you’re filling out the SAM registration, pay close attention to the “Representations and Certifications” section. This is where you self-certify your business size and socio-economic status, including whether you are a veteran-owned business. Screenshot of SAM.gov registration page showing UEI field and NAICS code selection. It’s tedious, yes, but crucial. I remember one client, a veteran-owned cybersecurity firm, almost missed a major contract because their SAM profile had an outdated NAICS code. We had to scramble to update it, and it nearly cost them a six-figure deal.

Pro Tip: SAM registration needs to be renewed annually. Set a reminder! An expired SAM registration will prevent you from bidding on or receiving payments for federal contracts.

3. Obtain Your Veteran-Owned Business Certification

This is where your veteran status becomes a significant advantage. The federal government has specific goals for contracting with veteran-owned businesses. To capitalize on these, you need to be certified.

For Service-Disabled Veteran-Owned Small Businesses (SDVOSBs) and Veteran-Owned Small Businesses (VOSBs), certification is now handled by the Department of Veterans Affairs (VA) through its VetBiz.gov portal. This is a rigorous process designed to ensure that the veteran truly owns and controls the business. They’ll scrutinize your ownership documents, operational control, and the veteran’s role in daily management. My advice? Be meticulously organized with your documentation. Have your DD-214, articles of incorporation, bylaws, and bank statements ready. The VA wants to see clear evidence that the veteran holds at least 51% ownership and makes the long-term and day-to-day management decisions.

This certification opens the door to “set-aside” contracts, meaning only certified SDVOSBs or VOSBs can bid on them. This significantly reduces your competition. According to the Small Business Administration (SBA), the federal government awarded over $28 billion to veteran-owned small businesses in Fiscal Year 2023. That’s a huge pie, and certification is your fork.

Common Mistake: Assuming SAM registration alone certifies you as veteran-owned. SAM allows self-certification, but for federal set-asides, the VA’s formal certification is usually required and carries more weight. Don’t confuse the two.

4. Identify Relevant Opportunities and Agencies

Once you’re registered and certified, it’s time to find contracts. Don’t just blindly search; be strategic. Start by identifying federal agencies that regularly buy the products or services your business offers. For example, if you run a landscaping company, the Department of Defense (DoD) with its many bases, or the Department of Veterans Affairs with its hospitals, might be good targets. If you’re in IT, nearly every agency is a potential client.

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The primary platform for federal contract opportunities is Contract Opportunities on SAM.gov. You can filter by NAICS code, set-aside type (e.g., SDVOSB), agency, and keyword. Screenshot of SAM.gov Contract Opportunities search interface with filters applied. This is where you’ll find Requests for Proposals (RFPs), Invitations for Bids (IFBs), and Requests for Information (RFIs).

Beyond SAM.gov, consider agency-specific portals. Many larger agencies have their own vendor pages or small business offices. Also, don’t overlook subcontracting. Prime contractors often have veteran-owned small business utilization goals. Attend industry days hosted by large primes; these are excellent networking opportunities. I always tell my clients, “The government doesn’t know you exist unless you tell them, and then you show them what you can do.”

Pro Tip: Sign up for email alerts on SAM.gov for specific NAICS codes or keywords. This ensures you’re notified immediately when new opportunities matching your business profile are posted.

5. Develop a Compelling Capability Statement

Your capability statement is your business’s resume for government contracting. It’s a concise, one to two-page document that summarizes your company’s core competencies, past performance, differentiators, and contact information. This isn’t a sales brochure; it’s a factual, impactful overview designed to quickly inform contracting officers and prime contractors about what you bring to the table.

Key sections to include:

• Core Competencies: A bulleted list of your primary services or products.
• Past Performance: Briefly describe 2-3 relevant projects, including the client, project scope, and results. Quantify achievements whenever possible (e.g., “reduced operational costs by 15%”).
• Differentiators: What makes your company stand out? Your veteran ownership, specialized certifications, unique technology, or exceptional customer service.
• Company Data: Your business name, address, contact person, phone, email, website, DUNS/UEI, CAGE Code, NAICS codes, and socio-economic certifications (SDVOSB, etc.).

I worked with a veteran-owned IT firm, “Patriot Cyber Solutions,” last year. Their initial capability statement was too generic. We sharpened it to highlight their specialized experience in securing legacy government systems, a niche many larger firms overlook. We added specific, quantifiable results from their work with a state agency, and within three months, they landed a subcontract with a major defense contractor. It was a direct result of a targeted, well-crafted capability statement.

Common Mistake: Making your capability statement too long or too vague. Contracting officers have limited time. Get straight to the point and showcase your value proposition clearly and succinctly.

6. Network and Build Relationships

Government contracting, despite its formal processes, is still largely about relationships. Attend industry events, small business conferences, and agency outreach programs. These provide invaluable opportunities to meet contracting officers, small business specialists, and even prime contractors looking for veteran-owned subcontractors. Organizations like APEX Accelerators (formerly PTACs) are an incredible resource, offering free counseling, training, and networking events for businesses seeking government contracts. They often host “meet the prime” events specifically for veteran-owned businesses.

Don’t just collect business cards; follow up with personalized emails. Express genuine interest in their agency’s mission or the prime’s projects. Look for opportunities to offer solutions, not just sell your services. Sometimes, a casual conversation at a networking event can lead to an RFI (Request for Information) that shapes a future RFP, giving you an insider’s track.

One time, at a small business expo in Atlanta, I introduced a veteran client, who owned a specialized logistics company, to a project manager from the Department of Transportation. They just chatted about current challenges in supply chain resilience. That conversation led to an informal meeting, then a formal presentation, and eventually a small pilot project. It grew from there. These things don’t happen in a vacuum; you have to put yourself out there.

7. Master the Proposal Process

Submitting a winning proposal is an art and a science. Each solicitation document (RFP, RFQ) is a rulebook. Read it thoroughly, multiple times. Pay attention to every instruction, every deadline, and every required format. A non-compliant proposal, no matter how good your service, will be rejected. This is an absolute truth in government contracting.

Break down the solicitation into its components: Statement of Work (SOW), evaluation criteria, submission requirements, and terms and conditions. Create a compliance matrix to ensure you address every single point. Your proposal should directly respond to the government’s needs, demonstrating a clear understanding of their problem and offering a tailored solution. Don’t just regurgitate your capability statement; show how your specific skills solve their specific challenge.

For pricing, be competitive but also ensure you’re profitable. Understand your costs inside and out. Use tools like Microsoft Project or Asana for project management to keep your team on track during proposal development. And finally, proofread everything. Typos and grammatical errors undermine your credibility faster than almost anything else. Have at least two sets of eyes review it before submission.

Common Mistake: “Boilerplate” proposals. Copy-pasting generic text from previous proposals without tailoring it to the specific solicitation is a recipe for rejection. Each proposal must be a bespoke response to the agency’s unique needs.

Case Study: Veteran-Owned Environmental Services

Let’s look at “GreenOps Environmental,” an SDVOSB founded by a former Army engineer specializing in hazardous waste remediation. In early 2025, they identified an RFP from the Environmental Protection Agency (EPA) for a Superfund site cleanup in rural Georgia, specifically near the Savannah River Plant. The RFP, number EPA-R04-2026-001, called for highly specialized soil and groundwater treatment. GreenOps had the technical expertise but lacked deep federal contracting experience.

Here’s how they approached it:

1. Strategic Partnership: Recognizing their limited federal past performance, GreenOps partnered with a larger, experienced prime contractor, “EcoSolutions Inc.,” as a subcontractor. EcoSolutions had a strong federal track record and was actively seeking SDVOSB partners to meet their subcontracting goals.
2. Targeted Proposal: GreenOps focused their proposal section on their unique, proprietary bioremediation techniques, which offered a faster, more cost-effective solution than traditional methods. They provided specific data from a similar project at Fort Stewart, demonstrating a 20% reduction in cleanup time and a 10% cost saving. They used detailed AutoCAD diagrams to illustrate their proposed site plan.
3. Pricing Strategy: They worked with a consultant to develop a competitive but profitable cost proposal, factoring in labor, equipment, and material costs, and clearly articulating their indirect rates.
4. Timeline: The RFP was released in January 2025, with a submission deadline of March 2025. GreenOps dedicated six weeks to proposal development, including two full weeks for internal review and revisions.

Outcome: GreenOps Environmental, as a subcontractor, was awarded a $1.2 million portion of the EPA contract. This success significantly boosted their federal past performance record and opened doors for future prime contract opportunities. Their meticulous approach to the proposal, combined with a smart teaming strategy, proved invaluable.

Securing government contracts for your veteran small business isn’t a quick sprint; it’s a marathon requiring persistence, precision, and proactive engagement. By meticulously following these steps, you can significantly enhance your chances of tapping into this lucrative market and building a thriving enterprise. If you’re considering launching a veteran franchise, many of these principles still apply.