SBA doubles veteran contracting goal for FY 2027

The SBA plans to raise its federal contracting goal for veteran-owned small businesses to 10% in FY 2027, doubling the current target and opening a larger share of government awards to VOSBs and SDVOSBs. FEDCON says the change will reward companies that are already registered, certified and ready to compete.

Why it matters: - The federal government’s veteran-owned contracting target is set to rise from 5% to 10% in FY 2027, creating a larger pool of opportunities for veteran-led small businesses. - The increase could matter most in sectors such as defense, where small businesses supply about 70% of the total. - Veteran-owned firms that are registered and certified now may be better positioned to win contracts as agencies try to meet the higher goal.

What happened: - The U.S. Small Business Administration announced new federal contracting goals for Fiscal Year 2027 on the first day of National Veterans Small Business Week. - FEDCON, a government-contracting consulting firm, warned veteran-owned small businesses and service-disabled veteran-owned small businesses to prepare for the shift. - The SBA said it plans to double the share of federal contracts awarded to veteran-owned businesses from 5% to 10%.

The details: - By 2025, federal agencies had already exceeded the 5% target, with $32.5 billion in contracts awarded to veteran-owned firms. - In 2026, the SBA approved more than 18,000 veteran-owned business certifications after working through a backlog of more than 2,700 applications. - FEDCON said companies need VetCert approval, an optimized System for Award Management profile, a capability statement and a proposal strategy to compete effectively. - FEDCON offers help with eligibility reviews, VetCert applications, agency targeting, marketing and proposal writing. - FEDCON says veteran business owners can request a free market assessment through FEDCON.com or by calling (855) 233-3266. - FEDCON’s social media accounts include LinkedIn, Instagram and YouTube.

Between the lines: - The higher goal signals stronger federal demand for veteran-owned vendors, but the expanded opportunity will likely favor firms that already have their paperwork, certifications and proposal materials in order. - Faster certification processing should make it easier for more veteran-owned businesses to enter the pipeline before agencies begin adjusting procurement plans for FY 2027.

What's next: - Veteran-owned businesses are likely to see more attention from contracting officers as agencies work to hit the new 10% goal. - The main near-term task for applicants is getting certified and registered before competition intensifies. - FEDCON says it expects to help more veteran entrepreneurs pursue federal work as the new targets take effect.