The Department of Veterans Affairs (VA) and the Department of Defense (DoD) represent the largest healthcare systems in the United States federal government. These agencies manage hundreds of medical centers and military treatment facilities worldwide.
Accessing these markets often requires specialized certifications and strategic partnerships. Service-Disabled Veteran-Owned Small Businesses (SDVOSBs) receive priority through federal mandates like the "Veterans First" program.
Industry experts said that non-veteran-owned companies frequently seek partnerships with SDVOSBs to navigate the complex procurement landscape. This guide outlines five steps to entering the VA and DoD healthcare markets through these specialized business structures.
Step 1: Define Federal Healthcare Market Strategy
Success in the federal healthcare sector begins with a comprehensive market analysis. Manufacturers and service providers must identify which specific agencies require their clinical solutions.
The VA operates under the Veterans Health Administration (VHA), which serves over 9 million enrolled veterans. The DoD manages the Defense Health Agency (DHA), overseeing healthcare for active-duty members and their families.
The Small Business Administration (SBA) said that firms should start by mapping their products to specific North American Industry Classification System (NAICS) codes. Common codes for healthcare include 339112 for surgical equipment and 621111 for offices of physicians.
Contractors must also determine if their offerings fit within the VA's Medical/Surgical Prime Vendor (MSPV) program. This program is a primary vehicle for distributing supplies to VA medical centers across the country.
Strategizing involves reviewing the Federal Procurement Data System (FPDS) to see which agencies have purchased similar products in the past. This data allows companies to target specific Veterans Integrated Services Networks (VISNs) or military regions.
Step 2: Secure SBA VetCert Certification
Federal law requires that SDVOSBs be officially certified to participate in set-aside contracts. As of 2023, the Small Business Administration (SBA) manages the Veteran Small Business Certification (VetCert) program.
The SBA said this certification is the only way for veteran-owned firms to compete for VA "Veterans First" contracts. To qualify, a business must be at least 51% owned and controlled by one or more service-disabled veterans.
The veterans must also manage the day-to-day operations and make long-term strategic decisions for the company. Documentation required for VetCert includes DD-214 forms, VA disability rating letters, and corporate governance documents.
Processing times for VetCert applications typically take approximately 90 days. Uncertified firms are ineligible for veteran-specific set-asides, even if they are veteran-owned.
The VA said that its contracting officers must verify a firm's status in the SBA database before making an award. Maintaining an active registration in the System for Award Management (SAM.gov) is also mandatory for all federal contractors.
Additional information on certification can be found on the USGov.News articles page, which tracks updates to SBA regulations.
Step 3: Design Compliant Partnership Structures
Companies that are not veteran-owned can still access VA and DoD markets through partnerships with certified SDVOSBs. These collaborations must follow strict federal regulations to avoid "affiliation" issues that could disqualify the small business.
The most common structures include prime-subcontractor arrangements and Joint Ventures (JVs). The SBA said that in a Joint Venture, the SDVOSB partner must be the managing venturer.
Teaming agreements are another popular option for healthcare procurement. These agreements allow a small business to leverage the technical expertise or manufacturing capacity of a larger partner.
The SBA Mentor-Protégé Program (MPP) provides a formal framework for these relationships. Under this program, a large business "mentor" provides technical or financial assistance to an SDVOSB "protégé."
In exchange, the two firms can bid on set-aside contracts as a small business joint venture. This structure is highly effective for complex medical device installations or clinical staffing contracts.
Attorneys specializing in government contracts said that the SDVOSB must perform a minimum percentage of the work. This "Limitation on Subcontracting" rule ensures that the benefits of the contract remain with the veteran-owned firm.
Step 4: Obtain Access to Contract Vehicles
Federal healthcare purchasing often happens through established contract vehicles rather than open-market solicitations. Becoming "orderable" is a critical milestone for any healthcare vendor.
The VA Federal Supply Schedule (FSS) is a major vehicle for medical equipment, supplies, and pharmaceuticals. The VA National Acquisition Center (NAC) said it manages several schedules, including 65 II A for medical equipment.
For DoD healthcare, the Defense Logistics Agency (DLA) manages the Distribution and Pricing Agreement (DAPA) and the Electronic Catalogue (ECAT). These systems allow military treatment facilities to browse and order products quickly.
SDVOSB partners often act as the "vendor of record" on these contracts. They handle the logistics, invoicing, and compliance while the manufacturer provides the product and clinical support.
The GSA Schedule is another pathway for healthcare services and IT solutions. Many SDVOSBs hold GSA Multiple Award Schedule (MAS) contracts that include healthcare-related Special Item Numbers (SINs).
Government procurement officials said that being on a contract vehicle does not guarantee sales. It simply provides the "hunting license" necessary to market to individual facilities.
For more details on how these vehicles function, users can visit the USGov.News about page to learn more about our coverage of federal logistics.
Step 5: Engage VA and DoD Stakeholders
The final step involves direct engagement with the people who make purchasing decisions. This includes contracting officers, clinicians, and hospital administrators.
The VA's Office of Small and Disadvantaged Business Utilization (OSDBU) said it hosts regular outreach events. These "Industry Days" allow SDVOSBs to showcase their capabilities to program managers.
Within the DoD, each branch has its own small business office. The DHA Small Business Program Office said it provides guidance to firms looking to support military medical facilities.
Clinician education is particularly important in healthcare. Doctors and nurses at VA Medical Centers (VAMCs) must understand the clinical value of a product before they request it through their procurement office.
SDVOSB partners often lead these educational efforts by visiting facilities and providing demonstrations. They also navigate the "Value Analysis Committee" (VAC) process, which evaluates new products for hospital use.
Maintaining a strong past performance record is essential for long-term growth. The federal government said it prioritizes contractors with a history of reliable delivery and high-quality service.
By following these five steps, businesses can navigate the barriers to entry in the massive federal healthcare marketplace. Strategic SDVOSB partnerships remain the most effective way to align with the government's veteran-centric procurement goals.
