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Service-Disabled Veteran-Owned Business Preference

Black and white photo of an eagle sculpture that sits atop the war memorial on the Capitol building lawn in Lansing, Michigan
Department of Technology, Management and Budget

Service-Disabled Veteran-Owned Business Preference

About the SDVOB Preference

The State of Michigan has a special commitment to veterans with service-connected disabilities who bid on State of Michigan contracts. Per Public Act 91 of 2005 businesses owned by qualified service-disabled veterans get up to a 10% pricing preference when bidding on State of Michigan projects.

How to Claim the SDVOB Preference

The SDVOB pricing preference is claimed when bidding on a State of Michigan contract. To request the SDVOB pricing preference you must indicate that your company is an SDVOB in your bid response and provide required documentation:

  • Proof of service and conditions of discharge: DD214 or equivalent.
  • Proof of service-connected disability: DD214 if the disability was documented at discharge or Veterans Administration (VA) Rating Decision Letter (or equivalent) if the disability was documented after discharge.
  • Proof of Ownership: Appropriate legal documents setting forth the ownership of the business entity.

Alternatively, the state will accept a National Veterans Business Development Council (NVBDC) certification as verification of eligibility, provided certain conditions are met. 

NOTE: The state does not pre-certify businesses as SDVOBs and does not use the federal CVE database. For more detailed information review the SDVOB Preference Fact Sheet.

SDVOB Preference Definitions

Service-Connected Disability 
Service-Connected Disability is defined as a disability incurred or aggravated in the line of duty in the active military, naval, or air service as described in 38 USC 101(16).

Qualified means a business entity that is 51 percent or more owned by one or more veterans with a service-connected disability.

SDVOB Program Goals

Public Act 133 of 2008 establishes a goal of awarding 5% of total State expenditures for goods, services, and construction to qualified service-disabled veteran-owned companies. PA 91 of 2005 previously established a 3% goal.

SDVOB Preference Resources

A nonprofit organization located in mid-Michigan, VetBizCentral serves the entire state as well as northern parts of Indiana and Ohio with a wide array of free business support services exclusively for veterans.

National Veterans Business Development Council (NVBDC)
The NVBDC provides a third-party veteran-owned business certification program.

Michigan Veterans Affairs Agency
Serves as the central coordinating point to connect Michigan veterans and their families with services and benefits throughout the state.

Procurement Technical Assistance Centers (PTACs)
PTACs of Michigan are regional nonprofit organizations that assist Michigan businesses in obtaining federal, state, and local government contracts.

SDVOB Preference Contact Info

Craig Terrill
Communications Specialist
State of Michigan Procurement
Phone: 517-388-6012