These suppliers play a crucial role in the healthcare ecosystem, especially when it comes to government contracting and ensuring equitable participation in federal procurement.
The SDVOSB designation is part of a broader federal SDVOSB hospital supplies initiative to support veteran entrepreneurs who have incurred disabilities in the line of duty. Managed by the U.S. Small Business Administration (SBA) and recognized by various federal agencies, the SDVOSB program aims to promote economic opportunities for veterans by prioritizing their businesses in the government procurement process. To qualify as an SDVOSB, a business must meet several criteria:
Ownership: At least 51% of the business must be owned by one or more service-disabled veterans.
Control: Day-to-day operations and long-term decision-making must be managed by one or more service-disabled veterans.
Small Business Status: The company must meet the SBA’s small business size standards, which vary by industry.
Role of SDVOSB in Hospital Supplies
Hospital supplies encompass a wide range of medical products including surgical instruments, personal protective equipment (PPE), diagnostic tools, IV systems, hospital beds, and much more. SDVOSB hospital supply businesses typically serve hospitals, clinics, nursing facilities, and especially VA hospitals, supplying them with critical equipment and goods. These businesses can operate as manufacturers, distributors, or resellers of medical supplies.
Given the federal government’s push to include veteran-owned businesses in its supply chain, SDVOSB hospital supply companies have access to special contracting opportunities. For instance, under the VA’s “Vets First” program, SDVOSBs are given first priority in VA contract awards for medical products and services.
Benefits of Working with SDVOSB Hospital Suppliers
There are numerous advantages to partnering with SDVOSB-certified hospital suppliers:
Government Contract Incentives: Federal agencies are mandated by law to award at least 3% of all prime contract dollars to SDVOSBs each year. This creates a structured pathway for these companies to secure substantial government contracts.
Supporting Veterans: Purchasing from an SDVOSB supports veterans who have served and sacrificed for the country, aligning procurement with social responsibility goals.
Streamlined Procurement Process: Many SDVOSBs are registered on government procurement platforms like SAM.gov, GSA Advantage, and FedMall, making it easier for government buyers to find and engage with them.
High Standards and Accountability: Most SDVOSB suppliers must comply with strict federal and healthcare industry standards, such as FDA regulations, ISO certifications, and quality control practices.
SDVOSB and the Department of Veterans Affairs
The VA, one of the largest healthcare systems in the U.S., heavily relies on hospital supply vendors. The VA Federal Supply Schedule (FSS) allows SDVOSBs to list their products and services, facilitating easier access to procurement professionals. Moreover, under the “Rule of Two,” the VA is required to award contracts to SDVOSBs when there is a reasonable expectation that two or more SDVOSBs will submit fair and reasonable offers.