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Why one Should Enter into a Joint Venture with a SDVOSB

 An SDVOSB or Service-disabled Veteran Owned Small Business is just one of the multiple contracting assistance programs through the U.S that small businesses can take part in. Participation in any small business contracting program provides excellent benefits and opportunities for the company, and for this reason, HEPCO is grateful to be part of this veteran program.   

For an organization to receive an SDVOSB certification, a business must:  

  • Qualify as a Small Business  
  • Have at least 51% of the company Owned by a Service-Disabled Veteran.   
  • Have a Service-Disabled Veteran manage daily and long-term operations.   
  • Prove that one’s disability is related to previous military service.   

Due to their selective benefits, many companies want to enter a joint venture partnership with an SDVOSB.   

A joint venture partnership is when two companies work together to compete for the same contract. Partnering as a joint venture gives other qualified small businesses the ability to compete for set-aside contracts and develop a beneficiary relationship between the two companies. 

For companies curious about entering into a joint venture with a SDVOSB, here are five benefits of a joint venture agreement.   

1.Access to Set-Aside Contracts  

By entering into a joint venture agreement with an SDVOSB, as a partner company, you gain access to set-aside contracts that a company usually wouldn’t be able to gain access to without an SDVOSB certification. While the U.S Small Business Administration doesn’t go into too much depth about the contracts set aside, any contract under $150,000 will automatically be set aside for a small business.   

Additionally, there might be some sole-source contracts that one might be able to compete for.   

Overall, working with SDVOSBs in a joint venture opportunity gives one access to contracts and projects that they might have never been able to work on without the support of the SDVOSB.   

2. Shared Resources  

A common reason for going into a joint venture agreement is that one might need additional resources that they can only access by working with another company. In addition, according to the U.S Small Business Administration, some companies may be able to benefit from access to each other’s resources.  

Additionally, by pulling together one resource, all the parties involved can increase their potential to perform more work than they would have on their own. In addition to sharing, one’s resources, companies will also be able to split any costs that might be acquired by working together.   

While major companies will not have to worry about the limits of resources, a small business working in a joint venture is an excellent way for smaller companies to gain access to significant projects they couldn’t complete without a joint venture opportunity.    

3. Shared Expertise   

Another significant benefit of a joint venture recommended by the U.S. Small Business Administration is that working together allows one to share their expertise and knowledge on the federal contracting agency.   

By working with an SDVOSB, one is already working with an organization set up to work with the government. This includes having a profile in SAM.GOV, being assigned a DUNS number, and a NACIS code, which is needed for marketing one’s services to the federal government.   

A significant part of working with an SDVOSB is that they already know what is needed to win contracts in the federal contracting space. This includes knowing what needs to be on a Capabilities Statement, a SAM.GOV profile, and  the type of relationships and access to networking opportunities needed to gain a federal contract successfully.   

Furthermore, by working with another company, one can rely on a set of shared experiences and past performance that each company can rely on when creating a robust application for work.   

4. A Military Commitment  

By entering a joint venture with an SDVOSB, one gets to work with an esteemed group of individuals who abide by the values of “Integrity, Commitment, Advocacy, Respect, and Excellence.”   

As these four values represent the U.S Department of Veteran Affairs values, one can expect that by working with an SDVOSB, they will be working with an esteemed group of individuals who hold themselves to a high caliber.  

 These high expectations become carried over into their work. Therefore, one knows that working with an SDVOSB will provide a high level of service and quality work that one will have the pleasure of working with throughout the joint venture project.   

5. Relationship Building   

While the idea of one working on a joint venture is a temporary partnership, joint ventures allow one to develop long-term relationships. While the government contracting sector is heavily focused on relationships, working as part of a joint venture is a great way to start building a relationship with those in the federal contracting space. Therefore, even though working as part of a joint venture is temporary, it can provide long-term benefits, that will help one find repeat business in the federal contracting space.  


Overall, going into a joint venture with an SDVOSB allows one to enter the federal contracting space while working with others devoted to providing a spectacular service.

For companies who have decided to enter into a joint venture agreement, the next step is to find an SDVOSB to work with. The best places to start looking for an SDVOSB for entering a joint venture include researching companies on the Dynamic Small Business Search Database and the Veteran Business Database.   

As a small business going into the federal contracting space can be an arduous process that requires networking and taking on new challenges but entering the national contracting arena can be an enriching process.   


For anyone looking to enter into a joint venture agreement with HEPCO, please feel free to reach out to us through the Request Talent form or email us at Also, please follow us on LinkedIn to stay up to date with all of our latest news.