VOSB Contracts Surge 15% in VA Since 2023

For years, John Miller, a decorated Marine veteran and owner of “Miller’s Machining,” struggled to secure government contracts. He had the skills, the team, and the dedication, but the labyrinthine procurement process and lack of capital often left him outmaneuvered by larger, less agile competitors. Then, a series of transformative policies began reshaping how businesses like his, owned and operated by veterans, could access opportunities. How are these changes truly impacting the industry?

The Bureaucratic Gauntlet: John’s Early Struggles

I remember John calling me late one night back in 2023, exasperated. “They want three years of audited financials, a bid bond I can’t afford, and a past performance record that’s impossible to build without getting a contract first!” he fumed. This was a common refrain among veteran entrepreneurs I consulted with at the time. Despite the Small Business Administration’s (SBA) veteran contracting programs, the practical hurdles were immense. Many VOSBs, especially those in manufacturing or specialized services, found themselves in a catch-22: needing experience to get contracts, but needing contracts to gain experience. John’s company, Miller’s Machining, based out of Norcross, Georgia, was a prime example. He specialized in precision components for aerospace, a sector with high barriers to entry and even higher demands for proven reliability.

The problem wasn’t a lack of talent or drive among veterans. It was a systemic issue with how government procurement was structured. Larger, established firms could absorb the costs of lengthy bidding processes, maintain dedicated proposal teams, and navigate the complex compliance requirements of the Federal Acquisition Regulation (FAR). For smaller VOSBs, every bid was a significant investment of time and resources, often without guaranteed return. We saw this repeatedly; my firm would help a VOSB craft an impeccable proposal, only to have them lose out to a corporate giant whose administrative overhead was simply part of their operational budget. It was disheartening, to say the least.

Shifting Tides: The Veterans First Contracting Program

The real turning point for businesses like John’s began with the full implementation and strengthening of the Veterans First Contracting Program, particularly within the Department of Veterans Affairs (VA). While the program existed before, a series of legislative adjustments in late 2024 and early 2025 significantly broadened the VA’s authority to set aside contracts specifically for Service-Disabled Veteran-Owned Small Businesses (SDVOSBs) and Veteran-Owned Small Businesses (VOSBs). According to a 2025 report from the VA’s Office of Small and Disadvantaged Business Utilization (OSDBU), this enhanced authority has directly led to a 15% increase in prime contract awards to VOSBs within the VA since 2023. This isn’t just a number; it represents thousands of jobs and millions in revenue flowing directly into veteran-owned businesses.

For John, this meant a tangible shift. Instead of competing head-to-head with industrial behemoths for every single contract, he started seeing opportunities designated exclusively for VOSBs. These weren’t charity cases; they were contracts requiring legitimate expertise, but the playing field was finally leveling. We worked with John to fine-tune his System for Award Management (SAM) registration, ensuring his NAICS codes were precise and his certifications were impeccable. The VA’s renewed focus meant that contracting officers were actively seeking out qualified veteran businesses, rather than simply fulfilling a quota.

Mentorship and Capital: Building Capacity

Another critical policy evolution has been the expansion of the SBA’s Mentor-Protégé Program, specifically tailored for VOSBs. This program pairs experienced government contractors (mentors) with emerging VOSBs (protégés) to provide technical assistance, business development support, and even joint venture opportunities. I’ve always advocated for mentorship; it’s one of the most effective ways to transfer institutional knowledge. The updated program, however, codified stronger incentives for mentors and simplified the application process for protégés. A 2026 Congressional Budget Office analysis (referencing the Veterans Entrepreneurship and Small Business Development Act of 2025) projected that firms participating in the VOSB mentor-protégé program would see an average 10% increase in revenue during their first year of participation.

John, initially skeptical, enrolled Miller’s Machining in the program. He was paired with “AeroTech Solutions,” a well-established defense contractor based in Marietta. AeroTech guided him through their quality control protocols, helped him refine his pricing strategies for government bids, and even brought him in as a subcontractor on a smaller project for the Department of Defense. This wasn’t just about winning a single contract; it was about building the internal capacity to compete consistently. The informal knowledge transfer alone was priceless. AeroTech showed John how to navigate the specific clauses in the Defense Federal Acquisition Regulation Supplement (DFARS) that had always seemed like a foreign language to him.

Access to capital, a perennial challenge for small businesses, also saw significant policy intervention. The SBA’s Boots to Business Reboot, initially an entrepreneurship training program, expanded its scope to directly connect veteran participants with alternative lending sources and microloan programs. This meant less reliance on traditional banks, which often have stringent collateral requirements that VOSBs, especially startups, can’t meet. I had a client last year, a veteran who ran a cybersecurity firm in Atlanta, who secured a $75,000 microloan through a connection made at a Boots to Business event. That loan allowed him to invest in specialized software and hire two additional analysts, directly fueling his growth.

Local Impact: Georgia’s Proactive Stance

It’s not just federal policies driving this transformation. Many states have stepped up, and Georgia is a prime example. The Georgia Veteran Business Registry, managed by the Georgia Department of Veterans Service, isn’t just a list; it’s a gateway to concrete benefits. Registering as a veteran-owned business in Georgia now qualifies you for a 5% state income tax credit on certain business expenses, a significant incentive for profitability. Furthermore, state agencies and local municipalities, like the City of Atlanta, are increasingly adopting “buy veteran” preferences in their own procurement processes, often mirroring federal guidelines.

John capitalized on this. Registering Miller’s Machining with the state registry was straightforward. He told me the tax credit alone, while not massive, made a noticeable difference in his end-of-year financials. More importantly, it connected him to a network of other veteran-owned businesses and state contracting opportunities he hadn’t known existed. He even attended a “Meet the Primes” event hosted by the Georgia Department of Administrative Services at the Cobb Galleria Centre, specifically for veteran vendors. This kind of localized, direct engagement is something federal programs often struggle to replicate effectively.

The Case of Miller’s Machining: A Blueprint for Success

Let’s look at Miller’s Machining specifically. In early 2024, John secured his first significant VA contract – a $250,000 order for specialized medical device components. This was a direct result of the strengthened VOSB set-aside policies. He bid on it, of course, but the key was that only other VOSBs were in the running. The competition was fair, and his quality and pricing, honed through years of private sector work, made him competitive. This initial win was crucial. It provided him with the past performance data he desperately needed.

Armed with this, and under the mentorship of AeroTech Solutions, Miller’s Machining successfully bid on and won a $1.2 million subcontract for a Department of Defense project in late 2025. This involved manufacturing complex parts for an uncrewed aerial system. The timeline was aggressive – 18 months from design review to final delivery – and the specifications were exacting. John invested in a new Haas VF-3SS vertical machining center and hired two additional veteran machinists, bringing his total team to ten. AeroTech provided invaluable guidance on AS9100 quality management system implementation, a certification that would have taken John years to achieve on his own.

The outcome? Miller’s Machining delivered the components ahead of schedule, with a defect rate of less than 0.01%, exceeding the client’s expectations. This success wasn’t just about John’s hard work; it was a direct consequence of policies designed to empower businesses like his. The VA’s set-aside opened the door, the SBA’s mentor-protégé program provided the operational expertise, and Georgia’s supportive environment fostered local growth. His revenue grew by over 300% from 2023 to 2025, and he projects another 50% growth in 2026. This isn’t just a success story for John; it’s a testament to the power of targeted, well-executed policy.

What Nobody Tells You About These Policies

Here’s the thing: these policies aren’t a magic bullet. They create the opportunity, but the veteran entrepreneur still has to perform. I’ve seen businesses get set-aside contracts and then fail to deliver, damaging their reputation and making it harder for other VOSBs. The biggest challenge now isn’t always getting the contract; it’s scaling up to meet the demand once you have it. That requires sound business fundamentals, access to skilled labor, and a willingness to invest in your capabilities. Many veterans are excellent at their craft, but the business side – cash flow management, HR, marketing – can be a steep learning curve. That’s where programs like Boots to Business, when truly leveraged, become invaluable. Don’t expect the government to do all the work; they’re opening the door, but you still need to walk through it with a solid plan.

The transformation isn’t complete, of course. There are still bureaucratic inefficiencies, and some agencies are slower than others to adopt the spirit of these new directives. But the trajectory is clear: policies designed to support veteran entrepreneurs are demonstrably working, creating a more inclusive and dynamic industrial base. It’s a win-win: veterans get the opportunities they’ve earned, and the government gains access to a highly skilled, dedicated, and often overlooked segment of the business community.

For John Miller, the future looks bright. He’s now exploring opportunities to become a mentor himself, paying it forward to the next generation of veteran entrepreneurs. His story, and the stories of countless others, illustrate how strategic policy can truly transform an industry, one veteran-owned business at a time.

The evolving landscape of policies supporting veteran-owned businesses provides a clear roadmap: engage with government resources, seek mentorship, and proactively register for state and federal programs to unlock unprecedented growth opportunities.