Veterans Technology Services (VETS)

VETS (Veterans Technology Services) is a GSA-administered Government-Wide Acquisition Contract (GWAC) for IT services, set aside exclusively for service-disabled veteran-owned small businesses (SDVOSBs).

What Is VETS?

VETS (currently VETS 2) is a GSA-administered multiple-award GWAC for IT services. The vehicle is exclusively set aside for service-disabled veteran-owned small businesses, meeting the SDVOSB definition under 13 CFR 125.

Federal agencies use VETS to compete and award task orders for IT services within the VETS scope, with task orders evaluated and awarded by the requesting agency through GSA's GWAC processes.

VETS provides agencies with: SDVOSB credit toward federal SDVOSB goals; streamlined IT services procurement; pre-qualified SDVOSB pool; and standardized contract terms. For SDVOSB contractors, VETS provides: substantial federal contracting access, lower competitive pressure (only 70 contractors), and clear path to multi-million-dollar task orders.

Key Characteristics

VETS has several defining attributes. It is exclusively SDVOSB: only service-disabled veteran-owned small businesses can hold VETS contracts.

It is multiple-award: 70 contractors compete for task orders. It is GSA-administered: GSA manages the GWAC structure; agencies execute task orders.

It is IT-focused: scope covers IT services across all federal use cases. It is fee-based: GSA charges a Contract Access Fee (CAF) of 0.75% on task order revenue (passed through to the using agency).

It contributes to SDVOSB goals: federal agencies count VETS task order spend toward their SDVOSB participation goals. Each characteristic shapes how SDVOSB contractors compete for and execute VETS task orders.

How It Works in Government Contracting

VETS operates on the standard GWAC multiple-award task order cycle. First, a federal agency identifies an IT services requirement and decides to use VETS for the procurement (often because SDVOSB sourcing supports the agency's participation goals).

Second, the agency works with its GSA acquisition liaison to develop the task order solicitation, which is then released to all 70 VETS contractors. Third, contractors evaluate the opportunity, prepare task order proposals, and submit them by the deadline.

Fourth, the agency evaluates the proposals based on the task order evaluation criteria (typically technical, past performance, price), conducts discussions if needed, and selects the awardee. Fifth, the awardee performs the task order under the underlying VETS IDIQ terms plus task-order-specific terms.

Sixth, at task order completion, normal closeout applies; VETS task order CPARs contribute to the contractor's federal track record. GSA monitors overall VETS contract utilization and reports SDVOSB participation to OMB.

Real-World Example

A federal agency needs cybersecurity assessment services for a major IT system, with an estimated value of $8 million over three years. The agency's small business representative recommends using VETS to support the agency's SDVOSB goals.

The agency's contracting officer works with GSA to develop the task order solicitation. The solicitation is released to all 70 VETS contractors with a four-week response period.

Twelve contractors submit proposals. The agency evaluates them against the task order criteria (cybersecurity technical approach, past performance, price), conducts discussions with the top three, and selects the offeror with the strongest combination of factors.

The awarded SDVOSB performs the cybersecurity assessment over three years, delivering quarterly reports and an annual security posture review. The task order earns a Very Good CPARS rating, which the contractor cites in subsequent VETS task order competitions.

Over the contractor's VETS contract life, this kind of task order accumulation builds a track record that supports both VETS recompete positioning and broader federal contract pursuits.

Regulatory Framework

VETS is governed by the underlying GWAC contract terms (issued by GSA) and by FAR Part 16 (Types of Contracts), particularly FAR 16.5 (Indefinite-Delivery Contracts). Task orders under VETS are governed by FAR 16.505 (Ordering).

SDVOSB eligibility is governed by FAR Subpart 19.14 (Service-Disabled Veteran-Owned Small Business Procurement Program) and 13 CFR 125. Contractors must self-certify SDVOSB status in SAM.gov and (for VA-funded work) register with the VA Center for Verification and Evaluation.

VETS scope and rate sheets are codified in the master GWAC contract terms. GSA charges a Contract Access Fee of 0.75% under FAR 8.4 (Federal Supply Schedules). Bid protests of VETS task orders are governed by FAR 33.103 and the multiple-award IDIQ protest jurisdiction in 10 USC 2304c.

Why It Matters for Contractors

VETS is the largest dedicated SDVOSB IT contract vehicle in the federal market. For service-disabled veteran-owned small businesses with IT capabilities, holding a VETS seat is one of the most valuable federal contracting assets available.

VETS engagement interacts with SDVOSB certification (the eligibility foundation), with set-asides (VETS is a 100% SDVOSB set-aside vehicle), with the broader Government-Wide Acquisition Contract landscape (Alliant, CIO-SP3, etc.), with past performance (VETS task order CPARs strengthen positioning for both VETS recompetes and broader pursuits), and with Veteran-Owned Small Business classifications. Contractors that win VETS task orders consistently build the track record needed for the next-generation VETS contract (VETS 3 is anticipated) and for other large federal contract vehicles.

Common Misconceptions

VETS is open to all veteran-owned businesses.

No. VETS is exclusively set aside for service-disabled veteran-owned small businesses (SDVOSBs). Veteran-owned businesses that are not SDVOSBs (or that exceed small business size standards) cannot hold VETS contracts.

Holding a VETS seat guarantees task order awards.

No. VETS provides eligibility to compete for task orders. Each task order is competitively awarded; the seat is the entry point, not a guarantee of work.

VETS task orders are smaller than other GWAC task orders.

No. VETS task orders can range from small (under $1 million) to large (over $50 million). The vehicle has a $5 billion overall ceiling and supports task orders across the full IT services scope.

Frequently Asked Questions

Who is eligible to hold a VETS contract?

Service-disabled veteran-owned small businesses (SDVOSBs) that meet the size standard for the relevant NAICS codes and that successfully competed in the most recent VETS recompetition. New entry to VETS occurs only through recompete cycles.

What is the difference between VETS 1 and VETS 2?

VETS 1 was the original Veterans Technology Services GWAC (2007-2018). VETS 2 is the current vehicle (2017-2027 with options), with 70 awarded contractors and a $5 billion ceiling. VETS 3 is anticipated to follow.

How does the Contract Access Fee work?

GSA charges 0.75% of task order revenue on VETS, paid by the using agency (typically built into the task order pricing). The CAF funds GSA's GWAC administration. The fee is similar to GSA Schedule Industrial Funding Fees.

Are VETS task orders subject to bid protest?

Yes, subject to the multiple-award IDIQ protest rules under FAR 33.103 and 10 USC 2304c. Protests can be filed at GAO for task orders above defined thresholds.

How LotusPetal AI Helps

LotusPetal AI's capture and proposal automation platform helps federal contractors manage VETS task order capture, SDVOSB compliance, and multi-vehicle pursuit with the same discipline as the largest primes. The platform combines compliance automation, AI-assisted proposal drafting, and structured capture workflows so teams capture the right opportunities, write compliant proposals, and protect their win rate.

Related Government Contracting Terms: Service-Disabled Veteran-Owned Small Business · Veterans Technology Services Government-Wide Acquisition Contract · Veteran-Owned Small Business · Set-Aside · Past Performance