Service-Disabled Veteran-Owned Business Preference

Michigan has a special commitment to veterans with service-connected disabilities who bid on State of Michigan contracts.

Under Public Act 91 of 2005, businesses owned by qualified service-disabled veterans get up to a 10 percent pricing preference.

  • "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.

PA 91 also establishes a goal of awarding 3 percent of total state expenditures for goods, services, and construction to qualified service-disabled veteran-owned companies. PA 133 of 2008 has now raised that goal to 5 percent.

The DTMB-Procurement SDVOB Memo explains the application of the pricing preference.

Review the DTMB Central Procurement SDVOB Fact Sheet for commonly asked questions.

Review the Legislative Report: State Contracting with Businesses Owned by Qualified Disabled Veterans, FY2017


If you have questions, please contact:
Craig Terrill
Phone: 517-388-6012

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