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Up to a 12% Procurement Preference, and Direct Awards to $100,000

A certified veteran-owned small business gets up to a 12% preference on state procurement — and the commissioner may award a contract to one outright, with no competitive solicitation, up to $100,000.

Verified August 22, 2026

What this benefit is

A certified veteran-owned small business gets up to a 12% preference on state procurement — and the commissioner may award a contract to one outright, with no competitive solicitation, up to $100,000.

What it's worth: Up to 12% on price, plus a direct-award route to $100,000

  • The statute says up to a 12 percent preference, but no less than the percentage awarded to any other group under the section — so the veteran preference cannot be undercut by another category.
  • The direct award is the quieter half and often the more useful one: a contract for goods, services or construction can go to a veteran-owned small business without a competitive solicitation at all, up to a total award value of $100,000 including extension options.
  • What either is worth depends on what you sell and how you bid.

Who is entitled to it

  • You served in the U.S. armed forces.
  • The discharge was honorable, or general under honorable conditions.
  • Your home is in Minnesota.

Not sure whether that describes you?

Answer a few questions about this benefit specifically — we only ask what this one actually depends on, and we stop as soon as we know.

How to claim it

  1. 1Certify first. The preference runs to a CERTIFIED small business that is majority-owned and operated by a veteran — an uncertified veteran-owned firm gets nothing at bid time.
  2. 2Expect the commissioner of veterans affairs to verify your veteran status under §197.447 before the certification is granted; that is a separate check from the business one.
  3. 3Ask about the direct award, not just the preference. Under $100,000, a buying agency can come straight to you, which is a different conversation from competing on price.
  4. 4The business must have its principal place of business in Minnesota to meet the small business definition the section uses.
File with
Minnesota Management and Budget / the Department of Administration, through the state’s certification process
Documents you will need
dd214
Periodic recertification
Certification is held and renewed with the state; keep the veteran verification current.
CorrectionThe figure to use is 12%, not 6%. Subdivision 6a now reads "up to a 12 percent preference, but no less than the percentage awarded to any other group under this section" — the older 6% figure is still quoted widely and is out of date.
Worth knowingVerification of veteran status runs through the commissioner of veterans affairs under §197.447 rather than through the purchasing side. A veteran whose service record is awkward should resolve that first, because it gates the certification.
Known gapSubdivision 6a speaks to veteran-owned small businesses. We did not find a separate service-disabled category in this section, so we do not publish one — a service-disabled veteran should ask whether the federal SDVOSB verification changes anything here.

Sources

Why only one source type: The statute carries the preference percentage, the direct-award ceiling, the certification requirement and the veteran verification in terms. The administering department’s vendor pages sit behind a bot filter that turned us away, so we cite the statute alone.

This finder provides an informational match, not a government eligibility determination. The responsible agency decides your application.