In Kingdomware Technologies, Inc. v. United States, the U.S. Supreme Court will answer a critical question: does the VA have to prioritize SDVOSBs and VOSBs in federal contracting?
As SmallGovCon readers know, I have been critical of the VA’s contention that it need not prioritize SDVOSBs and VOSBs. Now, I have gone a step further. Together with my colleagues at Koprince Law LLC, I have filed an amicus brief with the U.S. Supreme Court, asking the Court to overturn the lower court’s decision and rule in favor of veterans.
Want to read our full amicus brief? Glad you asked–just click here.
The VA’s decision not to issue a SDVOSB set-aside was improper because the VA adopted an unreasonably narrow approach to determining whether two or more SDVOSBs were likely to submit proposals.
In a recent bid protest decision, the GAO held that the VA’s narrow market research did not support its set-aside determination. And in so holding, the GAO reaffirmed its position that the VA must put “veterans first” in federal procurements.
Later this year, the Supreme Court will take up the case of Kingdomware Technologies, Inc. v. United States. The Court will decide whether the U.S. Court of Appeals for the Federal Circuit was correct to find that the VA need not give SDVOSBs and VOSBs a contracting preference so long as the VA is meeting its SDVOSB and VOSB goals.
If you follow SmallGovCon, you know my position: I think the Federal Circuit’s ruling was fundamentally flawed. Last week, I spoke with Francis Rose of Federal News Radio about the case. Click here to listen to my interview with Francis, and be sure to tune in to In Depth With Francis Rose weekdays from 4:00 p.m. to 7:00 p.m. Eastern on Federal News Radio.
Is the Department of Veterans Affairs required to prioritize service-disabled veteran-owned small businesses (“SDVOSBs”) when it buys supplies and services? That, essentially, will be the question before the Supreme Court when it takes up the case of Kingdomware Technologies, Inc. vs. United States. On June 22, the Supreme Court agreed to hear the case.
The Supreme Court’s decision in Kingdomware will end a long-running battle between the VA and various SDVOSBs, which have accused the VA of creating loopholes to avoid a statutory contracting preference for veterans. Hopefully, the Court will get it right. As a matter of policy and law, the underlying decision of the U.S. Court of Appeals for the Federal Circuit is fundamentally flawed.
The government has accused a service-disabled veteran who was employed full-time as a U.S. Postal Service Carrier is accused of being a “rent-a-vet” used to obtain contracts for his brother’s company.
According to a Department of Justice press release, a grand jury has indicted both men, as well as a business partner for SDVOSB fraud–and all three face the potential of significant jail time.
A contractor has agreed to pay the government $1 million–and to dissolve as an ongoing entity–to resolve allegations that it falsely claimed SDVOSB status in order to receive VA SDVOSB set-aside contracts.
According to a government press release, the settlement comes after VA investigators alleged that the company’s non-veteran partner made all important corporate decisions, while the service-disabled veteran partner spent much of his time away from the company.
Even if the VA Center for Verification and Evaluation has found that a service-disabled veteran “unconditionally” controls a SDVOSB, the SBA may nonetheless determine that other individuals or entities also control the company within the meaning of the SBA’s affiliation rules.
As demonstrated by a recent decision of the SBA’s Office of Hearings and Appeals, VA CVE verification does not shield a SDVOSB from an adverse SBA affiliation determination, even if that determination is based on a finding that non-veterans control the company.