A Helpful Guide: The VA’s Memorandum on the New Certification System

As many of you likely already know, back in late 2020, Congress made two changes to the SDVOSB program when it passed the 2021 National Defense Authorization Act. First, all SDVOSBs will be required to certify with the government starting on January 1, 2023. Second, the responsibility for conducting SDVOSB certification will transfer from the VA’s Center for Verification and Evaluation (CVE) to the SBA. Seems simply enough, but, obviously, this raises some questions: What if a SDVOSB is already certified with CVE? How much time do self-certified SDVOSBs have to act? Will the CVE still be accepting applications in the meantime? Helpfully, the VA has produced some guidance, and in this post we’re going to expand on it.

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VA Contracting Officers May Now Use Veteran Employment Preferences in Competitive Acquisitions

Newcomers to the federal marketplace are often surprised when they learn that eligibility for the VA’s SDVOSB and VOSB preference programs are based on the status of the contractor’s owners–and have nothing to do with how many veterans the contractor employs.

While the SDVOSB/VOSB eligibility rules aren’t changing, VA Contracting Officers now have authority to give preference to offerors that employ veterans on a full-time basis. A new VA Acquisition Policy Flash provides guidance to VA Contracting Officers on implementing 38 U.S.C. 8129, a statute that took effect in January 2021 and provided Congressional authority for offering such a preference.

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Reminder: If Pricing is Too High, VA Rule of Two Might Not Apply

The VA Rule of Two, while a powerful motivator for setting procurements aside for service-disabled veteran-owned small businesses, does have its limits.

One of those exceptions was discussed in a recent ruling from the United States Court of Appeals for the Federal Circuit. The court confirmed that the VA may convert a service-disabled veteran-owned small business set-aside solicitation to a small business set-aside if the SDVOSB bids it receives are too high in price. 

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SDVOSB vs. AbilityOne: VA Violated Rule of Two Again, Court Says

A federal court has ruled that the VA violated the SDVOSB Rule of Two, as well as a more recent statute, by moving SDVOSB set-aside requirements to the AbilityOne program.

If you think you heard this before, you’re not going crazy or living your own personal Groundhog Day. The court’s ruling is just the latest in a long-running debate about how the VA should balance the SDVOSB and AbilityOne contracting preferences.

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Don’t Forget the Attachments: A Quick Reminder from SBA’s OHA

Did you remember to staple the cover sheet to your TPS report? And, more importantly, if you recently filed a CVE Appeal with the Small Business Administration’s Office of Hearings and Appeals, did you remember to attach a copy of your CVE denial or cancellation?

In OHA’s recent, and very short, decision, Joy Corporation, SBA No. CVE-155-A (Aug. 13, 2020), it reminded appellants that failure to do so will result in almost instant dismissal. To ensure you avoid this fate, read on.

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COFC Strikes a Blow to VA-Verified VOSBs and SDVOSBs

A few months ago, GAO confirmed that where VA uses GPO as its buying agent, it still must to comply with the Rule of Two in 38 U.S.C. 8127(d) (see our blog post on the case ). After VA took corrective action, however, another bid protest was again filed, but this time in the Court of Federal Claims.

Surprisingly, there, the Court concluded differently, finding that GPO was not required to set aside the procurement for SDVOSBs or VOSBs, despite acting on VA’s behalf. In so doing, it has weakened the Rule of Two.

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VA Agrees that Rule of Two Has Priority Over AbilityOne Procurement List

Statute A tells you to solve Problem X one way. Statute B tells you to solve Problem X a completely different way. How do you reconcile these two conflicting mandates? The Federal Circuit encountered this exact problem in 2018, and in response to its holding, the VA has now issued a class deviation to reflect its decision, confirming that the Rule of Two has priority over the AbilityOne Procurement List.

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