In a recent post, we looked at the implications of BA OHA’s reasoning in In & Out Valet Co., SBA No. VSBC033-P, 2024 (June 12, 2024) on the full-time devotion requirement. Today we look at the impact of that case on another of SBA’s rules that has implications for both small businesses and for companies in the 8(a) Program, Women-Owned Small Business Program (WOSB), and the Service-Disabled Veteran-Owned Small Business Program (SDVOSB)–the ostensible subcontractor rule. The rule requires contractors not to rely too heavily on a subcontractor in the performance of a contract set aside under an SBA socioeconomic program. In practice, this standard may be confusing to a lot of hopeful contractors. What, after all, constitutes “undue reliance?” How reliant is too reliant? OHA’s reasoning in this recent decision helps clarify their application of the regulations, with results that may have far-reaching implications.
Continue readingCategory Archives: Service-Disabled Veteran-Owned Small Businesses
VOSB Program Possibly Expanding? Congress Takes Next Step Towards VOSB Expansion
The Veteran-Owned Small Business (VOSB) Program has long held a sort of unheralded position in SBA and federal contracting. Unlike its much more expansive counterpart, the Service-Disabled Veteran-Owned Small Business (SDVOSB) Program, the VOSB Program only allows for set asides for VOSBs for VA procurements (and even within VA SDVOSB companies are in a higher tier than VOSBs). In contrast, all agencies can set aside contracts for SDVOSBs. This has limited the desirability of admission to the program for many veteran owners, many of whom do not do work, that the VA needs. But things might be changing, as Congress has proposed a big step towards expanding what agencies can set-aside contracts for VOSBs.
Continue readingSBA Certify Portal Applications to be Paused
If you have ever looked into socio-economic certifications through the SBA or “set-asides” as some call them, you undoubtedly have run into SBA’s certify portal. It certainly is a big part of the small business federal contracting landscape, with likely massive numbers of site visitors a day. However, it will soon be updated, causing a pause on new applications very soon.
Continue readingGood Timing: SBA Decision on Full-Time Devotion Allows For Two Jobs if No Hours Overlap
There are multiple overlaps in SBA’s socioeconomic rules for the 8(a) Program, Women-Owned Small Business Program (WOSB), and the Service-Disabled Veteran-Owned Small Business (SDVOSB) Program. One in particular has often caused some confusion for our clients: the full-time devotion requirement. This rule generally requires that the service-disabled veteran owner (or equivalent key owner in the other programs) work full time for the company with the SDVOSB status. But what does this mean in practice, especially for start-up companies where the owner may be working a second job. A recent SBA decision sheds some light on the full-time devotion rule.
Continue readingUpdate: SBA Will Eliminate Remaining SDVOSB Self-Certification December 2024
As SmallGovCon readers may recall, SBA has already eliminated the ability to self-certify as a Service-Disabled Veteran-Owned Small Business (SDVOSB) for all prime contracting opportunities set aside for SDVOSBs. This change occurred January 1, 2024 and meant that self-certified SDVOSBs will no longer be eligible for set-aside and sole source contracts. We wrote about the change here. However, the rule change left in place the self-certification ability for self-certified SDVOSBS, but only for subcontracting purposes and government goaling purposes. This will be changing in December 2024.
Continue readingSBA Proposed Rule: Make WOSB, SDVOSB, and 8(a) Regulations More Consistent
If you ask any small business federal government contractor or their attorney for the top complaints about the regulations that apply to the Small Business Administration, inconsistency between the various programs is likely to show up on that list. At first glance, it seems the requirements are pretty standard across the board. However, when you dive deeper, you’ll likely notice that even though the requirements are similar, there are enough small differences in the language you can’t just assume that, say, a requirement for service-disabled veteran-owned small business (SDVOSB) is going to be the same for a woman-owned small business (WOSB) or an 8(a) Program participant.
The differences make it crucial to look at the specific regulations for the specific SBA program to ensure compliance. You can’t just assume that they are the same. Thankfully, it looks like the SBA has finally heard our cries for consistency with a recent Notice of Proposed Rulemaking, in which it attempts to align the WOSB Program with the new SDVOSB/VetCert Program and the 8(a) Program. And, as an added bonus, the beginnings of what appears to be a plan to make the WOSB certification process a bit easier if your business is already certified under either the 8(a) program or the SDVOSB program.
Continue readingSBA: Full-Time Devotion Still Matters for SDVOSBs
SBA’s Service-Disabled Veteran-Owned Small Business (SDVOSB) rules include one particular component dealing with the working hours of a service-disabled veteran owner of an SDVOSB business, often called the full-time devotion rule. SBA has recently reviewed its full-time devotion requirement in an SDVOSB protest, and found that the company in question did not establish that a service-disabled veteran met the requirement.
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