GAO Sides with VA, Joint Venture Must Be SDVOSB Eligible at Time of Award

Here at SmallGovCon, we spend a lot of time studying (and talking about) the various small business federal set-aside programs. As a result, a lot of our focus is dedicated to SBA’s regulations governing these programs—after all, it is the agency that was created by the Small Business Act to issue and implement precisely these regulations. So, it may be tempting for small business federal contractors to focus on those SBA rules and think, so long as they have complied with all the nuances they contain, their business is eligible for these sorts of set-aside contracts.

As one joint venture recently found out the hard way, however, other agencies have their own unique sets of regulations that can impact set-aside contracts as well. One such agency is the Department of Veterans Affairs (VA), which has its own body of rules governing VA procurements—the Veterans Affairs Acquisition Regulation (“VAAR”). One of the programs that the VA implements is the Veterans First Contracting Program (“Vets First”), which interacts quite a bit with SBA’s SDVOSB program. As a result of the overlap, potential offerors on VA contracts set aside for SDVOSBs must ensure they comply with both VA and SDVOSB regulations, and this is where the protester in Potomac Valor Healthcare-2, LLC, B-423195.2 (Aug. 12, 2026) ran into trouble. GAO’s decision in the case sheds some light on the way VA’s specific requirements create additional obligations for SDVOSB joint ventures, and serves as a cautionary tale to other prospective offerors who may find themselves in a similar situation. In short, the protester was SDVOSB compliant and registered in VetCert at the time of offer, but erroneously believed that it did not have to maintain that same level of compliance at the time of award. GAO found that, as the SDVOSB partner of the joint venture was no longer small at the time of award (a fact reflected in VetCert), the JV could not receive the award.

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Timing is Everything: The Key to Timely SDVOSB Status Protests

When filing a Service-Disabled Veteran Owned Business (SDVOSB) status protest, timing is critical. A single missed deadline may be the difference between a successful protest and a protest that is never heard. Missing established filing deadlines can result in your protest being dismissed, regardless of how compelling your arguments are. The Small Business Administration (SBA) will enforce these timing rules strictly. In particular, can a contractor ask the agency to simply investigate a company for SDVOSB compliance? And does such a request need to meet the timing requirements? A recent OHA decision answers these questions.

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GovCon FAQs: Should I Apply Simultaneously for All SBA Statuses I’m Eligible For?

In September 2024, following a temporary application and system pause, SBA switched over to a new, streamlined and unified application portal. Now, applications for the SBA’s 8(a) Program, HUBZone Program, Veteran-Owned Programs, and Woman-Owned Programs all go through MySBACertifications.Gov. Unlike prior portals and procedures, through this one, those eligible have the option to apply for multiple SBA small business contracting programs simultaneously. But the question is, what are the potential risks and benefits of doing so?

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Skin of its Teeth: Mentor-Protégé Joint Venture Survives SDVOSB Status Protest Despite Missing Required Provisions in Joint Venture

For the most part, the rules on joint ventures under SBA are very similar. the various regulations for small business, 8(a), SDVOSB, WOSB, and HUBzone joint ventures are so similar in fact that they are almost identical. But they are not perfectly identical. There are a few quirks that distinguish the regulations from the others, and one such quirk can cost contractors dearly if they are not careful. In today’s post, we will review an SBA Office of Hearings and Appeals (OHA) case in which one SDVOSB nearly fell victim to this quirk to show what this quirk is, and how you can avoid the same.

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OHA Reminder: Compliance with SBA Joint Venture Requirements is Determined at Final Proposal Revisions

In most size and status protests, SBA’s Office of Hearings and Appeals (OHA) will determine an offeror’s eligibility for a procurement as of the date of initial offer including price for that procurement. Indeed, with regards to SDVOSBs and VOSBs specifically, 13 C.F.R § 134.1003(e)(1) states that “[i]f the VOSB or SDVOSB status protest pertains to a procurement, the Judge will determine a protested concern’s eligibility as a VOSB or SDVOSB as of the date of its initial offer or response which includes price for a competitively awarded VOSB/SDVOSB contract, order, or agreement, and as of the date of award for any sole source VOSB or SDVOSB award.” But there is an important exception to this rule (something another company found out regarding its mentor-protégé joint venture recently) in that very clause, and, recently, OHA pointed this out in a GSA-led protest of an SDVOSB joint venture (VSBC-459-P, January 15, 2026). Today, we’ll look at that decision.

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Back to Basics: SDVOSB Program Eligibility

Recently, SBA’s VetCert Program announced that it had gotten through its backlog, meaning that the system has returned to normal, so to speak. With this in mind, many new service-disabled veteran-owned small businesses (SDVOSBs) no doubt are looking at getting into the SDVOSB program. Indeed, some of you reading this may be the owners of some of those businesses. Considering that we just looked at an SDVOSB appeal regarding the control requirements for an SDVOSB, today, we’re going to go further and provide a general rundown of the SDVOSB Program to update our past post on this topic.

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OHA SDVOSB Appeal: Voting Provisions Scuttle Veteran Control

In a recent decision, SBA’s Office of Hearings and Appeals (OHA) emphasized the importance of a careful reading and complete understanding of the control and ownership requirements for Service-Disabled Veteran Owned Small Businesses (SDVOSBs). This decision provides contractors with an excellent opportunity to brush up on SBA’s control rules regarding qualifying and non-qualifying owners. As the appellant found out in this case, while it may seem to some at first glance that simple majority ownership by the service-disabled veteran is enough to meet SDVOSB requirements, voting provisions matter as well. Failure to keep in mind all aspects of SDVOSB requirements could lead to a denial of SDVOSB status. Let’s take a look at the language of the regulation in question, and how this case illustrates the potential consequences of overlooking a critical item in an otherwise-compliant application for SDVOSB certification. 

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