Category Archives: Service-Disabled Veteran-Owned Small Businesses

VA CVE: SDVOSB Reconsiderations Taking 128 Days

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Did your company file a request for reconsideration of a VA CVE SDVOSB verification denial?  If so, be prepared to wait awhile–approximately 128 days, according to a recent VA CVE email.

The email, which was sent to a number of SDVOSBs and VOSBs (and kindly shared with me) indicates that the VA CVE is currently processing approximately 300 requests for reconsideration.  As a result, the VA CVE says, the time frame to process a request for reconsideration is now more than double the regulatory goal of 60 days.

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After Successful 8(a) Appeal, Veteran-Owned Firm Gains 8(a) Certification

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After prevailing in its SBA OHA 8(a) appeal, a St. Louis-based communications and electrical construction contractor has been certified as a participant in the SBA’s 8(a) program.

The SBA’s decision to certify Innovet, Inc. shows the importance of pursuing an appeal of an unreasonable SBA 8(a) denial–and offers hope that the SBA is learning from its recent string of defeats at SBA OHA.

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VA CVE Announces “Pre-Determination Findings” To Improve SDVOSB Verification

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The VA Center for Veterans Enterprise will soon begin giving some applicants the opportunity to correct problems with their SDVOSB verification applications before denying their applications.

In a letter sent yesterday to a number of SDVOSB advocates, VA OSDBU Executive Director Thomas Leney announced that the VA CVE’s new “pre-determination findings” program will launch on May 1, 2013.  If the new program works as intended, it could significantly reduce the number of SDVOSBs requesting reconsideration, lead to quicker verifications, and reduce the backlog of verification applications.

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SDVOSB Eligibility Not Affected By Ownership Transfer Restriction, Says Federal Court

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As many service-disabled veteran-owned small businesses have discovered, the VA CVE believes that so-called “right of first refusal” provisions prevent veterans from freely selling or transferring their ownership interests.  Because such transfer restrictions are commonplace in standard corporate bylaws and operating agreements, countless SDVOSBs have been denied VA CVE verification for including them.

Those days may be over.

In a decision released to the public late last week, the U.S. Court of Federal Claims held that the VA OSDBU had erred by sustaining a SDVOSB eligibility protest on the basis of the company’s right of first refusal provision.  That decision, Miles Construction, LLC v. United States, No. 12-597C (2013), also includes other important rulings on the scope of “unconditional” ownership and the VA OSDBU’s evaluation of SDVOSB eligibility protests.

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A Slap On The Wrist? Contractor Avoids Jail Time For SDVOSB Fraud

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A man who lied about being a service-disabled veteran–and received nearly $6 million in VA SDVOSB set-asides–will not spend a single day in jail.

According to a Department of Justice press release, the man in question, John Witty, was sentenced to a fine, probation, and community service.  Yes, Witty’s wallet will be lighter, and maybe there were extenuating circumstances not evident from the press release–but the lack of jail time seems a tad generous.

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VA CVE Verification: Federal Court Rules Veteran Can “Control” SDVOSB Remotely

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In an important decision impacting many SDVOSB verification applicants, the U.S. Court of Federal Claims has held that the VA’s SDVOSB regulations did not prevent a service-disabled veteran from controlling his company remotely.

In KWV, Inc. v. United States, No. 12-882C (2013), the Court held that a veteran could control his Rhode Island-based construction company by electronic means, even though the veteran spent half of the year residing in Florida.

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VA SDVOSB Reconsideration Success Rate At 48%–And Other Highlights From The GAO SDVOSB Report

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VA SDVOSB reconsideration requests were approved in 48% of cases resulting in a decision, according to a GAO report released on Monday.

In the lengthy report, which weighs in at 63 pages, the GAO broadly concludes that the VA CVE has made progress when it comes to the verification of SDVOSBs, but has a ways to go in order for the SDVOSB verification process to be quick, effecient and effective.

This broad conclusion is not in the least bit surprising to anyone who has followed the evolution of the VA SDVOSB verification program.  However, the report is also packed with a great deal of interesting information about SDVOSB verification at the VA–including statistics on applications, reconsideration success rates, and more.

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