The standoff between the VA and the GAO over the VA’s use of the Federal Supply Schedule without putting “Veterans First” continues. This week, Michigan-based Aldevra–the SDVOSB company at the center of the battle–won another bid protest at the GAO.
Category Archives: Service-Disabled Veteran-Owned Small Businesses
VA CVE: Reconsideration Decisions Will Take 90 Days, Not 60
A decision on a request for reconsideration of a denied SDVOSB verification application will take approximately 90 days instead of 60 days, according to the VA Center for Veterans Enterprise. In a letter emailed recently to one service-disabled veteran, who authorized me to publish an excerpt on SmallGovCon, the VA CVE stated:
The regulation, 38 CFR 74, states that CVE has 60 days, when practicable, to make a final decision associated with the request for reconsideration. Unfortunately we have received an exceptionally large number of requests for reconsideration, and currently almost 600 applications are in the reconsideration process. As a result, it is no longer practicable to process these within 60 days. Historically, 20% of companies receiving an initial denial are requesting reconsideration. We have shifted and added resources in an effort to speed up the process. In order to be fair to all applicants, we continue to process all requests for reconsideration on a first come, first served basis. We currently estimate that we will be able to provide a decision within 90 days of receiving the request for reconsideration, so you can expect a decision no later than [date redacted]. As soon as we can give you a better estimate of the timeframe for decision, we will do so.
It is little wonder that the VA CVE is experiencing reconsideration overload, because the VA CVE is denying 60% of initial SDVOSB verification applications. I am sympathetic to the VA CVE’s overworked employees, but I have much more sympathy for the eligible service-disabled veterans who will suffer from the reconsideration delays.
VA CVE Rejecting 60% Of New SDVOSB Verification Applications
The VA’s Center for Veterans Enterprise is rejecting about 60% of initial SDVOSB verification applications, according to Thomas Leney, the VA OSDBU Executive Director. Leney gave the figure in testimony before the House Veterans Affairs Subcommittees on Oversight and Investigations and Economic Opportunity on Friday, August 3.
In an excellent piece on Federal News Radio’s website, reporters Esther Carey, Ruben Gomez and Jared Serbu offer some other interesting insights from Leney’s testimony–including the incredibly broad definition of “unconditional” ownership and control used by the CVE.
SBA OHA: Not The Place To “File” A SDVOSB Protest
For small government contractors, SBA size and eligibility issues are of critical importance. Recognizing this, the SBA provides an independent forum–the SBA Office of Hearings and Appeals–to review potential mistakes made by the SBA Area Offices, which decide SBA size protests.
Small government contractors must remember, however, that SBA OHA exists to evaluate the decisions made by SBA Area Offices, not to evaluate new allegations raised for the first time in the course of a SBA OHA appeal. Case in point: SBA OHA’s recent decision in Size Appeal of In & Out Valet Co., SBA No. SIZ-5354 (2012), in which the protester apparently attempted to “file” a SDVOSB protest with SBA OHA during the course of its SBA size appeal.
GAO Sustains An Aldevra Protest (Again)
The original Rocky was popular with audiences and critics alike, rating as the highest-grossing film of 1976 and picking up three Oscars, including Best Picture. But by the time the franchise reached Rocky V in 1990, the ongoing sequels had become something of a joke. In a Washington Post review, critic Desson Howe opened with: “Moments after that brutal bout with Dolph Lundgren in “Rocky IV” — and you did watch “Rocky IV,” didn’t you? — Sly Stallone mistakes his wife for his dead boxing coach. This is not a good sign, even for the Rockster.”
Like the Rocky series, the fight between Aldevra and the VA keeps spawning sequels. For service-disabled veteran-owned small businesses, the good news is that Aldevra has won yet another GAO bid protest, challenging the VA’s refusal to consider a SDVOSB set-aside before procuring equipment from the GSA Schedule. The bad news is that the sequels keep coming, with no sign that the VA will back down.
Event: SDVOSB Joint Venturing, Teaming and Subcontracting (El Paso, TX)
I am excited to announce that I will be speaking on “SDVOSB Teaming, Joint Venturing, and Subcontracting” at the 7th Annual Veterans Business Conference in El Paso, Texas. The conference will be held August 15, 2012 at the Wyndham Airport Hotel.
Joint venturing and teaming can make a SDVOSB more competitive, but can also be complex and risky. In this presentation, I will demystify the SDVOSB teaming process. For SDVOSB prime contractors, I will explain how to put together strong and effective joint venture agreements, teaming agreements and subcontracts, avoid common compliance mistakes, and deal with the day-to-day challenges of managing a relationship with a large subcontractor. And for SDVOSB subcontractors, I will discuss how to negotiate a better deal with a large prime contractor and earn a reputation as the first company a large prime calls when it needs a SDVOSB subcontractor.
In addition to speaking, I will be on the trade show floor at the Petefish, Immel, Heeb & Hird, LLP booth, where I will answer attendees’ questions and sign copies of my book, The Small-Business Guide to Government Contracts.
Many thanks to Joseph Conway and the El Paso Contract Opportunities Center for inviting me to be a part of this great event. For more information, visit the El Paso Contract Opportunities Center website.
VA Replaces Annual SDVOSB Re-Verification With Two-Year System
The VA has enacted an interim final rule changing the re-verification requirement for SDVOSBs. Currently, SDVOSBs must be re-verified annually, a process some service-disabled veterans have complained is unnecessary and unduly burdensome.
In the preamble to the rule, the VA writes that although it initially believed annual re-verification would be necessary, “in administering this program since February 2010, VA has concluded that an annual examination is not necessary to adequately maintain the integrity of the program and proposes a 2-year eligibility period.” The VA notes that although formal re-verification will only be required every two years, SDVOSBs must continue to maintain ongoing program eligibility throughout their terms.
The amendment to the VA’s system has been released as an “interim final rule,” meaning that it is effective immediately, but subject to change. Comments on the rule (which I would expect will be overwhelmingly positive) are due by August 27, 2012.