The decision in Bravo Federal Consulting, LLC, SBA No. CVE-213 (Dec. 1, 2021) is both an important reminder of the importance of keeping all database information up to date and a cautionary tale of the unfortunate consequences that can happen when you don’t. In that decision, SBA’s Office of Hearings and Appeals (OHA) denied an appeal by Bravo Federal Consulting, LLC (Bravo). Bravo submitted a request to change its name, setting off a chain of events that ended in Bravo losing its verified status as a service-disabled veteran-owned small business (SDVOSB).
Continue readingCategory Archives: Service-Disabled Veteran-Owned Small Businesses
Franchise Agreement Terms Sink Company’s SDVOSB Application
It’s a refrain that my colleagues and I have often heard: if you’re a franchisee, it can be really, really hard–perhaps almost impossible–to be verified as a service-disabled veteran-owned small business.
A recent case demonstrates the difficulties in obtaining SDVOSB status as a franchisee. In the case, the SBA’s Office of Hearings and Appeals held that the Center for Verification and Eligibility had correctly denied a company’s SDVOSB application because, in the eyes of the CVE and SBA, the terms of the franchise agreement impeded the veteran’s control of the company.
Continue readingSBA Updates Veteran Surviving Spouse Rule
A proposed rule from SBA will make changes to the SDVOSB rules. SBA has modified its rules allowing surviving spouses to continue owning Service-Disabled Veteran-Owned Small Businesses after the veteran owner has passed away. This should provide some help to spouses of disabled veterans. SBA has updated a few dollar thresholds as well.
Continue readingOHA: Provisions in Operating Agreements for SBA Set-Aside Program Participants can Sink Eligibility
The organizational documents for a business seeking certification under a SBA socio-economic program can play an important part in a company demonstrating its eligibility under the SBA’s requirement for control by the company’s owners, such as a service-disabled veteran or disadvantaged owner. Unlike some of the SBA’s requirements for eligibility, the manner in which a program applicant or participant might run afoul of this requirement are not always obvious. Typical provisions in the organizational documents that, under “non-SBA” circumstances may seem innocuous, may unintentionally undermine the disadvantaged owner’s requirement of showing of unconditional ownership and control.
In a recent OHA decision regarding Service-Disabled Veteran-Owned Small Business (SDVOSB) eligibility, (CVE Protest of: Randy Kinder Excavating, Inc. d/b/a RKE Contractors, Protester Re: E&L Construction Group, LLC), an unsuccessful bidder filed a protest of a set-aside contract award, alleging that the company was not unconditionally controlled by the disadvantaged owner. After considering a variety of arguments, OHA issued a decision based on a handful of provisions in the respondent’s operating agreement.
Continue readingGAO: Agency Has Discretion on Type of Socioeconomic Set-Aside for Procurement
From a recent GAO decision it appears that the ends can, in fact, justify the means; at least when it comes procurement set-asides for HUBZone companies. The decision is Foxhole Technology, Inc. B-419577 (May 12, 2021). In this matter, Foxhole Technology, Inc., a service-disabled veteran-owned small business, protested the Department of Education’s decision to set aside an RFQ to supply cybersecurity services for HUBZone businesses. In its protest, Foxhole argued that the agency’s decision to set aside the procurement for HUBZone small business concerns was based on inadequate market research and was therefore not justified. GAO denied the protest.
Continue readingOHA: Broken Hyperlink Doesn’t Excuse Not Responding to CVE
In my last blog post I wrote about a contractor’s unsuccessful attempt to convince the GAO that its solicitation was improperly dismissed as being untimely because the State Department didn’t recognize its automatic “out of office” email reply response. It appears that federal agencies in general are unforgiving when it comes to a contractor’s reliance on electronic communications without follow-up.
In a recent case, the SBA Office of Hearing Appeals (OHA) rejected a contractor’s petition for reconsideration upholding the OHA’s appeal of a cancellation of the contractor’s verified status as a Service-Disabled Veteran-Owned Small Businesses because it could not access a cancelation letter through a link provided by the VA.
Continue readingHappy Anniversary, SDVOSBs: The Supreme Court’s Kingdomware Decision Was Five Years Ago Today
For SDVOSBs and VOSBs, June 16, 2016 was a monumental day. That morning, the U.S. Supreme Court issued its unanimous decision in Kingdomware Technologies, Inc. v. United States, holding that the VA must follow the law by putting “veterans first” in VA contracting.
Koprince Law LLC was honored to submit an amicus brief to the Supreme Court supporting Kingdomware, and my colleagues and I were thrilled with the Court’s 8-0 decision. Click here to check out my post from June 16, 2016 proclaiming “Victory!” for SDVOSBs and VOSBs in this watershed case.
The Kingdomware decision didn’t (and couldn’t) solve every problem that some SDVOSBs and VOSBs have had with VA’s contracting practices, but five years later there is no doubt in my mind that the Court’s decision has been the driving force behind a large increase in VA’s SDVOSB and VOSB contracting. Happy anniversary!