Many federal contractors are familiar with or have heard of the Service-Disabled Veteran Owned Small Business (SDVOSB) program. It is currently run by the SBA, but previously was administered by the VA. Due to the nature of the program being around for a while, and shifting from one agency to another in the past few years, undoubtedly there are some requirements that have changed, but contractors may not realize it. One of the requirements that has experienced change is one of the most basic: how you establish that you are a Service-Disabled Veteran. In this installment of our GovCon FAQs series, we tackle, how do you show or prove your Service-Disabled Veteran Status, now that the SDVOSB program is under the SBA?
As the popular saying goes, sometimes to move forwards, you have to go backwards first. So, before answering this GovCon FAQ, we need to briefly discuss how an individual used to show they were a Service-Disabled Veteran when the VA was in charge of the SDVOSB program.
As readers over the past few years likely remember, originally the SDVOSB program was administered by the VA, and then shifted over to the SBA. Naturally, when that occurred, the VA’s SDVOSB eligibility regulations were phased out or replaced by other regulations, while SBA created its own. Most of the SBA’s SDVOSB regulations are very similar to what the VA had. But one that did change, and may cause issues for federal contractors, is how to show you are a service-disabled veteran. (For more information on the basics of SDVOSB eligibility, check out our Back to Basics on SDVOSBs and Top Five Things About SDVOSBs)
Back when the VA administered the SDVOSB program it defined “Service-Disabled Veteran” as a “veteran who possesses either a valid disability rating letter issued by the Department of Veterans Affairs” or “a valid disability determination from the Department of Defense or is registered in the Beneficiary Identification and Records Locator Subsystem maintained by Department of Veterans Affairs’ Veterans Benefits Administration as a service-disabled veteran.” This definition was removed at the end of 2022. Pay close attention to the parts in bold as we move forward. Also note, this regulation was removed and replaced with a size recertification regulation, so you must look to the SBA’s current regulations for SDVOSB eligibility questions.
With that in mind, we come to today’s GovCon FAQ: How do I show Service-Disabled Veteran Status for SBA?
The current SBA SDVOSB regulations define “Service-Disabled Veteran” as “a veteran who is registered in the Beneficiary Identification and Records Locator Subsystem or successor system, maintained by Department of Veterans Affairs’ Veterans Benefits Administration as a service-disabled veteran.” Notice how much shorter this is than the previous now-defunct VA definition, and removes the parts in bold referenced earlier in this post.
Previously, a Service-Disabled Veteran could submit a letter from the Department of Defense or the VA, and meet the requirements for being a “Service-Disabled Veteran.” However, now a veteran must make sure its VA information is up to date and reflects accurately whether they were a Service-Disabled Veteran. According to that regulation, the SBA will interface with the VA’s system to determine Service-Disabled Veteran status, not simply request or rely on documents from the applicant. Simply submitting a Department of Defense letter or VA letter will not suffice. This may come as a surprise to some, as accepting such letters was the typical practice for many years, and logically, there is no reason for the SBA to doubt the veracity of a Department of Defense or VA letter. However, the regulation’s silence on such letters speaks volumes. You must make sure your VA information is up to date, as even such outside information and letters will no longer be accepted for SDVOSB certification.
So, be careful when prepping your SDVOSB application to the SBA and do not assume that the same documentation that was expected by the VA (or that logically should show Service-Disabled Veteran status, such as a letter from the Department of Defense) will be accepted by the SBA. Instead, make sure to check in with the VA to ensure its files show you as a service-disabled veteran, as that is exactly what the SBA will look at. Also, make sure to reach out to a federal government contracts attorney, such as ourselves, for any questions on the SDVOSB program and eligibility requirements, because as you can see, there are lots of nuances to be careful of in pursuing SDOVSB status.
If you have questions, please email us. If you need legal assistance, call us at 785-200-8919.
Looking for the latest government contracting legal news? Sign up here for our free monthly newsletter, and follow us on LinkedIn, Twitter and Facebook.