Another Big Win For Vets: SDVOSBs Trump AbilityOne At VA, Court Rules

Posted on May 30, 2017 by Steven Koprince

The VA cannot buy products or services using the AbilityOne List without first applying the “rule of two” and determining whether qualified SDVOSBs and VOSBs are available to bid.

Today’s decision of the U.S. Court of Federal Claims in PDS Consultants, Inc. v. United States, No. 16-1063C (2017) resolves–in favor of veteran-owned businesses–an important question that has been lingering since Kingdomware was decided nearly one year ago. The Court’s decision in PDS Consultants makes clear that at VA, SDVOSBs and VOSBs trump AbilityOne.

SmallGovCon Week In Review: May 22-26, 2017

Posted on May 26, 2017 by Steven Koprince

Memorial Day weekend is almost here, which means the unofficial start to summer! Whether you are hitting the beach or relaxing at home (my plans include BBQ ribs and chicken wings courtesy of the family Big Green Egg), I hope you have an enjoyable long weekend while remembering those that have given their lives to protect our country.

Of course, a relaxing weekend isn’t complete without some good reading material, and we’ve got you covered. In the final May edition of the SmallGovCon Week In Review, a contracting fraud scheme results in jail time, a bipartisan new bill would help small contractors receive prompt payment for change orders, a survey shows rising confidence among government contractors, and much more.

GAO: SBA’s Class Waiver Supported VA SDVOSB Set-Aside Decision

Posted on May 25, 2017 by SmallGovCon Contributor

Last month, Steve wrote about a new Class Deviation rule adopted by the VA that, in effect, would limit the VA’s use of class waivers as part of its decision to restrict competition to SDVOSBs (or otherwise issue solicitations as sole source awards). But in an apparent contradiction to this Class Deviation rule, GAO recently denied a challenge to an SDVOSB set-aside decision for a manufacturing solicitation, based in large part on SBA’s adoption of a class waiver for the particular NAICS code.

The VA’s SDVOSB JV Verification Assistance Brief Is Wrong

Posted on May 23, 2017 by Steven Koprince

The VA’s Verification Assistance Brief for SDVOSB and VOSB joint ventures flat-out misstates the law regarding the manner in which joint venture profits must be split.

SDVOSBs and VOSBs often rely on Verification Assistance Briefs to guide them through the CVE verification process, and CVE analysts sometimes use Verification Assistance Briefs, too. Which begs the question: how many CVE-verified joint ventures are legally invalid?

Government Misses HUBZone, WOSB Goals–But Gets “A” Grade Anyway

Posted on May 22, 2017 by Steven Koprince

The government missed its Fiscal Year 2016 HUBZone goal by a country mile, and didn’t hit the 5% WOSB goal, either. But according to the SBA, the government deserves an “A” for its FY 2016 small business achievements.

That’s some rather generous scoring, wouldn’t you say?

SmallGovCon Week In Review: May 15-19, 2017

Posted on May 19, 2017 by Steven Koprince

It’s been a whirlwind of a week here in Kansas. I was fortunate enough to speak yesterday at the 16th Annual DOE Small Business Forum & Expo just up the road in Kansas City. My presentation focused on recent legal updates in federal contracting. It was a wonderful event put on by the Department of Energy and I was glad to be a part of it.

Before we sail off into the weekend, it’s time for the SmallGovCon Week In Review. This edition looks at a plan to make the Transactional Data Reporting rule voluntary, it appears LPTA is still as hated as ever, the federal government notched its 4th consecutive year of hitting the 23% small business contracting goal, and much more.

Familial Relationship Affiliation: SBA Treats Spouses As “One Party”

Posted on May 17, 2017 by Steven Koprince

One common way that contractors attempt to avoid affiliation is by limiting a particular individual to a minority ownership interest (often 49%).

But as a recent SBA Office of Hearings and Appeals case demonstrates, when a company’s owners are spouses (or other close family members), the SBA may disregard the legal ownership split, and treat the family members as one person for purposes of the affiliation rules.