Tag Archives: CVE

GovConChat: The 2015 NDAA

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Last week, I joined Guy Timberlake of the American Small Business Coalition for another segment of the popular “GovConChat” podcast series.

Guy and I discussed the impact of the 2015 National Defense Authorization Act on small contractors, including provisions (or a lack thereof) involving SDVOSBs, WOSBs, and reverse auctions.  Guy and I also chatted about a recent allegation of HUBZone fraud stemming from a contractor’s alleged use of a “virtual office” as its supposed HUBZone location.

It’s always a pleasure speaking to Guy, who brings a great perspective to the issues (as well as a memorable voice tailor-made for podcasts).  Check out the full podcast by following this link, and be sure to check out the GovConChat archives for Guy’s conversations with other movers and shakers in federal procurement.

SDVOSB Programs: House-Passed 2015 NDAA Transfers Verification To SBA

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Last week, the U.S. House of Representatives passed the 2015 defense authorization bill.  The House-passed version of the 2015 National Defense Authorization Act would transfer VetBiz SDVOSB verification from the VA to the SBA.

If the Senate agrees, and the President signs the bill into law, the process of transferring SDVOSB verification from the VA CVE to the SBA could begin later this year.

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SDVOSB Confusion: A Federal News Radio Discussion

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The government’s use of two separate SDVOSB programs–with differing rules and requirements–has caused widespread confusion among the very veterans the programs were designed to assist.

Yesterday, I joined Francis Rose of Federal News Radio for a conversation about the government’s two SDVOSB programs.  You can download my audio segment on the Federal News Radio website, and catch Francis every weekday from 4:00 to 7:00 p.m. Eastern on Federal News Radio.

SDVOSBs: Say Goodbye to the “Center for Veterans Enterprise”

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The “Center for Veterans Enterprise” is no more.  Technically speaking, anyway.

Tucked away in today’s interim final rule on SDVOSB protests and appeals is a notation that the VA CVE has renamed itself the “Center for Verification and Evaluation.”  According to the rule, the purpose of the new name is to “more accurately reflect the mission of this office which is to determine the status of SDVOSBs and VOSBs with respect to VA’s SDVOSB/VOSB set-aside acquisition program established by 38 U.S.C. 8127.”

As a practical matter, the name change will have no effect on SDVOSBs and VOSBs.  But perhaps in connection with other positive developments this year–most notably, the pre-determination findings program–the “new” VA CVE will begin to improve its standing with frustrated veterans.

VA CVE: SDVOSBs Must Remove “Large” NAICS Codes From VetBiz Within 30 Days

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The VA CVE has instructed verified SDVOSBs to remove so-called “large NAICS codes” from their VetBiz Vendor Information Pages profiles within 30 days–or else.

According to a recent email from the VA CVE (which was kindly shared with me), SDVOSBs must remove any NAICS codes for which they do not qualify as a small business.  Failing to remove these “large NAICS codes” may result in potentially harsh penalties, including debarment.

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SDVOSBs, VA CVE Verification, and the “Full-Time Management” Rule: Unfair to Start-Ups

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If you are a service-disabled veteran hoping to start a new SDVOSB, the VA’s Center for Veterans Enterprise has a message for you: quit your day job.

Yes, you heard that right.  Under one of the the VA’s SDVOSB eligibility rules (38 C.F.R. § 74.4(c)(3) to be precise), “one or more veterans or service-disabled veterans who manage the applicant or participant must devote full-time to the business during normal working hours of firms in the same or similar line of business.”

The VA currently interprets this so-called “full-time management” rule to essentially bar a SDVOSB from receiving verification if a service-disabled veteran manager does not work 40 hours per week for the SDVOSB.  If the veteran holds a second job, the VA CVE ordinarily denies verification, stating that the veteran cannot be working full-time for the SDVOSB if he or she is also working another job.

“Wait a second,” several service-disabled veterans have told me in surprise, “my company is brand new.  There won’t be 40 hours of work to do until I win a contract.  In the meantime, I need my current job to pay the bills.  Isn’t there a special rule for my situation?”

The answer, unfortunately, is “no.”  But there should be a special rule, because in my opinion, the full-time management requirement unfairly and needlessly penalizes SDVOSB start-ups.

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JVs Must be Listed in VetBiz for VA SDVOSB Set-Asides

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Under the Department of Veterans Affairs’ Veterans First contracting program, an eligible service-disabled veteran-owned small business must be listed as a verified SDVOSB in the VA’s Vendor Information Pages to qualify for a SDVOSB award.  But does this requirement apply to joint ventures?

Yes, according to the VA—and the GAO has upheld the VA’s interpretation.  In A1 Procurement JVG, B-404618.3 (July 26, 2011), A1 Procurement LLC and Green Carpet Landscaping & Maintenance, Inc. created a joint venture, named A1 Procurement JVG.  A1 Procurement LLC was a SDVOSB firm verified in the VetBiz system.  Green Carpet was not a SDVOSB.

The VA rejected the joint venture’s proposal because the joint venture was not listed in the VetBiz database.  The joint venture filed a bid protest with the GAO, arguing that the VA should have accepted its offer because the managing partner, A1 Procurement LLC, was listed in the database, and that a joint venture should not be required to be separately listed if the managing venture is listed.

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