Recently, SBA’s VetCert Program announced that it had gotten through its backlog, meaning that the system has returned to normal, so to speak. With this in mind, many new service-disabled veteran-owned small businesses (SDVOSBs) no doubt are looking at getting into the SDVOSB program. Indeed, some of you reading this may be the owners of some of those businesses. Considering that we just looked at an SDVOSB appeal regarding the control requirements for an SDVOSB, today, we’re going to go further and provide a general rundown of the SDVOSB Program to update our past post on this topic.
Continue readingTag Archives: SDVOSB ownership
OHA SDVOSB Appeal: Voting Provisions Scuttle Veteran Control
In a recent decision, SBA’s Office of Hearings and Appeals (OHA) emphasized the importance of a careful reading and complete understanding of the control and ownership requirements for Service-Disabled Veteran Owned Small Businesses (SDVOSBs). This decision provides contractors with an excellent opportunity to brush up on SBA’s control rules regarding qualifying and non-qualifying owners. As the appellant found out in this case, while it may seem to some at first glance that simple majority ownership by the service-disabled veteran is enough to meet SDVOSB requirements, voting provisions matter as well. Failure to keep in mind all aspects of SDVOSB requirements could lead to a denial of SDVOSB status. Let’s take a look at the language of the regulation in question, and how this case illustrates the potential consequences of overlooking a critical item in an otherwise-compliant application for SDVOSB certification.
Continue readingFederal Court Confirms Strict SDVOSB Unconditional Ownership Requirements
As we’ve discussed, the SBA will soon take the reins over from VA to run the certification process for Veteran-Owned Small Businesses (VOSBs) and Service-Disabled, Veteran-Owned Small Businesses (SDVOSBs). Self-certification for SDVOSBs will go away on December 31, 2023, so be sure to get your SDVOSB ownership and control documents up to snuff in order to stay compliant with the SDVOSB rules. One of those rules concerns unconditional ownership by the veteran. A recent federal court case sheds some additional light on that topic, as explored in this post.
Continue readingEvent: SDVOSB Programs Webinar, Hosted by Govology
The federal government spends more than $20 billion annually on contracts with service-disabled veteran-owned small businesses. But the rules governing SDVOSB eligibility can be complex and confusing – starting with the fact that the government runs not one, but two SDVOSB programs.
On January 14, join me for a webinar, hosted by our friends at Govology, covering the ins-and-outs of Uncle Sam’s SDVOSB programs. In this session, I will demystify the key SDVOSB eligibility requirements in plain English and provide an update on some major pending changes to the SDVOSB programs. It’s easy to register: just follow this link. I hope to see you (virtually, anyway) on January 14!
Strings Attached? Don’t Put Conditions on SDVOSB Ownership, Cautions OHA
Ownership of a Service-Disabled Veteran-Owned Business has to be unconditional. As the owner of an SDVOSB recently found out, unconditional ownership generally means there can be no restrictions on the service-disabled veteran owner’s ability to sell the ownership interest. Let’s explore the details.
Continue readingComplicated Business Structures Contribute to Set-Aside Fraud, GAO Finds
Fraud is an ever pressing concern in federal contracts, and the federal government goes to great lengths to minimize the risks to introduce fraud into the procurement system.
Unfortunately, a recent GAO report highlighted how complex ownership structures can be leveraged to obscure fraudulent contracting activities. Worse still, complex ownership structures are most frequently leveraged to perpetrate small business set-aside fraud.
Continue readingSDVOSB Regulations Reveal Typo in Exceptions to Ownership Conditions
As we’ve written about on the blog, SDVOSB regulations were consolidated under the SBA’s rules beginning October 1, 2018, and those changes included some good and bad changes. We recently noticed a single letter in one of the changes that, while most likely a typo, could potentially affect the meaning of one part of the new regulation.
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