GAO Sides with VA, Joint Venture Must Be SDVOSB Eligible at Time of Award

Here at SmallGovCon, we spend a lot of time studying (and talking about) the various small business federal set-aside programs. As a result, a lot of our focus is dedicated to SBA’s regulations governing these programs—after all, it is the agency that was created by the Small Business Act to issue and implement precisely these regulations. So, it may be tempting for small business federal contractors to focus on those SBA rules and think, so long as they have complied with all the nuances they contain, their business is eligible for these sorts of set-aside contracts.

As one joint venture recently found out the hard way, however, other agencies have their own unique sets of regulations that can impact set-aside contracts as well. One such agency is the Department of Veterans Affairs (VA), which has its own body of rules governing VA procurements—the Veterans Affairs Acquisition Regulation (“VAAR”). One of the programs that the VA implements is the Veterans First Contracting Program (“Vets First”), which interacts quite a bit with SBA’s SDVOSB program. As a result of the overlap, potential offerors on VA contracts set aside for SDVOSBs must ensure they comply with both VA and SDVOSB regulations, and this is where the protester in Potomac Valor Healthcare-2, LLC, B-423195.2 (Aug. 12, 2026) ran into trouble. GAO’s decision in the case sheds some light on the way VA’s specific requirements create additional obligations for SDVOSB joint ventures, and serves as a cautionary tale to other prospective offerors who may find themselves in a similar situation. In short, the protester was SDVOSB compliant and registered in VetCert at the time of offer, but erroneously believed that it did not have to maintain that same level of compliance at the time of award. GAO found that, as the SDVOSB partner of the joint venture was no longer small at the time of award (a fact reflected in VetCert), the JV could not receive the award.

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Event Announcement: GovCon Roundup Live, July 15, 1:00pm EDT, Expanding VOSB and SDVOSB Opportunities & Navigating the SBA Certification Minefield

Please join me on the GovCon Roundup Live, with Carroll Bernard and Steven Koprince to discuss several important developments affecting veteran-owned small businesses in federal contracting, including

  • The bipartisan Contract Our Veterans Act of 2026.
  • Critical compliance issue for veteran-owned businesses pursuing VA set-asides: the frequently overlooked limitations on subcontracting certification requirement under VAAR 852.219-75.
  • Why SBA’s strict “unconditional control” rules make certification extremely difficult for franchises
  • Why a veteran must be listed as the company’s highest officer, such as CEO, in the governing documents
  • What “fatal flaws” can undermine an appeal after a certification denial

Here are the details:

  • Wednesday, July 15, 2026
  • 1:00 – 2:30 PM Eastern
  • Free to attend

Here is the link for registration.

Timing is Everything: The Key to Timely SDVOSB Status Protests

When filing a Service-Disabled Veteran Owned Business (SDVOSB) status protest, timing is critical. A single missed deadline may be the difference between a successful protest and a protest that is never heard. Missing established filing deadlines can result in your protest being dismissed, regardless of how compelling your arguments are. The Small Business Administration (SBA) will enforce these timing rules strictly. In particular, can a contractor ask the agency to simply investigate a company for SDVOSB compliance? And does such a request need to meet the timing requirements? A recent OHA decision answers these questions.

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GovCon FAQs: Should I Apply Simultaneously for All SBA Statuses I’m Eligible For?

In September 2024, following a temporary application and system pause, SBA switched over to a new, streamlined and unified application portal. Now, applications for the SBA’s 8(a) Program, HUBZone Program, Veteran-Owned Programs, and Woman-Owned Programs all go through MySBACertifications.Gov. Unlike prior portals and procedures, through this one, those eligible have the option to apply for multiple SBA small business contracting programs simultaneously. But the question is, what are the potential risks and benefits of doing so?

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Back to Basics: The Government’s SBIR Program

There are many federal contracting opportunities specifically designed to support and benefit small businesses. Most people are already familiar with small business set-aside competitions and direct awards, SBA’s Mentor-Protégé Program, and SBA’s socioeconomic small business contracting programs (i.e., the SDVOSB/VOSB, WOSB/EDWOSB, HUBZone, and 8(a) Programs). But there is still another–albeit less well-known–government contracting program that offers significant benefits to small businesses, particularly those in field of research-and-development (R&D). Indeed, the Small Business Innovation Research (SBIR) Program provides federal funding to small business for their R&D endeavors, helping them grow promising technological innovations into full-fledged revenue cornerstones for small businesses and major contributors to government efficiency and progress.

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The “Once 8(a), Always 8(a)–or HUBZone, SDVOSB, or WOSB” Rule, Where Are We Now?

For better or for worse, these federal procurement “times they are a-changin’.” One obvious source of recent change is the shiny new FAR 2.0, a.k.a. the Revolutionary FAR Overhaul (RFO). With the government’s widespread implementation of the RFO and its many procurement rule and procedure updates, we at SmallGovCon have tried to cover as much as possible. But we’re talking about an essential rewrite of the decades-longstanding procurement playbook here. So unsurprisingly, there’s still a lot to go. One recent change well-worth some deeper discussion is the RFO’s updated “Once 8(a), Always 8(a)” Rule–which I’ve aptly deemed the “Once 8(a), Always 8(a)–or HUBZone, SDVOSB, or WOSB” Rule. As the SBA’s “Once 8(a), Always 8(a)” Rule remains unchanged, this RFO update has the potential for significant impacts on small business federal contracting, as well as some implementation conflicts–or confusion at the least.

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Back to Basics: SDVOSB Program Eligibility

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.

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