Back to Basics: Top Five Things About SDVOSBs and VOSBs

You’ve served your country with pride. Now, as a government contractor, it’s only fair that you get your piece of the pie. Previously, we here at SmallGovCon have discussed the 5 things you should know regarding SDVOSBs and VOSBs. But in the years since that, much has changed in the world of SDVOSBs and VOSBs. So here are five updated basics you should know about the government’s contracting program for veteran-owned small businesses and service-disabled veteran-owned small businesses:

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SBA Issues Final Rule on SDVOSB Certification

SBA has issued its final rule for its takeover of the Veteran-Owned Small Business (VOSB) and Service-Disabled Veteran-Owned Small Business (SDVOSB) Certification program. The rule will have an effective date of January 1, 2023. We discussed the proposed rule in our post here. Below are a few key takeaways from the final version of the rule.

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Franchise-Type Agreement Sinks SDVOSB Application

One of the key criteria for being a Service-Disabled Veteran-Owned Small Business (SDVOSB) is, as you might expect, that a service-disabled veteran control the company. Under Small Business Administration rules, an agreement similar to a franchise agreement can render an SDVOSB applicant ineligible, because the franchisor restrictions on the actions of the company are too strong. A recent case reminds us of the control imposed by these types of arrangements.

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A Helpful Guide: The VA’s Memorandum on the New Certification System

As many of you likely already know, back in late 2020, Congress made two changes to the SDVOSB program when it passed the 2021 National Defense Authorization Act. First, all SDVOSBs will be required to certify with the government starting on January 1, 2023. Second, the responsibility for conducting SDVOSB certification will transfer from the VA’s Center for Verification and Evaluation (CVE) to the SBA. Seems simply enough, but, obviously, this raises some questions: What if a SDVOSB is already certified with CVE? How much time do self-certified SDVOSBs have to act? Will the CVE still be accepting applications in the meantime? Helpfully, the VA has produced some guidance, and in this post we’re going to expand on it.

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Breaking: SBA Issues Veteran-Owned Certification Rules, Will Eliminate SDVOSB Self-Certification

The SBA has issued its draft rules on how it will go about certifying Veteran-Owned Small Businesses (VOSBs) and Service-Disabled, Veteran-Owned Small Businesses (SDVOSBs). Below, we highlight some of the main components of these rules. The changes stem from Congress’s requirement in the 2021 NDAA to to eliminate SDVOSB self-certification and adopt a government-wide SDVOSB certification requirement, while transferring control of the certification process from the VA to the SBA. For the most part, SBA has taken a simple approach, combining its existing rules on eligibility with much of the application procedures from VA. But the details do matter, and below we’ll walk through some of them.

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Webinar: June 23, 1:00pm EDT, An Introduction to Government Small Business Certifications, by Steven Koprince, Govology Legal Analyst

We are pleased to announce that Steven Koprince, Govology Legal Analyst and retired founder of Koprince McCall Pottroff LLC, will be kicking off his work with one of our favorite federal contracting partners: Govology! Join Steven in his new role as a legal analyst as he discusses various federal small business certification programs, including Small Business Self Certification, Small Disadvantaged Business (SDB) & 8(a), Service-Disabled Veteran-Owned Small Business (SDVOSB), Veteran-Owned Small Business (VOSB), Historically Underutilized Business Zones (HUBZone), Woman-Owned Small Business (WOSB), and Economic Disadvantaged Woman-Owned Small Business (EDWOSB). 

This one will be provide a great base of knowledge for those looking to know more about the various federal small business certification programs. For more information about this webinar please visit Govology and receive 25% off the registration fee by using discount code: gsc25. Registration link.

Limitations on Subcontracting Part 1: What They Are and How They Apply

Congratulations! Your woman-owned small business (WOSB), Sun Corp, has just been awarded a contract. This particular contract was set aside for WOSBs, meaning only WOSBs may be considered for award. Small Corp is a relatively new company, and you have determined that you will need some help to successfully complete performance of the contract. As luck would have it, you are acquainted with the owner of Moon Corp, and Moon Corp is in the business of doing the exact type of work that Sun Corp needs help with. While diligently reading through the contract prior to its execution, you notice the following language:

Performance of this contract must comply with the subcontracting limitations set forth in FAR 19.505 and 13 C.F.R. § 125.6.

What do you do?

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