SBA Proposed Rule: Make WOSB, SDVOSB, and 8(a) Regulations More Consistent

If you ask any small business federal government contractor or their attorney for the top complaints about the regulations that apply to the Small Business Administration, inconsistency between the various programs is likely to show up on that list. At first glance, it seems the requirements are pretty standard across the board. However, when you dive deeper, you’ll likely notice that even though the requirements are similar, there are enough small differences in the language you can’t just assume that, say, a requirement for service-disabled veteran-owned small business (SDVOSB) is going to be the same for a woman-owned small business (WOSB) or an 8(a) Program participant.

The differences make it crucial to look at the specific regulations for the specific SBA program to ensure compliance. You can’t just assume that they are the same. Thankfully, it looks like the SBA has finally heard our cries for consistency with a recent Notice of Proposed Rulemaking, in which it attempts to align the WOSB Program with the new SDVOSB/VetCert Program and the 8(a) Program. And, as an added bonus, the beginnings of what appears to be a plan to make the WOSB certification process a bit easier if your business is already certified under either the 8(a) program or the SDVOSB program.

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Somewhat Appealing: Which SBA Certifications Can You Appeal From?

The U.S. Small Business Administration (SBA) runs four socioeconomic programs aimed at providing equal opportunity to participate in federal contracting. And one would think that all of them have similar options if a contractor is denied certification. One would be wrong. SBA’s Office of Hearings and Appeals (OHA) recently dismissed an appeal for lack of jurisdiction, showcasing the different options in the various programs. The contractor was decertified from the Women Owned Small Business Program (WOSB). Its owners ran afoul of an important distinction in OHA’s appeals jurisdiction, particularly the substantial difference between appealing a competitor’s protest of a contractor’s SBA certification and the government’s initial denial of a program certification. This provides an excellent opportunity to assess the regulatory differences in appellate jurisdiction between the four programs, with an eye toward successfully navigating future encounters with the OHA.

Editor’s Note: Special thanks to our law clerk Will Orlowski for his immense help in drafting this post.

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SBA: Full-Time Devotion Still Matters for SDVOSBs

SBA’s Service-Disabled Veteran-Owned Small Business (SDVOSB) rules include one particular component dealing with the working hours of a service-disabled veteran owner of an SDVOSB business, often called the full-time devotion rule. SBA has recently reviewed its full-time devotion requirement in an SDVOSB protest, and found that the company in question did not establish that a service-disabled veteran met the requirement.

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OHA Sustains Status Protest: Self-Proclaimed SDVOSB Awardee Not Certified by VetCert, Not Eligible For SBA’s Grace Period, And Not Veteran Owned or Controlled

In Mckenna Brytan Indus. LLC, SBA No. VSBC-334, 2023 (Feb. 8, 2024), the U.S. Small Business Administration (SBA) Office of Hearings and Appeals (OHA) sustained the Service-Disabled Small Business (SDVOSB) status protest of BTNG Enterprises, LLC (BTNG). In its decision, OHA reiterated the two current regulatory options for calling yourself an “SDVOSB” concern: the first, is having your SDVOSB application officially approved by the SBA and your company listed in the SBA’s Veteran Small Business Certification Program (VetCert) data base; and the second, is having submitted your complete application to SBA through VetCert prior to December 31, 2023, and be currently waiting for approval or denial. Here, OHA was unable to conclude that BTNG had done either of those things–despite looking for evidence of eligibility from the SBA and from BTNG itself.

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Why File: A VOSB or SDVOSB Status Protest

The second entry in our new “Why File” series covers some of the main reasons unsuccessful offerors file veteran-owned small business (VOSB) and service-disabled veteran owned small businesses (SDVOSB) status protests. Don’t worry if VOSB and SDVOSB are new acronyms to you–or you just need a refresher–we’ve got a Back to Basics blog for that. If you’re a seasoned vet (pun intended), you already know SBA now handles the Veteran Small Business (VSB) Certification Program (VetCert) (which covers VOSBs and SDVOSBs) administration and status protests. So, the following (non-exhaustive) list of some of the most common reasons VSB status is protested is based primarily on SBA regulations and cases. But please keep in mind, despite the commonalities discussed below, the question of whether to protest is highly fact-specific and demands careful consideration.

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SDVOSB Updates: SBA VetCert Achievements, JV Certification, and NDAA Contracting Goal

It’s been one year since the U.S. Small business Administration (SBA) took over the federal government’s veteran-owned small business contracting program from the Department of Veterans Affairs (VA), and a lot has happened in that amount of time. Here, we discuss how SBA has handled the Veteran Small Business Certification Program in the first year and some of SBA’s achievments. And in other big SDVOSB news, the federal government will be providing more contracts for veteran-owned entities under the National Defense Authorization Act’s increased contracting goals.

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Reminder: 2023 SDVOSB Deadline Looming

SmallGovCon has covered the SBA’s assumption of control over certification of Service-Disabled Veteran Owned Small Businesses (“SDVOSB”) and Veteran Owned Small Businesses (“VOSB”) since it was first announced well over a year ago. Now, we are coming close to one of the final deadlines associated with SBA taking over these certification processes. It is hard to believe that it is already the end of the calendar year once again. But time flies when you are having federal contracting fun! With the end of 2023 comes a crucial deadline for certain veteran businesses to keep in mind–the date for self-certification to go away.

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