Supreme Court Will Hear Kingdomware SDVOSB Dispute

The U.S. Supreme Court has agreed to hear an appeal filed by Kingdomware Technologies, Inc.

News outlets are reporting that the Supreme Court will take on the question of whether the VA’s “Veterans First” rules permit the VA to circumvent SDVOSBs by using the Federal Supply Schedule.  The case is an appeal from a 2014 decision of the U.S. Court of Appeals for the Federal Circuit, in which a three-judge panel ruled 2-1 in favor of the VA.

The Supreme Court grants only a small fraction of the petitions for certiorari filed with it, so just getting in the courthouse door is a victory of sorts for Kingdomware.

Much more on the pending Supreme Court case as I get the details.

SDVOSB Indictment: Full-Time Postal Carrier Was SDVOSB “Rent-A-Vet”

The government has accused a service-disabled veteran who was employed full-time as a U.S. Postal Service Carrier is accused of being a “rent-a-vet” used to obtain contracts for his brother’s company.

According to a Department of Justice press release, a grand jury has indicted both men, as well as a business partner for SDVOSB fraud–and all three face the potential of significant jail time.

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SDVOSB Fraud: Company Dissolves To Settle “Rent-A-Vet” Allegations

A contractor has agreed to pay the government $1 million–and to dissolve as an ongoing entity–to resolve allegations that it falsely claimed SDVOSB status in order to receive VA SDVOSB set-aside contracts.

According to a government press release, the settlement comes after VA investigators alleged that the company’s non-veteran partner made all important corporate decisions, while the service-disabled veteran partner spent much of his time away from the company.

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VA CVE Verification Does Not Provide Affiliation Shield, Says SBA OHA

Even if the VA Center for Verification and Evaluation has found that a service-disabled veteran “unconditionally” controls a SDVOSB, the SBA may nonetheless determine that other individuals or entities also control the company within the meaning of the SBA’s affiliation rules.

As demonstrated by a recent decision of the SBA’s Office of Hearings and Appeals, VA CVE verification does not shield a SDVOSB from an adverse SBA affiliation determination, even if that determination is based on a finding that non-veterans control the company.

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SBA SDVOSB Determinations Can Be Challenged In Court

The U.S. Court of Federal Claims has jurisdiction to hear challenges to the SBA’s SDVOSB determinations.

In a recent case, the Court held that it had the power to review a decision issued by the SBA Office of Hearings and Appeals, in which OHA deemed a company ineligible to receive a SDVOSB set-side contract.

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Limitations on Subcontracting: SBA Proposes Sweeping Changes

The limitations on subcontracting would undergo sweeping changes under a recent SBA proposal.

On December 29, the SBA issued a proposed rule to enact the changes implemented by Congress in the National Defense Authorization Act of 2013–including a thorough re-write of the way that compliance with the subcontracting limits is calculated and enforced.

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Thank You, Veterans!

I am back in the Midwest after traveling to Atlanta last week for the National Veterans Small Business Engagement.  This annual event was everything it was cracked up to be, featuring an incredible array of government officials, veteran-owned businesses, large prime contractors, and industry leaders.

Thank you to everyone who attended my learning session on GAO bid protests–you were a very engaged audience.  Thank you, as well, to the organizers of the event, who assembled an outstanding variety of sessions and kept everything running very smoothly.

Thanks also to all of my veteran-owned clients and contacts who attended from all over the country.  It was good to see so many familiar faces, and in some cases to put faces to names for the first time.  And most importantly, for all the veterans who attended (and those who were unable to do so this year), thank you for your service to our country.