Moving SDVOSB Verification To SBA Would Save $5 Million Annually, Says CBO

Moving SDVOSB verification from the VA to the SBA would save approximately $5 million annually, according to a recent cost estimate issued by the non-partisan Congressional Budget Office.

The CBO concludes that implementing the Improving Opportunities for Service-Disabled Veteran-Owned Small Business Act of 2013 would save money because the SBA would be able to take advantage of systems already in place for other certification programs.  The CBO estimate may reignite debate over the potential transfer of the SDVOSB verification program from the VA to the SBA.

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Contractor Misrepresented VOSB Status For $152 Million Lease, Says VA OIG

The VA failed to verify the accuracy of a contractor’s representation that it was a veteran-owned small business, according to a new report issued by the VA’s Office of Inspector General.

According to the VA OIG, the VA failed to verify the claim of Westar Development Company, LLC to be a VOSB–and “[t]he evidence does not support a finding that Westar is or ever has been a Veteran-Owned Small Business.”   The VA’s failure to verify Westar’s VOSB status is just one of many serious flaws identified by the VA OIG in its audit of the award of a major VA lease to Westar.

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VA CVE FOIA Email Unnerves SDVOSBs–Now What?

On February 27, the VA CVE sent an email to companies listed in the VetBiz database, suggesting that all documentation submitted to the CVE may be subject to Freedom of Information Act requests.  Many SDVOSBs and VOSBs were outraged–was the VA really stating that tax returns, payroll, bank signature cards, and other closely-guarded information would be made available to the public?

Now, after push back from SDVOSBs and VOSBs, the CVE has issued a press release clarifying that some documentation submitted to the CVE may be withheld under FOIA on a “case by case basis” and that the CVE will seek to limit the exposure of proprietary and personally identifiable information.

The press release is a good start, but in the wake of its misguided email, the CVE needs to do more to assure SDVOSBs and VOSBs that their proprietary information is safe in the government’s hands.

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SDVOSB Programs: SBA OHA Explains A Critical SBA/VA Difference

Perhaps no single aspect of federal government contracting causes more confusion than the fact that the government currently runs two SDVOSB programs: one under the VA’s rules and the other under the SBA’s.

The current system can lead to inconsistent results, such as a company being a “SDVOSB” for purposes of VA contracts, but not those issued by other agencies (or vice versa).  As SmallGovCon readers know, I am on record as stating that the “two SDVOSB programs” approach is idiotic and ought to be scrapped.  (Okay, maybe I wasn’t on record with the word “idiotic” before.  I guess I am now.)

But while I cross my fingers and hope that Congress will simplify things, SDVOSBs are stuck with the current system.  And, as a recent SBA Office of Hearings and Appeals case demonstrates, SDVOSBs should be aware of the important differences between the two SDVOSB programs.

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SmallGovCon Week In Review: Sept. 30 – Oct. 4, 2013

The shutdown dominated government contracts headlines this week, and rightfully so.

This week’s SmallGovCon Week In Review features plenty of shutdown coverage, including several pieces focusing on small businesses.  But the week’s government contracts news and commentary also included a welcome drop in wait times for VA SDVOSB applications, Guy Timberlake’s insights on government spending through procurement vehicles versus standalone contracts, and more.

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VA CVE: SDVOSBs Must Remove “Large” NAICS Codes From VetBiz Within 30 Days

The VA CVE has instructed verified SDVOSBs to remove so-called “large NAICS codes” from their VetBiz Vendor Information Pages profiles within 30 days–or else.

According to a recent email from the VA CVE (which was kindly shared with me), SDVOSBs must remove any NAICS codes for which they do not qualify as a small business.  Failing to remove these “large NAICS codes” may result in potentially harsh penalties, including debarment.

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Bill Introduced To Transfer SDVOSB Verification To SBA

Today, Congressman Mike Coffman introduced the Improving Opportunities for Service-Disabled Veteran-Owned Small Businesses Act of 2013.

The bill would standardize the requirements for SDVOSB eligibility, eliminating the current differences between the SBA’s and VA’s regulations.  In addition, the bill would transfer responsibility for verifying SDVOSB status to the SBA (the VA would retain authority for determining whether an individual is a service-disabled veteran).

Hardy Stone’s website, VetLikeMe, has a more detailed summary of the bill.  I will be closely tracking this legislation and will post updates if and when it moves forward.