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Government Contracts Monitor

Small Business / Socioeconomic Issues

VA Invites Comments to Improve the Veteran-Owned Small Business Verification Program

The Department of Veterans Affairs Office of Small and Disadvantaged Business Utilization (“OSDBU”) is currently reviewing its regulations governing the VA’s Veteran-Owned Small Business (“VOSB”) Program, and is inviting comments, by July 12, 2013, as to “any issue related to improving these specific regulations and the program.”  See Advance Notice of Proposed Rulemaking (“ANPRM”), VA…

Off to the races: Mentor-Protégé Joint Ventures May Compete as 8(a)s on any Government Contract

It has recently come to our attention that contractors, as well as some agencies, may not realize that an 8(a) mentor-protégé joint venture (“JV”) can bid as an 8(a) entity, on an 8(a) contract, without the JV itself being 8(a) certified.  The Small Business Administration (“SBA”) controls the 8(a) program and 8(a) eligibility status, but SBA “does not certify joint ventures as section 8(a)…

Remember: SBA 8(a) Certifications Are Usually Limited to One Per Family

The recent case of Allcon, LLC, SBA No. BDPE-486 (April 30, 2013), underscores the importance of not getting too involved in the business of family members who own an 8(a) company if you hope to achieve 8(a) certification yourself.  The case involved an appeal by Ms. Ana Lopez of an SBA determination that her construction company, Allcon, LLC, did not meet the entry requirements of the 8(a)…

What do Laundromats, Car Washes, Japanese Restaurants, California Tortilla and a Liquor Store all have in Common?

A recent case in federal court in Maryland provides an additional reminder (if any were needed) that fraud in connection with small business activities does not pay.  In United States v. Oh, No. 11-CR-00600 (D. Md.), a Virginia attorney plead guilty to conspiracy to commit bank fraud and money laundering in connection with her role in falsifying records to secure loans from the Small…

SBA Announces New “ChallengeHER” Program for Women-Owned Small Businesses

As part of the Obama Administration’s efforts to promote small businesses in federal contracting, the Small Business Administration (SBA) recently announced the ChallengeHER Campaign.  The purpose of the campaign is to educate women business owners about federal procurement opportunities and introduce business owners to acquisition decision-makers in order to increase the percentage of…

Right of First Refusal No Longer Grounds for Rejecting VOSB Eligibility

According to recent testimony by Tom Leney, Executive Director of the Department of Veterans Affairs (VA) Office of Small and Disadvantaged Business (OSDBU), the VA will no longer consider “transfer restrictions that are part of normal commercial dealings, such as the right of first refusal, do not material affect the ability of a Veteran to unconditionally own and control the business” and,…

Better Late Than Never! Proposed Rule Amends FAR to Finally Implement New SBA Protest Procedures

The FAR Council recently issued a proposed rule to amend the Federal Acquisition Regulation (FAR) to implement the Small Business Administration’s (SBA) revisions to its small business size and status protest and appeal procedures.  Although SBA’s revisions to its protest and appeals procedures are not new – they were issued over 2 years ago – the amendments to the FAR are necessary to…

Due Process is Alive and Well

Last month, we reported on the successful pre-award bid protest, Miles Construction, LLC v. United States, No. 12-597C (Fed. Cl. Feb. 14, 2013).  While the majority of the decision and analysis concerned the standards for determining service-disabled veteran-owned small business (“SDVOSB”) status, this case is also noteworthy on due process grounds.   

Miles Construction, LLC…

Congress Changes the Method for Calculating Small Business Subcontracting Limits

In the National Defense Authorization Act for Fiscal Year 2013 (“NDAA FY13”), Congress amended the Small Business Act and fundamentally changed the method for calculating subcontracting limits on small business set-aside contracts.  Previously, the SBA regulations (13 C.F.R. § 125.6) and implementing FAR clause 52.219-14 focused on the cost of performance.  However, the NDAA FY13…

Court of Federal Claims Smacks Down the VA’s OSDBU Not Once, But Twice!

The Court of Federal Claims recently issued two decisions reinstating veteran-owned small businesses (“VOSBs”) in the Department of Veterans Affairs’ (“VA’s”) Veterans First Contracting Program, after they were held ineligible by the VA’s Office of Small and Disadvantaged Business Utilization (“OSDBU”).  See KWV, Inc. v. United States, No. 12-882C (Fed. Cl. Jan. 25, 2013) and Miles…

Update: Court Sides with VA’s Interpretation that Veteran-Owned Small Business Set-Asides Are Not Necessary Before Ordering Off the Federal Supply Schedule

In a recent decision, Kingdomware Technologies, Inc. v. United States, No. 12-173C (Fed. Cl. Nov. 27, 2012), the Court of Federal Claims held that under the Veterans Benefits, Health Care, and Information Technology Act of 2006, 38 U.S.C. §§ 8127-8128 (“the VA Act”), the Department of Veterans Affairs (VA) may purchase goods/services off the Federal Supply Schedule (FSS) using…

Another Stiff Sentence for Veteran Falsely Claiming a Service-Disability

A 70 year old man was recently sentenced to over seven years in federal prison for falsely claiming to be a service-disabled veteran and war hero in order to obtain nearly $6.8 million dollars in federal contracts set aside under the Service-Disabled Veteran-Owned Small Business (SDVOB) Program.  This harsh sentence is yet another example of the Federal Government’s increased focus on…

 

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