FVA Service Disabled Veteran Owned SDVOSB Set Aside RequirementsService Disabled Veteran Owned Small Business  / SDVOSB requirements) decisions for government contracts is becoming a hot item in bid protest litigation.  When it comes to Department of Veteran Affairs solicitations for SDVOSB Set Aside Contracts, government contracting agencies sometimes fail to follow statutory requirements for market research.

 When it comes to learning how to get government contracts for small businesses, service-disabled-veteran-owned small businesses with veterans preference that are faced with competing against larger businesses can sometimes have a difficult time winning bids because of the tough competition.  Therefore, small companies may have to resort to filing bid protests. 

Filing a bid protest can be very tricky. Therefore, as a Service Disabled Veteran Owned Business small business SDVOSB, you want to aware of the costly mistakes made when filing a GAO protest.

Under current SBA current regulations (specifically 13 CFR 125.19(b)(2)(i)) requires contracting officers to consider small business procurements for service connected disabled veteran owned business entities. If the agency fails to conduct the requirements market research before setting aside procurements for other small business programs, then they have SBA’s regulations.

SDVOSB Certification Requirements

To get SDVSOB certified and to reap the benefits of set aside contracts for disabled veterans, your documentation and application must meet the following requirements :

  • The Service Disabled Veteran (SDV) must have a service-connected disability that has been determined by the Department of Veterans Affairs (VA) or Department of Defense (DOD)
  • The SDVOSB company must be small under the North American Industry Classification System (NAICS) code assigned to the procurement
  • The SDV must unconditionally own 51% of the SDVOSB
  • The SDVO (Owner) must control the management and daily operations of the company
  • The SDV (owner ) must hold the highest officer position in the SDVOSB. There is no wiggle room for this requirement
  • The management and daily business operations of the concern must be controlled by one or more service-disabled veterans.
  • Service-disabled veteran means a veteran with a disability that is service-connected.
  • Ownership must be direct. Ownership by one or more service disabled veterans must be direct ownership.
  • A concern owned principally by another business entity that is in turn owned and controlled by one or more service-disabled veterans does not meet this requirement.

Bid Protests for SDVOSB Set Aside Contracts

GAO previously sustained protests filed against VA service disabled veteran-owned small business set aside being conducted pursuant to FSS rules where the protester asserted that the agency failed to comply with the SDVOSB set aside contracts requirements of the VA Act and its implementing regulations. See Aldevra, B-406205, Mar. 14, 2012, 2012 CPD ¶ 112. See also Are You a GAO Protest Intervenor? How to Intervene or Defend in A Bid Protest?

Procurements that are being conducted pursuant to General Services Administration Federal Supply Schedule (FSS) procedures and implementing regulations are set forth at Federal Acquisition Regulation (FAR) subpart 8.4. In accordance with those regulations, the solicitations might be issued on an unrestricted basis.However, the Veterans Administration may act improperly by using FSS procedures without first conducting market research to decide whether the procurement should be a Service Disabled Veteran Owned Small Businesses.

Tip:  Bid protests complaining of the prime contractors status should not go GAO or the SBA. Instead, you should approach the VA with this issue.

Tip: How the agency decided to set-aside the contract for SDVOSB set aside contracts could be an issue for GAO.

If you can successfully show that had the agency conducted market research, it would have found that at least two Service Disabled Veteran Owned Businesses could meet the  CICA small business set aside requirements at a reasonable price, you might be able to prevail in a GAO protest.

What if You Did Not Submit an SDVOSB Set Aside Contract Proposal? 

Sometimes, filing a bid protest for SDVOSB certification requirements for a set aside can be problematic if your bid protest lawyer does not fully understand the law. Problems can arise, and the agency will certainly try to get your case dismissed when a question arises as to whether you are an interested party.  This is a mandatory requirement to file a bid protest. For example, if you are a teaming partner or subcontractor

Do You Meet the Statutory Interested Party Requirements in Bid Protests

Under the Competition in Contracting Act of 1984, 31 USC 3551- 56 (2006) and GAO Bid Protest Regulations, 4 CFR 21.0(a)(1) (2012), only an “interested party” may protest a federal procurement. That is, a protester must meet the requirements of being an actual or prospective bidder or offeror whose direct economic interest would be affected by the award of a contract or the failure to award SDVOSB Set Aside Ccntracts.

The key to overcoming this issue of an SDVOSB certification requirements in a bid protest, is to challenge the government contracting agency’s failure to solicit you for the FSS order, and the agency’s improper issuance of the order to a small business concern where there were other set aside contracts for disabled veteran concerns, including you, that could satisfy this requirement.

Under these circumstances, you will more than likely be deemed an interested party, a prospective offeror whose direct economic interest is affected by the issuance of the FSS order to another small business who is not a service-disabled veteran.

Consistent with GAO recent decisions, the Veterans Benefits, Health Care, and Information Technology Act of 2006 requires that the agency makes a determination whether these acquisitions should be set aside for SDVOSB (or VOSB) concerns prior to conducting the procurements using FSS procedures.

SDVOSB Joint Venture Requirements 

The following are direct citations from  13 § 125.18. SDVSOB Joint Venture requirements can be problematic when considering the work share requirements, limitations on subcontracting and whether there is a similarly situated small business on board. Have your attorney explain the various nuances.

See How We Can Help You Avoid Costly Mistakes With Federal JV Agreements

If you are a Service Disabled Veteran Owned Small Business (FAR SDVOSB Set Aside Contracts ) needing help with government small business services that challenges service disabled veteran owned small business set aside and SDVOSB requirements, call our Washington, DC bid protest lawyers at 1-866-601-5518 for a free initial consultation.

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