Thursday, December 11, 2008

Fraud in Service-Disabled Veteran-Owned Small Businesses (SDVOSBs).

An order signed by President George W. Bush on October 20, 2004, directs all federal agencies to implement Executive Order 13360. The U.S. General Services Administration (GSA) created the 21 Gun Salute initiative to help provide more opportunities in federal contracting for Service-Disabled Veteran-Owned Small Businesses (SDVOSBs).
The law providing for SDVOSBC set-asides is permissive, not mandatory, and does not require an agency to set aside contracts for SDVOSBCs.

The Small Business Act defines an SDVOSB as a business that is (1) at least 51% owned directly and unconditionally by a service-disabled veteran and (2) managed and controlled by a service-disabled veteran, or spouse or permanent caregiver of a service-disabled veteran with a permanent and severe disability. (See 13 C.F.R. 125.8-125.10).
All questions about a firm's service-disabled veteran-owned size status must be referred to the U.S. Small Business Administration (SBA) for resolution (see Federal Acquisition Regulation (FAR) §19.307(h). Size protests are decided by the SBA's Government Contracting Area Office serving the geographical area where the protested firm is located (See 13 C.F.R. 121.1002 and FAR 19.302(c) (1). SDVOSB status protests are decided by the SBA Director for Government Contracting, (See 13 C.F.R. 125.24(e) and FAR 19.307(c). Any questions concerning an apparent successful offeror's representation that it qualifies as an SDVOSB, including a challenge from a Contracting Officer, must be forwarded to the SBA. (See 13 C.F.R. 125.8).

I know of no State or federal agency that met it's goals in awarding contracts to Service-Disabled Veteran-Owned Small Businesses (SDVOSBs).

More info on SBA's veteran programs at: http://www.sba.gov/aboutsba/sbaprograms/ovbd/index.html

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