|
Federal Market Intelligence for Small Business |
|
|
|
|
Top 17 Small Business Federal Contracting Stories of 2017 - IIContinuing with Set-Aside Alert’s choice of the Top 17 Small Business Federal Contracting Stories of 2017, here is the remainder of the list: #9 VA wins court case The U.S. Court of Federal Claims in May decided that veterans have top priority in Veterans Affairs Dept. contracting, overriding the priority given to companies employing people with disabilities. The court ruled that Congress, in the 2006 “Veterans First” law, intended that veterans should get first preference in VA contracts, overruling the preferences awarded to AbilityOne companies in a 1971 law. However, the court on Sept. 15 suspended its own decision until the matter can be judged by the U.S. Court of Appeals for the Federal Circuit. The intervenor in the case, Industries for the Blind Inc., a maker of eyeglasses and an AbilityOne contractor employing blind and disabled people, appealed the federal claims court’s decision. #10 Fewer small federal primes The number of small businesses winning prime federal contracts fell by 25% from 2010 to 2016, according to a study by Deltek research firm. The total number of small business prime government contractors decreased from 140,000 in 2010 to 105,000 in 2016. The study attributed the drop primarily to contract consolidation. #11 Major fraud case Defense contractor ADS Inc. of Virginia Beach, VA agreed to pay $16 million to the government as a result of a False Claims Act case investigated by the Small Business Administration’s OIG and negotiated by the Justice Dept. The scheme involved setting up purported small disadvantaged business entities to obtain set-aside contracts. The OIG said it was the second-largest recovery ever under the False Claims Act in a case involving small business contracting fraud. #12 GAO hits OSDBUs The Government Accountability Office found a variety of issues with the government’s Offices of Small and Disadvantaged Business Utilization (OSDBUs) at 24 agencies. Only five OSDBUs demonstrated compliance with all requirements, while four agencies missed only one requirement. Fifteen agencies missed the boat on two or more requirements. The OSDBUs fell short by not having their directors report to the head of the agencies; by requiring collateral duties of the directors; and by not recognizing required compensation and seniority of the directors. Read more at https://www.gao.gov/products/GAO-17-675. #13 Changes in veteran certification The Veterans Affairs Dept. and SBA are working together to loosen restrictions on veterans’ ownership and control of small business contractors, Thomas J. Leney, executive director of VA’s Small and Veteran Business Program office, said in a webinar. He said the joint rule would align with “normal business practices” and would give minority investors more authority than before in the ownership and operation of service-disabled veteran-owned small businesses (SDVOSBs). The changes are in response to Congress’ order to the SBA, contained in the NDAA of fiscal 2017, to consolidate authority to verify veteran business owners within the SBA. Currently, the VA verifies veteran owners for its VETS First set-asides program, and the rest are self-certified under an SBa program. (UPDATE: The VA has issued a proposed rule giving up authority in verification of veteran ownership. See story on Page 1.) #14 8(a) adds 7% more firms The Obama Administration implemented “an aggressive growth plan” in its final months to increase the number of small businesses certified in the SBA’s flagship 8(a) Business Development program, according to a report from the agency’s Office of Inspector General. That effort paid off with an estimated 7% increase in the number of 8(a) participants between August 2016 and March 2017. The number of 8(a) companies rose to about 5,300, from 4,900, during the period, according to OIG’s Report on the Most Serious Management and Performances Challenges Facing the SBA in Fiscal 2018. #15 SBA OIG faults 8(a) program The SBA’s OIG followed up on its review that found that 30 out of 48 applicants for 8(a) were approved by the SBA without fully addressing eligibility concerns raised about their applications. In the followup, the OIG said the concerns were resolved for 20 of the firms. For the 10 remaining firms, the OIG made recommendations. #16 FBI’s headquarters canceled The Trump Administration canceled the search for a new FBI headquarters, citing a lack of funding. Plans for moving the agency out of its deteriorated building in downtown Washington, DC had been in the works for more than a decade, and three potential sites had been identified in the MD and VA suburbs. #17 Veteran owners group concerns In the 16 months since the Supreme Court confirmed that veterans must get the first shot at all VA contracts, the VA has fallen short in complying, according to a national veterans group. The National Veteran Small Business Coalition shared concerns that the VA is not fully complying with, or sometimes actively “working against,” Congress’ intent in the Veterans First law of 2006. The law ordered that veterans get top priority in VA contracting. The group noted in a white paper that the percentage of VA prime contract spending going to SDVOSBs has declined in recent years, from 20% in 2010 to 18% in 2016. Currently there are about 8,300 such firms verified with the VA. The group also said only 4% of VA contracts below the simplified acquisition threshold in fiscal 2016 were set aside for SDVOSBs or VOSBs. The VA has not responded to a request for comment on the group’s concerns.
|
Coming up:Register for our webinar on Investment, M&A, and Business Succession for Small Business in Set-Aside Programs,
|
Copyright © 2018 Business Research Services Inc. 301-229-5561 All rights reserved.