VA Tightens Rules for Veterans’ Set-Asides A veteran business owner must work full-time in the business in order to qualify for VA’s set-aside contracting program. “VA has determined that this revision will ensure the integrity of the program,” the department said in its final rule. VA is permitted to set aside contracts for veteran- and service-disabled veteran-owned businesses that register with the department’s Vendor Information Pages at www.VetBiz.gov. About 16,000 companies have registered, 9,000 of them service-disabled veteran-owned. The final rule replaces a 2008 interim rule implementing the program. It tightens requirements for eligibility following auditors’ findings that the SDV program was wide open to cheating. The interim rule only required veteran business owners to “show sustained and significant time invested in the business.” The final rule also limits a veteran to owning just one company in the set-aside program. The veteran must own at least 51% of the company’s stock. VA said it does not have the resources to conduct site visits to verify all companies’ claims of eligibility. “VA can adequately verify firms through other means, such as document review,” according to the final rule. However, the department has authority to conduct random and unannounced site visits. Companies’ eligibility will be verified annually, but they are required to report any change of control to VA within 60 days. VA officials have said their verification program will not be fully operational until 2012. The VA rule, effective Feb. 8, applies only to the department’s own contracts. All other agencies may set aside contracts for service-disabled veterans who self-certify their eligibility. The Government Accountability Office reported in October that self-certification leaves the SDV program open to fraud. Auditors found that a sample of 10 companies had received $100 million in SDV contracts, although some were ineligible for the program and several were passing through most or all of their work to large companies. GAO’s chief investigator, Gregory Kutz, said, “Some people refer to it as ‘rent-a-vet.’” “Obviously, self-certification is not working,” remarked Rep. Steve Buyer, R-IN, at a December 16 hearing before a House Veterans Affairs subcommittee. Buyer has introduced legislation, H.R. 4221, to tighten controls over VA contracting programs.