A federal judge has ordered VA to reconsider the eligibility of CS360, an SDV firm in Glen Burnie, MD. Judge Colleen Kotar-Kotelly said VA’s rejection of the company’s application was written “in such generalized and ambiguous terms that the court is essentially left to guess as to the precise basis of the agency’s decision.”

VA had determined that CS360 was a sham company because its majority owner, a service-disabled veteran, had not put any money into the business.

The judge did not rule on the merits of VA’s decision, but ordered the department to reconsider it.

It is the first time VA’s verification process has been successfully challenged. Companies that are rejected by VA are not eligible for SDV or veterans set-aside contracts with the department. Veterans groups have long complained that VA often rejects applications without adequate explanation.

CS360’s attorney, Ralph C. Thomas III, said VA provides no avenue for a company to appeal its decisions, so a lawsuit was the only recourse.