The government would save about $5 million a year if it transferred authority to certify service-disabled veteran-owned small businesses (SDVOSBs) to the Small Business Administration, the Congressional Budget Office said in a report.

      The certifications currently are administered by the Veterans Affairs Department, which maintains a database of SDVOSBs. The SDVOSBs that are certified by the VA receive a strong preference in VA small business contracting.

      Under a proposed bill, HR 2882, the VA’s authority for those certifications would be transferred to the SBA. The bill, sponsored by Rep. Mike Coffman, R-CO, also would direct VA to reimburse SBA for its database costs, eligibility determinations and appeals.

      CBO said SBA would spend less because it can use systems already in place, such as for HUBZones.

      “CBO estimates that SBA would spend, on average, about $5 million per year less than VA would to administer the verification system,” the CBO said in a report.

      Tom Leney, VA’s executive director of the Center for Veterans Enterprise, disputed the report in a statement to the Washington Business Journal, saying VA is best positioned to administer the certification program because VA makes more purchases from veteran-owned firms than all other civilian agencies combined.

More information: http://www.cbo.gov/publication/45256