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Sep 9 2016    Next issue: Sep 23 2016

VA moves to enforce VetsFirst

Policy memo outlines Court-mandated procedures

The Veterans Affairs Dept. is moving quickly to implement the June 16 Supreme Court decision on mandating stricter enforcement of the VA’s Veterans First Contracting Program.

The VA issued an 11-page Procurement Policy Memo on July 25 that outlines the new procedures for all VA contracting personnel and procurement actions, effective immediately. The guidelines also apply to acquisitions pending award, the memo states.

The court ruled that the VA must set aside procurements for competition among veteran-owned small businesses if the contracting officer has a reasonable expectation that two or more small firms owned and controlled by veterans or service-disabled veterans will submit offers and the award can be made at a “fair and reasonable price that offers the best value to the United States.” This is known as the Rule of Two.

The court also decided that it is mandatory, not discretionary, to apply the Rule of Two to all contracting determinations, including procurement from the Federal Supply Schedule. Furthermore, the Rule of Two applies even when the VA has met its small business goals for the year.

The memo applies to the VA’s Heads of Contracting Activities, VA contracting offices, other VA acquisition professionals and all acquisitions conducted by VA utilizing interagency acquisitions.

It also spells out how the new policy should be applied to VA requirements in the pre-solicitation phase, to those in the solicitation and evaluation phase, and to those in which offers have been received.

Market Research

The VA said it will only consider firms that have been verified in the VA’s Veterans First Contracting Program. To date, 8,844 veteran-owned small businesses have been verified and are in the VA’s Vendor Information Pages database.

In developing the acquisition strategy, “the contracting officer “shall take into consideration the impact of the VA Rule of Two and the best method of successfully implementing that requirement,” the memo states. “Contracting officers must first research the VIP database to determine the availability of eligible sources in a specific NAICS code, then consider the VA Acquisition Regulation, other internal agency policy, and the guidance in the PPM and the Decision Tree Tool.” The VA did not release a copy of the decision tree tool.

Furthermore, the contracting officer must evaluate alternatives and determine the most effective acquisition strategy to employ, and document that decision, the memo added.

The VA’s Office of Small Business Utilization has a statutory mandate to make recommendations to the contracting officer on whether an action should be set aside, and must document the decision. “This review process is more effective when conducted collaboratively and early,” the memo advises.

In addition, the contracting officer shall coordinate market research on a specific procurement with the program office.

Medical Supplies

In the area of medical supplies, the VA notes that it has previously implemented a strategic sourcing vehicle under Federal Supply Classification 65 and 66. “Contracting officers shall consider all strategic sourcing vehicles and document in the market research report that these vehicles were examined when performing market research.”

The memo can be downloaded at this link: http://www.va.gov/oal/business/pps/ppms.asp .

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