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Veteran’s Protest Stalls Awards on VA’s Giant IT Contract

A small business has filed a protest over the Veterans Affairs Department’s flagship IT contract, alleging that it favors large businesses over veteran-owned firms.

VA cannot make awards on the contract until the protest is decided, probably in December.

The protest filed with the Government Accountability Office by Vetrepreneur LLC, an SDV business, alleges VA is violating the “Veterans First” law, which requires the department to give veteran-owned firms first priority in its contracts.

When VA announced the Transformation Twenty-One Total Technology, or T-4, contract in July, Secretary Eric Shinseki said it represented a “great opportunity for veteran-owned small businesses.” He added, “It’s your chance to think big, to think like a prime, and to succeed as one.”

Seven of the 15 contracts were reserved for veterans, with four of them going to service-disabled veteran-owned companies. The multiple award task order contract, the largest procurement in VA history, could be worth up to $7 billion over five years.

“The primary objection to this is the [department’s] assumption that 8 of the top fifteen [offerors] will be large/non-VET businesses,” Vetrepreneur president Robert Hesser wrote in the protest. “7 out of 15 are not half. If they seriously want to show they are supporting ‘VETS-First’ why isn’t the count 8 VETS and 7 non-Vets?... Not one portion of the requirement should be offered to a non-Vet until the VETS get theirs first.”

VA said the 7-8 split was based on market research.

Hesser said VA’s solicitation ranked “Veterans Involvement” as the third most important evaluation factor, below technical factors and past performance. He asked GAO to require VA to issue a new solicitation.

The protest was first reported by NextGov.


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