VA, SBA change vet verification

Final rules for VOSBs, SDVOSBs in effect on Oct. 1

      The Veterans Affairs Dept. and Small Business Administration put into effect final rules that modify how veteran-owned small businesses are defined and verified.

      Under the VA and SBA final rules, which went into effect on Oct. 1, the VA agreed to adopt the SBA’s regulations on ownership and control of veteran-owned and service-disabled veteran-owned small business (VOSB or SDVOSB), including ownership and control.

      The VA agreed to apply the SBA’s regulations in its verifications of such firms. Both the VA final rule and the SBA final rule became effective on Oct. 1.

      Congress ordered the SBA to develop standard rules for veteran ownership and control of a small business in the National Defense Authorization Act for Fiscal 2017. The goal was to eliminate the confusion from having the VA verify one set of rules, while the SBA had another set of rules.

      The rule promulgated by the SBA, which is to be applied by the VA in its verifications, also includes these provisions, according to an analysis by Steve Koprince, government contracting attorney:

• The service-disabled veteran owner must control the company’s “daily business operations,” which includes marketing, production, sales and administrative functions, supervision of the executive team and the implementation of policies.
• A non-service disabled veteran may have a say over certain “extraordinary actions” including adding a new equity stakeholder; dissolving, merging or selling the company; or having the company declare bankruptcy.
• For partnerships, the service-disabled veteran must unconditionally own at least 51% of the aggregate voting interest.
• Service-disabled veteran owners must receive at least 51% of the company’s annual distribution of profits.

More information:
Federal Register final rule on Verification: https://bit.ly/2NKt6oI
Federal Register final rule on Control: https://bit.ly/2OjLkgx
SmallGovCon blog: https://bit.ly/2QnL79v

SBA modified scorecard methods in ‘17

DOD rule would limit up-front payments; boost progress pay

House small biz panel OKs bills

Relief & recovery contract tips

DOE, DOI, HHS unresponsive

GAO finds lax reviews of HUBZones

No shutdown

Column: Current Trends in Federal Procurement

Washington Insider:

Coming up:

Register for our webinar:
What Every SDVOSB Needs to Know about New Eligibility Requirements
scheduled for October 23 online
1:00-2:30pm Eastern
For more info click here