VA Faces Lawsuit over “Veterans First” Preference A service-disabled veteran business owner says he will sue the Department of Veterans Affairs over its refusal to give veteran-owned firms priority in purchases through GSA schedules. “We’re gonna fight as long as they’re gonna fight,” Rodney Marshall, CEO of Aldevra, a kitchen equipment dealer in Portage, MI, told Set-Aside Alert. VA says the Veterans First law does not apply to its purchases through GSA schedules. The law requires VA to give SDVs and other veteran-owned businesses first priority on its contracts. The Government Accountability Office, ruling last month on Aldevra’s bid protest, said that includes GSA schedule orders. (SAA, 10/23) VA rejected the GAO ruling. In a memo to the department’s acquisition and procurement personnel, Jan R. Frye, deputy assistant secretary for acquisition and logistics, wrote, “VA is of the opinion that GAO’s interpretation is flawed and legally incorrect.” GAO decisions are not binding on executive branch agencies. “Therefore, VA acquisition and procurement professionals are to continue using the Federal Supply Schedules Program, when necessary and appropriate,” Frye wrote. “The GAO recommendation does not change how VA will acquire goods and services in support of its mission.” He said he expects the courts will decide the issue. Marshall, who pursued his protest to GAO without a lawyer, said he is now seeking legal representation to appeal to the U.S. Court of Federal Claims, whose decisions are binding. The case grew out of VA’s purchases of a skillet, food slicer and griddles. Aldevra protested that the orders should have been offered to SDVs before VA bought the items through GSA schedules, and GAO agreed. While federal agencies generally are not required to consider any category of small business set-aside before buying through GSA schedules, GAO said the law creating the veterans preference on VA contracts contains no such exemption. “The provisions of both the VA Act and the [VA Acquisition Regulation] are unequivocal; the VA ‘shall’ award contracts on the basis of competition restricted to SDVOSBs where there is a reasonable expectation that two or more SDVOSBs will submit offers and award can be made at a fair and reasonable price,” GAO said. “Thus, contrary to the agency’s position, the VA Act requires, without limitation, that the agency conduct its acquisitions using SDVOSB set asides where the necessary conditions are present.” GAO said the law requires orders to be offered to companies owned by non-disabled veterans when no SDV firms are available. Marshall said a VA contracting officer “flat out told us” that the department made purchases through the schedules without regard to the Veterans First law.