VA verification program has improved, GAO says

Related news: VA issues new proposed rule to modify veteran verifications

The Veterans Affairs Department has made progress in its efforts to verify veteran-owned and service-disabled veteran-owned small businesses, a Government Accountability Office executive testified to two House subcommittees.

“Based on our preliminary observations, VA has improved its timeliness for application processing, followed its policies for verifying businesses, continued to refine quality controls for the program, and improved communications with veterans,” said William Shear, GAO’s director of financial markets and community investment.

The VA’s average processing times dropped from 85 days in fiscal 2012 to 41 days in fiscal 2015. The current average is 56 days, Shear said, and only 11 applications exceeded 60 days last year.

The percentage of firms receiving denials fell from 66% in 2012 to 5% in 2015, Shear added. The number of verified firms in the VA’s database rose from 2,900 in fiscal 2010 to more than 7,400 in fiscal 2015, Shear said in his report.

In related news, the VA issued a new proposed rule in the Federal Register regarding the verifications.

The VA said the proposed rule would clarify the eligibility requirements, add and revise definitions, and make changes related to community property restrictions, “unconditional” ownership, day-to-day requirements, full-time requirements, and others.

The VA said its goal is to strike a balance between limiting fraud and making it easier for veterans to get verified, the VA said. Comments are due by Jan. 5.

More information: GAO testimony: http://goo.gl/YdjZMU
Federal Register notice: https://goo.gl/9QosmH

23% goal may be a hindrance to DOD small biz

The Defense Department’s 23% goal for small business contracting may be creating unintended negative consequences that hinder small business growth, according to a new study from the University of Maryland’s Center for Public Policy and Private Enterprise

For instance, a small business that wins a DOD contract may soon become “other than small” and no longer eligible for the work. Another problem is that agencies’ small business goals are set somewhat arbitrarily and do not necessarily reflect small business participation, which varies by industry, the report suggested.

More information: UMD report: http://goo.gl/udPSE2
FedNewsRadio article: http://goo.gl/igme51

Mentor-protege final rule

The Small Business Administration’s final rule to implement new mentor-protégé programs under a governmentwide framework is expected to be issued by year’s end, and the SBA hopes to launch a pilot program under the new rubric in the summer of 2016, according to attorneys Edward DeLisle and Maria Panichelli.

More information: http://goo.gl/BbUITn

DOD program gets boost

In a surprising move, the GAO recommended that Congress consider permanent authorization for the Pentagon’s longstanding program testing how to encourage large contractors to hire small businesses. The 25-year-old program previously had not reported results to the public.

More information: GAO report: http://www.gao.gov/assets/680/673649.pdf

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