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Federal Market Intelligence for Small Business |
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Set-Aside Alert news analysis:VA-SBA shakeup in NDAAChanges to VA-SBA roles for SDVOSBs, VOSBsOnly one of the small business contracting provisions in the National Defense Authorization Act for Fiscal 2017 (NDAA) appears to bring significant changes. Section 1832 was approved to respond to calls for standardizing rules for veteran-owned small business contractors. Currently, there are two sets of rules, one under the Veterans Affairs Dept. and the other under the Small Business Administration, based on separate authorizing laws passed by Congress in the past. By law, the VA must give top priority to veteran-owned small businesses in all of its contracts. The SBA does not have to follow such a law. VA officials in recent years have objected to proposals that would have them lose any of their authority over verifications of veteran vendors. The VA officials argued that strong quality control was needed to prevent fraud. The NDAA appeared to be an attempt at a compromise. While the VA loses some authorities and SBA gains certain authorities, the VA will keep verification in-house. VA officials’ reactions were not immediately available. The NDAA of 2017 now requires the VA to use the SBA’s definitions of veteran-owned small businesses (VOSBs) and service-disabled veteran-owned small businesses (SDVOSBs). Furthermore, the NDAA directs that the Secretary of Veterans Affairs must use the regulations established by the SBA regarding ownership and control of VOSBs and SDVOSBs. The VA would continue to be responsible for determining whether applicants are veterans and are service-disabled, and the VA also would be in charge of verifying applicants, the provision states. Applicants will be able to appeal VA denials of verification to the SBA’s Office of Hearings and Appeals. Currently, the appeals are heard by the VA. More information: NDAA text: http://goo.gl/sytb2J --> |
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