VOB issues

Small businesses owned by veterans have jumped to the front of the line for Veterans Affairs Department contracts.

VA published a final rule in the Federal Register on Dec. 8 creating a set-aside contracting program for veteran-owned and service-disabled veteran-owned small businesses.

The rule, which has been in development for more than three years, requires VA contracting officers to set aside procurements between $100,000 and $5 million if they expect two or more eligible veteran-owned or service-disabled veteran-owned small businesses to submit a fair and reasonable offer. VA contracting officers also will be allowed to let sole-source contracts to these firms, for awards from $3,000 to $5 million.

“Only a small percentage of veterans own small businesses,” the rule states. “With this new procurement authority, additional businesses may be opened by veterans seeking to participate in the sole-source or set-aside procurement actions. More likely, [veteran-owned small businesses] not currently in the federal market may be expected to explore selling to VA.”

To participate, companies must register with the VetBiz.gov Vendor Information Pages database to verify that they meet all eligibility requirements. Any company that misrepresents itself in the database could face debarment for up to five years.

Previously vendors could self-certify the accuracy of the information provided. But now, officials with the VA Center for Veterans Enterprise must verify the data as part of the VetBiz application process. There are nearly 16,000 veteran-owned small businesses in the VetBiz database, including about 9,000 service-disabled veteran-owned small businesses.

The Federal Register notice also requires VA to give small businesses owned and controlled by veterans priority over all other socioeconomic groups, such as firms in historically underutilized business zones and small disadvantaged businesses. Prime contractors that propose using veteran-owned firms as subcontractors also must receive preference.

Congress has not yet authorized a similar procurement program governmentwide.

“This VA-specific rule is a logical extension of VA’s mission to care for and assist veterans in returning to private life,” the notice states. “It provides VA with the new contracting flexibilities to assist veterans in doing business with VA.”

The rule builds off a 2004 executive order by President George W. Bush that mandated increased contracting and subcontracting opportunities for veteran-owned and service-disabled veteran-owned small businesses. In 2006, Congress passed the Veterans Benefits, Health Care and Information Technology Act, which authorized VA to set aside and award sole-source contracts to service-disabled veteran-owned small businesses.

VA received 97 comments on its proposed rule, although many were form letters that included identical responses, according to the notice. Officials did not make any significant changes from the August 2008 interim rule.

Among the other policy changes in the final rule, VA contracting officers will not need a waiver to purchase supplies and services from veteran-owned and service-disabled veteran-owned small businesses rather than Federal Prison Industries Inc., the mandatory supplier for agencies purchasing specified products.

The rule also creates a mentor-protégé program at VA in which larger firms tutor, train and guide smaller businesses in exchange for preference in prime contract awards. The mentor firms are encouraged to help service-disabled veteran-owned and veteran-owned small businesses obtain bonds.

In addition, the rule proposes that the Small Business Administration hear protests regarding the size and eligibility of companies winning VA set-aside contracts. VA will accept comments on the proposal through Jan. 7, 2010.

VA awarded 35 percent of its fiscal 2008 contract dollars to small businesses, including 15 percent to veteran-owned small businesses and 12 percent to service-disabled veteran-owned small businesses. In contrast, the government as a whole awarded 3 percent of contract dollars to veteran-owned firms and just 1.5 percent to small companies owned by service-disabled veterans. The governmentwide goal in both categories is 3 percent.

Federal Register

Federal Register

Recent legislation to give SDVOB’s equal standing with HUBzones and 8a businesses was killed Oct. 9, 2009.

WASHINGTON – United States Senate Committee on Small Business and Entrepreneurship Chair Mary L. Landrieu, D-La., and Ranking Member Olympia J. Snowe, R-Maine, today issued the following statements upon learning that their Small Business Parity amendment to the Senate’s version of the Department of Defense Authorization Act for Fiscal Year 2010 was removed during conference negotiations. The amendment sought to place the three small business government contracting programs – HUBZone, 8a, and service-disabled veterans – on an equal playing field when competing for federal contracts.“I am extremely disappointed that my colleagues did not find this provision important enough to remain in the bill,” Senator Landrieu said. “The ongoing controversy over the order of contracting priority between Service Disabled Veteran’s small business programs, the HUBZone program and the 8a Business Development Program needs immediate attention. This Senate-backed amendment places all of these programs on a level playing field when competing for contracts. I urge members of Congress to reconsider their support of this amendment for the sake of small business owners. In addition to the fact that these small businesses should be given the opportunity to compete equally, placing one program over another has created confusion and disarray among contracting officers and small business owners alike, which essentially hinders the potential success of these small businesses.”

via Press Releases – News – U.S. Senate Committee on Small Business & Entrepreneurship.

So if you an Asian Indian, you get preference over a home grown, US Military approved, Master Chief. Seems like Congress still doesn’t get it.

FedBizOps is a cruel farce, and this note on a VA bid is a clear indication: get a GSA schedule or don’t waste your time:

NOTE: NOTICE OF CANCELLATION OF PRESOLICITATION NOTICE ON FEDBIZOPPS. THE SOLICITATION WILL BE POSTED ON GSA EBUY AND NOT OF FEDBIZOPPS. ONLY GSA VENDORS WILL BE CONSIDERED FOR THIS PROJECT.

via 99–VA-250-09-RQ-0287 VA AMBULATORY CARE CENTER COLUMBUS OH ARTWORK – Federal Business Opportunities: Opportunities.

The GSA schedule process needs to be simplified if small businesses, (under $6 million year) are to be seriously considered. Our proposal for a GSA EZ for small business was made in 2005, and while it had a bit of attention for about a minute, it’s yet to find a champion in Congress.

With the increased reporting requirements, the bids often taking 2 weeks to assemble (I’ve yet to see a government bid that’s less than 100 pages, when our normal bis is less than 6!) the whole government contracting requirement for small projects is bloated  and has become a farce.

Jan 5 2009, Secretary of the Air Force, Michael B. Donley and General Norton A Schwartz issued a “Memorandum for ALMAJCOM-FOA-DRU/CC Distribution C” Subject “Winning the Fight for Wounded Veterans- Airman Supporting Service-Disabled Veteran-Owned Small Businesses.”

We’ve uploaded the PDF here for you to read- distribute- and maybe even hold some of the Prime contractors accountable for meeting the mandated 3% requirement set out in House Bill 108. Secretary of Air Force on SDVOBS PDF

Was on the GSA site looking for some sort of simplified small business GSA Schedule, and found this:

Service-Disabled Veteran-Owned Small Business Initiative

An order signed by President George W. Bush on October 20, 2004, directs all federal agencies to implement Executive Order 13360. The U.S. General Services Administration (GSA) created the 21 Gun Salute initiative to help provide more opportunities in federal contracting for Service-Disabled Veteran-Owned Small Businesses (SDVOSBs). The following graphic illustrates how GSA plans to meet and exceed the 3 percent procurement goal for SDVOSBs as well as highlighting GSA’s role in helping other federal agencies reach their goal. [PDF - Word]

As a part of this initiative, an SDVOSB subcommittee has been formed to advise GSA’s Small Business Advisory Committee (SBAC) to improve and advance the opportunities of SDVOSBs. This committee met for the first time on January 13, 2009. The agenda and minutes of that meeting can be found here.

Expanding business opportunities is one important way to honor the men and women who, throughout history, have served proudly and courageously in our Armed Forces, placing their personal safety and ambitions second to protecting our country, preserving American ideals, and fighting the enemies of freedom.

Thank you for your interest in the 21 Gun Salute.

via GSA – Service-Disabled Veteran-Owned Sml Bus.

It was good to see Col Blanco (ret) on the list of members.

The participants in the committee are:

Subcommittee Chair
John Moliere, Standard Communications, Inc.

Subcommittee Members
James A. Blanco, Vision Technologies
Thomas F. Brown, U.S. General Services Administration
R.C. (Chuck) Forrest III, KMEA
Robert J. Might, Innovative Management Concepts, Inc.
Arthur Salus, Duluth Travel Agency
Thomas M. Schultz, Veterans Imaging Products, Inc.
Rick Weidman, The Vietnam Veterans of America

When I find the GSA ez form- I’ll share that with you.

Verification of Veteran-Owned and Service-Disabled Veteran-Owned Small Businesses per Public Law (P.L.) 109-461

Verification Program :

The Department of Veterans Affairs has unique buying authority (P.L. 109-461) that enables our personnel to set-aside requirements for veteran-owned small businesses. This legislation also provides VA teams with more latitude in non-competitive contracting. Some businesses owned by surviving spouses are eligible for the Verification Program. VA’s large prime contractors are required to use businesses that have been officially verified for ownership and control.

The new Verification Guidelines were published in the Federal Register on May 19, 2008. The Verification Guidelines were published as an Interim Final Rule (IFR). The public comment period is now open and comments must be received before July 18, 2008 to be considered.

To review the Verification Guidelines, please click here: http://edocket.access.gpo.gov/2008/pdf/E8-10489.pdf

We are currently operating under Information Letter 049-07-08 issued on June 19, 2007.

Procurement provisions contained in Section 8127 of Title 38, U.S.Code, as amended by Public Law 109-461, provide veteran-owned and service-disabled veteran-owned small businesses (VOSBs and SDVOSBs) an option when registering their businesses in VIP: be verified for ownership and control or self-represent.

Businesses wishing to benefit from the U.S. Department of Veterans Affairs (VA)’s unique Veterans First Contracting Program under Section 8127 must agree to be verified.

There are many benefits to having your business verified as a VOSB or SDVOSB. As a verified VOSB or SDVOSB, you will have the opportunity to compete for VA contracts under the Veterans First Contracting Program, as listed below:

Benefits of Veterans First Contracting Program

1. Redefines priorities for contracting preferences within VA, placing SDVOSBs and VOSBs first and second, respectively, in satisfying VA’s acquisition requirements.
2. Allows sole source contracts over the Simplified Acquisition Threshold up to $5,000,000 (including options).
3. Implements restricted competition via Set-Aside Procedures for each category of SDVOSBs and VOSBs.
4. Allows additional credit evaluation factors for SDVOSB or VOSB status.
5. Authorizes large VA prime contractors to obtain subcontracting credit for SDVOSBs and VOSBs only when they subcontract with verified firms in VIP.

Participation in the Verification Program is voluntary. However, to be eligible to participate in requirements conducted under the authority of Public Law 109-461, businesses must be verified. VA reserves the right to conduct examination visits of businesses participating in the Verification Program. Misrepresentation of status shall initiate debarment action by VA officials. Verified businesses will be annotated in the database and will receive the rights to display the Verified logo in their marketing materials. To be included in this program click here. THIS IS WHERE YOU CERTIFY

Self-representation :

SDVOSBs and VOSBs may continue to self-represent their status for all other requirements. However, they are encouraged to have their business verified, as other Federal agencies will have access to the database to search for verified businesses to meet their Federal procurement goals.

Businesses wishing to sell to all Federal agencies and to other businesses may self-represent their status by answering the four gateway questions on the qualification page to ensure their eligibility as a veteran, as a service-disabled veteran (if applicable), that the business is at least 51% owned and controlled by veteran(s) or service-disabled veteran(s) and that the business meets Federal small business size standards. However companies using this status will not be eligible for benefits under PL 109-461.

U.S. Department of Veterans Affairs.

*You must be registered in VIP before submitting a VA Form 0877.

*If you are a service-disabled veteran, and you are not receiving compensation from the VA, before submitting your VA Form 0877, please call your local VBA Regional Office at 1-800-827-1000 and ask them to verify that your service-disabled veteran status is updated in your BIRLS record.  This applies to all levels of service rating, to include 0%.

Click here to open the VA Form 0877 , VetBiz Vendor Information Pages Verification Program application.

While updating my ORCA documentation I ran across this requirement for companies that have Gedearl contracs larger than $100,000 annually.

I’m wondering how many fill this out?

U.S. Department of Labor — Veterans’ Employment and Training Service (VETS)
VETS – 100 Federal Contracting Program Reporting

In accordance with Title 38, United States Code, Section 4212(d), the U.S. Department of Labor (DOL), Veterans’ Employment and Training Service (VETS) collects and compiles data on the Federal Contractor Program Veterans’ Employment Report (VETS-100 Report) from Federal contractors and subcontractors who receive Federal contracts that meet the threshold amount of $25,000 or more prior to December 1, 2003 or $100,000 on or after December 1, 2003. The VETS-100 reporting cycle begins annually on August 1 and ends September 30. Companies are encouraged to submit reports online through our website at http://vets.dol.gov/vets100. However, reports that are mailed or submitted on a properly formatted disk are still acceptable.

Prior to amendment by the Jobs for Veterans Act (JVA), the Vietnam Era Veterans’ Readjustment Assistance Act (VEVRAA) and its implementing regulations at 41 CFR 61.250 required all contractors and subcontractors with Federal contracts in excess of $25,000 to report their efforts toward hiring and employing veterans in four specified categories: veterans of the Vietnam era, special disabled veterans, other protected veterans and recently separated veterans. JVA raised the VETS-100 reporting threshold from $25,000 to $100,000 for contracts awarded on or after December 1, 2003, and modified the report categories of veterans to: disabled veterans, other protected veterans, Armed Forces service medal veterans, and recently separated veterans (41 CFR 61.300 in clearance). Additionally, JVA will require Federal contractors and subcontractors to report the total number of all current employees in each job category and at each hiring location.

NOTE: JVA amendments became effective December 1, 2003 and apply only to contracts entered on or after December 1, 2003. Contracts awarded prior to this date are governed by the current regulations and reporting categories as defined by VEVRAA. Reporting on the new target groups of veterans is not yet in effect pending regulatory clearance.

NOTE: VETS-100 has also discontinued the practice of mailing out pre-printed reports to companies. If you are in need of a report, please visit the website at http://vets.dol.gov/vets100 or contact the helpdesk at 301-306-6752 or helpdesk@vets100.com.

The deadline for VETS-100 reporting is September 30, 2007.

For Assistance: VETS-100 Help Desk at (301) 306-6752 or email helpdesk@vets100.com.

Besides the support of the people who served, buying from Veteran Owned Businesses is critical for National Defense as outlined in this article:

U.S. Loses Capability to Equip Itself for Future Conflicts

The United States has lost critically needed capabilities to arm itself for future wars, the lead article in the January/February 2008 issue of Metals Service Center Institute Forward magazine reports .

Furthermore, the magazine says, the Pentagon lacks the information necessary to know whether important weapons components now rely on foreign-sourced parts or materials. The military procurement system doesn’t require lower-tier contractors to report their use of foreign-sourced parts and materials, and the Defense Department isn’t interested in pursuing the question.

“The Navy,” Rear Admiral Kathleen M. Dussault, deputy assistant secretary of the Navy for acquisition and logistics management said, “does not have visibility into commercial items indirectly purchased (from China) via second- and third-tier producers.” This is the case for the Pentagon as a whole, the article notes.

As a consequence, a range of essential materials, used to make everything from ordinary ammunition to propellants for missiles and components of submarines, are no longer made in the United States. In some cases, essential materials are available almost exclusively from China.

“If the Chinese wanted to play hard ball, there would be some severe consequences,” says Archibald Cox, Jr., former chief executive officer of a militarily significant company that moved through a series of transactions to China. Adds counterterrorism expert Peter Leitner, who for 21 years was a senior strategic trade adviser at the Pentagon, “It’s a form of economic warfare, and no one is really paying a whole lot of attention to what the Chinese are doing.”

The US Government has implemented a 3% contract requirement that isn’t being met for SDVOB’s now. If expanded to VOB’s as well, maybe we wouldn’t be offshoring so many critical pieces of our defense systems.