FED GOV CON

Webinar Wednesdays
2019 Series

JSchaus & Assoc.

Washington DC
+1–202–365–0598
About Our Webinars:

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 About Our Speaker:
Ryan Bradel, Esq.
Education:
J.D., Notre Dame Law School
B.A. University of Calif., Los Angeles

Company Name:
Ward & Berry, PLLC
The government contractor’s law firm
www.wardberry.com

# of Years Federal Gov Con Experience:

12
Service Disabled Veteran
Owned Small Business
(“SDVOSB”) Contracting:
Contracting at the VA vs.
DOD vs. other agencies
 2019 – Fed Gov Con Webinar Series - Washington DC
JSchaus & Associates

Overview of contracting at the VA versus other agencies:

1. Veterans First requirement

2. Pre-certification requirement at the VA

3. Unification of the eligibility requirements for the VA program and the SBA program

4. DOD small business contracting goals

5. Advantages and Challenges of SDVOSB contracting with the DOD

 2019 – Fed Gov Con Webinar Series - Washington DC
JSchaus & Associates

1. Veterans First requirement at the VA

All VA procurements must be set-aside from competition among SDVOSBs (or VOSBs) if
there is a reasonable expectation that two or more responsible SDVOSBs will submit an
offer and that award can be made at a fair and reasonable price.

This includes GSA Schedule orders.

This includes contracts procured for the benefit of the VA by another agency.
 2019 – Fed Gov Con Webinar Series - Washington DC
JSchaus & Associates

2. Pre-verification requirement at the VA

But the VA has pre-verification requirement. All contractors wishing to perform VA

contracts set-aside for SDVOSBs must submit an application to the VA’s Center for
Verification and Evaluation and receive pre-approval as an SDVOSB.

This is contrasted with the SBA’s SDVOSB program (under which all other federal
agencies award SDVOSB set-asides) which is a self-certification program. No advance
approval is required. A company need only certify that it is an SDVOSB when it submits
its offer on an SDVOSB set-aside contract. That certification is then subject to protest by
disappointed offerors.
 2019 – Fed Gov Con Webinar Series - Washington DC
JSchaus & Associates

2. Pre-certification requirement at the VA

What is required to be verified by the VA?

* Applications are filed on a web-based portal. Start at:

https://www.va.gov/osdbu/verification/

* SDVOSBs must apply for re-verification every 3 years.

- Be sure to apply for re-verification well before your 3 year eligibility period ends to
avoid being de-listed!
 2019 – Fed Gov Con Webinar Series - Washington DC
JSchaus & Associates
2. Pre-certification requirement at the VA

What is required to be verified by the VA?

- Corporate documents (articles, operating agreement or bylaws, voting, etc.)

- Resumes of all owners, directors, partners, and other key employees
- Tax returns
- Last 5 contracts or proposals
- Payroll
- Bank signature cards
- Required licenses
- Service agreements (leases, management agreements, etc.)
- Joint venture agreements, mentor protégé agreements
 2019 – Fed Gov Con Webinar Series - Washington DC
JSchaus & Associates

2. Pre-certification requirement at the VA

What is required to be verified by the VA?

- Make sure all of your ducks are in a row before filing the application because if the
application is denied you will have to wait 6 months before you can re-apply.
 2019 – Fed Gov Con Webinar Series - Washington DC
JSchaus & Associates

3. Unification of the eligibility requirements for the VA program and the SBA program

* On Oct. 1, 2018 news rules which unified the eligibility requirements for the V’s
SDVOSB program and the SBA’s SDVOSB program took effect.

* Prior to this new rule the VA’s program had slightly different requirements (most
significantly in the areas of control of the company and the level of effort that a service
disabled veteran had to dedicate to the running of the company). This led to the
possibility that a company could be eligible under one program and not the other. It
also led to a lot of confusion among contractors as to which program they were
qualified under.
 2019 – Fed Gov Con Webinar Series - Washington DC
JSchaus & Associates

3. Unification of the eligibility requirements for the VA program and the SBA program

* It is important to remember that the two programs remain distinct—a contractor

must obtain advance verification with the VA before it is eligible for an SDVOSB set-
aside with the VA a contractor does not need to obtain pre-verification in order to be
eligible for the SBA’s program—but the eligibility requirements are now the same and
the SBA will handle any appeals of a denial of eligibility so the precedents will be
unified.
 2019 – Fed Gov Con Webinar Series - Washington DC
JSchaus & Associates

3. Unification of the eligibility requirements for the VA program and the SBA program

Important changes to the eligibility requirements following the unification of the

rules:

* Consistency in exceptions to requirement for absolute control

* Elimination of the “full time devotion” requirement and replacement with a

rebuttable presumption of working: i) normal business hours; and ii) in close proximity

* SDVs must receive profit distribution commensurate with ownership interest

 2019 – Fed Gov Con Webinar Series - Washington DC
JSchaus & Associates
3. Unification of the eligibility requirements for the VA program and the SBA program

Important changes to the eligibility requirements following the unification of the rules
(cont’d):

* VA verified SDVOSBs must inform VA of any new super majority voting requirements

* Requirement that SDV be the most highly compensated (was not in the SBA’s rules)

* Right of first refusal in the even of death or incapacity

* SDVOSB must be small in its primary NAICS code

 2019 – Fed Gov Con Webinar Series - Washington DC
JSchaus & Associates
4. DOD Small Business Prime Contracting Goals: Defense Microelectronics Activity: 2%
Defense Security Cooperation Agency: 65%
Army: 29% Defense Counterintelligence and Security Agency: 65%
Navy: 14% Defense Threat Reduction Agency: 17%
Air Force: 18% Department of Defense Education Activity: 30%
Defense Logistics Agency: 31% United States Special Operations Command: 30%
Missile Defense Agency: 8% Uniformed Services Univ. of the Health Sciences: 55%
Defense Advanced Research Projects Agency: 20% United States Transportation Command: 17%
Defense Communications Agency: 60% Washington Headquarters Services: 37%
Defense Contract Management Agency: 50% Defense Intelligence Agency: 30%
Defense Finance and Accounting Service: 19% National Geospatial Intelligence Agency: 15%
Defense Health Agency: 49% National Security Agency: 23%
Defense Human Resources Activity: 50%
Defense Information Systems Agency: 28%
Defense Media Activity: 56%
 2019 – Fed Gov Con Webinar Series - Washington DC
JSchaus & Associates

5. Advantages and Challenges of SDVOSB contracting at the DOD.

* DOD has a demonstrated commitment to contracting with SDVOSBs and has one of
the highest rates of contracting with SDVOSBs of any federal agency.

* DOD has its own unique mentor-protégé program

* DOD encourages joint venture contracting

* DOD has conducted a number of OIG inquiries into SDVOSB contracting and the
controls in place to ensure integrity of the program
 THANK YOU!
JSchaus & Assoc.
Washington DC
hello@JenniferSchaus.com
www.JenniferSchaus.com
+1–202–365–0598
Speaker: Ryan Bradel

Email: rbradel@wardberry.com

Phone: (202) 331-8160