FED GOV CON Webinar Wednesdays 2019 Series JSchaus & Assoc. Washington DC +1–202–365–0598
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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 2. Pre-certification requirement at JSchaus the VA & Associates 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
3. Unification of the eligibility requirements for the VA program and the SBA program 2019 – Fed Gov Con Webinar Series - Washington DC JSchaus & Associates 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
Defense Finance and Accounting Service: 19% Defense Health Agency: 49% – Fed Gov Con Webinar Series 2019 Defense Human Resources Activity: 50% JSchaus & Associates Defense Information Systems Agency: 28% Defense Media Activity: 56% Defense Microelectronics Activity: 2% Defense Security Cooperation Agency: 65% Defense Counterintelligence and Security Agency: 65% Defense Threat Reduction Agency: 17% Department of Defense Education Activity: 30% United States Special Operations Command: 30% Uniformed Services Univ. of the Health Sciences: 55% United States Transportation Command: 17% Washington Headquarters Services: 37% Defense Intelligence Agency: 30% National Geospatial Intelligence Agency: 15% National Security Agency: 23%
Washington DC
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