Legal Blog

Colorado Congressman Coffman Co-sponsors SDVOSB Verification Bill

Posted by Joseph Whitcomb on Nov 8, 2016 10:00:56 AM

HR 3945-Another Attempt to Revamp the SDVOSB Verification Process

The SDVOSB verification process can be tricky.  On November 5, 2015, Representative Mike Coffman, along with five co-sponsors introduced HR 3945, titled Improving Opportunities for Service-Disabled Veteran-Owned Small Businesses Act of 2015.  While the text of the bill was not available at the time of this writing, Ben Stein, Coffman’s chief of staff, sent over a brief description of the components of the bill.  That document can be downloaded here.  Importantly, Representative Coffman, who served in both the United States Army and Marine Corps as both enlisted and an officer, has submitted similar bills for passing in previous sessions of Congress.

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Topics: Government Procurement, sdvosb, government contracts attorney, SDVOSB, SDVOSB attorney, SDVOSB status denial

Lack of VetBiz registration insufficient for SDVOSB Status protest

Posted by Joseph Whitcomb on Dec 28, 2013 9:22:43 AM

SDVOSB Status Protest Case Study: Matter of MJL enterprises

Many of my clients express worry about an SBA SDVOSB status protest in the event they are awarded a contract before their CVE certification is complete. This recent ruling from the SBA OHA sheds some light on that issue.

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Topics: Bid Protests, Government Procurement, sdvosb, Bid Protest attorney, bid protest lawyer, CVE certification, CVE denial, CVE status denial, government contracting, government contracts attorney, SBA protests, SDVOSB, SDVOSB attorney, sdvosb certification, SDVOSB challenge, SDVOSB status, SDVOSB status denial, SDVOSB Status protest, service disabled veteran owned business, CVE-Center for Verification and Eligibility, veteran control, veteran owned business, veteran owner control

SDVOSB status denial--Quorum Language

Posted by Joseph Whitcomb on Dec 4, 2013 11:16:09 AM

Was Your SDVOSB Status Denial Due to Quorum Language in Your Bylaws?

According to the Center for Verification and Eligibility (CVE) website, the number one reason for SDVOSB status denial is quorum language in a company's bylaws that gives passive control to non-veteran board members.  This is a function, in this author's opinion, of a misreading of the law.  SDVOSB status denial letters will often cite 38 CFR 74.4(f)(2) for the proposition that quorum language in a company's bylaws cannot allow for passive control by not Veteran board members.  However, the CVE's reasoning is legally flawed, because 38 CFR § 74.4(f)(1)(ii) states:

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Topics: Government Procurement, sdvosb, CVE denial, CVE status denial, SBA protests, SDVOSB attorney, sdvosb certification, SDVOSB status, SDVOSB status denial, service disabled veteran owned business, service disabled veteran owned small business, CVE-Center for Verification and Eligibility, veteran control, veteran owned business, veteran owner control

Denied for Inclusion in Vetbiz database-Request for Reconsideration

Posted by Joseph Whitcomb on Nov 25, 2013 11:35:12 PM

Were you denied inclusion in the Vetbiz Database? Try a "Request for reconsideration"

38 CFR 74.13 asks "Can an applicant ask CVE [Center for Verification and Eligibility] to reconsider its initial decision to deny an application?" The answer is yes.  If CVE denies your firm's inclusion in the Vetbiz database, submitting "request for reconsideration" to the director of the  Center for Verification and Evaluation is the next step.  Many times the reasons for your firm was denied inclusion in the Vetbiz database may not  make sense.  You have operated in good faith and gone to great pains to make sure your company satisfies the CVE's posted requirements.  However, quorum language in your bylaws or the fact that you live in a community property state and are married can lead to your applications denial.  Many people have argued in vain that the application process is unnecessarily complicated and does more to hurt deserving veterans than prevent fraudulent certifications, but for now, this is the system we are stuck with.

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Topics: Bid Protests, Government Procurement, sdvosb, CVE certification, CVE denial, SDVOSB attorney, sdvosb certification, SDVOSB denial, SDVOSB lawyer, SDVOSB status, SDVOSB status denial, SDVOSB Status protest, service disabled veteran owned business, service disabled veteran owned small business, CVE-Center for Verification and Eligibility, veteran control, veteran owned business, veteran owner control

CVE Verification: Center for Verification and Evaluation has "Control" Issues

Posted by Joseph Whitcomb on Nov 11, 2013 9:09:43 PM

CVE Verification

Quorum Language

Regarding CVE verification, 38 CFR 74.3 (b) states:
(b) Ownership must be unconditional. Ownership by one or more veterans or service-disabled veterans must be unconditional ownership. Ownership must not be subject to conditions precedent, conditions subsequent, executory agreements, voting trusts, restrictions on assignments of voting rights, or other arrangements causing or potentially causing ownership benefits to go to another (other than after death or incapacity). The pledge or encumbrance of stock or other ownership interest as collateral, including seller-financed transactions, does not affect the unconditional nature of ownership if the terms follow normal commercial practices and the owner retains control absent violations of the terms. In particular, CVE will evaluate ownership according to the following criteria for specific types of small business concerns. http://www.va.gov/osdbu/docs/38CFR74.pdf

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Topics: SBA Bid Protest, Government Procurement, CVE verification, sdvosb, CVE sdvosb denial, government contracts attorney, SDVOSB, SDVOSB attorney, SDVOSB lawyer, SDVOSB status, SDVOSB status denial, service disabled veteran owned small business, CVE-Center for Verification and Eligibility, veteran control, veteran owned business, veteran owner control

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