The House and Senate have agreed to eliminate service-disabled veteran-owned small business self-certification and adopt a government-wide SDVOSB certification requirement, while transferring control of the certification process from the VA to the SBA. Proposed decertification. Surviving spouse. Start Printed Page 73427 8127, authorize Federal contracting officers to restrict competition to eligible VOSBs and SDVOSBs for Department of Veterans Affairs (VA) contracts. (f) (3) e.g., The reduced responsibility to verify eligibility at contract award may also result in a minor cost savings to the contracting agencies. For VA procurements, a contracting officer may award a VOSB or SDVOSB contract as set forth in the VAAR. Agencies are responsible for adjudicating all preference claims except claims for preference based on common-law marriage, which should be sent to the Office of Personnel Management (OPM), Office of the General Counsel, 1900 E. St. NW, Washington, DC 20415. Except for good cause shown, evidence beyond the case file will not be admitted. 125.3(a) of this chapter) in effect at the time of contract award remain in effect throughout the life of the contract. Start Printed Page 73406 (1) An interested party, other than SBA, VA, or the contracting officer, must deliver a VOSB or SDVOSB status protest to the contracting officer in person, by email, facsimile, by express delivery service, or by U.S. mail (postmarked within the applicable time period) to the contracting officer. The notice and order will inform the parties of the filing of the appeal petition, establish the close of record as 15 days after service of the notice and order, and inform the parties that OHA must receive any responses to the appeal petition no later than the close of record. The qualifying veteran who holds the highest officer position of the business concern may not engage in outside obligations that prevent the qualifying veteran from devoting the time and attention to the concern necessary to control its management and daily business operations. headings within the legal text of Federal Register documents. Section 128.303(b) provides that 8(a) BD program participants must demonstrate that the disadvantaged individual is a qualifying veteran, provide documentation of its most recent annual review (or of its 8(a) BD program acceptance if it has not yet undergone annual review), and certify that there have been no material changes in its ownership or control. Timothy Green, U.S. Small Business Administration, Office of Veterans Business Development, 409 Third Street SW, 5th Floor, Washington, DC 20416; (202) 205-6777; (3) The contracting officer must update the Federal Procurement Data System (or successor system) and other procurement reporting databases to reflect the Judge's decision. This policy is consistent with changes SBA has also proposed making in the WOSB program. i.e., When may a joint venture submit an offer on a VOSB or SDVOSB contract? 1001, 18 U.S.C. SBA received 168 comments from 90 commenters in response to the proposed rule (Regulations.Gov Docket #SBA-2022-0007). SBA received 1 comment requesting that SBA conduct virtual program examinations rather than in-person visits. see 3. The decision is the final agency decision and becomes effective upon issuance. Requirements to be an SDVOSB - National Veteran Small Business Coalition A prime contractor acting in good faith should not be held liable for misrepresentations made by its subcontractors regarding the subcontractors' VOSB or SDVOSB status. 801 The Small Business Administration (SBA) issued a final rule last week, officially transferring the responsibility for certification of veteran-owned small businesses (VOSB) and service-disabled veteran-owned small businesses (SDVOSB) to SBA, effective January 1, 2023. (j) The Regulatory Flexibility Act (RFA), 5 U.S.C. Remove subparts A through F, consisting of 125.12 through 125.100. Compliance With Executive Orders 12866, 12988, 13132, 13175, 13563, the Congressional Review Act (. change in size status, ownership, or control, filing of bankruptcy, or calling to active duty) and may withdraw its application at that time. 8127. SBA believes uniformity between its small business The first key change under the Final Rule is that, to be certified as a VOSB or SDVOSB for purposes of federal government contracts, a business must be small, inclusive of all domestic and foreign affiliates, in accordance with the SBA's employee-based or revenue-based size standard corresponding to at least one of the North American Industrial . Contents. Commencement of VOSB or SDVOSB status protests. Previously, those firms only needed to self-certify their status to pursue SDVOSB sole source and set-asides. At the time of certification, a VOSB or SDVOSB must be a small business under the size standard corresponding to any NAICS code listed in its SAM profile. OMB directs agencies to establish an appropriate baseline to evaluate any benefits, costs, or transfer impacts of regulatory actions and alternative approaches considered. (2) A joint venture between a protg firm certified as a VOSB or SDVOSB and its SBA-approved mentor ( (8) For protests of eligibility for inclusion in the Veteran Small Business Certification Program, in subpart J of this part; (9) For appeals of denials of certification and decertification in the Veteran Small Business Certification Program, in subpart K of this part; and. To qualify for VOSB classification, you must first qualify as a certified small business. In carrying out its statutory mandate to certify VOSB and SDVOSB firms, SBA intends to collect information from VOSB and SDVOSB applicants or participants through an online application system. (a) For VA procurements, a contracting officer may set aside a contract for a VOSB or SDVOSB as set forth in the VAAR. (4) If, after certifying a Participant, SBA discovers that a firm has been debarred from federal government contracting, SBA will remove the Participant from the certification database immediately, notwithstanding the provisions of 128.310. Start Printed Page 73416 VOSB and SDVOSB certification requirement. (Former, Section 128.306How does a concern maintain its VOSB or SDVOSB certification? Firms must continue to meet the VOSB or SDVOSB requirements at all times while certified and may be subject to a program examination or a VOSB or SDVOSB status protest. SBA received no comment on this section and is implementing 128.302 as proposed. Use the PDF linked in the document sidebar for the official electronic format. (b) (d) Ownership will be determined without regard to community property laws. 3309, 3313 and 5 CFR 332.401, 337.101. 2. Proposed 128.500(b) clarified that there were separate procedures for size protests and status protests. It is the responsibility of the Applicant to ensure all contact information is current in the certification database. However, the proposed rule eliminated consideration of whether an individual who is currently incarcerated, or on parole or probation, owns or controls an applicant concern in determining whether the applicant possesses good character and thus may qualify as a VOSB or SDVOSB. Prior to identification as apparent successful offeror. Service-disabled veteran with a permanent and severe disability (2) The protested concern, the D/GC, the contracting officer, and any other interested party ( Accordingly, in this final rule, SBA provides that a participant may recertify within 120 The decision is considered the final agency action, and it becomes effective upon issuance. Previously, only firms that were small in their primary North American Industry Classification System (NAICS) code were considered eligible for certification as VOSBs or SDVOSBs. Decertification pursuant to a protest. General. As discussed throughout this rule, SBA attempted to achieve uniformity wherever possible. 8127(f)(6)(B)(i). 645(a), as amended, including failure to correct continuing representations that are no longer true. Become a Certified Service-Disabled Veteran-Owned Small Business (a) SBA believes it important to include a statement in 128.304 to address appeals for denials solely based on an individual's status as a veteran or service-disabled veteran. 7. However, contracting officers, in their discretion, may require a concern to perform the applicable amount of work or comply with the nonmanufacturer rule for each order awarded under the contract. (f) Participants must retain documentation demonstrating satisfaction of all qualifying requirements during the entire period of participation. Upon receipt of notice of SBA's intent to appeal, the contracting officer must suspend further action regarding the procurement until the Secretary of the department or head of the agency issues a written decision on the appeal, unless the Secretary of the department or head of the agency makes a written determination that urgent and compelling circumstances which significantly affect the interests of the United States compel award of the contract. SBA agrees but believes that for organizational purposes, these requirements are more appropriate for inclusion in the additional eligibility requirements at 128.201(b). (d) To remain in the program, VA requires participants to notify the agency of a change in circumstances such as a change in ownership or control of the firm. Finally, the final rule revises subparts J and K of part 134 to reflect the transfer of authority for certifying VOSBs and SDVOSBs from VA to SBA. (c) (2) Other small business concerns that meet the eligibility requirements of this part but do not seek SDVOSB set-aside or sole source contracts may continue to self-certify their SDVOSB status, receive prime contract or subcontract awards that are not SDVOSB set-aside or sole source contracts, and count toward an agency's goal for SDVOSB awards. articles of incorporation, bylaws, stock ledgers or certificates, tax records) is already maintained in the normal course of business and is used to support existing certifications and self-certifications. For ease of review, SBA organized its final rule for part 128 Section-by-Section Analysis into subparts and sections. SBA received several comments requesting clarity on an applicant's due process rights for denials, decertification, and protests to SBA Office of Hearings and Appeals (OHA) in 128.304, 128.310, and 128.500.

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