SDVOSB Reverification Process: What Veteran Businesses Need to Know

The Service-Disabled Veteran-Owned Small Business (SDVOSB) certification is a valuable qualification that veteran entrepreneurs can leverage to gain set-aside contracts and other federal government incentives. For these companies, maintaining their SDVOSB verification is crucial to remain eligible for such opportunities. With recent changes, such as the transition of certification oversight from the Department of Veterans Affairs (VA) to the Small Business Administration (SBA), SDVOSBs need to be particularly vigilant during the reverification process to stay compliant and competitive.

Understanding the SDVOSB Reverification Process

The SDVOSB reverification process ensures that businesses continue to meet the requirements necessary to maintain certification. Formerly managed by the VA, the SDVOSB certification process now falls under the SBA's jurisdiction. This transfer, effective in 2023, brought new guidelines designed to simplify the reverification process for eligible businesses. It is essential for veteran-owned businesses to understand the updated SDVOSB requirements and timelines to avoid disruption in certification.

Typically, reverification is required every three years. During this process, businesses must provide documentation demonstrating that they still meet SDVOSB verification criteria, including proof of service-disabled veteran ownership and operational control. Timely and accurate completion of this process is essential for firms looking to maintain their eligibility for government contracts. Missing deadlines or submitting incomplete or inaccurate information can result in losing SDVOSB certification and valuable contracting opportunities.

Key Steps in the SDVOSB Reverification Process

There are several key steps involved in the SDVOSB reverification process:

1. Preparation of Required Documents: Businesses must gather essential documents, including proof of veteran status, disability rating, and control over business operations. Keeping these records updated and organized will facilitate a smooth reverification process.
2. Submission of Reverification Application: The application, along with supporting documentation, must be submitted to the SBA’s Veteran Small Business Certification (VetCert) program. It's crucial to ensure all information is accurate and complete.
3. Review and Determination: The SBA reviews the application and may request additional information or clarifications before making a final determination.
4. Simplified Reverification for Eligible Firms: Some businesses may qualify for a simplified reverification process, which reduces the administrative burden for firms that have had no significant changes since their last verification. More information on this option is here.

Common Challenges in SDVOSB Reverification

While the SDVOSB reverification process may seem straightforward, businesses often encounter challenges such as:

• Incomplete or Inaccurate Documentation: One of the most common issues is submitting incomplete or inaccurate documentation, particularly regarding veteran status and business control. Ensure all required documents are carefully reviewed and submitted.
• Missed Deadlines: Missing the reverification deadline can result in losing your SDVOSB certification, jeopardizing your ability to bid on government contracts.
• Changes in Business Structure: Any changes to the ownership or management of the business must be accurately reflected during reverification. Failure to report such changes can result in disqualification.

By being proactive and staying organized, SDVOSBs can avoid these common pitfalls. For more information on potential challenges and strategies to navigate them, consult the SBA's Federal Contracting page.

Recent Changes in SDVOSB Certification

In 2023, responsibility for SDVOSB certification was transferred from the VA to the SBA. This change aims to create a more uniform certification process across all small business programs, simplifying the SDVOSB verification process. In addition, the SBA granted a one-year extension to previously verified firms, giving them additional time to complete reverification under the new SBA guidelines. Businesses can review the updated regulations on the SBA’s VetCert page.

Case Study: Miles Construction, LLC v. United States

In Miles Construction, LLC v. United States, the Court of Federal Claims dealt with a key issue regarding SDVOSB certification. After being awarded a contract, Miles Construction faced a protest questioning its SDVOSB eligibility due to concerns about ownership and control. The Department of Veterans Affairs removed the company from its SDVOSB program, citing provisions in Miles Construction’s operating agreement that allegedly restricted the service-disabled veteran owner's control. The VA claimed these provisions violated the "unconditional ownership" requirement necessary for SDVOSB status under 38 C.F.R. § 74.3.

The case revolved around specific clauses in the company’s operating agreement, particularly those dealing with the right of first refusal and transfer of ownership interests. The VA argued that such provisions created an executory agreement that limited the veteran's ability to transfer or control ownership, thereby disqualifying Miles Construction from SDVOSB certification. However, the court found that these clauses were standard commercial provisions and did not impede the veteran's control or ownership rights.

This decision underscores the importance of ensuring that SDVOSB operating agreements comply with VA and SBA regulations. While companies can include typical business provisions like rights of first refusal, they must ensure these do not compromise the "unconditional" nature of ownership. For SDVOSBs, the Miles Construction case highlights the critical need to carefully structure agreements to maintain certification.

How Whitcomb, Selinsky PC Can Assist with SDVOSB Reverification

Navigating the SDVOSB reverification process can be complex, especially in light of the recent changes to certification oversight. Whitcomb, Selinsky, PC specializes in helping veteran-owned businesses meet SDVOSB requirements and complete their SDVOSB verification and reverification. Our team is experienced in handling the documentation and legal intricacies involved in the SBA's VetCert process.

Whether you're facing challenges with documentation, business structure changes, or meeting deadlines, Whitcomb, Selinsky PC can help. We provide comprehensive support to ensure a smooth reverification process and help businesses maintain their SDVOSB certification. Learn more about how our legal experts can assist you with SDVOSB certification and other legal matters here.

Conclusion

The SDVOSB reverification process is an essential part of maintaining certification and continuing to access valuable government contracts. With the recent transition of certification oversight from the VA to the SBA, it's more important than ever for SDVOSBs to stay informed and compliant with the new process.

Whitcomb, Selinsky PC is ready to support veteran-owned businesses through every step of the SDVOSB verification and reverification process. Contact us today to ensure your business remains eligible for government contracts and stays compliant with the latest SDVOSB requirements.