MLB Transportation, Inc., a self-certified service-disabled veteran-owned small business (SDVOSB), filed a post-award bid protest in the U.S. Court of Federal Claims after the Department of Veterans Affairs (VA) excluded it from a procurement for not being listed in the Center for Verification and Evaluation (CVE) database at the time of award. MLB argued that the VA improperly disqualified its offer despite its SDVOSB status in the System for Award Management (SAM).
The procurement at issue was set aside exclusively for SDVOSBs under the Veterans Benefits, Health Care, and Information Technology Act of 2006 and its implementing regulations. These rules required offerors to be verified as eligible in the CVE database maintained by the VA at the time of award.
MLB submitted a timely proposal and was the lowest-priced, technically acceptable offeror. However, the VA excluded MLB because its CVE verification had lapsed prior to award. MLB argued that the exclusion violated procurement law, claiming its SAM registration and service-disabled status were sufficient and that the VA’s reliance on the CVE listing alone was improper.
Court upheld CVE listing requirement under statutory framework
The court reviewed whether the VA lawfully excluded MLB based on its lack of CVE verification at the time of award. It examined 38 U.S.C. § 8127 and VA Acquisition Regulation (VAAR) 852.219-10, both of which required verified SDVOSB status in the VA-maintained database for set-aside procurements.
The court rejected MLB’s claim that the SAM system should govern. It held that the VA’s CVE verification was mandatory under the applicable statutory and regulatory framework. The court found that the language of VAAR 852.219-10 unambiguously required SDVOSB offerors to be listed in the VIP (Vendor Information Pages) database at the time of award.
MLB also argued that the VA should have notified it before excluding its bid. The court disagreed, stating that responsibility for maintaining CVE eligibility rested with the offeror, and the VA had no duty to provide notice of non-listing.
Final outcome
The Court of Federal Claims dismissed MLB’s bid protest, holding that the VA properly excluded the company from award due to its lapsed CVE status. The ruling confirmed the enforceability of VA’s certification rules for SDVOSB set-aside procurements.
Help with SDVOSB certifications and bid eligibility
If your veteran-owned business was excluded from a federal contract due to CVE listing issues or eligibility disputes, Whitcomb, Selinsky PC handles SDVOSB certification, CVE appeals, and bid protest litigation. Reach out to schedule a consultation and learn how our team can assist with your case.
Joe Whitcomb
