Here is an update on the U.S. Department of Veterans Affairs (VA) socioeconomic procurement preference program and small business accomplishments. You will not find this information on VA’s Office of Small and Disadvantaged Business Utilization (OSDBU). VA’s OSDBU stopped posting and publishing this information on a monthly basis years ago.
As a courtesy to the Service-Disabled Veteran-Owned Small Business (SDVOSB) and Veteran-Owned Small Business (VOSB) Communities, as well as to their advocates and other interested parties, FedBizAssist will provide monthly updates to show the effect of VA’s implementation of the U.S. Supreme Court Decision in the matter of Kingdomware Technologies vs. United States.
This update includes charts comparing VA’s Fiscal Year 2017 (October 1, 2016 through June 30, 2017) with VA’s Fiscal Year 2016 (October 1, 2015 through June 30, 2016), expressed as total number of transactions, total dollars spent, and accomplishments as percentages of total dollars spent.
Now with the “Rule of Two” officially ensconced at VA courtesy the Supreme Court, how is the VA doing in terms of its Service-Disabled Veteran-Owned Small Business (SDVOSB) and Veteran-Owned Small Business (VOSB) accomplishments?
On a positive note, VA is clearly remains the Federal leader in contracting with Service-Disabled Veteran-Owned Small Business (SDVOSB) and Veteran-Owned Small Business (VOSB). Although the number of transactions reported for SDVOSBs and VOSBs are down significantly, 55.89%, and 44.21%, respectively, spending with these firms is up by $549 Million and $525 Million, respectively, compared to the same period for Fiscal Year 2016. As a percentage of total VA spending, spending with SDVOSBs and VOSBs is up 4.28% and 2.97%, respectively, also when compared to the same period for Fiscal Year 2016.
On the down side, VA has flatlined its SDVOSB and VOSB goals since Fiscal Year 2010, despite substantially exceeding these goals each year. VA’s Secretary issued no small business goaling memoranda for Fiscal Years 2015 and 2016, and issued the Fiscal Year 2014 Secretary’s Goaling memorandum with only 38 days remaining in the fiscal year. The current fiscal year’s goals were not issued until May 25, 2017, with only 128 days remaining in Fiscal Year 2017.
It also appears the U.S. Small Business Administration Section 8(a) Business Development Program at VA is all but gone. For Fiscal Year 2017, through June 30, 2017, VA has reported a total of 125 transactions totaling $17,042,085 using the authority of Section 8(a) of the Small Business Act.
It’s hard to say why VA is using the Section 8(a) Authority, probably because these procurements are non-competitive procurements, and VA’s implementing guidance for the “Rule of Two” applies to competitive procurements. Of course VA also has the authority to make sole source awards to SDVOSBs and VOSBs. I will attempt to identify these specific transactions and provide an update later this month as to which VA office issued these contracts, to whom, and what the contracts covered. Perhaps there are cogent and compelling reasons for not using SDVOSBs or VOSBs?
Below is a snapshot of VA’s FY 2017 SDVOSB and VOSB accomplishments vs. the same period in FY 2016: Please note, SDVOSB accomplishments are included in VOSB accomplishments. Federal departments and agencies are allowed to count expenditures with firms in multiple socioeconomic categories in each of their respective categories. All SDVOSBs are also VOSBs, but all VOSBs are not SDVOSBs.
Therefore, VOSB accomplishments are inclusive of SDVOSB accomplishments, not in addition to them.
Service-Disabled Veteran-Owned Small Business Accomplishments
Dollars Reported: $2.575 Million – Up from $2.026 Million (Increase of $549 Million)
Accomplishment: 17.38% — Up from 13.10% (Increase of 4.28%)
Number of transactions reported: 30,447 – Down from 69,029 (Decrease of 38,582 transactions — over 55.89%)
Veteran-Owned Small Business Accomplishments
Dollars Reported: $2.759 Million – Up from $2.234 Million (Increase of $525 Million)
Accomplishment: 17.38% — Up from 14.41% (Increase of 2.97%)
Number of transactions reported: 73,049 – Down from 127,724 (Decrease of 54,675 transactions — over 42.1%)
Click the link below to view/download/print the charts: