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By Debbie Gregory.

Vets First, a policy that gives preference to veteran-owned small businesses, has long been circumvented by the Department of Veterans Affairs. This is in direct defiance of orders from Congress, the Government Accountability Office (GAO) and more recently, the U.S. Supreme Court.

The program was created for Veteran-Owned Small Businesses and expanded the Service-Disabled Veteran contracting program for VA procurements. It was designed to ensure that legitimately owned and controlled VOSBs and SDVOSBs are able to compete for VA VOSB and SDVOSB set-aside and are credited by VA’s large prime contractors for subcontract plan achievements.

In Kingdomware Technologies, Inc. v. United States, the court ruled that not only was the VA disregarding VETS First, but in moving forward, the department’s “rule of two” should be used for all VA procurements.

The “rule of two” states a contracting officer of the VA, “shall award contracts on the basis of competition restricted to small business concerns owned and controlled by veterans if the contracting officer has a reasonable expectation that two or more small business concerns owned and controlled by veterans will submit offers and that the award can be made at a fair and reasonable price that offers best value to the United States.”

In order to be in compliance, the VA must:

Revise its acquisition policies and training to ensure better oversight of its contracting activities;
Improve the ability for veteran-owned small businesses to obtain Federal Supply Schedule contracts for the products the VA buys; and
Discontinue its use of contract vehicles that do not contain veteran-owned small businesses.

With more than 7,000 veteran and service-disabled veteran-owned small businesses in the U.S. that have met the Vets First criteria, there is no excuse for the not to award contracts to these businesses.